SOURCE: North Bay Resources Inc.

July 05, 2011 08:15 ET

North Bay Resources Inc. (NBRI) Completes Ruby Mine Acquisition

SKIPPACK, PA--(Marketwire - Jul 5, 2011) - North Bay Resources Inc. (OTCBB: NBRI) ("North Bay" or the "Company") is pleased to announce that the Company has formally completed the acquisition of the Ruby Mine in Sierra County, California.

As previously announced on June 1, 2011, the Company exercised its option to purchase the Ruby Mine on May 31, 2011, and escrow was opened shortly thereafter in compliance with the purchase agreements executed on that date with Ruby Development Company ("RDC"). During the escrow period, ownership of all of the mining claims, equipment, and other fixed assets that comprise the Ruby Mine Property was transferred to Ruby Gold, Inc. ("RGI"), a private California corporation wholly-owned by RDC.

Upon the effective close of escrow on July 1, 2011, all of the outstanding shares of RGI were acquired by North Bay, thereby completing the acquisition of the Ruby Mine, and Ruby Gold, Inc. is now a wholly-owned subsidiary of North Bay. Escrow will officially close on July 6, 2011, when the deeds and other pertinent documents have been duly recorded with Sierra County, and the title insurance is deemed to be effective.

A more detailed description of the transaction is set forth in the Company's Current Report on Form 8-K filed with the SEC on July 1, 2011.

North Bay CEO Perry Leopold commented, "The completion of the Ruby Mine acquisition marks a major milestone for the Company as we continue our evolution from an exploration company to a gold producer. We are very excited to now be at the stage where we can begin accelerating pre-production activities to prepare the Ruby for operations. As always, we will continue to keep shareholders updated as we move forward."

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 http://www.northbayresources.com/ruby/.

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 has acquired 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.

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS

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 http://www.sec.gov/edgar.shtml

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