Red Back Mining Inc.

Red Back Mining Inc.

November 09, 2005 11:35 ET

Red Back Increases Stake in Chirano

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2005) - Red Back Mining Inc. (the "Company") (TSX:RBI) is pleased to announce that it has successfully negotiated a purchase of the 5% minority interest in the Chirano Gold Mine owned by the Gyamfi family of Ghana. With this purchase the Company will hold a 90% interest in Chirano Gold Mines Limited ("CGML"), the legal owner of the mine, and the Government of Ghana will hold a 10% interest. The consideration for the purchase is US$275,000 plus the issuance of 178,883 fully paid common shares in the capital of the Company.

Commenting on the acquisition, Richard Clark, President and CEO of the Company said:

"The purchase of the Gyamfi family's 5% of Chirano is a win for both parties. The family realizes an early and substantial return on its shareholding in CGML and the Company increases its interest in a project which has the potential to significantly exceed its production life and operating parameters. Mr. Isaac Asamoah, a Gyamfi family representative, will continue as a Director of CGML and support Chirano on behalf of the family. We welcome and appreciate the family's continued involvement."

Since October 10, 2005, Chirano has produced 6,175 ounces of gold.

On behalf of the Board of Directors

Richard P. Clark, President

Contact Information