NOTE RECEIVABLE	3 Months Ended
Aug. 31, 2011
NOTE RECEIVABLE	NOTE 6. NOTE RECEIVABLE As part of the reverse merger transaction, FSB required Black Rock to assume and acquire a loan of $2,681,201 from the FSB to Bamco Gas, LLC (the "Bamco Note"), which was re-executed in the name of Black Rock. FSB would not consent to the transaction with the Company unless the loan was assumed and acquired and therefore the Company determined to do so even though the closing of the transaction had not yet occurred. On June 29, 2011, Black Rock signed a new note to the FSB to acquire the loan from Bamco Gas, LLC, which is in receivership, in the amount of approximately $2,681,201. The Bamco note is currently in default and Alan Barksdale is the receiver. FSB assigned the Bamco note to Black Rock along with any collateral pledges, and the shareholders of Black Rock pledged two million common shares of Red Mountain to further secure the Black Rock loan and the acquisition of the note for Bamco Gas, LLC to the FSB. In the event the Company does not acquire the assets of Bamco Gas, LLC, the Company has the right to liquidate or teminate 2,000,000 of the 27,000,000 common shares that were transferred to the shareholders of Black Rock. Due to the uncertainty about collection or realizing the value of the note receivable through an acquisition of Bamco, management has deemed it necessary to fully impair the value of the note. No interest income was recognized on the Bamco note.

NOTE RECEIVABLE

3 Months Ended

Aug. 31, 2011

NOTE 6. NOTE RECEIVABLE

As part of the reverse merger transaction, FSB required Black Rock to assume and acquire a loan of $2,681,201 from the FSB to Bamco Gas, LLC (the "Bamco Note"), which was re-executed in the name of Black Rock. FSB would not consent to the transaction with the Company unless the loan was assumed and acquired and therefore the Company determined to do so even though the closing of the transaction had not yet occurred. On June 29, 2011, Black Rock signed a new note to the FSB to acquire the loan from Bamco Gas, LLC, which is in receivership, in the amount of approximately $2,681,201. The Bamco note is currently in default and Alan Barksdale is the receiver. FSB assigned the Bamco note to Black Rock along with any collateral pledges, and the shareholders of Black Rock pledged two million common shares of Red Mountain to further secure the Black Rock loan and the acquisition of the note for Bamco Gas, LLC to the FSB. In the event the Company does not acquire the assets of Bamco Gas, LLC, the Company has the right to liquidate or teminate 2,000,000 of the 27,000,000 common shares that were transferred to the shareholders of Black Rock.

Due to the uncertainty about collection or realizing the value of the note receivable through an acquisition of Bamco, management has deemed it necessary to fully impair the value of the note. No interest income was recognized on the Bamco note.