RX Exploration Inc.

May 27, 2011 07:00 ET

RX Exploration Inc. Postpones Annual and Special Meeting of Shareholders to July 26, 2011

TORONTO, ONTARIO--(Marketwire - May 27, 2011) - RX EXPLORATION INC. ("RXE" or the "Company") (TSX VENTURE:RXE)(OTCQX:RXEXF) announced today that it has postponed its Annual and Special Meeting to July 26, 2011 from the originally scheduled June 7, 2011.

"The postponement was made necessary when a dissident group launched a proxy contest for control of the board," said John O'Donnell, Chairman. "The dissidents, who include certain officers and directors of RXE, issued a dissident circular on May 17, 2011 without any advance notice to RXE's Board, and just six days after RXE's board unanimously approved and issued a management information circular."

"Clearly, the RXE circular must now be amended, considering that the dissident directors acted disingenuously by participating in the review and approval of the RXE management information circular, and by permitting themselves to serve as management nominees, while at the same time knowing that they would be launching a dissident proxy fight to remove certain management nominees. The Board believes that it has a fiduciary responsibility to replace the dissident nominees with new nominees who will act in the best interests of all shareholders."

"The decision to postpone the meeting was taken by a special committee of the board established to supervise the business and to preserve shareholder value following the action taken by the dissidents. The special committee determined that additional time is required to prepare a revised management information circular that will be mailed to shareholders by early July."

In addition to providing the names and qualifications of new nominees, the revised management information circular will contain a detailed response to the dissident proxy circular and will address a number of baseless allegations made by the dissidents.

"Once the management circular is filed we look forward to meeting with shareholders and responding to their questions. The board will ensure that shareholders have all the facts required to make an informed decision," said Mr. O'Donnell.

In the interim, RXE reminds shareholders to TAKE NO ACTION with respect to any proxy form that they may have received. RXE will provide shareholders with new proxy voting forms along with their response to the dissident circular.

About RX Exploration Inc.

RX Exploration Inc. is a gold exploration company whose strategy is to re-examine gold and silver projects within North America that have previously reached advanced exploration, underground development or past gold or silver production. The Company is currently focused on re-starting production from 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 160,438,980 common shares issued and outstanding.

On Behalf of the Board

John F. O'Donnell, Chairman of the Board

John A. Ryan, Chief Financial Officer

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.

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