Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

July 26, 2005 17:11 ET

Red Back Mining Inc.: Private Placement Closed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 26, 2005) - Red Back Mining Inc. (TSX:RBI) (the "Company") is pleased to report that the private placement announced on July 11, 2005 has closed. The Company sold, on a non-brokered, private placement basis 7 million units of the Company at a price of $1.70 per unit for gross proceeds of Cdn $11.9 million. The units comprise of one share and one-half of a share purchase warrant. Each whole warrant is exercisable over a period of two years into one common share at a price of Cdn $2.00 per share. The net proceeds will be used towards completion of the Chirano project. The company will pay a finder's fee on a portion of the proceeds.

The Chirano Gold Project is located in Ghana, West Africa with proven and probable reserves of 17.8 million tonnes grading 1.9 g/t gold for approximately 1.09 million ounces contained gold. There is significant resource and reserve upside through both brownfields and greenfields exploration. The Chirano Project is within the Bibiani gold belt 25 kms along strike from AngloGold Ashanti's (+5 million ounces) Bibiani gold mine. In addition to Chirano, the Company retains one of the largest mineral land positions in Ghana (5,000 sq. kms) and is systematically exploring this land holding.

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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