drumlummon gold mine, montanna

Last Updated May 26, 2010

Drumlummon Mine Project

Marysville, Montana

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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.

Corporate Overview

RX Exploration Inc.'s strategy is to re-examine mineral projects within North America that have previously reached advanced exploration, underground development or past gold or silver production.

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Share Capital

1 As of May 25, 2010

Listing CNSX

Symbol “RXE”

Recent share price1 CAD $0.65/share

52 week low–high CAD $0.165–$0.65

Shares outstanding 109 million – basic

196 million – fully diluted

Market capitalization CAD $70 million

Cash CAD ~$6 million

Share ownership

RX Management (~15%)

Funds (May 2010) Sprott Asset Management (4.6% basic or ~ 5.1% fully diluted)

Conditionally approved for Tier 1 listing on TSX-V – refer to May 25, 2010 Press Release

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The RX Team

Directors John F. O’Donnell, B.A. (Econ.), L.L.B., Chairman Murray R. Nye, Director, President, CEO Maxwell A. Polinsky, B.Comm. (Hon.), Director, CFO Edward L. Ellwood, MBA, Director William J. Fisher, P.Geo., Director John A. Ryan, CGA, Director Paul V. Teodorovici, Director

Technical New Millenium Mining & Contracting LLC – Mine Operator L. Joseph Bardswich, P. Eng. – Mining Engineer Harold (Mike) Gunsinger – Underground Consultant Ben Porterfield, M.Sc. – Consulting Geologist

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Drumlummon Mine Project Overview

One of the largest past gold producers in the western USA with reported total production of US$29,000,000 @ US$20 – US$35 oz/gold (from 1881 – 1910)

Originally financed by the Rothschilds. Lawsuit disrupted production in early 1900’s and deeper levels have remained flooded since 1901

Developed at numerous levels to 1,600 feet with 2 shafts, power and year round road access

“Bonanza” style epithermal deposit which can produce high grades over large widths

RX consolidated the project and commenced exploration in 2007

April, 2010 - bulk sampling commenced

May, 2010 - 1,000 ton per day permitted mill leased

Exploration ongoing

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The Drumlummon Mine, Marysville MontanaMarysville, MT is located 25 miles North-West of Helena, Montana’s capital city.The Mill is located in Philipsburg, MT, 114 miles by road South-West from Marysville.

Philipsburg

Marysville

HELENA

Drumlummon Mine and Mill Locations

History of the Marysville Mining District

Mine Discovery Production* (Au, Ag)

Comments

Drumlummon 1876 $29,000,000, 1.1 – 1.2 mt

Average 0.5 oz/t Au

Bald Butte Prior to 1886 $3,500,000 Vein width to 22 ft

Gloster Prior to 1880 $3,500,000 Free gold; cp + py

Bald Mountain 1875 $3,500,000 Cut-off 0.25 oz/t Au, to 15 ft wide

Shannon 1885 $2,700,000 Veins 7 – 14 ft wide

Belmont 1878 $2,500,000 Veins 2 – 10 ft wide

Empire 1880 $2,500,000 Reportedly averaged $30/t in Au, Ag, Cu, and Pb

Penobscot 1873 $1,230,000 Quartz-carbonate with free gold and silver

Blue Bird-Hickey

n.a. $600,000 Veins from 4 – 12 ft, free gold and silver

*From NI 43-101 report. 8

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400 Level

1600 Level

700 Level

History of the Drumlummon Mine

D Block

Charly Vein

Xmas Vein

D-block

~ Late 1800’s

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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 progress. Loses appeal.

1910 - 1929: St Louis Company takes ownership. Leases mine periodically. Production sourced above the 400 foot level. Market crash of ’29 stops production.

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.

2007: RX consolidates all land claims, initiates surface drilling, completes NI 43-101 report. Begins underground rehabilitation.

2008: Charly Vein system discovered

2010: RX reopens the mine

35,6

85 o

z Au

388,

375

oz A

g

775,

000

oz A

u eq

26,4

53 o

z Au

140,

393

oz A

g

21,2

84 o

z Au

138,

773

oz A

g

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Drumlummon Property Map Original Drumlummon property (outlined in black below):

26 patented mining claims (290 acres) and 68 staked claims (1,390 acres) Bald Butte properties (adjacent to SW boundary, not yet shown on map)

22 patented claims and 50 federal claims covering ~ 1,000 acres

Strike of D

rumlummon V

eins.

