American Standard Calls Off Merger With Cross Border

Terminated deal to acquire company with leasehold interests & nonoperated producing properties primarily in Permian Basin of SE NM & W TX.

American Standard Energy Corp., Scottsdale, Ariz., (OTCBB: ASEN) has terminated its plans to acquire Cross Border Resources Inc., San Antonio, (OTCBB: XBOR)

Cross Border has leasehold interests and nonoperated producing properties primarily in the Permian Basin of southeastern New Mexico and West Texas. The deal originally called for Cross Border to merge with and into a subsidiary of American Standard, with the subsidiary continuing as the surviving entity. The deal value was to be determined prior to closing.

On Dec. 12, Red Mountain Resources Inc. and Black Rock Capital Inc., a subsidiary of Red Mountain, as direct and indirect shareholders of Cross Border, filed a lawsuit against Cross Borders in the District Court of Clark County, Nevada. The plaintiffs asked the Court to order Cross Border to hold an annual shareholders' meeting for the purpose of electing directors, and to declare that the solicitation or securing of proxies pursuant to a proxy solicitation made in accordance with the law shall not constitute or be deemed an "association" as such term is defined in the Amendment to Bylaws recently adopted by the Company's Board of Directors.

Cross Border chairman and chief executive Everett Gray II says, “The termination of the LOI has no material impact on the day-to-day operations of the company. We maintain great relationships with our working interest partners and will continue to execute our business plan. We look forward to our next annual shareholders' meeting, which we intend to hold after the filing of our Form 10-K for fiscal 2011.”

The termination was effective Dec. 16, 2011. There were no penalties as a result of the early termination.