Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

July 17, 2007 13:59 ET

Red Back to Exercise Option to Acquire Tasiast Gold Mine From Lundin Mining

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to report that in connection with Lundin Mining Corporation's recently announced successful takeover of Rio Narcea Gold Mines, Ltd. ("Rio Narcea"), Red Back intends to exercise its option to acquire a 100% interest in the Tasiast gold mine and significant exploration acreage located in Mauritania, West Africa.

Construction of the Tasiast gold mine has been substantially completed and the mine will be officially opened by the President of Mauritania, His Excellency Sidi Mohamed Ould Cheikh Abdallahi, on July 18, 2007. Initial annual production rates are scheduled at 108,000 ounces of gold at an average grade of 3.25 g/t. Production for the balance of 2007 is anticipated to be approximately 50,000 ounces.

Current Resources and Reserves at Tasiast are set out below:



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Tasiast Gold Project - Mineral Reserves and Resources
December 31, 2006
(0.8 g/t gold cutoff)
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Contained
Tonnes Grade Gold
Category (000) (g/t) (ounces)
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Mineral Reserves
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Proven 761 3.24 80,000
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Probable 11,223 2.66 960,000
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Total Proven and Probable 11,984 2.70 1,040,000
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Mineral Resources
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Measured 860 3.17 88,000
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Indicated 13,693 2.59 1,142,000
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Total Measured and Indicated Resources 14,553 2.63 1,230,000
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Inferred Resources 18,633 1.94 1,165,000
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Mineral resources include mineral reserves
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These estimates were prepared under the supervision of David A. Orava, M. Eng., P. Eng., Associate Mining Engineer and Daniel C. Leroux, B.Sc., P. Geo., both of A.C.A. Howe International, who are Qualified Persons independent of Rio Narcea and the Company for the purposes of National Instrument 43-101.

The Tasiast deposit is within an extensive gold system that is largely under-explored. The deposit is open along strike and at depth. Tasiast will be the first mine in the highly prospective 70 kilometre long by 15 kilometre wide north-south trending Archaen age Aoueouat greenstone belt, which is geologically similar to other Archaen greenstone belts in the world that host major gold deposits. The Tasiast property covers a 60 kilometre strike length of the Aoueouat greenstone belt, virtually encompassing an entire mining district in the country.

Red Back's option to acquire the Tasiast mine was subject to Lundin Mining acquiring 50.1% of the issued and outstanding shares of Rio Narcea and Red Back obtaining adequate financing to exercise the option. With both conditions having been met, the Company anticipates closing the transaction in early August.

Richard Clark, President and CEO of Red Back, commented, "The acquisition of the new Tasiast gold mine is a major step forward in our strategy to grow Red Back into an intermediate African gold producer. We have a history of success in West Africa and intend to maximize the full potential of the Tasiast project through aggressive development of the mine and exploration of its highly prospective land package."

The technical contents of this release have been reviewed by Hugh Stuart, B.Sc., 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.

FORWARD-LOOKING INFORMATION

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.

ON BEHALF OF THE BOARD

Richard P. Clark, President

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