Red Rock Energy Inc.
TSX VENTURE : RRK

Red Rock Energy Inc.

June 11, 2009 17:04 ET

Red Rock Completes Purchase of Additional Properties at Uranium City

CALGARY, ALBERTA--(Marketwire - June 11, 2009) - Red Rock Energy Inc. (TSX VENTURE:RRK) ("Red Rock") is pleased to announce that it has closed its transaction with Strategic Resources Inc. (formerly Uranium City Resources Inc.) ("Strategic"). In November, 2008, Red Rock agreed to purchase all of Strategic's exploration property claims located in northern Saskatchewan (the "Claims"). Both regulatory approval and the approval of Strategic's shareholders were obtained to complete the purchase of the Claims. The transition represents a significant and strategic acquisition of property interests for Red Rock, as many of Claims are located near or adjacent to the main property blocks held by Red Rock in the Uranium City camp.

The purchase price for the Claims was $975,000 comprised of $75,000 cash and $900,000 paid to Strategic by way of the issuance of 5 million common shares of Red Rock at a deemed price of $0.18 per common share. By virtue of the transaction, Strategic has become an Insider of Red Rock.

In discussing the acquisition of the Claims, Sandy Loutitt, President of Red Rock, stated: "There are a number of obvious and natural synergies which make this a very positive transaction for Red Rock. The proximity of many of Strategic's properties to the existing Red Rock properties is particularly beneficial. With the closing of this transaction, Red Rock has effectively consolidated most of the prospective uranium properties in the Uranium City camp. With this very significant block now under Red Rock's control, we can increase both the operational efficiencies we have achieved there and the potential for continuing discoveries of uranium resource. We are confident that we will be adding resources to Red Rock's historic non NI43-101 complaint resource base, and the addition of the Claims increases our expectation of growth significantly."

Red Rock management continues to be encouraged by the results obtained to date from its winter drilling program, with positive uranium drill intercepts being present at both the Fusion Zone, where Red Rock is working on a resource definition program, and at the newly discovered River Zone. Red Rock has retained the services of Roscoe Postle Associates Inc. to complete a National Instrument 43-101 compliant technical report on the results obtained to date, which report is expected to be delivered to management in the near future.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provide (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

  • 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