Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

November 14, 2006 16:21 ET

Red Back Announces First Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2006) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to report its financial and operating results for the three months ended September 30, 2006. The consolidated financial statements together with management's discussion and analysis will be available on the Company's web site (www.redbackmining.com) and on SEDAR (www.sedar.com).

Highlights of the first quarter period ended September 30, 2006:

(all dollar figures are denominated in USD)

- Gold production 35,584 ounces

- Cash operating cost $325 per ounce

- Revenue $16.0 million

- Gold sales 30,952 ounces at an average price of $514 per ounce

- Ounces sold at spot 10,352

- Ounces sold into hedge position 20,600

- Net profit $2.5 million

- Cash flow from operations $4.3 million

- Bullion on hand 5,475 ounces

- Cash on hand $11.9 million

As the Company's Chirano Gold Mine commenced commercial production in November 2005, there are no operating comparative figures for the quarter ended September 30, 2005.

During the quarter 603,815 tonnes of ore were processed at Chirano at a grade of 2.03 g/t Au. Metallurgical recovery was 90.4%. Cash operating cost ($325 per ounce) includes the production cost of bullion on hand (5,475 ounces).

For the calendar nine months ended September 30, 2006 Chirano has produced 91,778 ounces of gold at an cash operating cost of $320 per ounce. Although below budget, as a consequence of mechanical problems earlier in the year (News Release: April 4 and 16, 2006), production is in line with revised forecasts for 2006 (News Release: September 8, 2006). Since July this year production at Chirano has again been running at or above design throughput.

Management is pleased with the performance of Chirano to this point, taking into account early start up issues. The mine is now operating well and achieving expectations. Budgeted production for calendar 2007 remains 140,000 ounces.

This News Release contains forward looking statements which are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking statements. The Company does not intend to update this information and disclaims any legal liability to the contrary.

On behalf of the Board of Directors

Richard P. Clark, President


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