Kinetex Resources Corporation

Kinetex Resources Corporation

August 30, 2010 13:41 ET

Kinetex Announces CFO Resignation and Provides Audit Status Report

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 30, 2010) - Kinetex Resources Corporation (TSX VENTURE:KTX) ("Kinetex" and/or the "Company") today announced that the Company's Chief Financial Officer ("CFO"), Robert D. Ashauer, has resigned from the Company. Mr. Ashauer indicated that he has no disagreements with management.

The Company's intention is to identify a CFO who, in addition to having solid financial & operational experience, also possesses skills that are aligned with the current needs of Kinetex. The company will conduct a global search for a suitable candidate with exceptional caliber to fill the CFO position.

The Board of Directors of the Company thanks Mr. Ashauer for his contributions and dedicated service and wishes him well.

To assist with the audit process, effective immediately, the Company has engaged the services of Meyers Norris Penny LLP ("MNP") as an internal independent consultant. Mr. Ashauer has also committed to be available to the Company in a consulting capacity until the audit is completed. The Company is working to complete this audit process, in cooperation with BDO Canada LLP ("BDO Canada"), the Company's auditor, as expeditiously as possible.

"We are committed to finalizing this process as soon as possible, reporting on the required financial reports, and implementing improvements in our internal controls," stated Gil Schneider, President & Chief Executive Officer of Kinetex. "We continue to make significant improvements in our business and look forward to sharing our vision and strategy with all stakeholders once we complete this required course of action."

On July 22, 2010, the British Columbia Securities Commission (the "BCSC"), being the Principal Regulator, issued a Temporary Cease Trade Order ("CTO") to the Company for failure to file comparative audited Annual Financial Statements for the year ended December 2009 and interim financial statements for the period ended March 31, 2010 within the prescribed time frame. As a result, effective July 23, 2010, the trading in the common shares of the Company has been temporarily halted on the TSX Venture Exchange.

On April 30, 2010, the Company announced that it was not able to file its comparative audited Annual Financial Statements, Management Discussion and Analysis and CEO and CFO Certifications for the year ended December 31, 2009 (the "Annual Filings") on or before the prescribed deadline of April 30, 2010.

On March 10, 2010, the Company announced the appointment of BDO as the Company's new auditor, taking advantage of BDO Canada's worldwide experience as the Company continues to expand its operations internationally. It was also noted in the announcement that there were no reservations in the former auditor's reports for the two most recently-completed fiscal years or for any period subsequent to the most recently-completed period for which an audit report was issued and preceding the date of the former auditor's resignation. There were no reportable events (as defined in National Instrument 51-102 (Section 4.11)) between the Company and former auditor or between the Company and BDO Canada.

Kinetex also announces that on August 25, 2010, the Company filed an application for a partial revocation order (the "Partial Revocation Orders") with the BCSC in connection with the CTO issued by the BSCS on July 22, 2010 such that the Company can proceed with a financing. Terms of a potential financing have not yet been determined and the Company cannot confirm that a financing will be successfully negotiated.

The issuance of the Partial Revocation Orders does not guarantee the issuance of a full revocation order in the future.

About Kinetex
Kinetex is an oil, gas and mineral exploration services company with offices in Vancouver, BC, Calgary, Alberta and Bogota, Colombia. Through its subsidiaries, Kinetex provides data-rich high resolution subsurface images - essentially a brand-new exploration tool - to the energy, metals and minerals exploration and development industries seeking to go beyond the limitations of traditional data acquisition methods.

The Company seeks safe harbour.

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

Contact Information

  • Kinetex Resources Corporation
    Gil Schneider
    Chief Executive Officer
    604-484-5761 or Toll-Free: 1-888-484-5761
    604-484-5760 (FAX)