AME Abacus Mining and Exploration Corporation

Abacus Mining & Exploration Corporation (TSX VENTURE:AME) ("Abacus" or the
"Company") is pleased to provide an update following a Board Meeting held on
Friday, August 17, 2012 of the joint venture partners of KGHM Ajax Mining Inc.
("KGHM Ajax"). Abacus as 20% owner of the joint venture company met with the
senior management of KGHM International Ltd. ("KGHM International"), the
Canadian based subsidiary of KGHM Polska Miedz S.A. ("KGHM"). 


KGHM International to become Operator 

On April 2, 2012, as a result of KGHM's exercise of its additional interest
option to increase its ownership in KGHM Ajax from 51% to 80% (the "Development
Option") under the Joint Venture Shareholders' Agreement dated October 12, 2010
(the "JV Agreement"), KGHM paid approximately US$30 million to Abacus' account
in the joint venture company for use towards Abacus' proportionate share of the
capital costs of the Ajax copper-gold project (the "Ajax Project"). Under the
terms of the JV Agreement, KGHM can elect to become or appoint the Operator of
the Ajax Project as well as appoint an additional Director to the Board of KGHM
Ajax, prior to which the Board was comprised of two representatives of each of
Abacus and KGHM.


At the August 17th Board Meeting, Abacus was notified that KGHM would be
appointing KGHM International as the Operator of the Ajax Project effective
September 1, 2012. KGHM International also nominated Mark Blakely, Chief Project
Officer of KGHM International to the Board of KGHM Ajax. 


Appointment of new Leadership Team for KGHM Ajax

In addition, each of Abacus and KGHM selected an appointee for the CFO and COO
leadership roles, respectively, for KGHM Ajax, pursuant to the JV Agreement, and
agreed that these positions would be further defined in the weeks ahead. In the
interim, Jim Excell, currently the CEO of Abacus, will assume the role of CFO,
and Mark Blakely will become the COO of KGHM Ajax. 


Prior to joining KGHM International, Mr. Blakely held strategic planning and
development positions with major international groups, including the Ledcor
Group and Morrison Knudsen Corp., and principal engineering positions with
Bechtel Civil and Minerals Corporation and Raymond Kaiser Engineers in
Australia. In his position as Chief Project Officer at KGHM International, Mr.
Blakely oversees KGHM International's post pre-feasibility stage development
projects. 


It was recognized that the Ajax Project's success would benefit significantly
from the knowledge transfer of certain Abacus personnel who have been
instrumental in the Ajax Project's development to date, and that the Ajax
Project team would be further strengthened by KGHM International personnel
having the specific skill sets to advance the project through a successful
environmental and permitting phase towards the EPCM and construction start-up. 


Jim Excell, President & CEO, remarked, "We are very encouraged by KGHM's
assurance that the Ajax Project remains an integral part of KGHM's growth
strategy. In addition, KGHM International brings a level of expertise that can
advance Ajax along the critical path to production." 


Strategic review process update

Abacus has been working with financial advisor Stifel Nicolaus Canada Inc.
("Stifel") to evaluate potential strategic alternatives to maximize the value of
its 20% interest in the Ajax Project. Stifel has identified several potential
opportunities that are currently under various stages of review. The Company
plans to bring this process to the next step in the fall and will notify
shareholders of developments or decisions at that time. 


Ajax Project Update

Environmental and Permitting Status

The permitting process for the Ajax Project has progressed in conformity with
the procedures prescribed by the various levels of the Canadian government and
is well underway, having commenced in early 2011. Currently and throughout 2012
to date, the focus of Abacus and KGHM Ajax has been the development of the
document that will specify the Ajax Project's requirements, and conducting the
eventual studies and analyses that will be submitted to the provincial and
federal governments for evaluation. This document will follow templates which
are expected to be supplied by governments this fall - the Application
Information Requirements from a provincial government perspective and the
Environmental Impact Statement Guidelines from the federal government
perspective. 


Community 

A major emphasis has been the Ajax Project's integration into the local fabric
of the communities in and around Kamloops, and the significant socio-economic
contributions over the project's estimated 23 year mine life. KGHM Ajax has
committed to hiring primarily from within the local workforce, and to helping
local residents qualify for employment through training and development
programs. A number of community outreach programmes have been successfully
launched, including workshops, open houses, and currently bi-weekly mine site
tours, in addition to numerous sponsorships of local businesses and non-profit
organizations to demonstrate the project's commitment to the community. 


First Nations 

Abacus and KGHM Ajax have held several discussions with representatives of First
Nations groups and in particular the Stk'emlupsemc te Secwepemc ("STS"),
represented by the Tk'emlups and Skeetchestn Bands, following the Advanced
Exploration Agreement signed in December 2010. KGHM Ajax is currently finalizing
the Cultural Heritage Study Agreement and business agreement with the STS for
the construction and operations of the Ajax mine. A number of on-site tours
continue with First Nations groups, many of whom are also part of the working
groups as established by the BC Environmental Assessment Office and the Canadian
Environmental Assessment Agency. The Company is very encouraged by the
cooperation and desire to move forward in a spirit of mutual respect, creating
the foundation for a positive partnership for future generations. 


On Behalf of the Board,

ABACUS MINING & EXPLORATION CORPORATION

James D. Excell, President & CEO

Donna Yoshimatsu, Director, Investor Relations

About Abacus

Abacus is a mineral exploration and mine development company with a 20% interest
in the feasibility stage Ajax copper-gold project located near Kamloops, B.C.
The Ajax Project is a joint venture between Abacus Mining & Exploration
Corporation and KGHM Polska Miedz S.A. ("KGHM") through KGHM Ajax Mining Inc.
("KGHM Ajax"). 


The Ajax project feasibility study supports production of a total of 2.5 billion
lbs of copper and 2.28 million ozs of gold in concentrate, or an average of
approximately 109 million lbs of copper and 99,000 ozs of gold annually, over a
23 year mine life. Total proven and probable mineral reserves are estimated at 3
billion lbs Cu and 2.7 million ozs Au at 0.27% Cu and 0.17 g/t Au based on $2.50
Cu and $1,085 Au. The proposed mine plan envisages a conventional open pit
operation processing 60,000 tonnes per day or 21.9 million tonnes per year of
ore. (see Report titled "Ajax Copper/Gold Project - Kamloops, British Columbia
Feasibility Study Technical Report" by Wardrop (a Tetra Tech Company) dated
January 6, 2012 ("FS"))


Forward-Looking Information 

This release includes certain statements that are deemed "forward-looking
statements". All statements in this release, other than statements of historical
facts, that address events or developments that Abacus expects to occur, are
forward-looking statements. Forward-looking statements are statements that are
not historical facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although the Company believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance
and actual results may differ materially from those in the forward-looking
statements. Factors that could cause the actual results to differ materially
from those in forward-looking statements include changes to commodity prices,
mine and metallurgical recovery, operating and capital costs, foreign exchange
rates, ability to obtain required permits on a timely basis, exploitation and
exploration successes, continued availability of capital and financing, and
general economic, market or business conditions. Investors are cautioned that
any such statements are not guarantees of future performance and actual results
or developments may differ materially from those projected in the
forward-looking statements. Forward-looking statements are based on the beliefs,
estimates and opinions of the Company's management on the date the statements
are made. Except as required by applicable securities laws, the Company
undertakes no obligation to update these forward-looking statements in the event
that management's beliefs, estimates or opinions, or other factors, should
change.

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