Objective Capital Precious Metals, Diamonds and Gemstones Investment Summit Focus on Gold: Challenges of gold mining in the US – reopening the Drumlummon Mine in Montana 20 May 2010 by Bill Fisher - RX Exploration Inc

1. PRECIOUS METALS,
DIAMONDS & GEMSTONES
INVESTMENT SUMMIT
12.15 – 12.40
Focus on Gold: Challenges of gold mining in the US –
reopening the Drumlummon Mine in Montana
Bill Fisher – Director, RX Exploration
THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 20 MAY 2010
www.ObjectiveCapitalConferences.com
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2. Gold and Silver Production in North
America
May 2010

3. Safe Harbor
The following presentation may include certain “forward-looking statements” within the meaning of the United States
Private Litigation Reform Act of 1995 and applicable Canadian Securities Laws. All statements, other than statements of
historical fact, included in the presentation, including, without limitation, statements regarding potential mineralization and
reserves, exploration results, and future plans and objectives of RX Exploration Inc., are forward-looking statements.
Words such as “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “intend”, “believe” and other similar expressions are
forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather
reflect our current views with respect to future events and are subject to risks, uncertainties, assumptions and other factors,
and actual results and future events could differ materially from those anticipated in such statements. There can be no
assurance that such forward-looking statements will prove to be accurate.
Some of the important factors that could cause actual results to differ materially from our expectations are disclosed under
the heading “Risk Factors” and elsewhere in documents filed from time to time with the Canadian provincial securities
regulators. We base our forward-looking statements on information currently available to us and we do not assume any
obligation to update them, except as required by law.
An additional Cautionary Note to Investors – In the event that we use certain terms in this presentation, such as
“resource”, “measured resource”, “indicated resource” and “inferred resource”. U.S investors are cautioned that, while such
terms are recognized and required by Canadian Securities Laws, the United States Securities and Exchange Commission
does not recognize them. Under U.S. standards, mineralization may not be classified as a “reserve” unless the
determination has been made that the mineralization could be economically and legally produced or extracted at the time
the reserve determination has been made. U.S. investors should not assume that all or any part of measured or indicated
resources will ever be converted into reserves. In addition, “inferred resources” have a great amount of uncertainty as to
their existence and as to whether they can be mined legally or economically. Accordingly, information concerning
descriptions of mineralization in this presentation may not be comparable to information made public by companies that are
subject to the SEC’s Industry Guide 7.
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4. RX Exploration : Gold and silver developer
 100% ownership of Montana’s Drumlummon mine, subject to 2%
NSR
 Historic development at numerous levels up to 1600 feet
 1 million ounces gold produced, 1885 -1905
 Never fully explored or exploited by previous operators
 Fully permitted; Grid power and year round paved road access
 Test mining operations in progress
 Development drift averages 41 g/t gold and 1,901 g/t silver over
3.2 metre width
 Gold and silver bulk sampling commenced April 2010
 1,000 tpd permitted Philipsburg mill leased May 2010
 Multiple Exploration targets. Drill results include: 178 g/t (5.2 opt)
gold and 97.3 g/t (2.84 opt) silver over 0.30 metres
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5. Share Capital
Listing CNSX
Symbol “RXE”
Recent share price1 CAD $0.61/share
52 week low–high CAD $0.165–$0.65
Shares outstanding 109 million – basic
196 million – fully diluted
Market capitalization CAD $66.5 million
Cash CAD ~$6 million
Share ownership RX Management (~20%); Spruce Ridge Resources (~10%)
Funds (May 2010) Sprott Asset Management (4.6% basic or ~ 5.1% fully diluted)
The company has commenced application for listing on the TSX Venture
Exchange. All of the company’s filings are current.
1 As of May 12, 2010
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6. The RX Exploration Team
Management
CEO: Murray Nye – Co-founder, director, principal of Venbanc, Inc., an investment and merchant bank
specializing in the structuring and financing of start-up companies; provides follow-up financial and
management advisory assistance.
