STOCK ISSUANCE LIABILITY	3 Months Ended
Aug. 31, 2011
STOCK ISSUANCE LIABILITY	NOTE 7. STOCK ISSUANCE LIABILITY Three promissory notes totaling $2,450,000 issued on May 24, 2011 contained provisions that required Black Rock to deliver to the note holders 600,000 shares of Red Mountain common stock as an inducement to the note holders to make the loans. The Company recorded a liability in the amount of $600,000 as the reverse merger had yet to be consummated. The Company has treated the amount as a debt discount, and is amortizing the amount over the life of the loans. During the quarter ended August 31, 2011, approximately $428,000 had been amortized as interest expense. The Company believes that $1.00 per share represents the fair value per share of the common stock of Red Mountain as of issuance. Upon consummation of the reverse merger, the liability was extinguished. In connection with private placement, the Company has agreed to issue various brokers common shares for services rendered associated with the offering. As of August 31, 2011, the Company has recorded $238,000 as a stock issuance liability for commissions earned but not paid with common shares.

STOCK ISSUANCE LIABILITY

3 Months Ended

Aug. 31, 2011

NOTE 7. STOCK ISSUANCE LIABILITY

Three promissory notes totaling $2,450,000 issued on May 24, 2011 contained provisions that required Black Rock to deliver to the note holders 600,000 shares of Red Mountain common stock as an inducement to the note holders to make the loans. The Company recorded a liability in the amount of $600,000 as the reverse merger had yet to be consummated. The Company has treated the amount as a debt discount, and is amortizing the amount over the life of the loans. During the quarter ended August 31, 2011, approximately $428,000 had been amortized as interest expense. The Company believes that $1.00 per share represents the fair value per share of the common stock of Red Mountain as of issuance. Upon consummation of the reverse merger, the liability was extinguished. In connection with private placement, the Company has agreed to issue various brokers common shares for services rendered associated with the offering. As of August 31, 2011, the Company has recorded $238,000 as a stock issuance liability for commissions earned but not paid with common shares.