Kinetex Resources Corporation
TSX VENTURE : KTX

Kinetex Resources Corporation

July 10, 2010 00:20 ET

Kinetex Provides Default Status Report

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2010) - Kinetex Resources Corp. (TSX VENTURE:KTX) (the "Company" or "Kinetex") is providing its fifth bi-weekly Default Status Report in accordance with National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"). In its news release on April 30, 2010 (the "Notice of Default"), the Company announced that it was not able to file its comparative audited annual financial statements for the year ended December 31, 2009 (the "Annual Filings") on or before the prescribed deadline of April 30, 2010.

As previously announced, the Company made an application to the applicable securities regulators under NP 12-203 requesting that a management cease trade order be imposed in respect of this late filing. On May 5, 2010, the British Columbia Securities Commission, being the Principal Regulator, issued a temporary management cease trade order. The issuance of the temporary cease trade order does not affect the ability of persons who have not been directors, officers or insiders of the Company to trade in their securities. However, the securities regulatory authorities, in their discretion, may determine that it would be appropriate to issue a general issuer cease trade order affecting all of the Company's securities. Until such time that the Annual Filings are filed or the securities regulatory authorities issue a general cease trade order, the Company will continue to provide bi‐weekly updates, as contemplated by NP 12‐203.

Other than as set out herein, the Company reports that since the Default Notice: (i) there is no material change to the information set out in the Default Notice that has not been generally disclosed; (ii) there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there has not been any other specified default by the Company under NP 12-203; and (iv) there is no other material information concerning the affairs of the Company that has not been generally disclosed.

BDO Canada (the "Auditors") has provided an updated timeline to management regarding completion of the audit engagement. The Auditors have reiterated that they are committed to working diligently with management to bring timely closure to the audit engagement. Based on the Auditor's updated projection, the Company now expects to file its annual financial statements for the year ended December 31, 2009 by no later than July 16, 2010. As a result of such delay in the Annual Filings, the Company shall delay the filing of its financial statements for the quarter ended March 31, 2010, CEO and CFO certifications and management's discussion and analysis for the quarter ended March 31, 2010 (the "Interim Filings") until such time that it files the Annual Filings. 

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.

Forward Looking Statements

This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. The Company's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. 

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)
    gil@kinetex.ca
    www.kinetex.ca