GMX Resources Completes Redetermination of Borrowing Base

GMX Resources Inc.

GMX Resources announced the completion of the semi-annual redetermination of its revolving credit facility borrowing base to a new borrowing base of $175 million and declared a regular quarterly cash dividend on its 9.25% Series B Cumulative Preferred Stock.

Redetermination of Borrowing Based and Amendments to Bank Credit Facility

The Company's bank group has completed the semi-annual redetermination of the borrowing base under its revolving credit facility. As a result, the borrowing base has been revised to $175 million, as compared to the prior level of $190 million. As part of the redetermination process, Bank of America, N.A. was added as a participant in the bank credit facility with a 14% participation.

In addition to revising the borrowing base, the applicable interest rate was adjusted and an additional financial covenant was added to the revolving credit facility. As amended, the outstanding balance on the revolving credit facility now bears interest at the rate elected by the Company for any particular advance of either a base rate currently tied to the prime rate as published in The Wall Street Journal plus a margin ranging from 1% to 2% based on the amount of the loan outstanding in relation to the borrowing base (payable monthly) or LIBOR plus a margin ranging from 2.75% to 4.25% based on the amount of the loan outstanding in relation to the borrowing base for a period of one, two or three months (payable at the end of such period). Also as part of the amendment, the Company's total debt to EBITDA (earnings before interest, taxes, depreciation, depletion and amortization) for the most recently ended twelve months may not be greater than 4.0 to 1 on an ongoing basis.

"The new borrowing base and recent equity offering provide the Company with liquidity to continue to develop its successful Haynesville/Bossier horizontal (H/B Hz) drilling program into 2011. We have 70% of 2009 estimated production hedged at $7.77 and 70% of 2010 estimated production hedged at $6.50. We also have recently added new hedges totaling 2.4 million MMBtus in 2011 at a weighted average price of $6.71 and 600,000 MMBtus in 2012 at a price of $7.00," stated James A. Merrill, Chief Financial Officer. "We are continuing with our efforts to lower drilling and completion costs on our H/B Hz wells; to look for more opportunities to hedge natural gas prices in 2010 through 2012; and to explore the monetization of a portion of our mid-stream assets for funding future growth."

Dividend on 9.25% Series B Cumulative Preferred Stock

GMXR will pay a regular quarterly dividend of $0.578125 per share on July 1, 2009 to holders of record as of June 19, 2009 on the 2,000,000 outstanding shares of our 9.25% Series B Cumulative (non convertible) Preferred Stock. The shares are listed on The Global Select Market of The NASDAQ Stock Market LLC under the symbol "GMXRP."

GMXR is a 'Pure Play', E & P Company with one of the most leveraged Haynesville/Bossier Horizontal Shale (H/B Hz) operations in East Texas. The Company has 465 Bcfe in proved reserves (YE2008); 94% natural gas consisting of 6 gross/6 net H/B Hz producers; 324 gross/186.9 net Cotton Valley Sand ("CVS") producers; and 45 gross/37.5 net Travis Peak/Hosston Sands & Pettit producers. Our properties are 81% operated and consist of 770 gross/529 net Haynesville/Bossier Shale 80 acre horizontal un-drilled locations; 2,657 gross/1,974 net CVS un-drilled locations; these multiple resource layers provide high probability and potentially repeatable, organic growth.