Red Rock Energy Inc.

TSX VENTURE : RRK


Red Rock Energy Inc.

June 13, 2011 17:37 ET

Red Rock Arranges $750,000 Term Loan

CALGARY, ALBERTA--(Marketwire - June 13, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES

RED ROCK ENERGY INC. (TSX VENTURE:RRK) ("Red Rock" or the "Corporation") announces that it has obtained a $750,000 loan (the "Loan") from 1262430 Alberta Ltd., a private arm's length Alberta corporation. Interest on the Loan will accrue at the rate of 12% per annum and will be payable every two months. The Loan will have a term of one year, and will be secured by a first charge against Red Rock's Saskatchewan mineral properties only, which are prospective for uranium. As additional consideration, the Corporation will issue to the lender warrants ("Warrants") to acquire common shares ("Common Shares") from the treasury of Red Rock. The Warrants will be non-transferrable, and will entitle the Lender to acquire up to 468,750 Common Shares at an exercise price of $0.25 per share for a period of 12 months from the closing of the transaction, which is expected to occur on or about June 15, 2011. The Warrants, and any shares obtained on the exercise thereof, will be subject to a 4 month hold period which will expire on or about October 16, 2011.

Neither the 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

  • Red Rock Energy Inc.
    Sandy L. Loutitt
    President
    (403) 685-1047
    (403) 410-3854 (FAX)

    Red Rock Energy Inc.
    Lara Cull
    Operations Manager
    (403) 685-1047
    (403) 410-3854 (FAX)