Overview

Novadx Ventures Corp. (TSXV:NDX, US:NDXFF, FWB:4GZ) is a Vancouver based, well capitalized  mining investment company, which through its wholly owned subsidiary, MCoal Corporation, is becoming a mid-tier coal producer currently developing and operating two coal mines and increasing its coal reserves and production both organically and through acquisition of producing or near production high quality coal assets in the US Appalachian Coal Region.  Novadx commenced production of high quality metallurgical coal at its flagship Rosa Mine in Alabama in 2010 and acquired the Rex No. 1 Mine in Tennessee 2011.

In November 2010, Novadx entered into a coal production and payment agreement pursuant to which the company sold a coal stream to Sandstorm Metals & Energy Ltd in exchange for US$38 million in advanced payments.  In January and February 2011, MCoal Corporation received payments of US$5 million and US$25 million, for an aggregate amount of US$30 million, as part of the US$38.0 million advance payment.  The proceeds allowed Novadx to capitalize acquisition activities, strengthen its balance sheet and finance development of its mines.

 Investment Highlights

Chief Projects

Rosa Mine – Blount County, Alabama, United States

The Rosa Coal Mine is located in the Warrior coal fields of Northern Alabama, which is situated on the southern-most portion of the Appalachian Coal Belt.  Historical mining from 1965 to 1978 primarily consisted of “contour” strip mining techniques leaving an exposed high-wall ideally suited for auger mining. The mining conducted by previous operators was completed prior to modern reclamation standards leaving the Rosa Coal seam highly accessible.  Rosa Coal is a high-quality metallurgical coal sold to customers in the coking coal and activated carbon coal markets. Additional uses for Rosa Coal include other industrial applications such as specialty metal alloying.

The Company has developed a three-phase mine plan to recover an estimated four million tons of coal with an expected mine life of approximately 12 years.  MCoal commenced the first phase of auger mining 650,000 recoverable tons of NI 43-101 compliant proven Rosa Coal reserves in April 2010.  The Company is developing its mine plans for second and third phases of mining and plans to initiate Phase Two of its mining plan in late 2013.

Construction of a wash plant at the Rosa Mine site began in May 2011 and is  now operational processing 10,000 tons per month. MCoal has purchased a second auger mining machine and will be expanding phase one production at the Rosa Mine to 10-15,000 tons per month in the first calendar quarter.

Rex No.1 Mine   – Campbell County, Tennessee, United States

Novadx acquired the Rex No. 1 Mine in January 2011. The Company controls approximately 31,000 acres of Rex Coal mineral rights. Rex Coal is a superior quality coal that is in high demand by the metallurgical, silicon metal and industrial stoker coal markets.

To date, approximately 14,000 acres of the property have been explored, reporting a 43-101 compliant resource of 12.7 million tons measured, 19.4 million tons indicated, and 25.7 million tons inferred and a 32.2 million tons proven and probable coal reserves in place.

The Rex No. 1 Mine was initially opened and operated in the early 1980s.  The previous operator developed mine entries and mains advancing approximately 2,400 feet underground on the Rex Coal seam.  The Rex No. 1 Mine changed ownership in the mid 1980s and was subsequently idled and had all mine equipment removed due to poor market conditions. Today, the Rex No.1 mine is fully permitted for underground production.  Novadx has reactivated the permit, completed mine site development, leased additional surface area to accommodate a coal preparation facility at the mine site and rehabilitated the mine entries.  Novadx has purchased underground mining equipment and has commenced underground rehabilitation of the mine.

Management

Neil MacDonald, BASc. – Chief Executive Officer and Director

Neil MacDonald, a resident Vancouver, BC, is a senior business executive, with over 18 years experiences in investment banking and involvement in numerous sector financings. Prior to forming Novadx he held senior positions with Raymond James Canada and Blackmont Capital Corp and as served on several public company boards and is a member of the TSX Venture Exchange local advisory committee. Mr. MacDonald received his Bachelors of Applied Science from the University of British Columbia in 1984.

Valerie Helsing, CPA, CMA, BA – Chief Financial Officer and Corporate Secretary

Valerie Helsing, a resident of Vancouver, BC, is a senior financial executive with over 20 years of public practice experience and has broad experience in both Canadian and US accounting, audit, finance and regulatory matters. She has served in senior financial positions with several public companies in the mining and mineral exploration industries. Ms. Helsing received her CPA designation in 2001, her CMA designation in 1996 and holds a BA in economics and commerce from Simon Fraser University 1979.

