SOURCE: TX Holdings, Inc.

December 23, 2009 09:00 ET

TX Holdings, Inc. Issues Clarification and Correction to Release Issued December 21st, 2009

ASHLAND, KY--(Marketwire - December 23, 2009) - TX Holdings, Inc. (OTCBB: TXHG), an oil and gas operator and exploration company announces that it would like to clarify and correct a description of the Company's 320-acre Parks Lease located in Callahan County, Texas.

On December 21st, 2009 the Company stated the following, "The reserve report on the Parks Lease provided to the Company by W.A. Alexander, Jr. indicates seven (7) million barrels of recoverable oil."

The report provided by W.A. Alexander, Jr. dated July 2007, indicates Proved Reserves for the Parks lease were estimated at 7,467,900 barrels of oil. Not recoverable oil stated in the release. The report states Proved Developed Producing reserves at the time the report was written in early 2007 were 5,974,320 gross barrels of which 4,854,135 barrels, 81.75% net interest could be recovered over a 23 year period if the Company expended the proper amount of capital during the initial 2 years of the project. It is important to note that the Company did not make that expenditure. Investors are to be reminded that the Company currently holds a 75% working interest in the Parks Lease.

Mr. Alexander further advised the Company the report was prepared for management as a confidential document and does not comply with current 2009/2010 SEC standards. Mr. Alexander was not consulted before the issuance of the release and did not consent to the dissemination of the information contained in the report. It is further noted that Mr. Alexander is no longer affiliated with the Company as of December 2007.

TX Holdings is aggressively pursuing an updated geological survey that complies with current 2009/2010 SEC standards and will report the results of that report when completed.

Forward-Looking Statements

Safe Harbor Statement under the Private securities Litigation Reform Act of 1995: The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies, products and services, delays in testing and evaluation of products and services, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

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