RX Exploration Inc.

October 19, 2010 09:00 ET

RX Exploration Share Purchase Warrants Accelerated

WINNIPEG, MANITOBA--(Marketwire - Oct. 19, 2010) - RX Exploration Inc. (TSX VENTURE:RXE) (the "Company" or "RX") wishes to point out that certain outstanding share purchase warrants of the Company contain a provision that the warrant expiry date shall be accelerated to thirty days from the tenth consecutive trading day on which the common shares of the Company close at or above $0.60 (the "Accelerated Expiry Date"). The Accelerated Expiry Date occurred on October 13, 2010. Accordingly, all share purchase warrants containing the acceleration provision now automatically expire on Friday, November 12, 2010 unless exercised prior to 5:00 p.m. (Toronto time) on or before that day.

It is the responsibility of the warrantholders to ensure that the warrants are exercised in accordance with the terms set out in the warrant certificates to ensure that the warrants are properly exercised in a timely fashion.

Bald Butte Property

As previously announced, the Company has acquired an option to purchase a package of mineral claims immediately adjacent to the south-west boundary of the current Drumlummon Gold Project holdings, Marysville, Montana. This acquisition will increase the Company's ground position significantly at Drumlummon and is comprised of 22 patented claims and 50 federal claims covering about 1,000 acres (405 hectares).

In order to exercise its option, the Company must pay a total of US$5,000,000 by making annual optional installment payments over the next 35 years, commencing at US$55,000 this year and increasing to $150,000 at year five and thereafter until the purchase is completed. Annual option payments will be credited against the purchase price. The arms' length owners will also retain a 2% net smelter royalty. The Company must also issue 200,000 common shares in order to maintain the option. The Company has decided to continue with the option and issue the shares, subject to the acceptance for filing of its expedited application to the TSX Venture Exchange.

About RX Exploration

RX Exploration Inc. is a gold exploration company whose strategy is to re-examine gold projects within North America that have previously reached advanced exploration, underground development or past gold production. The Company is currently focused on re-starting production from their Drumlummon Mine, a past producing high-grade, bonanza-type, epithermal underground gold and silver mine in Montana. Ore from a current test mining program above the 500 level is being trucked to and processed in a leased mill located in Phillipsburg, Montana.

The Company's shares are listed on (TSX VENTURE:RXE). There are currently 121,205,189 common shares of the Company issued and outstanding, which figure includes shares to be issued in connection with recently exercised warrants.

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.
    Murray R. Nye
    (204) 989-2434