RX Exploration Inc.

RX Exploration Inc.

August 17, 2011 16:30 ET

RX Exploration Inc. Appoints Highly Experienced Senior Officers and Provides Drumlummon Mine Update

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2011) - RX Exploration Inc. (the "Company") (TSX VENTURE:RXE)(OTCQX:RXEXF) is pleased to announce the appointments of Robert M. Taylor as Chief Operating Officer and Warren Varga as Chief Financial Officer. Mr. Varga replaces John Ryan, who served as interim Chief Financial Officer during the Company's recent proxy contest and is currently a director of the Company.

"The potential of the Company's main asset, the Drumlummon Mine, has attracted Bob and Warren to join the Company and I look forward to working closely with them in the years ahead to grow the mine, the Company, and enhance shareholder value," commented Darren Blasutti, the President and CEO of the Company.

Mr. Taylor brings over 35 years of extensive mining industry experience to the Company, including operations, management, engineering, and exploration for both underground and open-pit mines. He also has experience with government bodies and NGOs involved in mine permitting. Mr. Taylor was most recently Senior Mining Consultant for AMEC, a position he took after serving as VP Operations, North America for Kinross Gold where he was responsible for all of Kinross' North American operating mines and exploration activities. Prior to his six years at Kinross, Mr. Taylor held the position of VP Mine Operations at Stillwater Mining in Montana and as VP Mining for MRDI (now AMEC). He has a B.S., Mine Engineering from the Colorado School of Mines.

"We will benefit immensely from Bob's leadership abilities and business acumen. His technical competence and management skills have been tested and demonstrated over three decades in a variety of roles and circumstances," said Mr. Blasutti.

Mr. Varga has over 15 years of progressive financial leadership experience and brings extensive senior management expertise in the fields of financial management, acquisitions, corporate structuring, and strategic planning. Mr. Varga was most recently Senior Director, Corporate Development at Barrick Gold Corp., the world's largest gold producer, where he co-managed the African Barrick plc IPO on the London Stock Exchange and led Barrick's vertical integration initiative, culminating in the creation of Barrick Energy, a 10,000 barrel per day oil producer. Prior to that, Mr. Varga held various financial positions at Open Text, Magna Entertainment and PricewaterhouseCoopers LLP. Mr. Varga is a member of the Canadian Institute of Chartered Accountants and a member of the Chartered Financial Analyst Institute.

"I am very pleased we have been able to attract someone of Warren's caliber to the Company," commented Mr. Blasutti, "He brings a wealth of varied experience along with strong financial and leadership skills."

The appointments of Mr. Taylor and Mr. Varga remain subject to TSX Venture Exchange requirements relating to the appointment of new senior officers.

Drumlummon Mine Update

Since July 6th, under the supervision of the Drumlummon Mine General Manager Joseph Bardswich, the Company has continued to target 500 tons per day of ore and development mining from the Drumlummon Mine. Milling of the high-grade ore continues at the Philipsburg mill with lower grade ore milled at Barrick's Golden Sunlight facilities. The Company expects to file an application for an Operating Permit with the State in October of this year.

Effective September 1, 2011, the Company has established an employee benefits plan including prescription drugs, health, dental, and vision coverage to allow it to retain and attract a high quality workforce. Further, the Company has continued to improve safety and environmental procedures and policies to enhance its social license to operate in the local communities of Marysville and Helena, and in the state of Montana.

Under the direction of Jim Atkinson, VP Exploration, the Company has begun an aggressive underground drill campaign to further delineate the known high-grade veins, to extend the known veins along strike and at-depth, and to discover new veins within the mine. To test the area between the Drumlummon Mine and the Bald Butte assets, a soil geochemical program has begun. Surface drilling has begun in the Woodchopper Gulch area to test known but un-mined vein systems. Once a second surface drill is available in September the former Nine Hour workings will be tested from surface.

The Company expects to release its June 30, 2011 audited Financial Statements in early October and to update shareholders on actual produced gold and silver with accompanying production costs at that time.

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. This includes 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 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, and projections of 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.

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