Red Rock Energy Inc.
TSX VENTURE : RRK

Red Rock Energy Inc.

July 15, 2008 14:18 ET

Red Rock Announces Discovery of Significant Extension to Fusion Zone

CALGARY, ALBERTA--(Marketwire - July 15, 2008) - Red Rock Energy Inc. (TSX VENTURE:RRK) announced today that it has recently received assay test results which confirm an extension of the recently discovered Fusion uranium zone. These results suggest that both the length and breadth of the Fusion Zone continues to be significant with grades up to 0.612% U3O8 (12.24 lbs /ton) over 5 metres of core length.

Generated as part of its continuing 2008 Diamond Drilling Campaign, Red Rock has received additional analytical results testing the Fusion Zone up to and including hole 08RB2-13 (with the exception of hole 08RB2-12 which results are expected shortly). Of prime interest are the Fusion Zone intersections of the Lake Cinch Main Ore Fault structure (MOF) in hole 08RB2-13. These grade 0.373% U3O8 (7.46 lbs/ton) across 8.50 m core length from 311.00 m to 319.50 m, including 0.612% (12.24 lbs/ton) U3O8 across a 5.0 m core length from 313.00 m to 318.00 m. A second intercept has grades of 0.475% (9.5 lbs/ton) across 2.0 m of core length from 335.0 m to 337.0 m

These intersections are from the Fusion zone that was initially discovered in hole 08RB2-03 which assays 0.082% U3O8 across 14.50 m core length including 0.123% U3O8 across 7.00 m core length (Red Rock Press Release of April 7, 2008). Prior drilling in hole 08RB2-07 extended the Fusion uranium zone up-dip on the Lake Cinch MOF structure, with this hole having assayed 0.051% U3O8 across 11.50 m core length including 0.131% U3O8 across 1.5 m core length (Red Rock Press Release May 20 2008).

The current intercepts in hole 08RB2-13 are about mid-way between the intercepts in hole 08RB2-03 and hole 08RB2-07; as a result the Fusion uranium zone has now been extended for at least 85 m, with the uranium zone raking steeply down dip in the plane of the Lake Cinch MOF structure at a depth of about 270 m below ground surface. The Lake Cinch MOF structure is known to continue up dip, therefore there is the potential to extend the Fusion uranium zone upwards and possibly link to one or more radioactive intercepts previously drilled by former operators.

In reviewing the latest assay results, Sandy L. Loutitt, President of Red Rock, commented: "The drilling being done to define and expand the Fusion uranium zone is compatible with Red Rock's corporate vision to identify new uranium zones, and then build uranium resources and reserves pound-by-pound until sufficient resources have been identified to initiate a preliminary feasibility study. With an economic significance cutoff grade of .05% (1 lbs/ton), the current drill program continues to produce significant intersections in every hole drilled. As historic production was centered around 2 - 6 ft (0.6m - 1.8m) zones typically grading 0.200% U308 (4 lbs /ton), we are extremely pleased with the higher grades - up to 0.612% (12lbs/ton) and the wider widths , 2 m -8.5 m (6.6 ft- 27.9 ft) - found thus far in the new Fusion Zone."

The result highlights for holes 08RB2-08 to 08RB2-11 and 08RB2-13 are tabulated in Table 1. As of early July Red Rock has now completed a total of 5,707.0 m in 16 holes to test the Lake Cinch MOF structure at depth northeast of the former Lake Cinch mine underground workings. Assay results are still pending for holes 08RB2-12, and 08RB2-14 to 08RB2-16. Red Rock has now started a program of 10 to 12 holes to test the upper portion of the Lake Cinch MOF structure up-dip from the Fusion uranium zone. Once this drilling is completed in late July or early August, a decision will be made as to whether added infill or step out drilling are required in order to have sufficient drill pierce points to perform a preliminary uranium resource estimate on the Fusion uranium zone.



