Rex No.1 Mine

Novadx acquired the Rex No. 1 Mine located in Campbell County, Tennessee on January 21, 2011. Novadx's subsidiary MCoal controls approximately 31,000 acres of Rex coal mineral rights. To date approximately 14,000 acres of the property have been explored, delineating the following “Rex” coal reserves and resources at the Rex No. 1 mine:

• 32.2 million tons of Proven and Probable in situ “Rex” coal reserves.

• 12.7 million tons of Measured “Rex” coal resources.

• 19.4 million tons of Indicated “Rex” coal resources.

• 25.7 million tons of Inferred “Rex” coal resources.

• With the potential to reclassify up to 75% of inferred coal resource as either measured or indicated through drilling of at least 12 additional holes.

The Rex Coal is high quality coal in demand by the metallurgical, silicon metal and industrial stoker coal markets

The following summary of the Rex coal reserve quality (as received, dry basis):

	% Ash	%VM	%FC	%Sul	Btu/lb
Average	4.88	38.31	56.81	.92	14,358
Minimum	2.07	38.00	54.66	.72	13,989
Maximum	7.23	39.16	59.26	1.56	14,842

The Rex No.1 mine is fully permitted for production and bonded and accordingly the company has commenced initial development of this mine with the intention mining operations in the third quarter of 2011 at an initial production rate of approximately 15,000 tons per month.

A NI 43-101 compliant technical report on the Rex No. 1 Mine (View Here) has been prepared George Smith, PE, LS, of Gress Engineering, PC, who is a Qualified Person as that term is defined under National Instrument 43-101 and can be found in Novadx’s filings on Sedar (www.sedar.com).