Novadx Ventures Corp. (NDX:CA)

Novadx Ventures Corp. is a Vancouver based mining investment company. Novadx's primary focus is to acquire and develop companies with active or near production high quality coal reserves, in the US Appalachia coal region.

Novadx, through its wholly owned subsidiary MCoal Corporation ("MCoal") is:

1. Operating the "Rosa" mine located in Blount County, Alabama. The Rosa Mine produces a high quality coal for the metallurgical and activated carbon coal markets.
2. Developing the "Rex No. 1" mine located in Campbell County, Tennessee. MCoal expects to begin operating this mine in the third quarter of 2011. The Rex No. 1 mine will produce a high quality coal for the metallurgical, silicon metal and industrial stoker coal markets.

Novadx intends to continue growing its coal business through expanding production at its existing mines and accreting additional acquisitions.



Novadx has a strong and experienced team that has a proven track record of over 100 years of experience in the coal and capital markets industries.

Corporate Overview

History:

In October, 2006 new management lead by Neil MacDonald, Novadx's CEO, took over Novadx and the company began operations as a merchant bank with an investment focus in mineral exploration. The company structured, made investments as a principal and provided management and other related services to companies and projects that it believed had an above average opportunity to provide a high return on investment. During this time the company acquired and expanded the Canadian Small Cap Resource Funds, a family of flow through funds, which was subsequently sold in June 2009.

Today:

In October 2008, Novadx changed its investment focus to concentrate on acquiring and developing high quality coal reserves and operations in the Appalachia coal region of the USA and incorporated its wholly owned subsidiary MCoal Corporation to commence the property acquisition, permitting and development of the Company's flagship Rosa Mine in Blount County, Alabama. Novadx commenced production of high quality metallurgical coal at the Rosa Mine in April 2010. In November 2010, Novadx arranged up to $38 million in funding by way of a coal stream financing with Sandstorm Metals & Energy of Vancouver, BC. The proceeds of this financing will be used to install a coal preparation (washing) facility at the Rosa Mine, acquire the Rex No. 1 Mine in Campbell County, Tennessee (completed January 21, 2011), develop and begin producing the Rex No. 1 Mine.

Projects

Rosa Mine

The Rosa Coal Project is located in the Warrior coal fields of Northern Alabama, which is situated on the southern-most portion of the Appalachian Coal Belt. Alabama is a prolific and important coal producing state, with total coal production of over 20 million tons in 2008.
MCoal has developed a three-phase mine plan to recover over four million tons of Rosa Coal with an expected mine life of approximately 12 years. MCoal commenced the first phase of auger mining the Rosa Coal seam in April of 2010.

HISTORY

The Rosa coal project was mined from 1965 to 1978 by Calvert & Marsh Coal Co. Inc, using strip mining techniques. The company mined over 5 million tons of Rosa Coal which was sold to two coking plants in nearby Birmingham, Alabama, located approximately 45 miles from the Rosa project.
The strip mining techniques used by Calvert & Marsh "rim cut " the edges of the Rosa Coal deposit leaving an exposed highwall ideally suited for auger mining. The mining conducted by the company was completed prior to modern reclamation standards being established and as a result the Rosa Coal seam is highly accessible.
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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).