Rio Narcea Gold Mines, Ltd.
TSX : RNG
AMEX : RNO

Rio Narcea Gold Mines, Ltd.

January 11, 2007 14:13 ET

Rio Narcea Increases Stake in Chariot Resources

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2007) - Rio Narcea Gold Mines, Ltd. ("Rio Narcea" or "the Company")(TSX:RNG)(AMEX:RNO) today announced that it has purchased an additional 5.6 million shares of Chariot Resources Limited (TSX:CHD) for a total cost of C$3.2 million, increasing its participation to 18.9% of the outstanding shares of Chariot. The transactions were completed through the facilities of the Toronto Stock Exchange. Rio Narcea's previous press release on December 19, 2006 reported the Company owning 16.9% of the outstanding shares of Chariot. Rio Narcea has purchased these securities for investment purposes. Rio Narcea might acquire additional securities if they become available at prices that are attractive to Rio Narcea, but has no current future intention of becoming a control person.

Rio Narcea Gold Mines, Ltd. is a growing Canadian mineral resource company with operations, development projects and exploration activities in Spain, Portugal and Mauritania. The Company currently produces nickel and copper at its Aguablanca mine in southern Spain. Construction of its new Tasiast gold project in Mauritania, West Africa, is underway, with production expected in 2007. The Company also has a strategic interest in Chariot Resources Limited, which provides exposure to the significant potential of the Marcona Copper Project in southern Peru.

Forward-looking Statements

This press release may contain certain "forward looking statements" within the meaning of the United States securities laws. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, capital expenditures, exploration efforts, financial needs, and other information that is not historical information. The forward-looking statements contained herein are based on Rio Narcea's current expectations and various assumptions as of the date such statements are made. Rio Narcea cannot give assurance that such statements will prove to be correct.

Factors that could cause Rio Narcea's actual results to differ materially from these statements include, but are not limited to, changes in gold and nickel prices, the timing and amount of estimated future production, unanticipated grade changes, unanticipated recovery problems, mining and milling costs, determination of reserves, costs and timing of the development of new deposits, metallurgy, processing, access, transportation of supplies, water availability, results of current and future exploration activities, results of pending and future feasibility studies, changes in project parameters as plans continue to be refined, political, economic and operational risks of foreign operations, joint venture relationships, availability of materials and equipment, the timing of receipt of governmental approvals, capitalization and commercial viability, the failure of plant, equipment or processes to operate in accordance with specifications or expectations, accidents, labour disputes, delays in start-up dates, environmental costs and risks, local and community impacts and issues, and general domestic and international economic and political conditions.

Rio Narcea undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The reader is cautioned not to place undue reliance on forward looking statements.

Contact Information