Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

November 14, 2006 13:31 ET

Red Back Awarded Cdn $10,300,025

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2006) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to report that it has succeeded in the Supreme Court of British Columbia against Geyser Ltd. and Oswal Chemicals and Fertilizers Ltd.

The legal action arose out of the breach of a sale and purchase agreement by Geyser Ltd. in respect of the Company's Farim Phosphate Project located in Guinea Bissau, West Africa. Under the terms of the agreement Geyser agreed to pay to Champion Industrial Minerals Barbados Inc. ("Champion"), a subsidiary of the Company, Cdn $10.55 million for the Farim Project. A deposit of Cdn $249,975 was paid by Geyser on signing.

Geyser failed to complete the purchase and sale of Farim and the Company and Champion commenced action for damages in the Supreme Court of British Columbia against Geyser for breach of contract and against Oswal Chemicals and Fertilizers Ltd., the intended end user of the phosphate rock, for inducing breach of the sale and purchase agreement.

Both Defendants had judgment entered against them with damages to be assessed. In a written judgment dated November 10, 2006, The Honourable Madam Justice Garson assessed the Plaintiffs (the Company and Champion) damages in the amount of Cdn $10,300,025 plus costs. The Company and Champion intend to proceed immediately to enforce this judgment against the Defendants Geyser Ltd. and Oswal Chemicals and Fertilizers Ltd.

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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