Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

November 14, 2007 08:34 ET

Red Back Announces Third Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2007) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to report its financial and operating results for the third quarter ended September 30, 2007. The consolidated financial statements together with management's discussion and analysis will be available on the Company's web site (www.redbackmining.com) and on SEDAR (www.sedar.com).

As a result of corporate transactions completed during and subsequent to the end of third quarter, Red Back has experienced significant growth and it will move into 2008 debt free, un-hedged, generating revenues from two operating mines and with a strong working capital position to support the underground development of the Akwaaba deposit at Chirano and expansions of both the Chirano and Tasiast plants.



Financial and Operating Highlights

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Sep. 2007 Sep. 2007
Quarter Nine Months
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Gold Production (oz) 33,763 94,669
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Ore Tonnes Mined ('000t) 700 1,820
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Ore milled ('000t) 511 1,490
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Head grade (g/t) 2.13 2.03
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Recovery (%) 89.8 90.3
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Direct cash operating costs (US$/oz) 368 365
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Gold Sales (US$'000) 17,303 47,277
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Income from operations (US$'000) 1,855 3,395
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Cash flow from operations (US$'000) 2,880 6,066
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Net Income (Loss) (US$'000) 742 (1,915)
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Red Back achieved the highest three-month volume of ore tonnes mined, ore milled and gold production for 2007 at the Chirano mine during the quarter ended September 30, 2007. Operating costs continue to be affected by general cost escalations and ore hardness issues encountered in 2007. Net income for the quarter includes a gain on sale of marketable securities, partially offset by higher general and administration expenses and stock based compensation.

Following the closing of the C$110 million financing on October 31, 2007, Red Back has repaid the balance of its bank loan ($17 million) and unwound its forward sales contracts at a cost of $95 million to take full advantage of the strong gold price going forward and will, therefore, realize a significant increase in revenues and income from operations. In addition, it is currently envisaged that increased production and lower costs will result from the permanent installation of an upgraded crushing system at Chirano, the development of the Akwaaba underground mine at Chirano and commencement of commercial production at the Tasiast mine in Mauritania.

Tasiast Gold Project, Mauritania (100% interest)

On August 2, 2007, Red Back exercised its option to acquire a 100% interest in the Tasiast gold mine and significant exploration acreage located in Mauritania, West Africa, from Lundin Mining Corporation. The total purchase price was $276 million and included the retirement of the existing debt and gold hedging structure.

Construction of Tasiast is substantially complete and commissioning is underway. Commercial production is scheduled to commence near the end of 2007. Production in 2008 is forecast at 108,000 ounces at an average grade of 3.25 g/t. A significant expansion of the plant is planned at Tasiast for 2008 which will result in a material increase in annual production sometime in 2009.

Tasiast currently has measured and indicated resources of approximately 15 Mt @ 2.64 g/t gold for 1.24 million oz based. This includes diluted proven and probable reserves within four open pits of approximately 12 Mt @ 2.70 g/t gold for approximately 1 million oz at a gold price of US$491 per ounce. Inferred resources total approximately 10 Mt @ 2.52 g/t gold for approximately 0.8 million oz.

The current mine plan only considers existing proven and probable reserves minable by conventional open pit methods. Mineralization remains open at depth as well as along strike. There is excellent potential for extension of the mine life based on the conversion of current resources into reserves. Red Back has commenced a significant drill program aimed at increasing the proven and probable reserves at Tasiast. An updated calculation of the resource and reserve is planned for the first quarter of 2008.

Chirano Gold Project, Ghana (90% interest)

A 33% increase in open pit ore reserves at Chirano clearly demonstrates the Company's exploration success to date (July 4, 2007 News Release). This increase is significantly higher than the ounces that have been mined to date at Chirano. In addition, with a final decision on the tender process for the underground development at Akwaaba expected shortly, the Akwaaba deposit will deliver near term high grade underground gold ounces to the Chirano operation (July 12, 2007 News Release). These additional ounces will materially improve the economics of the mine and the mine life.

The potential to further increase resources and reserves is considered to be excellent. The recent success at Akoti (September 11, 2007 News Release) provides further evidence of the potential for high grade discoveries at depth and for the existence of a large mineralized system at Chirano. Exploration is ongoing with the testing of these discoveries and new anomalies along strike and between existing pits at Chirano.

This News Release contains forward looking statements which are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking statements. The Company does not intend to update this information and disclaims any legal liability to the contrary.

On behalf of the Board of Directors:

Richard P. Clark, President

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