SOURCE: North Bay Resources Inc.

February 24, 2010 08:44 ET

North Bay Resources Inc. (NBRI) Issues Update on Argo Gold Property

SKIPPACK, PA--(Marketwire - February 24, 2010) -  North Bay Resources Inc. (PINKSHEETS: NBRI) ("North Bay" or the "Company") is pleased to announce that the Company has completed a transaction to sell its Blackhorn Mountain claim group to Cazador Resources Ltd., a private exploration company based in Kelowna, British Columbia.

The Blackhorn Mountain claims are situated 8 kilometres northwest of North Bay's Argo Gold property in southwestern British Columbia, and cover 4,566 acres south of Blackhorn Mountain. When originally announced on February 26, 2009, the Company considered the Blackhorn to be an extension of the Argo property. The Company now believes that given the distance from the Argo, the wide area of mineralization, and the nature of the terrain, a recent purchase offer from Cazador would be acceptable, and the transaction has now been concluded.

Pursuant to the terms of the agreement between the Company and Cazador, the Company has received $5,000 USD cash, and will retain a 2.5% net smelter royalty ("NSR"). This royalty can be paid out in full and terminated upon the payment of $2 million dollars USD to North Bay by Cazador at any time. In addition, should Cazador ever elect to abandon or otherwise forfeit its ownership of the Blackhorn, the agreement stipulates that Cazador shall return the claims to North Bay with no further obligation to each other.

As part of the transaction, the Company has also received new information about the Argo from Cazador detailing field work conducted on the Argo claims during 2003 and 2004. Of note was the assay of a chip sample yielding 34.1 grams (1.09 ounces) per tonne gold, which is higher than any of the previously recorded historical assays (see Company press release dated December 1, 2008). The new reports confirm the Company's belief that the Argo is a property of merit, and further exploration and development work is warranted.

About North Bay Resources Inc.

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

The Company has recently filed registration documents with the SEC to become a fully-reporting company. Once the registration is effective, the Company will then be eligible to have its stock listed on the OTCBB.


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.

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