RUN Running Fox Resource Corp

Running Fox Resources Corp. (TSX VENTURE:RUN) (PINK SHEETS:RFXRF) (FRANKFURT:C8Q) 

Steven Schurman, Director, CEO, reports:

Running Fox has compiled its 2009 fiscal year financial statements.

Tougher times in the Alberta oilpatch have had a deleterious effect on revenues
and margins, although the Company made significant progress in its aggressive
plan to reduce overall debt levels in order to survive and come out of the
downturn in good shape.


Total Revenues for the year were $5,447,579. 

The Company wrote off $624,446 of revenues from a subsidiary which was
classified for consolidated accounting treatment as a discontinued operation,
which had the effect of reducing top line revenues on its financial statement
(revenues from its continuing operations) to $4,823,133. 


The Company's loss from operations (negative EBITDA) before write downs was
$165,456. This compares to EBITDA of $858,149 for the comparative period in
2008.




The Company booked the following one-time, non-cash items:

--  amortization and depletion of $465,779; 
--  a loss from discontinued operations of $662,408; 
--  write down of investment of $322,325; 
--  impairment of goodwill of $944,627; 
--  wrote down resource properties by $1,708,487; 



After the effect of all one-time goodwill write downs, interest, tax effects,
impairments, amortization and depletion, the net comprehensive loss from
continuing operations was $3,011,872 compared to prior period net comprehensive
loss of $505,939. 


(i) Where the Company provides "Non-GAAP Financial Measures", readers should
note that the Non-GAAP Financial Measures do not have a standardized meaning
prescribed by GAAP and is therefore unlikely to be comparable to similar
measures presented by other issuers however, in management's view it is an
effective way to assess financial information.


Consolidated revenues and EBITDA were decreased from last year primarily because
the Alberta oil and gas industry was effected by low natural gas prices
resulting in lowered drill rig utilization and exploration activity, as well as
the excessive Alberta royalties. 


In addition, the Company's Pincher Creek Oil and Gas Project was offline for
almost the whole year due to Shell Canada (Shell PLC) upgrading facilities at
its Waterton Plant. 


Due to the facilities upgrade, Running Fox natural gas and liquid condensate
revenues were decreased to $49,143 from the prior period revenues of $1,029,969.


Overall, the Company has made definite progress on its aggressive plan to reduce
overall debt levels.


Current liabilities at year end were $575,897 which was a significant reduction
from $3,779,904 in the prior period.


At the year end, the Company had long term debt of $34,095.

Total liabilities at year end were reduced to $621,956 from $4,284,273 in the
prior period.


In addition to reducing debt and total liabilities, the Company has implemented
cost controls, personnel reductions and wage rollbacks.


Private Placement Financing 

The Company will file for TSX approval for a $700,000 private placement,
primarily for exploration and drilling, which will add to cash and current
assets of $993,000.


On behalf of the Board of Directors: Steven Schurman, Director, CEO, Running Fox
Resource Corp.


The Company relies on legislation applicable to forward looking statements,
seeking safe harbour.

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