RX Exploration Inc. Announces US $10 million Line of Credit from Hale Capital Partners

    




 TORONTO, Nov. 9, 2011 /CNW/ - RX Exploration Inc. (the "Company" or "RXE")  (OTCQX:RXEXF) announced today that its  wholly-owned subsidiary Drumlummon Ltd. (the "Borrower") has entered into a senior secured line of credit facility agreement  (the "Credit Agreement") with an affiliate of Hale Capital Partners, L.P., ("Hale") for up to US $10 million. All amounts owing under the Credit  Agreement are guaranteed by the Company. 

 Outstanding amounts under the Credit Agreement accrue interest at a  fixed rate of 8.75% per annum with interest payable monthly in arrears  starting the sixth month after the initial advance of funds. Amounts  owing under the Credit Agreement may be prepaid in whole or in part  without premium or penalty at any time and any remaining outstanding  amounts are due on or before May 8, 2013.  The Credit Agreement is  secured by a first charge against all the properties and assets of the  Borrower, the Company and certain of its subsidiaries. The closing,  which is expected to take place before the end of the upcoming week,  and the ability to make subsequent draws under the Credit Agreement are  subject to certain standard conditions precedent and a standard one  time closing fee. 

 The Credit Agreement will be used for working capital purposes and for  additional expenditures of the Borrower, the Company and certain of its  subsidiaries, and will assist in getting RXE's 100% owned Drumlummon  Mine into commercial production in early to mid-2012. 

 Amounts owing under the Credit Agreement cannot be converted into equity  or voting shares of RXE or its subsidiaries.  No common shares, options  or warrants of RXE were issued to Hale or any other person and no  broker or placement fees were paid in connection with this transaction. 

 About RX Exploration Inc. 

 RXE 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. RXE is a gold and silver  mining company focused on growth in North America. 

 The Company's shares are listed on TSX-V  and on the OTCQX  . There are 167,307,796 common shares issued and  outstanding. 

 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. 

 About Hale Capital Partners 

 Based in New York City, Hale Capital Partners has established itself as  a leading private equity firm focused on strategic investments in  public companies and their subsidiaries. Hale Capital Partners' team is  comprised of seasoned private equity veterans and entrepreneurs, who  bring not only deep domain expertise but also hands-on operating  experience to help build highly successful companies. Hale Capital  Partners' mining portfolio spans all stages of mine development from  exploration to commercial production. 

 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. 

 On Behalf of the Board 

 Darren Blasutti President and CEO 416-848-9503  

RX EXPLORATION INC.


CONTACT:  Darren BlasuttiPresident and CEO416-848-9503 


    

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