RX Exploration Inc.

RX Exploration Inc.

July 22, 2011 16:15 ET

RX Exploration Advises Shareholders to Disregard June 22 Disclosure from the Company

TORONTO, ONTARIO--(Marketwire - July 22, 2011) - RX EXPLORATION INC. ("RXE" or the "Company") (TSX VENTURE:RXE)(OTCQX:RXEXF) today advised shareholders to disregard a June 22, 2011 news release issued by RXE's former President and Chief Executive Officer Murray Nye.

The June 22, 2011 disclosure discussed test mining and test milling activities at RXE's Drumlummon property in Montana, and also discussed the Company's adjoining Bald Butte property. The disclosure was issued without the approval of the Board at a time when Mr. Nye was a dissident seeking to win control of the Board by way of a proxy contest.

"While we appreciate the dedicated efforts of RXE's employees at Drumlummon, we have concerns about how the June 22, 2011 disclosure could be misinterpreted by shareholders," said Lorie Waisberg, Chairman of the Board of Directors. "Because of our concerns, we caution investors not to rely on the June 22, 2011 news release for investment decisions."

"In our view, the June 22, 2011 news release may invite investors to extrapolate long-term results at Drumlummon on the basis of short-term activities that are not properly supported by a feasibility study or a history of profitable production. For the Bald Butte property, the June 22, 2011 news release prematurely announced preliminary discussions for a possible joint venture."

"RXE intends to provide updates to shareholders on developments and progress at the mine over the coming months as the exploration drilling and the requisite technical work is completed," added Darren Blasutti, RXE's President and Chief Executive Officer.

About RX Exploration Inc.

RX Exploration is currently focused on re-starting production and exploring its Drumlummon Mine, a past producing high-grade, bonanza-type, epithermal underground gold and silver mine in Montana.

The Company's shares are listed on TSX-V (Symbol: RXE) and on the OTCQX (Symbol: RXEXF). There are 165,858,390 common shares issued and outstanding.

Cautionary Statement Regarding Forward Looking Information

This press release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, the Company's expectations, intentions, plans and beliefs with respect to, among other things, the Drumlummon property. Often, but not always, forward-looking information can be identified by forward-looking words such as "anticipate", "believe", "expect", "goal", "plan", "intend", "estimate", "may" and "will" or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information is based on the opinions and estimates of the Company as of the date such information is provided and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including the ability to develop and operate the Drumlummon property, risks associated with the mining industry such as economic factors (including future commodity prices, currency fluctuations and energy prices), failure of plant, equipment, processes and transportation services to operate as anticipated, environmental risks, government regulation, actual results of current exploration activities, possible variations in ore grade or recovery rates, permitting timelines, capital expenditures, reclamation activities, social and political developments and other risks of the mining industry. Although RXE has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should be aware that this forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by such information and are cautioned not to place undue reliance on such information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

On Behalf of the Board

Darren Blasutti, President and CEO

Neither 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 accuracy of this release.

Contact Information

  • RX Exploration Inc.
    Darren Blasutti
    President and CEO
    416-359-9282, ext. 7803