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TX HOLDINGS INC. WILL EXPAND ITS OPERATIONS TO SUPPLY RAIL AND DRILL STEEL PRODUCTS TO THE MINING INDUSTRY

Company Is Targeting First Year Sales To Be In The Range Of $3-5 Million From These Operations

Press Release Source: TX Holdings, Inc. On Monday December 12, 2011

Ashland, KY. December 12TH, 2011 – TX Holdings, Inc. (OTCBB: TXHG), an oil and gas operator and exploration company is pleased to announce it will be expanding its business operations to include the supply of materials and equipment to the mining industry. The Company believes that the initial sales from this business venture will be in the range of $3-5 million over the next 12 months.  

TX Holdings has brought on board Bob Adkins owner of K & B Industrial Supply, Inc. out of Ashland Kentucky and Tom Chafin owner of Chafin Track, Inc. located in Lexington, Kentucky to manage the mining supply operations for the Company. Both individuals have agreed to represent and bring their respective client base to TX Holdings.  Bob Adkins has been providing supplies to the mining industry for over 37 years and Tom Chafin has been in the track supply business for over 20 years.  

K & B Industrial Supply, Inc. has provided an extensive range of products for the mining industry including miner bits, roof bit carbide and drill steel to name a few.  Chafin Track, Inc. has supplied materials such as rail, mine ties, splice bars and bolts.  

TX Holding’s strategy of bringing Bob Adkins and Tom Chafin into the Company, along with their extensive expertise and customer base, streamlines and lowers their operational cost that they would have normally incurred while allowing for a more efficient working environment and increased productivity. TX Holdings strongly believes that this combination will result in increased revenues and higher profit margins.  

The Company has leased 4 acres located in Ashland, Kentucky with a 5000 square foot building to house the materials and equipment for the mining operations.  

In addition to this newly announced venture TX Holdings is continuing its commitment to develop its Parks Lease while researching for additional prospects which meet the profile that management has identified.  The Company’s ongoing commitment is to increase shareholder value through merger and acquisitions and joint venture opportunities that could provide TX Holdings with exponential growth and positive outlook for 2012.  For more detailed information please visit the Company’s Web page at: www.txholdings.com

About TX Holdings, Inc.

TX Holdings objective is to develop oil and gas fields that were under developed in the 1970’s due to oversight and antiquated extraction methods used during the original development of the wells at that time. Most of these reserves are now accessible and identifiable with modern production methods using high-tech data accumulation and analysis capabilities. 

The Company has acquired a 100% working interest in the Parks lease with significant recoverable reserves. The Lease includes 320-acres and currently has 22 shallow wells. TX Holdings to date has reactivated 12 wells, 10 producers and 2 injectors. The current production averages 60-90 barrels a month. We are in the middle of a work-over and reactivation program to increase production. We anticipate 150-200 barrels per month within the next 12 months  

Forward-Looking Statements

Safe Harbor Statement under the Private securities Litigation Reform Act of 1995: The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies, products and services, delays in testing and evaluation of products and services, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Contact:
Henry Harrison
IR Pro 2.0
407-682-2001
hharrison@insidewallstreet.com
www.irprpro.com