Rock Energy Resources (OTCQB:RCKE) Management Interview

Rock Energy Resources
(OTCQB:RCKE)
CEO: Rocky Emery
CFO: Mark Harrington

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Interview Transcripts:

WSR: Good day from Wall Street. This is Juan Costello Sr., and also the Wall Street Reporter and joining us today are Rocky Emery the CEO and chairman for Rock Energy Resources as well as the company Chief Financial Officer Mark Harrington. The company now trades on the OTCQB and the taker’s symbol is RCKE. Thanks for joining us today gentlemen.

Rocky Emery: Thanks Juan.

WSR: Great. Now starting off give us a brief history and overview of the company here for some of our listeners that need your story.

Rocky Emery: Well, originally we started out as a maximum and a partnership in oil and gas business, buy the couple of property in South Texas, developed some – had some success in natural gas oil. We had an opportunity in late 2007 early 2008 we get in to an oil property — heavy oil property out in a Santa Barbara County, Santa Maria Valley with the company we were going to go up in about 20 percent. We disclosed the — a funding, in fact delivered several million shares, about 8.7 million shares as part of that deal and got a calls from the primary group that goes to bank thing, the edge fund was going buffed. 2008 was kind of a crazy time starting in about September, October and then occurs in 2010. In 2010 I started work and I’m changing the company’s focus.

The advantage we have is a reserved currency is in those areas but as for the dollar itself we as everybody knows now have problems, problems for the rest of the globe is how do you hedge or how do you protect yourself against the dollars demands overtime. If you can’t change it is it reserve currency and I think that’s why nations like the China, India, others begin to acquire major gold holdings throughout the globe that they’ve increased gold as one of their number one commodities over the last four or five years.

So I felt like that was a great part, we closed a transaction with [inaudible] [0:03:05] whether or gold, it’s a property and in Colorado and we own a 49 percent interest and now increasing 100 percent interest over the next several week. This is the greater on mine historically is the mine has started went out of gold rush, one of the largest that were found in at the Colorado, five and a half pounds was pulled from our old mill where we’re working now. And so we feel like it was a great opportunity, great sit and put together financing with backend investors that’s 25 million dollar facility and merged back in to Rock Energy American [Inaudible] [0:03:51] gold holdings in December, actually December 14th 2011. So that’s kind of where we’re at, we had got permission from [inaudible] [0:04:04] to file a suit case and we just filed on March 28th or three years bought it in financial ‘09 and in ‘11 and then we’re accused a week later for last year 2011, so it’s been a busy five months.

WSR: Since we have Mark on the line perhaps you can talk about some of the drivers behind the companies’ recent results.

Mark Harrington: Sure, well. And since December when we begin revitalizing the company, market increased from virtually [inaudible] [0:04:47] percent. The drivers of a value in the company are twofold, one is necessary to understand it as a whole company we are both a production stage company because we are producing gold now, we will have our first sales to billion in late April. We are also an expiration company in the gold business looking as much deeper potential that we’ll be getting to have next month or so.

So many companies that you find or either all expiration all developments or all production since we offer this uniqueness to actually ever be able to create value in two places, one being the — one being the national ramp up which will begin in the second quarter of this year and that’s we increase our milling capacity will increase probably every quarter in every year for the next two to three years.

{Continued}

Rocky Emery: Most junior mining companies have one focus or the other, they are either out to prove up reserves and then sell the company and never produce any income and others are producing small quantities from a particular property and never have the opportunity to do increase the overall resource reserves in the future. That’s why to differentiate ourselves is it important to realize that we are a producing junior mining company and a growing to our resource page junior mining company and so I think that that is going to put us in a position where as a result come in over the next few quarters not only will we go to casual positives from our revenues but we will be increasing our SCC quality reserves every single quarter, quarter after quarter. And that’s an important to change that I just want to be sure it is made clear.

Juan Costello: Certainly and so talk in reference to the Red Arrow Acquisition talk a little bit about that and you just had a new GO technical team there for advisement.

Rocky Emery: Yes, we originally acquired 49 percent we put up all of the money, we own all of the equipment, everything. So, Rock Energy through its American Patriot subsidiary, wholly owned subsidiary, owns the properties and the plans and everything like. We are now working with them and have them to basic agreement to supply the other 51 percent and I think we’ll get that wrap up in the next few weeks, and get that acquisition complete.

What we did when we run the aerial survey we wanted to go out and not just for the — to begin the process of identifying resource reserve or the drill a course thing like that. But we also wanted a professional team that had the decades of experience, we combine we have well over a hundred years of experienced and even geology, engineering from mining or other types of geotechnical qualification.

When we brought them together, what we are hoping was they would come do a consensus without us pressing. What they did is they came to a consensus in a couple a ways, one is this is a massive structure that we own and we sit on it, they think is means millions of productive ounces involved in our gold, silver and a little bit of platinum. The second thing is having them assists us on our drilling program so what we are going to do is will start in our blocked areas that were currently produced and we’re going to turn the thing that it is highly productive now in the old mill run and what will drill through is we’ll drilled at about 3,000 feet through different zone and we think that in our experts are importantly feel that we’re going to encounter resources in the neighborhood of hands of ounces per ton, not just an ounce per ton what are historical recovery rate have been.

Then we’ll begin to dig much deeper drill programs at we believe will prove up millions of ounces of a productive resource for us in the future. So that will be kind of be approach that was why it was key to get the technical team that we have assembled together and I can tell you they’re all excited, they’re all engaged and get information from them almost on a daily basis about facts and ideas and it was very, very good.

WSR: And so what else would you say make some the company unique from some of the other players in the sector?

