Running Fox to acquire drilling company

2009-09-21 10:34 ET - News Release

Mr. Wayne Waters reports

RUNNING FOX RESOURCES TO ACQUIRE DIAMOND DRILLING COMPANY

Running Fox Resource Corp. has entered into an exclusive arrangement that would enable it, following successful asset review, to acquire an operating Canadian diamond drilling company.

The private company is technically advanced and operates one to three drill systems depending on the size of a drilling contract, with current capabilities down to 6,000 feet, including in very rough terrain. This acquisition would mark the beginning of a plan for Running Fox to be more active with the drill bit.

The drilling company would operate as a subsidiary of Running Fox and ideally conduct drilling operations for Running Fox and partners' resource projects, and secondly to continue drilling for profit on contract for third party resource companies.

The drilling company has extensive experience and would be available for drilling projects in Canada and the United States.

The principals of the drilling company are well versed in assessing resource projects and, if the deal consumates, are pleased to be receiving only Running Fox shares as consideration for their company and are looking forward to Running Fox drilling their high-grade gold development -- Brett gold project, Okanagan Valley, British Columbia.

Running Fox looks forward to follow up on previous drillhole No. RC93-19, which returned a significant intersection of:

• Fifty-five feet of 1.045 ounces per ton Au (16.76 metres grading 35.79 grams per tonne (g/t) Au) including 3.048 m grading 57.88 g/t Au (1.69 ounces per ton Au) and 4.57 m grading 107.88 g/t Au (3.15 ounces per ton Au) within the main shear zone.

In the company's last drilling program 15 out of the 17 holes drilled intersected significant gold-bearing intersections including the following:

• Diamond drill hole No. 04-01 intersected 33.5 feet grading 0.154 ounce per ton Au including 5.5 feet grading 0.640 ounce per ton Au;

• Diamond drill hole No. 04-02 intersected 38.1 feet grading 0.303 ounce per ton Au including 10.2 feet of 0.992 ounce per ton Au.

In both of these high-grade intercepts visible gold was observed and a metallic assay was performed.

More importantly, Diamond drill hole No. 04-12 intercepted 4.3 feet grading 5.104 ounces per ton gold, (check assay performed) plus two other significant but lower-grade (0.03 ounce to 0.07 ounce per ton gold) intercepts. This new zone, located on a tuffaceous bed, is located 160 feet (53 metres) east of the main shear zone and represents a totally new zone as none of the previous drill holes went as far east as this hole. The zone is cut off by several postmineral dikes in the core, possibly indicating the presence of a second parallel shear structure. If so, this would be the first confirmation of bonanza high-grade gold values (greater than one ounce per ton gold) on a parallel shear structure, opening the possibility that similar high-grade zones may be present along the numerous other shears identified during surface work. The entire strike length of the shear zone is unexplored as none of the previous drill holes were near its projection.

The program opened up large areas for exploration and the development of additional gold bearing zones.

Complete maps, geochem and drilling history are available for review/download on the Running Fox website.

The project has significant early stage block calculations on a small portion of one shear zone -- and there are many shear zones, running under large undrilled geochem zones with good gold values over large areas (see geochem in assessment report).

Oil field services and technology division:

The company's oil field services division has identified several potential acquisition partners, with seperate revenues exceeding $10-million, and the group's combined, consolidated revenues would be more stable following any potential acquisition of these operating partners.

The acquisitions would also be funded by Running Fox common shares, without any cash component, as the new partners believe in the prospective future of the Running Fox group and choose to receive their compensation in shares rather than cash.

These potential acquisitions would assist Running Fox to continue its diversification, and when finances allow to further improve its proprietary WireDryer recycling technology. Recently there has been interest in the WireDryer system for a new application and Claymore is pursuing that potential. There has also been talk in the oil patch of various mergers that may involve parts of Running Fox.