CFO: Max Polinsky, B.Comm – Co-founder, director and principal of Venbanc, Inc.
Director of Mining Operations: Mike Gunsinger – Mike was employed for 40 years by Patrick Harrison
and Co., underground mining contractor, servicing major mining companies such as Inco and Noranda,
and the US Military. Upon retirement, established his own underground contracting company and has
been active in Utah and Montana.
Consulting Mine Geologist: Ben Porterfield – Ben leads a team of geologists at the Drumlummon
mine. He was formerly a geologist for Kennecott, focused on their Terra gold project in Alaska.
Following Kennecott’s divestiture of the project, Ben continues to develop the project independently.
Board of Directors
Chairman John O’Donnell, (B.A. Econ, L.L.B.)
Directors
Murray Nye
Max Polinsky
Bill Fisher, (P.Geo.) Former Chairman, Aurelian Resources and VP Exploration, Boliden Ltd.
John Ryan (CGA) President, Spruce Ridge Resources
Edward Ellwood (MBA) Management Consultant
Paul Teodorovici Property Management Consultant
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7. The Drumlummon Mine - Marysville, Montana
Marysville, Montana is located 25 miles North-West of Helena, Montana’s capital city.
Contact Mill, Philipsburg, 114 miles by road southwest from Marysville
RX Exploration Drumlummon Mine
and Contact Mill locations
Marysville
HELENA
Philipsburg
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8. Drumlummon Mine Property Map
The property consists of 26 patented mining claims (290 acres) and 68 staked
claims (1,390 acres) May 2010 added Bald Butte Gold/Moly projects
A’
A
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9. History of the Drumlummon Mine
1876: Drumlummon deposit discovered by Thomas Cruse
1883 - 1901: Montana Co. puts mine into production. Loses claim dispute in 1901 and floods
mine to 400 foot level.
1902 – 1910: Production continues above 400 foot level by Montana Co while claim appeals in
Annual Average Gold Prices in US Dollars per
progress. Loses appeal.
1000
1910 - 1929: St Louis Company takes ownership. Leases mine periodically. Production
900 sourced above the 400 foot level. Market crash of ’29 stops production.
800 1941 - 1951: Montana Rainbow Co. dewaters and restarts production in 1946. Mill burns down
in 1950 and production ceases. Rebuilding the mill not economically viable.
700 2007: RX consolidates all land claims, initiates surface drilling, completes NI 43-101
report. Begins underground rehabilitation.
Ounce
600
2008: Charly Vein system discovered
500
2010: RX reopens the mine
400
300
200
100
0
83
92
01
10
19
28
37
46
55
64
73
82
91
00
09
18
18
19
19
19
19
19
19
19
19
19
19
19
20
20
Year
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10. Mining Strategy - 2010
 Bulk sampling, leading to trial mining, will target ore from two key areas of the
Drumlummon Mine (D Block and Charly Vein)
 Both areas are being developed by drifting, followed by trial stoping
 Currently taking bulk sample with a target grade of over 10 g/t gold and 400
g/t silver
 Contracted trucking fleet already shipping ore to mill
 Company is processing a series of 100+ ton bulk samples to fine tune existing
gravity and flotation circuits (Metallurgy lab tests showed gold recovery of 92%)
 Bulk sampling in May 2010 estimated at a rate of 200 tons per day increasing
to trial mining at a rate of 500 tons per day by Q1 2011
 Ore to be shipped to RX’s leased mill, at Philipsburg, for processing
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11. Drumlummon Development Vision
Mine development will expand from existing workings – drilling will
extend the target envelope, with follow up from rehabilitated workings
A A’
South
South 9 Hour North
North
Surface Workings
Drumlummon
Workings
Drumlummon
Workings Surface Setup
400 Level
Exploration
400 Level
9 Hour Target
