Red Rock Energy Inc.

Red Rock Energy Inc.

July 16, 2015 15:15 ET

Red Rock Continues Development of Alternative Mining Technique by Filing Patent Application; Announces Intention to Consolidate Shares and Complete Financing

CALGARY, ALBERTA--(Marketwired - July 16, 2015) - Red Rock Energy Inc. (TSX VENTURE:RRK) ("Red Rock" or the "Company") announced today that it has completed the filing in the United States and Canada of a patent application to protect the intellectual property rights associated with the alternative mining method for hard rock environments currently being developed in-house by Red Rock's technical team. This new mining method employs a varied form of in-situ recovery technique (ISR) utilizable in hard rock environments, such as those found in the Uranium City project area. The multi stage process involves the creation of permeability in a non-permeable rock through hydraulic and mechanical cataclastization which then allows for fluid recovery of uranium through in-situ leaching. The hard rock in-situ recovery ("HISR") system was developed after reviewing the results of the Company commissioned technical study by Baker Hughes geo-mechanical division. Red Rock's technical team continues to refine its proprietary methodology in conjunction with pumping specialists who are assisting with technical support in preliminary engineering process design and methodologies to enhance proposed recovery techniques.

Red Rock has received a proposal from LDIS LLC, (LDIS) of Denver Colorado, an engineering firm with extensive experience in the planning, design and implementation of ISR facilities. The scoping level study proposes to examine the project economics based on the utilization of Red Rock's H-ISR technique. The study area will be Red Rock's Fusion Uranium Zone Project within the Company's Uranium City project area and the subject of a previously released 43-10 1 report by Scott Wilson Mining dated July 10, 2009.

The Company also intends to implement the steps of a share consolidation resolution approved by shareholders at a Special and Annual General Meeting of Shareholders of the Company held on November 18, 2013. According to the terms of that resolution, the Board of Directors could conduct a share consolidation based on a ratio of up to 1 for 20 or such ratio as the Board determines to be appropriate.

The Board of Directors has determined that, in the circumstances, a share consolidation ratio of 1 for 5 is appropriate, and will instruct counsel and the Company's transfer agent to proceed accordingly.

Finally, in order to fund the meaningful development of the Red Rock H-ISR system, the Company also announced today that it intends to complete a private placement to raise a maximum of $1,000,000 by the issuance of common shares (the "Shares") at or near the prevailing market rate post consolidation. The contemplated financing remains subject to regulatory approval.

Company president Sandy Loutitt commented: "We remain very optimistic that Red Rock's H-ISR system will add a new dimension to hard rock extraction science for uranium, by offering an environmentally sensitive method that could also produce better economics for small to medium sized ore bodies though faster extraction and lower capital costs. That optimism now has a chance to translate into significant onthe-ground action and we hope the financing and re-structuring we are proposing to move ahead with today will reward both new and old investors alike as we expand the horizons of this exciting new technology."

Neither the 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 the accuracy of this release.


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.

Contact Information