MCoal Receives First $5 million of Advance Payment from Sandstorm Coal Stream Financing Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:

For Immediate Release

MCoal Receives First $5 million of Advance Payment from Sandstorm Coal Stream Financing

Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:

(Vancouver, BC, January 07, 2011) Novadx Ventures Corp. (“Novadx” or the “Company”) - (TSX-V: NDX) is pleased to announce that its wholly owned subsidiary, MCoal Corporation (“MCoal”) has received the initial US$5 million advance payment (the "Initial Payment") under the definitive Coal Production Payment Agreement (the “Agreement”) with Sandstorm Metals & Energy Ltd. (“Sandstorm”) previously announced on Nov 26, 2010. This first payment entitles Sandstorm to receive a life of mine coal stream consisting of 8.5% of the metallurgical coal surface mined from MCoal’s Rosa Mine for a fixed price of US$75 per ton.

MCoal will use the proceeds of this first payment to:

1. acquire all of the assets of Tiacme, LLC through a corporate acquisition of Tiacme, LLC in consideration of US $2.5 million in cash and 6,250,000 common shares of Novadx. Tiacme LLC's sole asset is the fully permitted and bonded Rex No. 1 Mine located in Tennessee. This transaction was previously announced June 3, 2010, and November 26, 2010.

2. fund up to $2.5 million to procure and install a coal processing (“wash”) facility at MCoal’s Rosa Mine, which is expected to increase profit and coal recovery margin significantly; and

3. any balance to fund working capital requirements of the Rosa Mine.

Pursuant to the Agreement, Sandstorm has the right to advance a further $33 million in advance payment to purchase coal stream interests in the Rex No. 1 Mine, the Flatwoods Mine in Kentucky (announced July 6, 2010) and an increased coal stream interest in the Rosa Mine until February 15, 2011. Subject to meeting certain conditions precedent to closing each transaction, Sandstorm will advance a further US$25 million upon MCoal’s acquisition of the Rex No. 1 Mine and a further US$8 million upon MCoal’s acquisition of the Flatwoods Mine and related Ikerd group of companies assets.

Neil MacDonald, CEO of Novadx commented, “Since signing the Agreement with Sandstorm, we have been working closely with the vendors to finalize the closing documentation for both the Tiacme Rex No. 1 and Ikerd Flatwoods coal mines and anticipate closing both of these transactions before February 15, 2011. The proposed acquisition of the Ikerd Flatwoods Mine and related assets was previously announced on July 6, 2010, and November 26, 2010. We look forward to assimilating these assets and dramatically growing our Company’s reserves, production and profitability over the next 12 months.”

MCoal has completed a National Instrument 43-101 compliant technical report regarding the Rex No. 1 Mine, dated July 21, 2010. A copy of this report entitled "Independent Technical Report on the Rex No.1 Mine Property located in Campbell County, Tennessee, USA" can be found in Novadx’s filings on Sedar (www.sedar.com).

Highlights of this report include:

• 32.2 million tons of Proven and Probable in situ Rex coal reserves.
• 12.7 million tons of Measured Rex coal resources.
• 19.4 million tons of Indicated Rex coal resources.
• 25.7 million tons of Inferred Rex coal resources.
• Potential to reclassify up to 75% of inferred coal resource as either measured or indicated through drilling of at least 12 additional holes.
• The following summary of the Rex coal reserve quality (as received).

Subject to the approval of the TSX Venture Exchange, Surge Capital Corp. will receive a finder's fee of $250,000 (representing 5% of the Initial Payment), payable in cash and 468,750 share purchase warrants (the "Warrants") exercisable at $0.25 per share for a period of three years from the date of issuance. The Warrants and common shares issuable on exercise thereof will have a hold period expiring four months and one day from the date of issuance.

Novadx and MCoal also announce the resignation of Mr. Mark Reynolds as a consultant to MCoal. The Company thanks Mr. Reynolds for his hard work and dedication to the Company and wishes Mr. Reynolds well in his future endeavors.

Technical aspects of this news release have been prepared under the supervision of George Smith, PE, LS, of Gress Engineering, PC, who is a Qualified Person as that term is defined under National Instrument 43-101.

About Novadx: Novadx is a Vancouver-based Investment Company whose primary focus is on providing merchant banking services to natural resource companies. Novadx structures and makes direct equity investments as a principal and provides management and other related services to companies in specific resource sectors, such as MCoal Corporation, a subsidiary company that has commenced production from the Rosa mine a metallurgical coal mine in the State of Alabama, USA. For more information please visit www.novadx.com.

About MCoal: MCoal Corporation is a wholly-owned subsidiary of Novadx Ventures Corp. and operates the Rosa Coal Mine. The Rosa Mine is a metallurgical coal mine located in Northern Alabama, approximately 40 miles north of the City of Birmingham. In addition to operating the Rosa Mine, MCoal is actively increasing its reserves and production through the evaluation and acquisition of high quality coal assets in the Appalachia coal region.

This press release is not for distribution in the United States or over United States wire services.

ON BEHALF OF THE BOARD Neil MacDonald President and CEO and Director

For more information about Novadx Ventures Corp. please contact:

Neil MacDonald, CEO, Novadx Ventures Corp.

(604) 633-2776 ext 23 [email protected]

Or our investor relations contacts:

Mark van der Horst Mike Rowsome Christopher Haugen

Gale Capital Corp.

(604) 200-1480 [email protected]

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