Red Rock Energy Inc.
TSX VENTURE : RRK

Red Rock Energy Inc.

November 26, 2014 15:04 ET

Red Rock Receives Alternative Mining Technique Test Results

CALGARY, ALBERTA--(Marketwired - Nov. 26, 2014) - Red Rock Energy Inc. (TSX VENTURE:RRK) ("Red Rock" or the "Company") announced today that it has received the results of a technical study commissioned to examine a proposed alternative mining method for hard rock environments brought forward by Red Rock's technical team. This proposed alternative mining method would employ a varied form of in-situ recovery (ISR) technique, which currently accounts for a significant portion of world uranium production. The study area was restricted to the rock environment of Red Rock Energy's Fusion Uranium Zone Project and is contained within Red Rock's Uranium City project area and was previously discussed by NI 43-101 report (July 10 2009) prepared by Scott Wilson Mining.

The conclusions of the study were very positive and, based on the favourable findings contained in this report, the Company has requested that an industry partner submit a proposal to carry out a Preliminary Economic Assessment (PEA) of the feasibility of utilizing the Company's new technique for feasible uranium extraction from the Fusion Zone. Red Rock has also engaged a professional services firm to assist in assessing whether the significant advancements of these new applications are capable of protection under international intellectual property laws. This work is ongoing.

Finally, Red Rock's management has held ongoing discussions with its debenture holder who remains sympathetic to current market conditions and is amenable to continuing to work with the Company in order to achieve its near term goals. Further, the Company has received approval at its annual general meeting to consolidate its stock on up to a 10-1 basis and management is considering whether to take further steps in this regard.

Company president Sandy Loutitt commented: "We are extremely happy with the outcome of this first stage and are optimistic that this technique will not only work but will provide economic viability to other hard rock uranium resources that, until now, could not be economically extracted using conventional mining techniques. Fortunately, Red Rock's Uranium City properties will lend themselves very well to the testing and evaluation procedures to be employed and we expect that results will be forthcoming in the new year."

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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.

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