Workings Previously 700 Level
Exploration
Disputed 700 Level
Target
Ground 1000 Level
Exploration Charly Vein
Previously 1000 Level
Exploration Disputed Target Shaft No.2 Charly Vein
Ground Xmas Vein Vein
Xmas
Target Shaft No.2
1600 Level
1600 Level
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12. Drumlummon Development philosophy
“Drill for Structure…”
Drill Hole From To Width Gold Silver
(m) (m) (m) (g/t) (g/t)
DDH 08-05 119.5 121.4 1.8 37.8 1,081.4
DDH 08-15 122.9 125.8 2.9 44.1 1,393.0
DDH 08-26 123.8 125.6 1.8 33.5 350.4
DDH 08-28 143.2 145.5 2.3 51.8 380.6
DDH 08-29 1.2 3.6 2.4 9.9 1,821.3
DDH 09-102 73.2 76.8 3.7 41.1 572.6
6.8
DDH 10-115 9.7 16.5 21.1 57.8
(true width 3 m)
8.0
DDH 10-120 4.3 12.3 19.76 45.2
(true width 3 m)
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13. Drumlummon Development philosophy
“… drift for Grade”
D-block
D Block
400 Level
500 level cross-cut
Xmas Vein through Charly Vein
700 Level
1000 Level
Charly Vein
1600 Level
70 metres of Charly vein development drift averaged 41 g/t gold and
1,901 g/t silver over faces averaging 3.2 metres in width (PR May 2010)
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14. Development Progress
 400 level haulage drifts and internal ramps
fully operational for test mining (over 500
ton per day ore and waste capacity)
 By April 2010,142 holes (44,863 feet) of
drilling completed defining multiple high
grade gold and silver zones. New hanging
wall drill station commissioned (May 2010)
Charly Vein
 Fully permitted water treatment plant
currently dewatering mine – able to drain
system at 100 ft depth per month
 Portal completed for 800 level decline
decision in Q3 2010 – for haulage capacity
to reach 1,000 tpd
500 level cross-cut
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15. RX’s Fully Permitted Philipsburg Mill
 Existing mill 114 miles from mine
accessible by paved highway ($20.50 per
ton hauling cost), on care and
maintenance from 2008
 Two separate 500 ton per day circuits
including crusher, regrind mills, gravity
and flotation circuits
 Facility has milled more than 1 million
tons of ore from Inspiration’s poly metallic
Black Pine Mine
 1.5 million tons of tailings space currently
available at the mill site
 Leased for $30,000 per month plus per
ton milling fee
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16. Bulk Sampling and Exploration Schedule
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17. Property Exploration of Resource Potential
 Objectives : Consolidate medium-term mine plan and drill/drift on multi-
million ounce gold/silver potential along strike and at depth
 Continue exploration of D Block, Charly Vein and newly discovered
mineralization to upgrade known resource
 Charly vein remains open to the north, south and at depth; may
represent the extension of the partially mined high-grade Xmas Vein.
 New drill stations in the hanging wall of the Charly vein enables exploration
of new and existing targets laterally as well as at depth
 Continue rehabilitating historical workings over 1500 m. to the south in
order to access and drill “Previously Disputed Ground” and beyond
 This ground was never mined due to the historic claim dispute
 Additional land has been acquired in the vicinity of the mine for future
exploration
 Specifically the Bald Butte Moly/gold/silver property located 5 km to the
SW
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18. Permitting and Community Relations
 RX has received all permits and exemptions required
for production:
 Approval of exploration license including water discharge by the
Montana Department of Environmental Quality
 Approval of small miner exemption which permits the company to
mine so long as surface operations do not exceed five acres
 Approval of the alternative mine rescue capabilities by the U.S.
