Rock Energy Resources, Inc. announced production results for the first nine months of 2012 for the Red Arrow Mine, located in Southwest Colorado. Mill throughput along with grades of mining recoveries, have increased steadily over the nine months since acquisition of its interest in the mine. For the first nine months of mining the company recovered a total of 1,265 tons of ore.

This is a monthly average of 140 tons and a daily operating total of 7 tons per day (average operating days per month of 20). During the first five months total recovered ore was 65 tons (13 tons per month). Mining recoveries increased to more than 240 tons per month from June 1, 2012 - October 31, 2012.

The increase was the result of hiring and training of new employees during the first 5 months. The company is using a shrink stope mining method, and stope #1 will be completed in the next few weeks. The company has commenced mining a second stope and plans to continue adding new stopes over the next several months.

Additional stope development should increase recoveries from the current 12tpd (tons per day) to approximately 30 tpd over the next six months and up to 50+ tpd over the next twelve months. Mill throughput for the first nine months of operations totaled 719 tons, a monthly average of 80 tons per month or 4 tpd on a 20 day operating basis per month. For the first 5 months the company milled a total of 47 tons and from June 1, 2012 - October 31, 2012 milled a total of 672 tons, averaging 6-8 tons per day.

Clay in the currently mined ore which, is intermittent throughout the mine, has been a key challenge that has constrained ability to increase daily milling rates. The company is diligently working on multiple solutions that include outsourcing stockpiled ore to other mills in the Four Corners area. Production and sales for the first nine months totaled 16 ounces and total revenue of $24,594 at an average price of $1537 per ounce.