Table 1: Drilling Highlights from Red Rock Energy Inc. 2008 Drill Campaign
for holes 0RB2-08 to 08RB2-11, and 08RB2-13

----------------------------------------------------------------------------
Hole UTM UTM Collar Collar
Easting(1) Northing(1) Azimuth Inclination
----------------------------------------------------------------------------
08RB2-08 632411 6603151 310 degrees -70 degrees
----------------------------------------------------------------------------
Including
08RB2-08
----------------------------------------------------------------------------
08RB2-09 632462 6603179 310 degrees -50 degrees
----------------------------------------------------------------------------
Including
08RB2-09
----------------------------------------------------------------------------
08RB2-10 432462 6603179 310 degrees -70 degrees
----------------------------------------------------------------------------
Including
08RB2-10
----------------------------------------------------------------------------
08RB2-10
----------------------------------------------------------------------------
08RB2-11 632522 6603196 310 degrees -50 degrees
----------------------------------------------------------------------------
08RB2-11
----------------------------------------------------------------------------
Including
08RB2-11
----------------------------------------------------------------------------
08RB2-11
----------------------------------------------------------------------------
08RB2-13 632440 6603167 310 degrees -60 degrees
----------------------------------------------------------------------------
Including
08RB2-13
----------------------------------------------------------------------------
08RB2-13
----------------------------------------------------------------------------
08RB2-13
----------------------------------------------------------------------------
Including
08RB2-13
----------------------------------------------------------------------------
08RB2-13
----------------------------------------------------------------------------


----------------------------------------------------------------------------
Hole From To Core Average Intersection
(m) (m) Length (m) Grade U3O8 Type
----------------------------------------------------------------------------
08RB2-08 198.50 201.00 2.50 0.054% Cross-fracture(2)
----------------------------------------------------------------------------
Including
08RB2-08 199.50 201.00 1.50 0.075% Cross-fracture
----------------------------------------------------------------------------
08RB2-09 290.70 293.20 2.50 0.081% Cinch MOF(3)
----------------------------------------------------------------------------
Including
08RB2-09 291.20 292.20 1.00 0.178% Cinch MOF
----------------------------------------------------------------------------
08RB2-10 326.00 335.50 9.50 0.023% Cinch MOF
----------------------------------------------------------------------------
Including
08RB2-10 332.00 335.50 3.50 0.081% Cinch MOF
----------------------------------------------------------------------------
08RB2-10 340.50 341.50 1.00 0.110% Cinch MOF
----------------------------------------------------------------------------
08RB2-11 287.30 287.70 0.40 0.192% Cross-fracture
----------------------------------------------------------------------------
08RB2-11 316.00 322.00 6.50 0.024% Cinch MOF
----------------------------------------------------------------------------
Including
08RB2-11 321.50 322.00 0.50 0.062% Cinch MOF
----------------------------------------------------------------------------
08RB2-11 330.50 336.00 5.50 0.024% Cinch MOF
----------------------------------------------------------------------------
08RB2-13 311.00 319.50 8.50 0.373 Cinch MOF
----------------------------------------------------------------------------
Including
08RB2-13 313.00 318.00 5.00 0.612 Cinch MOF
----------------------------------------------------------------------------
08RB2-13 335.00 337.00 2.00 0.475 Cinch MOF
----------------------------------------------------------------------------
08RB2-13 351.00 355.50 4.50 0.035% Cinch MOF?
----------------------------------------------------------------------------
Including
08RB2-13 354.50 355.50 1.00 0.089% Cinch MOF?
----------------------------------------------------------------------------
08RB2-13 358.50 360.00 1.50 0.127% Cinch MOF?
----------------------------------------------------------------------------

(1)Note: UTM Eastings and Northings are given for a datum of NAD83, Zone
12N.
(2)Note: Cross-fracture refers to a uranium-bearing structure that exists
in the hangingwall of the Cinch Main Ore Fault.
(3)Note: Cinch MOF means Lake Cinch Main Ore Fault.


Reg A. Olson, Ph.D., P. Geol., a Qualified Person under NI 43-101 and supervisor of the 2007 and 2008 field exploration and drill programs, has reviewed and is in agreement with the contents of this release.

READER ADVISORY

Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

The reader is further cautioned that the preparation of financial statements in accordance with generally accepted accounting principles requires management to make certain judgements and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Estimating reserves is also critical to several accounting estimates and requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Red Rock Energy Inc.
    Sandy Loutitt
    President
    (403) 685-1047
    or
    Red Rock Energy Inc.
    Lara Cull
    Operations Manager
    (403) 685-1047
    Website: www.redrockenergy.ca