Robert Payne, BS – Chief Operating Officer

Robert Payne, a resident of Alabama, received his B.S. Mine Engineering degree in 1986 from the University of Alabama.  Robert is a senior coal mining professional with over 25 years of coal mining, management and engineering experience in both underground and surface coal mine development, production and operations.  At Drummond Coal Company, Robert’s experience evolved from mine supervisory positions to senior mine management positions.  Robert has a wide range of management experience in mine operations, production, safety and compliance.

Greg Saragas – Vice President Finance

Greg Saragas, a resident of Tennessee, received his Bachelor of Science degree from Lincoln Memorial University in Business Administration and Accounting.  Greg has previously held senior management positions with companies such as Massey Energy, Debra Lynn Coals, and Nystar.  While at Debra Lynn Coals, Mr. Saragas managed day to day operations as Production Manager, later advancing to Chief Financial Officer, where he was instrumental in improving productivity and profitability.

After leaving Debra Lynn Coals, Mr. Saragas accepted a position of Regional Chief Financial Officer with Massey Energy, where he aided in improvement of financial reporting and cost reduction.  Most recently, Mr. Saragas was the Commercial Manager for Nystar–Tennessee Mines and was instrumental in the mine start-up and production of ore to supply zinc to Nystar’s smelters around the globe.

Phillip Prince BBA, JD – Property and Title Manager

Phillip Prince, a resident of Alabama, received his B.B.A., Finance from the North Alabama, College of Business in 2001 and his Juris Doctorate, Law from the Birmingham School of Law in 2009.  Phillip is a senior landman with over 16 years of experience in researching, abstracting and curing real property title, supervising field operations and negotiating oil & gas and coal mineral and surface rights lease, conveyance, option and exploration agreements  in Appalachia.

Phillip possesses a deep understanding of state statutory, relevant case law and state agency administrative codes concerning real property and mineral interests and compliance therewith.

Mark Mills, – Director of Corporate Development

Mark Mills, a resident of Tennessee, possesses over 30 years of mining experience in the central Appalachian coal fields. With a background in underground, highwall and surface mining his responsibilities have evolved from surveying, permitting, planning, mine management, general manager, to senior management giving him a wide range of experience in mine production, safety and compliance. Mark has worked with multiple companies in the mining industry including National Coal Corporation, U.S. Coal Inc and Interstate Coal Company, Inc.

Tim Webb, P.E. – Mine Manager, Rex No. 1 Mine

Tim Webb, a resident of Kentucky, possesses over 30 years of experience in coal mining and engineering. Tim received his B. S. in Mining Engineering in 1980 from the University of Kentucky and is a registered Professional Engineer. Tim also received a Masters in Organizational Management degree from Tusculum College in 1993.  Tim has consulted and held senior management positions, including chief superintendent, chief engineer and mine manager with several coal producers in both underground and surface mining operations.

In 2003, Tim became the President of Specialty Coal, LLC a major supplier of coal to the silicon metal industry. In 2005, Tim entered into a joint venture with Peabody CoalTrade, which operated a surface coal mine and sold coal into the ferro-alloy and thermal markets.  In 2006, the joint venture purchased Specialty Coal Inc. Under Tim’s leadership, these operations were built-up and later sold. Since that time, Tim assembled the large reserve of Rex Coal acquired by Novadx for operation of the Rex No. 1 Mine.

Paul Davis, – Director of Operations, Ikerd Mines

Paul Davis is currently relocating residence from Alabama to Kentucky to oversee management of the Ikerd Mines in Kentucky.  Paul has over 35 years of experience in coal mining having served in positions of superintendent, manager and director of operations with several coal companies including Drummond Coal Company, Russell Coal Company, Quality Coal and Reid Coal.  Paul’s experience encompasses all aspects of coal mine operations including production, safety and compliance.

Randy (“Bubba”) Youngblood, - Mine Manager, Rosa Mine

Bubba Youngblood, a resident of Alabama, possesses over 35 years of experience in coal mining in Alabama.  Beginning his career as an equipment operator, Bubba has held mine supervisory and coal sales and transportation management positions with several coal companies including King Coal, Cullman Coal and Reid Mining.  He possesses a broad knowledge and experience in all aspects of coal mining operations including production, safety and compliance.