Area re

mains open (“

blue sky”)

A

A’

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400 Level

1600 Level

700 Level

Drumlummon TodayDiagrammatic Illustration of Mineral Zones Outlined by RX to Date.

1000 Level

D Block

Charly Vein

Xmas Vein

D-block

500 level cross-cut through Charly Vein

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Drumlummon TodayThe existing workings are being utilized to explore and re-develop the Drumlummon

9 Hour Workings

South

Surface

Drumlummon Workings Surface Setup

Previously Disputed Ground

Xmas VeinShaft No.2

Sha

ft N

o.1

1600 Level

1000 Level

700 Level

400 Level

Charly Vein

A A’

9 Hour Workings

Xmas Vein

South North

Exploration

Target

Exploration

Target

Exploration

Target

Exploration

Target

Drumlummon Workings

Charly Vein

400 Level

700 Level

Sha

ft N

o.1Shaft No.2

1000 Level

1600 Level

Previously Disputed Ground

Drumlummon Development philosophy“Drill for Structure…”

57.821.16.8

(true width 3 m)16.59.7DDH 10-115

45.219.768.0

(true width 3 m)12.34.3DDH 10-120

572.641.13.776.873.2DDH 09-102

1,821.39.92.43.61.2DDH 08-29

380.651.82.3145.5143.2DDH 08-28

350.433.51.8125.6123.8DDH 08-26

1,393.044.12.9125.8122.9DDH 08-15

1,081.437.81.8121.4119.5DDH 08-05

Silver

(g/t)

Gold

(g/t)

Width

(m)

To

(m)

From

(m)

Drill Hole

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Drumlummon Development philosophy“… drift for Grade”

1904 g/t55.6 opt107.2 g/t3.13 opt2.3 metres7.4 ft

Silver - AverageGold - AverageTotal Width

2.7 opt0.52 opt12 inches






Silver (Ag)Gold (Au)Composite Sample Width

Channel Samples Across Charly Vein Cross-cut

April, 2010 – Underground Ramp Crosses Charly Vein – Returns 3.13 oz (41 g/t) GOLD & 55.6 oz (1,901 g/t) SILVER Over 7.4 Foot Vein Width (refer to April 12, 2010 Press Release)

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Charly Vein Resource – November, 2008 NI 43-101 Report

Grade AgGrade Au

12.3

16.6

7.3

12.2

(oz/t)

0.45

0.48

0.53

0.39

(oz/t)

1,915,56070,70342215.6155,518Total Inferred Resource

804,34123,41456916.548,494C

291,05321,09725018.239,740B

820,16626,19241813.467,284A

Ounces

Ag

Ounces

Au(g/t)(g/t)

Tonnage400E Vein

NI 43-101 Compliant Inferred Resource calculated from 59 drill holes drilled into the Charly Vein System at November, 2008

A cutoff mining width of 5 feet was used as well as a minimum grade of 0.1 oz/t Au

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Near-Term Exploration 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.

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

New drill stations in the hanging wall of the Charly vein enables exploration of new and existing targets laterally as well as at depth

Additional land has been acquired adjacent to the Drumlummon property for future exploration

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Fully Permitted Leased Mill

1,000 ton per day mill leased from May, 2010 to December, 2010 to conduct bulk metallurgical and processing test-work

Located 114 miles from the mine at Philipsburg, MT and accessible by paved highway ($20.50 per ton hauling cost)

Two separate 500 ton per day circuits including crusher, regrind mills, gravity and flotation circuits

Includes fully permitted tailings storage facility

Lease cost is $30,000 per month plus $30 per ton milling fee

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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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Bulk Sampling and Exploration Schedule

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406 – 138 Portage Ave. EastWinnipeg, Manitoba

CanadaR3C 0A1

T: (204) 989-2434 F: (204) 989-2433

Drumlummon – A Golden Future for a Historic Mine

drumlummon gold mine, montanna

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