SOURCE: North Bay Resources Inc.

December 01, 2009 08:57 ET

North Bay Resources Inc. (NBRI) Issues Update on Fawn Property JV

SKIPPACK, PA--(Marketwire - December 1, 2009) - North Bay Resources Inc. (PINKSHEETS: NBRI) ("North Bay" or the "Company") announced today that it has agreed to an amendment to its earn-in joint-venture agreement with Silver Quest Resources Ltd ("Silver Quest") on North Bay's Fawn gold-silver property in central British Columbia, Canada.

Under the original terms of agreement, Silver Quest may acquire a 75% interest in the Fawn property by making aggregate cash payments of $100,000, issuing 150,000 shares, and incurring $1,500,000 in exploration expenditures over four years. Of the aggregate payments and commitments due, $25,000 in cash and 50,000 shares are due upon receipt of regulatory acceptance (now effective), and $250,000 in exploration expenditures must be expended in the first 12 months.

Due to a rather complex set of regulations affecting the issuance of stock from a Canadian issuer to a US company, North Bay has accepted an amendment to the agreement whereby the Company will receive a cash-in-lieu payment for the 50,000 shares of Silver Quest stock it was due to be issued on the effective date. As a result, in addition to the $25,000 cash payment received, North Bay has also received an additional $12,850, for an aggregate total of $37,850 CDN. The amendment also provides that stock issuances of a further 50,000 shares due to be received on each of the first and second anniversary dates in 2010 and 2011 will instead be similarly converted to cash-in-lieu payments, using a 30 day volume weighted average price formula on each anniversary date.

The Company is also pleased to announce that Silver Quest has received assay results from its 2009 fall drill program on its Capoose-Silver Trend ("Capoose") Project. As the Fawn Property is adjacent to the Capoose and shares similar geological stratigraphies, the Company views these results as significant.

As detailed in Silver Quest's press release on November 30, 2009, "Drill hole D-09-107 intersected significant high-grade silver mineralization, including 6 m grading 103 grams per tonne (g/t) silver and 1.14 g/t gold. This hole extends known mineralization to the northwest of Zone 2. D-09-108 intersected only weak mineralization throughout the entire drill hole and was collared 100 metres north of D-09-107. Drill holes D-09-109 and D-09-110 were inclined holes drilled from the same collar location within Zone 2. Assay results from drill hole D-09-109 extend gold and silver mineralization to the west. Assay results from drill hole D-09-110 indicate mineralization from surface to the end of the hole, and significantly extend the mineralized zone at depth and to the east. Assay values, reported below, confirm that Zone 2 mineralization is open in all directions and at depth. The Company plans to expand the known limits of mineralization with an extensive drill program during 2010.

Significant assay intercepts include:

Drill Hole    From (m)  To (m)  Width (m)       Gold (g/t)     (g/t)
D-09-107            3     100         97             0.27      16.8
   including       73      88         15             0.81      63.7
   including       82      88          6             1.14     103.0
D-09-108            3      97         94  Not Significant       3.6
D-09-109            4      75         71             0.61       3.1
   including       38      56         18             1.09       4.8
D-09-110            3     151        148             1.35       5.6
   including      100     124         24             2.15       8.0
   and            145     151          6             2.18      14.0
Note: Widths may not represent true widths

Assay results from the eight remaining drill holes on the property will be released when they become available to the Company."

About Silver Quest Resources Ltd.

Silver Quest Resources Ltd. is a mineral exploration company listed on the TSX Venture Exchange. With current projects located across Canada, and a portfolio of projects that range from early stage grassroots exploration to advanced-stage resource expansion, the Company is positioned to add shareholder value through systematic project advancement. Silver Quest is currently focused on silver and gold exploration in the Yukon and on the Nechako Plateau of central British Columbia, with its primary assets being the Capoose, Davidson and 3 T's projects.

About North Bay Resources Inc.

North Bay Resources Inc. (PINKSHEETS: NBRI) is a junior mining company with over 150 mineral and placer claims encompassing approximately 60,000 acres throughout British Columbia, Canada. The Company's mission is to build a portfolio of viable mining prospects throughout the world and developing them through subsidiaries and JV partners to their full economic potential. North Bay's business plan is based on the Generative Business Model, which is designed to leverage its properties into near-term revenue streams even during the earliest stages of exploration and development. This provides shareholders with multiple opportunities to profit from discoveries while preserving capital and minimizing the risk involved in exploration and development.


This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although North Bay Resources Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by North Bay Resources Inc. or any other person that the objective and plans of North Bay Resources Inc. will be achieved.

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