Novadx Ventures Corp.: MCoal Receives First $5 Million of Advance Payment from Sandstorm Coal Stream Financing

Novadx Ventures Corp. (TSX VENTURE:NDX) - 

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED
STATES WIRE SERVICES.


Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:

Novadx Ventures Corp. ("Novadx" or the "Company") is pleased to announce that
its wholly owned subsidiary, MCoal Corporation ("MCoal") has received the
initial US$5 million advance payment (the "Initial Payment") under the
definitive Coal Production Payment Agreement (the "Agreement") with Sandstorm
Metals & Energy Ltd. ("Sandstorm") previously announced on Nov. 26, 2010. This
first payment entitles Sandstorm to receive a life of mine coal stream
consisting of 8.5% of the metallurgical coal surface mined from MCoal's Rosa
Mine for a fixed price of US$75 per ton.


MCoal will use the proceeds of this first payment to:



1.  acquire all of the assets of Tiacme, LLC through a corporate acquisition
    of Tiacme, LLC in consideration of US$2.5 million in cash and 6,250,000
    common shares of Novadx. Tiacme LLC's sole asset is the fully permitted
    and bonded Rex No. 1 Mine located in Tennessee. This transaction was
    previously announced June 3, 2010, and November 26, 2010; 
    
2.  fund up to $2.5 million to procure and install a coal processing
    ("wash") facility at MCoal's Rosa Mine, which is expected to increase
    profit and coal recovery margin significantly; and 
    
3.  any balance to fund working capital requirements of the Rosa Mine. 



Pursuant to the Agreement, Sandstorm has the right to advance a further $33
million in advance payment to purchase coal stream interests in the Rex No. 1
Mine, the Flatwoods Mine in Kentucky (announced July 6, 2010) and an increased
coal stream interest in the Rosa Mine until February 15, 2011. Subject to
meeting certain conditions precedent to closing each transaction, Sandstorm will
advance a further US$25 million upon MCoal's acquisition of the Rex No. 1 Mine
and a further US$8 million upon MCoal's acquisition of the Flatwoods Mine and
related Ikerd group of companies assets.


Neil MacDonald, CEO of Novadx commented, "Since signing the Agreement with
Sandstorm, we have been working closely with the vendors to finalize the closing
documentation for both the Tiacme Rex No. 1 and Ikerd Flatwoods coal mines and
anticipate closing both of these transactions before February 15, 2011. The
proposed acquisition of the Ikerd Flatwoods Mine and related assets was
previously announced on July 6, 2010, and November 26, 2010. We look forward to
assimilating these assets and dramatically growing our Company's reserves,
production and profitability over the next 12 months." 


MCoal has completed a National Instrument 43-101 compliant technical report
regarding the Rex No. 1 Mine, dated July 21, 2010. A copy of this report
entitled "Independent Technical Report on the Rex No. 1 Mine Property located in
Campbell County, Tennessee, USA" can be found in Novadx's filings on Sedar
(www.sedar.com).


Highlights of this report include:



--  32.2 million tons of Proven and Probable in situ Rex coal reserves. 
--  12.7 million tons of Measured Rex coal resources. 
--  19.4 million tons of Indicated Rex coal resources. 
--  25.7 million tons of Inferred Rex coal resources. 
--  Potential to reclassify up to 75% of inferred coal resource as either
    measured or indicated through drilling of at least 12 additional holes. 
--  The following summary of the Rex coal reserve quality (as received). 

----------------------------------------------------------------------------
                    %Ash          %VM          %FC         %Sul       Btu/lb
----------------------------------------------------------------------------
Average             4.88        38.31        56.81          .92       14,358
----------------------------------------------------------------------------
Minimum             2.07        38.00        54.66          .72       13,989
----------------------------------------------------------------------------
Maximum             7.23        39.16        59.26         1.56       14,842
----------------------------------------------------------------------------



Subject to the approval of the TSX Venture Exchange, Surge Capital Corp. will
receive a finder's fee of $250,000 (representing 5% of the Initial Payment),
payable in cash and 468,750 share purchase warrants (the "Warrants") exercisable
at $0.25 per share for a period of three years from the date of issuance. The
Warrants and common shares issuable on exercise thereof will have a hold period
expiring four months and one day from the date of issuance.


Novadx and MCoal also announce the resignation of Mr. Mark Reynolds as a
consultant to MCoal. The Company thanks Mr. Reynolds for his hard work and
dedication to the Company and wishes Mr. Reynolds well in his future endeavors. 


Technical aspects of this news release have been prepared under the supervision
of George Smith, PE, LS, of Gress Engineering, PC, who is a Qualified Person as
that term is defined under National Instrument 43-101.


About Novadx: Novadx is a Vancouver-based Investment Company whose primary focus
is on providing merchant banking services to natural resource companies. Novadx
structures and makes direct equity investments as a principal and provides
management and other related services to companies in specific resource sectors,
such as MCoal Corporation, a subsidiary company that has commenced production
from the Rosa mine, a metallurgical coal mine in the State of Alabama, USA. For
more information please visit www.novadx.com.


About MCoal: MCoal Corporation is a wholly-owned subsidiary of Novadx Ventures
Corp. and operates the Rosa Coal Mine. The Rosa Mine is a metallurgical coal
mine located in Northern Alabama, approximately 40 miles north of the City of
Birmingham. In addition to operating the Rosa Mine, MCoal is actively increasing
its reserves and production through the evaluation and acquisition of high
quality coal assets in the Appalachia coal region.


ON BEHALF OF THE BOARD

Neil MacDonald, President and CEO and Director

The TSX Venture Exchange has in no way passed upon the merits of the proposed
transaction and has neither approved nor disapproved the contents of this press
release. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these securities
in any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to the qualification under the securities laws of such jurisdiction.


Statements included in this announcement, including statements concerning our
plans, intentions and expectations, which are not historical in nature are
intended to be, and are hereby identified as, "forward-looking statements" for
purposes of the safe harbor provided by Section 21E of the Securities Exchange
Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words including "anticipates",
"believes", "intends", "estimates", "expects" and similar expressions. The
Company cautions readers that forward-looking statements, including without
limitation those relating to the Company's future operations and business
prospects, are subject to certain risks and uncertainties that could cause
actual results to differ materially from those indicated in the forward-looking
statements.