SOURCE: Ruby Creek Resources, Inc.

November 09, 2009 19:08 ET

Ruby Creek Announces Tanzanian Gold Joint Venture

NEW YORK, NY--(Marketwire - November 9, 2009) - Ruby Creek Resources, Inc. (OTCBB: RBYC) announces that it has signed a Joint Venture Agreement with Douglas Lake Minerals Inc. for the right to acquire and develop a portion of Douglas Lake's Mkuvia Gold Project.

Ruby Creek and Douglas Lake have entered into a Joint Venture development agreement dated November 7, 2009, covering 125 sq km of the 380 sq km Mkuvia Gold Project located in the south of Tanzania. Ruby Creek has agreed to purchase a 70% interest for $3,000,000 in a series of payments over 3 years.

Douglas Lake established a joint venture on the Mkuvia in July 2008, having spent more than $2,100,000 in the past 16 months in exploration. Douglas Lake is in the final stages of their mining license application as detailed in their Technical & Resource Report on the Mkuvia Alluvial Gold Project prepared in accordance with JORC and NI 43-101.

Rob Slavik, now President of Ruby Creek, along with management from Douglas Lake, was on the initial site visit to the Mkuvia property in April 2008. Rob Slavik states; "In April, 2008 while on a tour reviewing resource property opportunities in Tanzania, I had the good fortune to be with Douglas Lake management when we were introduced to the property that came to be known as the 'Mkuvia Gold Project.' We observed many artisanal miners having great success recovering gold, using only hand tools in all surface areas of the property that we viewed. Deeper diggings revealed coarser gold. I have continued to follow the progress of the property and have been greatly encouraged by the work and results produced to date."

Pursuant to our Joint Venture Agreement with Douglas Lake, Ruby Creek will earn a 70 percent interest in 125 square kilometers of the 380 sq km Mkuvia Gold Project by making payments totaling $3,000,000 over three years. The Agreement provides that Ruby Creek will make payments to Douglas Lake of $100,000 and $150,000 within 5 and 15 business days of signing respectively. On confirmation of a satisfactory Due Diligence, Ruby Creek will make an additional $100,000 payment and both parties will move to closing. Due Diligence is expected to take 90 days, subject to rainy season conditions. Closing is expected to occur shortly after the 90 day due diligence period by Ruby Creek. On the day of the closing and receipt of the first mining license, Ruby Creek will make another payment of $400,000 to Douglas Lake for a total of $750,000 in payments from the signing of the agreement to the closing. Ruby Creek will also pay an additional $750,000 payment for a total of $1,500,000 within 12 months of closing. Additionally, the Agreement provides that within 12 months of closing, Ruby Creek has the option to increase its interest to 75 percent of the 125 square kilometers by making an additional $1,000,000 payment to Douglas Lake. Ruby Creek will make additional payments of $750,000 each within 24 and 36 months of the closing. In all cases, the original owner of the prospecting licenses, Mr. Mkuvia Maita retains a 3 percent Net Smelter Royalty as per the Joint Venture Agreement between Mr. Maita and Douglas Lake.

The Mkuvia Alluvial Gold Project is located in the Liwale and Nachingwea Districts, Lindi Region of the United Republic of Tanzania. The project is the subject of a report titled the "Technical & Resource Report on the Mkuvia Gold Project," prepared by Mr. Laurence Stephenson, P.Eng. of British Columbia, Canada and Ross McMaster, MAusIMM of Queensland, Australia. Mr. Stephenson and Mr. McMaster are independent and Qualified Persons ("Q.P.s") in accordance with JORC and NI 43-101. Douglas Lake has spent more than $2,100,000 in the past 16 months in exploration, developing an understanding of the mineralization on a portion of the property, focusing on a relatively small area for mechanized production (about 10 sq km).

Douglas Lake has completed its technical report, reserve estimate, feasibility study and mining plan and is awaiting its environmental impact assessment report and upon receipt will file its first Mining License application with approval expected in the first quarter of 2010. It is anticipated that the second Mining License application would be approved in early third quarter of 2010.

Further Corporate Updates

--  As part of its redirection, Ruby Creek has fully relinquished its
    option on an interest in eight mineral claims known as the "More Creek
    Properties" located in the Iskut River region of northern British Columbia,
--  The Company also announces the resignation of Brian Roberts from the
    position of Director effective November 7, 2009. We thank Brian for his
    services and wish him the best in future endeavors.

Ruby Creek has relocated to New York and is establishing an office in Tanzania. Further details may be found on the Company's new website, expected in December.

For further information about Ruby Creek Resources, Inc., please contact Robert Slavik at

Forward-Looking Statements

This news release may include certain "Forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act, as amended. All statements, other than statements of historical fact, included in this release are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. This notice expressly qualifies all forward-looking statements in this release. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessary estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors which could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements.

"Rob Slavik"

Rob Slavik
President, Ruby Creek Resources, Inc.

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