ISS and Glass Lewis reaffirm support for combination of RX Gold and US Silver

    




 TORONTO, Aug. 1, 2012 /CNW/ - RX Gold & Silver Inc.  ("RX  Gold" or the "Company") is pleased that Institutional Shareholder  Services ("ISS") and Glass Lewis & Co. ("Glass Lewis") have both, after  considering the unsolicited take-over bid for U.S. Silver Corporation   ("US Silver") by Hecla Mining Company ("Hecla"), reaffirmed  their recommendation that their clients who are shareholders of US  Silver vote in favour of the combination of RX Gold and US Silver. 

 Both ISS and Glass Lewis are independent proxy advisory firms who, among  other services, provide proxy voting recommendations to pension funds,  investment managers, mutual funds and other institutional shareholders. 

 Darren Blasutti, President & Chief Executive Officer of RX Gold stated,  "We are happy to hear that after considering the Hecla offer, ISS and  Glass Lewis have reaffirmed that the combination of RX Gold and US  Silver continues to provide the greatest value to shareholders." 

 Registered RX Gold shareholders are reminded to vote their proxy FOR the  combination of RX Gold and US Silver prior to the proxy voting deadline  of 5:00 p.m. (Toronto time) on August 2, 2012.  Non-registered  shareholders should carefully follow the instructions provided by their  intermediary, including applicable deadlines, to ensure their vote is  counted. 

 RX Gold shareholders with questions or requiring more information with  respect to voting shares at the special meeting of RX Gold shareholders  to be held on August 7, 2012 may contact RX Gold's proxy solicitation  agent, Laurel Hill Advisory Group, by email at [e-mail] or by telephone at 1-877-304-0211 (toll free within Canada or the U.S.)  or 1-416-304-0211 (for calls outside Canada and the U.S.). 

 RX Gold Response to Certain Statements of Hecla 

 RX Gold is also responding to certain statements of Hecla regarding RX  Gold's operations, permits and capital resources, including in Hecla's  take-over bid circular dated July 26, 2012.  For further information  regarding RX Gold, please see the management information circular of RX  Gold dated July 9, 2012 and the other disclosure documents of RX Gold  which are available under RX Gold's profile at www.sedar.com. 




        --  Permitting - While RX Gold is actively engaged in the broader
            permitting process, mine operations continue uninhibited while
            in compliance with the small miners exemption, which places no
            limits on production as currently contemplated at the
            Drumlummon Mine.
        --  Operating in Montana - RX Gold has worked, and will continue to
            work, collaboratively with all stakeholders in Montana
            including regulatory authorities and looks forward to a long
            future of successful operations in a state that has indicated
            the desire to foster a positive business environment for
            responsible mining.
        --  Capital Resources-As at June 30, 2012, RX Gold had cash of
            approximately US$3.0 million, had reduced the line of credit
            with Hale Capital Partners to US$7.9 million and had
            concentrate inventory with a gross market value of
            approximately US$6.1 million that was either in the RX Gold
            warehouse, in transit to refiners or being processed by
            refiners.1




 About RX Gold & Silver Inc.  

 RX Gold is a gold and silver mining company focused on growth in North  America. Currently RX Gold is concentrating on continuing mining under  its current permits and expanding development at its 100%-owned  Drumlummon Mine. The Drumlummon Mine is a bonanza style low  sulphidation epithermal gold and silver deposit with historic  production of approximately one million ounces of gold equivalent. The  mine has never been fully exploited or explored and material that was  once considered waste is now potentially economic. In addition, RX Gold  has discovered a series of entirely new high-grade gold and silver  veins that remain open for expansion in three directions. 

 Cautionary Statement Regarding Forward-Looking Information  

 This news 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 combination  of RX Gold and US Silver and the Drumlummon Mine. 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 or its successors 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 combination of RX  Gold and US Silver, including the ability to achieve anticipated  synergies, 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 RX Gold 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 the TSX Venture Exchange nor its Regulation Services Provider  (as that term is defined in policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

 (_____________________________________ ) (1)  Figures are unaudited. 

RX Gold & Silver Inc.


CONTACT:  Darren BlasuttiPresident and Chief Executive OfficerNicole RichardInvestor Relations(416) [e-mail]  (www.rxgold.com) 


    

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