RX Exploration Inc.

RX Exploration Inc.

July 20, 2011 17:36 ET

RX Exploration Inc. Announces Private Placement

TORONTO, ONTARIO--(Marketwire - July 20, 2011) - RX Exploration Inc. (the "Company") (TSX VENTURE:RXE)(OTCQX:RXEXF) announced today that it completed its previously announced non-brokered private placement of 5,000,000 units at a price of $0.456 per unit for gross proceeds of $2,280,000. Each unit is comprised of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share at a price of $0.60 for a two year period beginning on the date that the units were issued.

All of the units issued to subscribers pursuant to the private placement, including the common shares and the warrants underlying such units (and the common shares issuable upon the exercise of such warrants), are subject to a four-month hold period expiring November 21, 2011.

The Company intends to use the proceeds of the private placement to advance its business plan, to pay the costs of its recent proxy fight and for general corporate purposes.

Further details regarding the private placement are discussed in the Company's amendment to its management information circular dated June 12, 2011, a copy of which has been filed on SEDAR.

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 the 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 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 accuracy of this release.

Contact Information

  • RX Exploration Inc.
    Darren Blasutti
    President and CEO
    416.359.9282, ext. 7803