SOURCE: North Bay Resources Inc.

February 02, 2011 08:31 ET

North Bay Resources Inc. (NBRI) Renews Ruby Gold Option

SKIPPACK, PA--(Marketwire - February 2, 2011) - North Bay Resources Inc. (OTCBB: NBRI) ("North Bay" or the "Company") is pleased to announce that it has exercised its right to extend the term of the Ruby Mine Option to Purchase Agreement (the "Agreement") for an additional five months, and has executed an amendment to the original Agreement dated September 1, 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 February 1, 2011, the amendment provides revised terms for the extension of the Agreement from February 1, 2011 through June 30, 2011. The revised terms reduces the payment due on February 1, 2011 from $50,000 to $10,000, and reduces the payment due on March 1, 2011 from $25,000 to $10,000. The payment due on April 1, 2011 has been increased from $25,000 to $30,000, and the payments due on May 1, 2011 and June 1, 2011, respectively, have been increased from $25,000 to $50,000. In addition, the term of the warrants included as consideration in the original Agreement has been extended from Dec 30, 2012 to Dec 30, 2015. All other terms of the original Agreement remain in effect. 

In a related development, the Company has received confirmation that Northern California Regional Center, LLC ("NCRC"), a USCIS-designated Regional Center under Section 203(b)(5) of the Immigration and Nationality Act ("EB-5 Pilot Program"), has completed the filing of an amendment to its regional center designation seeking to expand the existing regional center's geographical area by adding four California Counties, and pre-approval of the Ruby Gold Project. As previously announced on November 2, 2010, NCRC agreed to expand its scope to include mining projects in Northern California and agreed to sponsor North Bay's application to secure $7.5 million for the Ruby Gold project in Sierra County, California, through the EB-5 Pilot Program.

The Company has also learned that NCRC recently formed a California Limited Partnership under the name Ruby Gold Foreign Investors, LP (the "LP") to act as the legal vehicle through which foreign investors can make qualified investments in the Ruby Gold project pursuant to the EB-5 Pilot Program. As previously announced on January 11, 2011, Ruby Gold, LLC was organized as the special purpose entity for the purpose of owning and operating the Ruby Gold Project. With the organization of Ruby Gold, LLC coupled with the organization of the LP, the underlying legal entities required to effectuate EB-5 funding are now in place. The Company will await formal approval from the United States Citizenship and Immigration Services ("USCIS"), and anticipates notification before the end of Q2, 2011.

About The Ruby Gold Project

The Ruby Mine, a/k/a the Ruby Gold Project, is an 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 1850's, 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 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 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 US businesses and creation of US jobs. Both programs are 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 Pilot 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 http://www.acgcompanies.com

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 holds an option to acquire 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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