The Concerned Shareholders of RX Exploration Inc.

May 27, 2011 15:53 ET

The Founders and Managers of RX Exploration Denounce the Board's Treacherous Delay Tactics

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WINNIPEG, MANITOBA--(Marketwire - May 27, 2011) - The Founders and Managers of RX Exploration Inc. ("RX Exploration" or the "Company"), Bob Bannerman, Mike Gunsinger, Murray Nye and Max Polinsky (the "Concerned Shareholders"), are extremely frustrated to learn that the Board of Directors of the Company are again creating unnecessary costs for shareholders to bear as they have purported to delay the annual and special meeting of shareholders (the "Meeting"), moving it from June 7, 2011 to July 26, 2011.

This outrageous action by the Board serves only to entrench their interests, disenfranchise and subvert the will of shareholders. In the face of already overwhelming support for the concerned shareholder nominees, the board's latest desperate action, demonstrates their utter disregard for the basic principles of shareholder democracy. The Concerned Shareholders will do everything possible to ensure that shareholders, and not a crony board of handpicked nominees, decide RX Exploration's future.

"This is yet another example of the difficulty of working with this uncooperative board. We are appalled that the current Board continuously abuses its power and manipulates shareholders. This Board is stealing the shareholders' voice and mismanaging their investments. These directors need to be replaced," states Concerned Shareholder, Bob Bannerman. "This needless hold-up is impeding our plans to move the Company into the commercial production stage and causing delays in creating value for shareholders."

It is imperative that the current board be replaced with new directors who have shareholders' concerns as their primary consideration. It is clear that the current board is mired in conflict and lacks the expertise the Company needs to grow and succeed, as evidenced by:

  • Conflicted Business Arrangements: John O'Donnell, the current Chairman of the Board, has issued invoices to the Company in excess of $700,000, payable to himself personally.

  • Conflicted Business Interests: John Ryan is the president and CEO of Spruce Ridge Resources Ltd., a joint venture partner of RXE, which creates a conflict of interest.

  • Unnerving History: Paul Teodorovici failed to disclose that he was a director of Canmine Resources Corporation, a failed company that was placed into receivership and ultimately liquidated.

  • The Wrong Focus: In our view, Mr. Roberts' primary contributions to the Board would be in the areas of exploration and further feasibility studies, while our focus at RX Exploration is production.

We need a new Board for the Company. A Board that is experienced, focused and free from conflict.

We implore shareholders to help put an end to this treachery and vote your GOLD proxy to protect what we have built and enable us to focus on increasing your shareholder value.

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