WINNIPEG, MANITOBA -- (Marketwire) -- 08/16/10 -- RX Exploration Inc. (TSX VENTURE: RXE) (the "Company" or "RX") produced 1,378 ounces of gold ("Au") and 20,981 ounces of silver ("Ag") during July, 2010 as a result of the bulk metallurgical test-work program ongoing at the Company's 100% owned Drumlummon Mine, Marysville, Montana (the "Drumlummon"). Highlights of recent activity were:

--  1,378 oz. Au & 20,981 oz. Ag produced from bulk metallurgical test-work
    program during July, 2010
--  Average mill throughput 182.5 tons per day during July, 2010 with 3rd
    shift being added to increase throughput
--  Initial blast in Charly South shrinkage stope occurred August 13th
--  The electric/hydraulic drill mobilized to 450 level for longhole stoping
    of Drumlummon D Block

"The metallurgical test-work program is proceeding extremely well, commented Murray Nye, President of RX Exploration. "Fine-tuning the metallurgical flow sheet to maximize precious metal recovery is a key step in our journey to full production. As an additional benefit, the revenue generated from this program is helping to offset the cost of this phase of development."

Bulk Metallurgical Test-Work Program

Bulk testing of mineralized material from the Drumlummon (the "Feedstock") is continuing at the milling facility in Philipsburg, MT (the "Mill"). The purpose of this program is to optimize metallurgical recoveries and fully develop the metallurgical flow sheet.

During July, 2010, a total of 4,015 tons of Feedstock was milled and the average daily throughput during this period was 182.5 tons per day ("tpd"). Concentrates from the bulk metallurgical testing program were delivered to smelter brokers and refiners, yielding settlement quantities totaling 1,378 oz Au and 20,981 oz Ag.

Mill feedstock was derived from a blend of development headings on the Charly Vein and from lower grade gob backfill and sloughed wall rock mucked from old stopes above the 500 level of the Drumlummon vein. Increased gold recovery during July, as compared to June, was a result of increased mill throughput. Reduced silver output is attributable to an increased percentage of Drumlummon vein material being processed. The Drumlummon vein material has a lower silver/gold ratio than the Charly Vein material.

Recoveries were 88.59% for gold and 83.22% for silver in July, 2010 as the Company experimented with the optimal treatment of oxidized Drumlummon vein material. Process adjustments are being made as the program proceeds, including the recent installation of a bank of Humphrey spirals to recirculate the heavy fraction of the tailings back to the ball mill for re-grinding.

The next planned phase of the bulk metallurgical test-work program involves increasing daily Mill throughput while maintaining satisfactory recovery levels. Additional Mill personnel are currently being trained for a 3rd shift to be added toward the end of August, 2010. This will enable the Mill to operate on a continual, 24 hour basis, over a 5 day work week. In addition to increasing throughput, continual operation is expected to enhance recoveries.

Drumlummon Exploration Development & Stoping Operations

Activity at the Drumlummon Mine has been concentrated on:

(1) continuation of the main exploration decline toward the 550 level;

(2) delineation of the upper boundaries of the Charly Vein;

(3) stope preparation of the Charly Vein and the Drumlummon D Block;

(4) underground drilling of the Charly Vein at deeper levels.

On the Charly Vein, the initial shrinkage stope blast above 500 level Charly South sub-drift was detonated on August 13, 2010. This material is now being mucked and trammed to surface.

On the 450 level, a drill pattern has been designed and laid out for longhole stoping of the Drumlummon D Block and slashing of the adjacent Sampson Stope walls. The longhole drill has been mobilized to the 450 level and drilling has commenced. Stope mining of the Charly and Drumlummon veins will enable a higher rate of production of mill feedstock as compared to development mining. It is anticipated that mine operations will be able to supply sufficient feedstock to the mill for the scheduled 24 hour continual test milling operations.

Exploration drilling continues from the 500 level at the drill station driven 150 feet into the hanging wall of the Charly vein. Current drilling is testing the Charly Vein at greater depths.

Employee Stock Options

The Company also announces that it has granted a total of 225,000 stock options to two non-management employees pursuant to its incentive stock option plan. The options are exercisable at $0.60 per share until June 3, 2013 and vest one-third immediately and one-third annually thereafter. This transaction is subject to any necessary regulatory or stock exchange requirements.

Quality Control/Quality Assurance (QC/QA)

Underground face samples, AX core and mill samples are fire assayed at the Company's in-house laboratory. All drill core is logged, photographed, and cut in half with a diamond saw. One half is bagged and sent for assay, while the other half is archived and stored on site. N sized core samples are sent to an outside lab for assaying. Duplicates of 25% of the N core samples and selected duplicate samples from the in-house lab are sent to ALS Chemex Lab, Elko, NV for verification assaying. For QC/QA purposes standards, blanks, and repeats are randomly inserted into the sample stream.

L. Joseph Bardswich, P.Eng. (Mining) (Ontario) is the qualified person responsible for reviewing this press release for content and accuracy.

About RX Exploration

RX Exploration Inc. is a gold exploration and development company whose strategy is to re-examine gold projects within North America that have previously reached advanced exploration, underground development or past gold production. The Company is currently focused on re-starting the Drumlummon Mine, it's past producing high-grade, bonanza-style, epithermal underground gold and silver mine in Montana.

The Company's shares are listed on TSX-V (Symbol: RXE). There are 111,486,331 common shares issued and outstanding.

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's anticipated operational plans and activities including its plans to conduct additional bulk test-milling runs, add a 3rd shift to operate the Mill on a 24 hour, 5 day per week basis, to continue a decline to the 550 level, to conduct stope mining and longhole stope drilling, and to continue diamond drilling.

Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding its ability to complete its development work as expected. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of the Company's continued development work, technical, safety or regulatory issues.

Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.

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.