Running Fox Resource Corp.

Running Fox Resource Corp.

January 16, 2007 15:04 ET

Running Fox: Making Progress With New Technology and Completes $2.4 Million Private Placement Financing

STETTLER, ALBERTA--(CCNMatthews - Jan. 16, 2007) - Running Fox Resource Corp. (TSX VENTURE:RUN)(PINK SHEETS:RFXRF)(FWB:C8Q): Trent Moore, VP, on behalf of the Board of Directors reports:

Technology Progress: Industry demand for Running Fox's patent-pending drill fluid recycler and solids separator is growing, with the first unit booked on a drill rig for start-up next week. The second unit, currently being built, will be completed, placed in service, and onsite a drill location prior to the end of the month. Design improvements and component sourcing have reduced the manufacturing cost of the unit. During a recent onsite test, the unit accomplished approx. $7,000 in savings for the oil company over two days. The application is designed to be suitable everywhere wells are drilled for oil and natural gas using oil-based drill fluids. The commercial-scale unit compliments conventional drilling rig equipment to make drilling operations more cost effective, reducing costs associated with oilfield waste, reducing the volumes of drilling fluids sent to landfills or disposal sites, and helping the environment.

Financing: Running Fox has received regulatory approval and thus completed its non-brokered private placement financing in the amount of $2,400,000.

2,823,000 units of the financing are priced at 75 cents for a share and a warrant, with each warrant exercisable at $1.10 for one year and $1.50 in the second year.

280,000 units of the financing are priced at $1.00 per Unit for a flow through share and one-half of a non-flow through share purchase warrant, exercisable for one year at $1.25.

All warrants for the financing have a re-pricing mechanism due to the Company's planned and previously announced splitting off of a separate Energy NewPubCo. to create a new public company to enhance shareholder value. All securities in the financing have a four-month hold period expiring April 10, 2007.

Running Fox is an energy sector Canadian small cap company with three distinct divisions:

1. Oil and Natural Gas Exploration and Production;

2. Energy Sector Field Services, Construction and Technology; and

3. Advanced High-Grade Gold Project in British Columbia.

First nine months consolidated revenues were $5.150 Million, with net income prior to acquisition adjustments of $884,000.

The Company is well leveraged to natural gas prices with its Alberta operations, and its high-grade BC gold project provides upside and leverage to the price of gold.

On behalf of the Board of Directors: Trent Moore, VP, Running Fox Resource Corp.

The Company relies on legislation for forward looking statements, seeking safe harbour.

Contact Information

  • Running Fox Resource Corp.
    Trent Moore
    (403) 742-0500