Rocky Emery: Well, I think again most junior mining companies have taken them years to get the permit; we’re fully permitted for doing same mining company. That’s the key that means we have not only our claims and the ability to drill but were milling gold and we are able to take it to a brilliant product and sell it into the market with the permits we have. Having said that, we’re also a company that again offers growth through our own claims, through our own packs of claims in our own areas. So as we identify and to deviate more SCC quality reserved the values of those reserves should increase the overall value of the company and so investors aren’t waiting a decade before the pay will return and I think in our future as we went along, as we go along we would be a company that would be prone to pay a dividend on excess cash when we’re prepared.

I would think over the next 12 to 18 months, we might be looking at that, there’s a lot of things that we can offer and still grow and I think that we have the ability to look at the markets and with the team we have develop a strategy base upon capitalizing the market. We also because we are producing gold there is nothing to prevent us from retaining some of our top produced gold, keep it in placed and book it as a value to the company’s balance sheet, if we felt that does selling it to the dollar weakness was going to a diminish our overall returns. So we’ll be actively managing our portfolio and looking at optimal spaces and optimal ways for us to increase share holder value as much as possible.

WSR: And perhaps you guys could walk us through your background and experience and talk a little about the senior management.

Rocky Emery: Okay, starting with me, my background really began in business as a financial advisor, managing billions of dollars of private clients and corporate assets. I designed the database, we integrated in stock based plans then and in 2004 step out and started in oil and gas, partnership we took it public in 2008 got it up in about 400 million dollars in market cap. And now, of course I put together this company, changing its focus to a more of the mining gold precious metals and aspects.

Mark Harrington: And my background is principally in energy, I started a group of bonds, called the Energy Mill Bonds back in ‘86. We cashed it out in ’97, built and sold several companies after that and Rocky and I teamed up on Rock Energy and we’re looking forward to building the company.

Rocky Emery: Real quick, let me give you a little background on Craig Lukko, he is the president of the Red Arrow, our partner and he’s also the director of this company. Craig’s been out in the midst area for over 30 years and has had a couple of successful mining projects out their mainly silver that’s why he got out there, it was in the late ‘70’s, early ‘80’s. And develops in silver properties, he bought it back about 10 or 11 years ago and five or six years ago begin putting money in his own personal money in to refurbishing the mines that there was there built with Arrow, mines and gas. And he’s getting ready for production, so he has a long history of mining in that area in particular and that of course anybody can go to our website Americanpatriotgold.com and look at the expert that you are referencing that will be brought in the technical team to help in developing those properties.

WSR: All right. And so what are some of the goals and milestones that you and the team are hoping to accomplish over the course in the next year?

Rocky Emery: Well, over the next year I think we will be net incomes – net in cash-flow positive, that’s the — I think we’ll have our debt paid offs and be able to finance our own business problems, our own sales. We will have drilled several course not just in the blocked areas that we are now improving up, so million plus ounces of gold, but also the force down to 10,000 pieces in some cases proving up even more of the productive resource that we left there, I think next year at this time we’ll have a longer term strategy on what we’re going to do with those deeper resources, how we’re going to develop them. And I would expect that we have — we have several analysts that were actually going to be meeting out over the next several weeks that will initiate coverage.

So I think the company will be a producing mining company with tremendous upside and its resources with financial stability underlying everything we’re doing and with a market competent media communication with our investors or potential investors know where we’re at all times. I think that’s key in today’s world, you got and let investors where you’re at any period of time, can’t go significant period of time and not give them an idea of where you’re at, where you’re going.

WSR: Right, so, when it comes to investors and the financial community, do you guys believe that the company story and your message in upside or a completely understood and appreciated by them and if not what do you wish investor better understand about the company or your sector?

Mark Harrington: Well, I think that — because that’s my background to the investment community what it is it’s consistently for them. So we got our financials up to date that was key number one. Revenues, booking an SSC reserve that’s what we’re working on and we’ll be providing those numbers in the next few weeks, maybe it’s soon as our first quarter — first Q of 2012.

I think on top of that we’ve develop a relationship with standard and course, they just came out with the basic report that they’ll update on a weekly basis, we will communicate, develop relationships with the analyst community and allow them to come out and keep the tires and take a look and we’ll constantly communicate on through business channels individually, conferences through communications, through the press, a radio, television. However, we can to get our story out so that financial professionals when they take and look at our company they have confidence that they’re not going to get hit with the surprise from left field because anybody has been in that business that’s all been the cause of death, if you’re not up to date or somebody is not company is not or the investment not keeping you up to date and what the situation is good better and different then the financial professional tends to not look real good and that’s and they never want that customer confidence is key to them and that’s what I think will bring because of my experience and background in that area.

WSR: Right, and so once again joining us today are Rocky Emery, and Mark Harrington of Rock Energy Resources the company trades on the OTCQB that taker’s symbol is RCKE. And before we conclude here gentlemen to recap some of your key points, why do you believe investors should consider the company as a good investment opportunity today.

Rock Emery: Well, again for the reasons that I just laid out, we have a solid strategy, we’re a junior mining company that we believe by third quarter, fourth quarter of this year will be casual positive, we will by third quarter, fourth quarter this year have we believe millions of ounces of precious metals SCC quality proven reserved that’s one, we have a same strategy to communicate to our investors and potential investors whether it’s the investment professional for his client or if it’s the individual investor through online systems. What we have to do is we have communicate where we are as a company and I think the advantage we obviously offer is we’ve got in to where we’re at in just a first five months. Imagine with the money behind us now and where we’re at just towards the end of this month, where we’re going to be as a company, six to 12 months from now.

WSR: We certainly look forward to continued track the company’s growth and the report on your upcoming progress and I’d like to thank you guys for taking the time to join us today and update our investors on Rock Energy.

Rock Emery and Mark Harrington (simultaneously): We appreciate the opportunity. Thank you.

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