Mine Safety and Health Administration
 Approval of the ventilation, escape and evacuation plan by the
U.S. Mine Safety and Health Administration
 RX has been conducting regular Town Hall meetings to encourage
community involvement and has addressed all of the concerns of the
people of Marysville
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19. RX Exploration : Programs to Add Value
 Develop the Drumlummon mine
plan systematically, at a
sustainable rate for short, medium
and long term profitable
operations
 Step up mine production over
time to match the 1,000 ton per
day Phillpsburg mill capacity while
maintaining grade and recoveries
 Consolidate existing resources
and their extensions, and convert
to formal 43-101 reserves
 Aggressively drill to test multi-
million ounce gold/silver potential
using the first class access down
to 500 metres depth and for over
1.5 kilometres in length
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20. Value Drivers: Assessing RX’s value by gold produced
Peer Group High-Grade Gold Producers <100,000 oz gold/year
Shares Enterprise Recovered Grade 2009 EV/Oz
Outstanding Value (gold equivalent - Production Produced
Company (millions) (USD grams per tonne) (ounces) (US$)
millions)
Wesdome Gold Mines 100.4 $229 9.0 96,150 2,381
Richmont Mines 26.1 $99 5.0 63,500 1,555
Orvana Mineras Corp 115.2 $110 5.1 62,644 1,758
Medusa Mines 170.8 $693 16.7 47,869 14,481
Apollo Gold Corp 261.6 $195 2.7 44,739 4,358
Kirkland Lake Gold 63.3 $443 11.9 43,545 10,163
Alexis Minerals 147.7 $41 5.8 38,461 1,067
San Gold Mines 266 $1,133 18.0 23,500 48,234
Olympus Pacific Minerals 322.7 $114 10.3 23,000 4,987
Metanor Resources 122.4 $80 7.4 20,000 3,975
St Andrews Goldfields 326 $342 6.5 15,000 22,767
Avnel Gold Mining 79.2 $28 12.1 13,045 2,161
RX Exploration 109 $55 22.1* NA NA
Average $274 10.2 40,952 $9,824
*NI 43-101 grade and 92% met recovery
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21. How the market values high grade gold producers
Investors should compare RX to this peer group
Potential Enterprise Value ($US Millions)
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$-
20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000
Potential Annual Production (oz Au)
 Based on average Enterprise Value per Ounce Gold produced (US $9,824)
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22. RX Exploration : Summary
 Cash on hand - C$6 million
 Achieving immediate serial
production in high grade
Drumlummon mine, with operations
to pay for all development and
exploration work
 Continuous exploration by drilling
and rehabilitation of old workings to
follow up encouraging drilling results
 Surface exploration of Drumlummon
extensions and nearby
mineralization
 Build treasury for development and
future corporate development (in-
the-money warrants would bring in
C$29 million)
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23. Drumlummon – A Golden Future for a Historic Mine
406 – 138 Portage Ave. East
Winnipeg, Manitoba
Canada
R3C 0A1
T: (204) 989-2434
F: (204) 989-2433
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24. Appendix A: NI 43-101 Compliant Resource - Charly
Vein and Historic Resource
 Calculated from 59 drill holes drilled into the Charly Vein System
 A cutoff mining width of 5 feet was used as well as a minimum grade of 0.1 oz/t Au
400E Vein Tonnage Grade Au Grade Ag Ounces Ounces
(oz/t) (g/t) (oz/t) (g/t) Au Ag
A 67,284 0.39 13.4 12.2 418 26,192 820,166
B 39,740 0.53 18.2 7.3 250 21,097 291,053
C 48,494 0.48 16.5 16.6 569 23,414 804,341
Total Inferred
155,518 0.45 15.6 12.3 422 70,703 1,915,560
Resource
Tonnage Grade Au Grade Ag Ounces Ounces
(oz/t) (g/t) (oz/t) (g/t) Au Ag
Historic
841,000 0.50 17.14 5.00 171.43 463,000 4,635,000
Resource*
* Historic Resource is not NI 43-101 compliant
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