SOURCE: Ruby Creek Resources, Inc.

Ruby Creek Resources, Inc.

September 09, 2011 08:30 ET

Ruby Creek's New Kapinga Property Agreement

NEW YORK, NY--(Marketwire - Sep 9, 2011) - Ruby Creek Resources, Inc. (OTCBB: RBYC), a gold exploration and mining company with operations in Tanzania, is pleased to announce a new Agreement has been reached on the purchase of the prospecting rights of the Kapinga property adjacent to the south and east boundaries of the Gold Plateau Project.

The key changes of the new Agreement relative to the original Agreement first announced September 10, 2010 are as follows:

1. The property purchase price is reduced from $500,000 (plus $50,000 and 50,000 shares Finder's Fee) to $155,000 plus 75,000 shares.
2. Ruby Creek's ownership is increased from 87% to 100%.
3. The property size is increased from 334 sq km to an estimated 350 sq km with the addition of a strategic 15 sq km block of land south of the Gold Plateau Camp. The properties are held in 2 Prospecting Licenses.
4. Any Mining License payments are now deemed a contingent liability not a long-term liability. The new terms state that if a mining license is granted on any of the Kapinga properties, Ruby Creek will pay a one time $100,000 and 75,000 shares within 30 days of the first mining license being issued. After 180 days of the first mining license being issued, Ruby Creek will pay an additional $100,000 in equity or cash.

To date, $75,000 has been paid and Ruby Creek has received the transfer of the Prospecting Licenses of the 334 sq km parcel. A payment of $30,000 will be made next week and Ruby Creek will pay the balance of $50,000 and issue the 75,000 shares upon the transfer completion of the remaining prospecting licenses.

Robert Slavik, President and CEO of Ruby Creek said, "We are quite pleased that we have the new Agreement on the expanded Kapinga property. Our geological investigation has indicated an extension of gold showings extending south and east. This new Agreement is mutually beneficial for both parties as Ruby Creek adds more land to our Gold Plateau Project with a larger ownership stake while the Kapinga family gets to participate in the Ruby Creek's growth with an equity stake."

About Ruby Creek Resources, Inc.
Ruby Creek Resources, Inc. ( is a gold exploration and mining company. Ruby Creek operates in Tanzania through its subsidiaries, Ruby Creek Gold (Tanzania) Limited and Ruby Creek Resources (Tanzania) Limited. Ruby Creek is the operator of the Tanzania Gold Plateau Project, establishing operations and infrastructure, along with the permitting process in support of the full development and commencement of gold mining operations on the Project.

Forward-Looking Statements
This news release may include certain forward-looking statements. All statements, other than statements of historical fact, included in this release are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. This notice expressly qualifies all forward-looking statements in this release. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessary estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors, which may be identified, from time to time in the Company's public announcements.

On behalf of Ruby Creek Resources, Inc.

Robert Slavik
President and CEO

Contact Information

  • For Further Information Contact:
    Toby Hansen
    Corporate Communications
    (212) 679-5711 ext 310
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    750 3rd Ave., 11th Floor
    New York, NY USA 10017

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