NEWS RELEASE

COLORADO: OIL & GAS UPDATE
3D SEISMIC CONFIRMS 2D TARGETS
SEVERAL NEW PROSPECTIVE TARGETS IDENTIFIED


Toronto, July 3, 2007 LEXAM EXPLORATIONS INC. (TSX-V: LEX) is pleased to announce that the interpretation of the Company's 3D seismic survey for the Baca Oil and Gas Project in south-central Colorado have confirmed earlier 2D derived targets for natural gas, in addition to identifying several new prospective areas for exploration.

3D SEISMIC SURVEY RESULTS

The 3D seismic survey covered an area totaling 16,000 acres. Cretaceous age source and reservoir rocks have been interpreted over the entire survey area. The total prospect area is 2,180 acres in size with the Company's two priority targets estimated to be located 14,000 ft (4,265 m) below surface.

The Dakota Sandstone of Cretaceous age is the primary target of Lexam's oil and gas exploration in the San Luis Basin. Regional well data from adjacent basins suggests that the expected thickness of the Dakota Sandstone in the targeted area ranges from 50 ft - 120 ft, with porosities of between 15 - 21%.

The site of the first proposed well is located along a structural feature that measures 445 acres in size. A high structural position has been mapped on which the prospective Cretaceous section has been interpreted. The target area appears to have been a relative high throughout its geologic history, which Lexam's consulting geologist believe is a preferred setting for reservoir development, early hydrocarbon emplacement and porosity preservation.

The second proposed well is located along the same structure, but 7,500 ft. south of the first target. The structural closure of this prospect is estimated to be 410 acres in size.

LOOKING TO EXPAND OIL & GAS POTENIAL

The seismic survey has also outlined seven new prospective fault block targets that range from 50 to 300 acres, with a sum of 1200 acres for the total area. The interpreted Cretaceous sub-basin extends both north and south of the 3D seismic survey. Should drilling be successful, there is opportunity to expand the exploration area in both directions.

COMPLIANT AGAINST EXPLORATION ACTIVITIES

On May 25th, 2007 Lexam announced that the San Luis Valley Ecosystem Council (SLVEC) had filed and served a Complaint against the United States Fish and Wildlife Service (USFWS) in Federal District Court in Colorado. The SLVEC claims that the USFWS has not complied with the National Environmental Policy Act (NEPA) in connection with certain exploration activities carried out and proposed by Lexam on the Baca Oil & Gas Project.

In order to address the SLVEC concerns, Lexam has decided to delay its exploration drilling until the USFWS makes a formal decision regarding the environmental policies the Company should follow. Lexam has been in full compliance with all environmental laws and regulations as setout by the State of Colorado and the USFWS in connection with the Baca Oil and Gas Project and will continue to operate within their stated guidelines.

Neil Hoey, P. Geo. is a "Qualified Person" as defined in National Instrument 51-101 and is responsible for the technical information presented in this news release.

About Lexam

Lexam Explorations is a North American based energy exploration company. Lexam's shares are publicly traded on the TSX-Venture Exchange under the symbol LEX. The company is advancing the Baca Oil & Gas Project located in south-central Colorado, USA, which is 75% owned by Lexam and 25% by ConocoPhillips and has an option to earn 50% interest in Golden Valley Mines Otish Basin uranium project located in Quebec, Canada.

CAUTIONARY STATEMENT

Some of the statements contained in this release are "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forwardlooking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: ability to raise financing for further exploration and development activities; risks relating to estimates of reserves, deposits and production costs; extraction and development risks; the risk of commodity price fluctuations; political, regulatory and environmental risks; and other risks and uncertainties in the reports and disclosure documents filed by Lexam from time-to-time with Canadian securities regulatory authorities. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The complete second quarter report including management's discussion and analysis, financial statements and notes can be found on our Company's website at www.lexamexplorations.com and on SEDAR at www.sedar.com.

For further information, please contact:

Ana E. Aguirre Manager, Investor Relations Tel: (647) 258-0395 Toll Free: (866) 441-0690 Fax: (647) 258-0408 E-Mail: info@lexamexplorations.com Web: www.lexamexplorations.com

Corporate Head Office Lexam Explorations Inc. 99 George Street, 3rd Floor Toronto, ON M5A 2N4