SOURCE: North Bay Resources Inc.

April 26, 2011 08:30 ET

North Bay Resources Inc. (NBRI) Accelerates Completion of Ruby Mine Purchase

SKIPPACK, PA--(Marketwire - Apr 26, 2011) - North Bay Resources Inc. (OTCBB: NBRI) ("North Bay" or the "Company") is pleased to announce that the Company will be formally exercising its option to purchase the Ruby Mine on June 1, 2011, one month earlier than previously planned.

In addition to the accelerated exercise date, a reduction in monthly mortgage payments for the duration of 2011 is also included in a recently-executed amendment (the "Amendment") to the Ruby Mine Option and Purchase agreements with Ruby Development Company ("RDC") originally signed in September 2010.

As set forth in the Company's Current Report on Form 8-K filed with the United States Securities and Exchange Commission ("SEC") on April 25, 2011, the Amendment provides that the final option payment of $50,000 due on June 1, 2011 has been increased to $85,000, at which time the Company shall be deemed to have exercised the Option, and escrow shall be opened at the title and escrow company to be designated by RDC. This final option payment of $85,000 shall also be deemed to satisfy the requirement for a deposit to open escrow.

The Amendment also provides for a reduction of the Company's monthly mortgage obligations for the remainder of 2011, from $85,000 per month to $35,000 per month. In consideration of the revised terms, the Company has agreed to issue 2 million warrants to RDC at an exercise price of 10 cents per share. These warrants expire on May 1, 2016, and may not be exercised until the earlier of May 1, 2012, or North Bay's receipt of the first EB-5 funds. All other terms of the original Agreements will remain in effect.

$7.5 million in funding for the Ruby project is expected to be provided through a federal program known as EB-5, which is intended to help stimulate the US economy by creating new jobs in rural areas and areas of high unemployment in the US. As previously announced in a Company press release dated November 2, 2010, Northern California Regional Center, LLC ("NCRC"), a USCIS-designated Regional Center under the federal EB-5 Program, has agreed to expand its scope to include mining projects, and together with ACG Consulting, LLC ("ACG"), has agreed to sponsor North Bay's application to obtain $7.5 million for North Bay's Ruby Gold Project in Sierra County, California, through the EB-5 Program. Subsequently, in January 2011, NCRC filed an amendment with USCIS requesting formal approval for an expansion of it designated area, including the Ruby Gold Project. The Company anticipates that formal approval by USCIS for the Ruby Gold Project under the federal EB-5 Program will be received upon completion of the USCIS review process.

North Bay CEO Perry Leopold commented, "As we continue to await formal approval from USCIS for the Ruby Project's EB-5 funding, we are very pleased that RDC fully recognizes the soundness of our business plan, and understands the need for patience with the EB-5 process. It has now been three months since the NCRC amendment for expansion was filed with USCIS, and we understand that a backlog of applications and the threat of government shutdowns have combined to cause the review process to be taking longer than originally expected. In the interim, we are moving forward by using our $5 million equity credit line as a bridge until our EB-5 funds are received, and RDC's willingness to reduce our mortgage obligations as the EB-5 process continues is a major boost that helps ensure our long-term success. By significantly lowering our fixed costs, this reduction in the mortgage payments adds considerable flexibility to the Company's use of funds to advance our overall objectives, and helps minimize potential dilution."

About The Ruby Gold Project

The Ruby Mine, a/k/a the Ruby Gold Project, is a fully-permitted underground placer and lode mine located near Downieville in Sierra County, California that is known to have produced over 250,000 ounces of gold since the 1850s, and which is considered to be part of the northern extension of the historic Mother Lode system. The Ruby Property covers approximately 1,755 acres, consisting of the subsurface mineral rights of two patented claims totaling approximately 435 acres and 30 unpatented claims containing approximately 1,320 acres. The equipment, fixed assets, and infrastructure in place have been valued at an estimated $3.5 million, and include a 1,000 yard per day placer wash plant, 50-ton per day quartz mill, 6,000 feet of tracked haulage, and related support equipment needed for underground mining operations. The property also features an excellent system of roads, is accessible via paved highway from Reno or Sacramento, has abundant water and timber available for mining purposes, and has PG&E power available on-site. For further information about the Ruby Mine, please visit the Ruby page on the North Bay website at

About The EB-5 Program

The EB-5 Program was authorized by the US Congress under the Immigration and Nationality Act of 1990, with the intent to help stimulate the US economy by creating new jobs in rural areas and areas of high unemployment. The term "EB-5" is an acronym for "the fifth employment based visa preference category." As it implies, the source of the investment capital comes from foreign investors who wish to legally immigrate to the US by investing a minimum of $500,000 in a commercial enterprise that will benefit the US economy and create at least 10 full-time jobs in the US. The program is administered by the United States Citizenship and Immigration Services ("USCIS"), as provided under Section 610 of Public Law 102-395. Since its inception in 1990, the EB-5 Program has been the conduit through which over $1 billion has been invested by foreign nationals in US enterprises to create jobs throughout the US economy.

About Northern California Regional Center, LLC

Northern California Regional Center, LLC is a USCIS-designated regional center under the EB-5 Immigrant Investor Pilot Program. The EB-5 Program was created by the United States Congress in 1990 through passage of the Immigration and Nationality Act. In 1993, Congress created the Pilot Program to stimulate immigration under the EB-5 category. The Pilot Program allows individuals from around the world to attain United States citizenship through investment in U.S. businesses and creation of U.S. jobs. Both programs are currently being administered by the United States Citizenship and Immigration Services ("USCIS"), an agency of the Department of Homeland Security. Northern California Regional Center was designated as an approved regional center by the USCIS on April 22, 2010.

About ACG Consulting, LLC

ACG Consulting, LLC is an affiliate of Acer Capital Group, a global holding company of Private Equity foreign and domestic funds in the business of deploying capital. ACG specializes in facilitating employment-based funding through the EB-5 Program, and has successfully established EB-5 Regional Centers throughout the US, and across a diverse range of industry sectors. For further information, please visit the ACG website at

About North Bay Resources Inc.

North Bay Resources Inc. (OTCBB: NBRI) is a fully-reporting junior mining company with over 150 mineral and placer claims encompassing approximately 60,000 acres throughout British Columbia, Canada.

In the US, the Company is acquiring the Ruby Gold Mine in Sierra County, California, and is presently looking to acquire additional operating mines in the western US.

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.

Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on our website (or press releases), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form S-1 and subsequent Form 10-K which may be secured from us, or from our website at

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