Red Back Mining Inc.

Red Back Mining Inc.

October 18, 2005 13:50 ET

Red Back Mining Inc.: Chirano Gold Mine in Production

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2005) - Red Back Mining Inc. (the "Company") (TSX:RBI) is pleased to announce the commencement of gold production at its Chirano Gold Mine in Ghana, West Africa. This achievement is a culmination of 14 months of hard work from development decision to production. The result is a new modern mine which is a show-piece of engineering and environmentally sensitive mine development.

After a smooth and successful commissioning of the process plant, a first gold pour was achieved on schedule on October 10, 2005. To date a total of 4,000 ounces of gold have been recovered to circuit, including 750 ounces produced. To this point, the head grade of the oxide ore is higher than indicated in grade control drilling, which itself was higher than stated in the original reserve studies. The plant process rate of 250 tonnes per hour (2 million tonnes per annum) established by the Bankable Feasibility Study has already been achieved. After an appropriate break-in period the plant throughput will be increased, further optimizing gold production, as the operations team becomes more familiar with the plant configuration and process controls.

The original mine plan anticipates 145,000 ounces of gold to be produced for the first 3 years of production with an overall average of 123,000 ounces per annum over the currently scheduled 8.5 year mine life (based on a US$375 gold price). However, recent drilling at and around Chirano suggests the potential for higher grades at depth below the existing open pit resources and has also identified new targets on strike from Chirano. Typically mines in Ghana have had this profile and in some cases have ended up producing substantially more ounces from their underground operations than the open pit developments. The prospect of higher grade ore at depth, new surface deposits and a robust gold price offers exciting opportunities to substantially increase the economics and longevity of Chirano. Work will continue in the ensuing year to maximize the mine's resource and reserve potential.

In commenting on the first production from Chirano, Richard Clark, President and CEO of the Company stated, "The first gold production at the Chirano Mine is the result of a committed effort by many talented, dedicated people. I congratulate all of our employees and contractors on this impressive achievement. Chirano is the first new mine in Ghana for many years and the first under the administration of President Kufour and his Government. The successful commissioning of Chirano clearly demonstrates and confirms Ghana's commitment to mining and foreign investment, both at a national and local level. I would also like to thank our shareholders and our bankers, for their support and confidence."

Lukas Lundin, Director, commented, "I would like to congratulate Rick Clark for his outstanding achievement and leadership in the building of this new mine. He deserves high accolades for his work in bringing the project to fruition. I would also like to thank Ross Ashton and his exploration team who were the first to recognize the potential of Chirano. At this stage of development Chirano has exceeded expectations in all material areas: grade, tonnage, commissioning and production and we look forward to continuing this positive trend."

The technical contents of this release have been reviewed by Ross Ashton, BSc, FAusIMM, a Qualified Person pursuant to NI-43101. Mr. Ashton is a Director of the Company. Samples are prepared and analyzed by fire assay using a 50 gram charge at the Analabs facility in Bibiani, Ghana in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted. Selected samples from this lab are check assayed each month at other Analabs laboratories worldwide.

On behalf of the Board of Directors

Richard P. Clark, President

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