Red Back Mining Inc.

Red Back Mining Inc.

July 12, 2007 10:18 ET

Red Back Mining Inc.: Akwaaba Set for Development-27% Increase in Resource

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2007) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to report on the progress of the underground scoping study for the Akwaaba deposit at its Chirano Gold Project in Ghana, West Africa.

AMC Consultants of Perth, Western Australia have advised the Company that up to one million ounces of gold could be recoverable from Akwaaba depending upon the mining method employed. Two different mining methods have been reviewed in detail by AMC, Sub-level Open Stoping ("SLOS") and Sub-level Block Caving. A financial analysis of these different techniques is ongoing, with a final decision expected shortly. The Company intends to tender the Akwaaba underground project in August, with the aim of commencing development by year end.

Concurrently with the delivery of the Akwaaba scoping study by AMC, the Company has also received an updated study on the Akwaaba underground resource from Hellman and Schofield, also of Perth. This update is based upon additional drilling by the Company in 2007. The result is a 27% (245,000 ounces) increase in resources at Akwaaba over that previously reported (News Release November 15, 2006). The following table shows the July 2007 Resource estimate for Akwaaba reported above a 2.5g/t cut off and below the 2212mRL which is the base of the proposed Akwaaba open pit.

Category Mt Au g/t Moz
Indicated Resource 4.1 5.8 0.77
Inferred Resource 2.3 5.0 0.37

Notes: Gold grades for the reported underground resource model have been
determined using Ordinary Kriging (OK) with grades interpolated into parent
blocks with dimensions of 5m (east) by 25m (north) by 10m (elevation). Gold
estimation and model blocks were constrained within geologically derived

Based on the SLOS mine design, AMC estimated an Ore Reserve of 420,000 ounces (2.7 Mt @ 4.7 g/t (using a gold price of US$600 with a 2.9 g/t cutoff). The resource estimate is inclusive of the Ore Reserve estimate. The Company is satisfied with this level of ore identification to proceed with underground development.

Commenting on Akwaaba, Richard Clark, President and CEO of the Company, stated:

"We are delighted with the results of the scoping study and the initial mining designs at Akwaaba. Clearly the development of Akwaaba will have a significant impact on production levels and economics at Chirano. We will now accelerate the tender process in order to fast track the assessment of development alternatives for Akwaaba with the aim of breaking ground by the end of this year. The Akwaaba ore body remains open in a number of directions and additional drilling is ongoing aimed at both increasing the overall resource and additional conversion of resources to Ore Reserves."

The independent Resource estimate reported herein was undertaken by Nic Johnson (Member of the Australian Institute of Geoscientists) of Hellman and Schofield Pty. Ltd with more than five years experience in the use of geostatistics for estimation of recoverable resources in gold deposits. For the purpose of reporting under National Instrument 43-101 Nic Johnson is regarded as a Qualified Person.

The independent Ore Reserve estimate reported herein was undertaken under the supervision of Patrick Smith (Member of the Australasian Institute of Mining and Metallurgy), Principal Mining Engineer of AMC Consultants Pty Ltd with more than five years experience in Ore Reserve estimation. For the purpose of reporting under National Instrument 43-101 Patrick Smith is regarded as a Qualified Person.

The technical contents of this release have been reviewed by Hugh Stuart, BSc., MSc, a Qualified Person pursuant to NI-43101. Mr. Stuart is the VP - Exploration of the Company and a Member of the Australasian Institute of Mining and Metallurgy. 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.


This press release contains "forward-looking information" that is based on Red Back's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Red Back's plans, outlook and business strategy. The words "may", "would', "could", "should", "will", "likely", "expect', "anticipate", "intend", "estimate", "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases are intended to identify forward-looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Red Back's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for Red Back's mineral products or increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters.

This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Red Back disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.


Richard P. Clark, President

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