Running Fox Resource Corp.
TSX VENTURE : RUN
OTC Bulletin Board : RFXRF
FRANKFURT : C8Q

Running Fox Resource Corp.

November 10, 2006 08:30 ET

Running Fox's Plan for Shareholders to Get Free Shares in a New Energy Company

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 10, 2006) - Running Fox Resource Corp. (TSX VENTURE:RUN)(OTCBB:RFXRF)(FWB:C8Q) Trent Moore, Vice President, reports:

Running Fox, with its financial advisors, is advancing its plan to create a new public company to enhance shareholder value. Success in the energy sector has meant that Running Fox's two key divisions, gold exploration, and the energy sector assets should trade independently.

It is the Company's intention that the existing shareholders of Running Fox would receive shares in the new subsidiary by way of a push-out share dividend, at a ratio of 1 new company share for each 2 existing Running Fox shares. The transaction is expected and is intended be completed in a tax-efficient manner, with the shares of the new company to be distributed to the existing Running Fox shareholders as a return of capital, based on a certain to be announced record date. It is intended that application at that time will be made to the TSX-V for the shares of the new company to trade independently as a new public company, with its own trading symbol.

Running Fox shareholders would then own all their Running Fox shares, plus the shares in the new energy sector company.

Running Fox would continue its gold exploration of the high grade Brett Gold Project, which has produced high grade drill intervals such as diamond drill hole 93-19 which assayed 55 feet of 1.045 ounces per ton gold, and in 2004, a diamond drill hole returned a value of 4.3 feet of 5.1 ounces gold. See the Brett Property 2004 Assessment Report for further details on the Brett Gold Project on the website at www.foxgold.ca. Additionally, Running Fox will add new mineral projects that have been set aside for this renewed purpose, but which did not fit with an energy focus.

The oil and gas assets and energy sector business to go into the new energy company include producing interests in the Pincher Creek area of Southwestern Alberta, the Section 18 Kakwa Project on Suncor lands, and the 100% interest in Claymore Field Services with operations in Alberta and British Columbia, as well as new projects being negotiated.

Both Running Fox and the new public company are expected to advance their respective projects in a more focused manner and pursuant to this planned transaction, Running Fox has received expressions of interest from the brokerage community, including support and interest from Union Securities and Bolder Investment Partners. New industry professionals will be added to both company's Boards of Directors to drive and accelerate growth in each entity.

The plan is subject to various approvals, including approval by the TSX-V.

Running Fox is an energy sector Canadian small cap company producing oil and natural gas and providing oil field services. First nine months consolidated revenues were $5.150 Million, with net income prior to adjustments of $884,000. Visit www.foxgold.ca for further information.

On behalf of the Board of Directors,

Trent Moore, Vice President, Director

The Company relies on legislation applicable to forward looking statements, and seeks safe harbour.

The TSX-V has neither approved nor disapproved of this news release.

Contact Information

  • Running Fox Resource Corp.
    Trent Moore
    Vice President, Director
    (403) 742-0500
    Website: www.foxgold.ca