Novadx Ventures Corp.

Novadx Ventures Corp.

June 22, 2009 09:15 ET

NovaDX Closes MCoal Corporation US$1,000,000 Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 22, 2009) - NovaDX Ventures Corp.'s ("NovaDX") (TSX VENTURE:NDX) wholly-owned subsidiary, MCoal Corporation ("MCoal"), is pleased to announce that it has closed a US$1,000,000 private placement of Series "A" 12% Secured Convertible Debentures (the "Debentures").

The Debentures are secured against MCoal's assets and mature on June 12, 2010. Interest at a rate of 12% per annum is payable on the earlier of the date of conversion or maturity. The Debentures are convertible at anytime up to the date of maturity into a 25% participating interest in a joint venture to be formed between MCoal and the debenture subscribers (the "Debenture Subscribers") to develop MCoal's Rosa Coal Project located in Blount County, Alabama. The Debentures automatically convert upon the date that:

- MCoal receives all necessary licenses, permits and other approvals allowing the Joint Venture to begin mining the Rosa Coal Project;

- MCoal arranges for additional project financing of not less than US$1,500,000; and,

- the Debenture Subscribers and MCoal enter into a definitive joint venture agreement.

Subject to the approval of the TSX Venture Exchange, NovaDX intends to pay aggregate finder's fees in the amount of US$60,000 in connection with the Offering to arm's length parties payable through the issuance of 600,000 common shares (the "Finders Shares") of NovaDX at US$0.10 per share. The Finder's Shares will be subject to a hold period of four months and one day from the date of issuance.

The Debentures were subscribed for equally by R.J Tocher Holdings Ltd. and C.E. Tocher Holdings Ltd. of Vancouver, British Columbia. The proceeds of this private placement will by used by MCoal to obtain all necessary licenses and permits and to continue acquiring surface and mineral interests within the Rosa Coal field.

Neil MacDonald, President and CEO of both NovaDX and MCoal, commented that, "This financing will allow MCoal to complete the final steps required to obtain the Rosa Coal Project Mine permits which we believe will add substantially to the overall value of the project. We are very pleased that the investors have recognized the investment opportunity the Rosa Coal Project offers and look forwarding to working with them as joint venture partners in the future."

About MCoal: MCoal Corporation, a wholly owned subsidiary of NovaDX Ventures Corp., has been actively acquiring surface and mineral interests that cover the Rosa Coal deposit. The Rosa Coal Project is a metallurgical coal mine project located in Blount County in Northern Alabama, approximately 40 miles from the City of Birmingham, which is the location of two existing coking plants that have historically used the Rosa Coal in their operations. Previous strip mining of the fringes of the Rosa Coal deposit has left a high-wall ideally suited for auger mining. In January, 2009, MCoal conducted a successful test mine of the Rosa deposit extracting 250 tons using a triple auger. Based on the knowledge gained from this test mine, management has developed detailed mine operating plans. The Rosa Coal Project can be operated 12 months per year and is located in a coal mining area, with well-developed infrastructure, services and skilled labour readily available. All exploration and development of the mine plan has been supervised by MCoal's qualified person, Sanford Hendon, P.Eng of McGehee Engineering Inc. who has been retained by MCoal to complete a National Instrument 43-101 report to confirm the reserves, resources and preliminary feasibility of the Rosa Coal Project. MCoal's long term plans are to develop several metallurgical coal mines in the Appalachian region.

About NovaDX: NovaDX is a Vancouver-based investment firm whose primary focus is on providing merchant banking and other business advisory services to micro-cap natural resource issuers, a largely overlooked but important sector of the equity markets. NovaDX's business plan involves seeking out investment opportunities in companies that have quality management and projects that demonstrate an above average opportunity for near term production or new resource discoveries.

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Neil MacDonald, President and CEO

Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The company cautions readers that forward-looking statements, including without limitation those relating to the company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.

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