Ruby Red Resources Inc.

Ruby Red Resources Inc.

September 16, 2010 09:00 ET

Ruby Red Resources Enters Into Option Agreement on Certain East Kootenay Properties

CALGARY, ALBERTA--(Marketwire - Sept. 16, 2010) - Ruby Red Resources Inc. (TSX VENTURE:RRX) ("Ruby Red" or the "Company") is pleased to announce that, subject to TSX Venture Exchange approval, it has entered into an Option Agreement with 1532063 Alberta Inc. ("1532063") pursuant to which Ruby Red has granted 1532063 the option to earn a 60% interest in certain of the Company's mineral exploration properties in the Purcell Mountain and Rocky Mountain areas of south east British Columbia. To earn the 60% interest in the properties, during a 36 month period 1532063 must: (i) complete $1,250,000 in exploration expenditures on the properties; and (ii) make $140,000 in cash payments to Ruby Red. The Option Agreement also provides that 1532063 may increase its interest in the properties to 80% by: (i) completing an additional $1,250,000 in exploration expenditures on the properties; and (ii) making an additional cash payment of $75,000 to Ruby Red within 48 months of signing the Option Agreement.

In accordance with the terms of the Option Agreement 1532063 will complete exploration expenditures of approximately $250,000 on the optioned properties prior to October 31, 2010 in order to preserve Ruby Red's mineral interests in all its Purcell Mountain and Rocky Mountain properties. The principal exploration activity that 1532063 intends to undertake in this period is an airborne geophysical survey over significant portions of the properties that are the subject of the Option Agreement to help define diamond drill targets for succeeding exploration seasons.

After completing this transaction, Ruby Red will continue to hold a 100% interest in approximately 19,700 ha of mineral exploration properties in the Fort Steele Mining Division of south east British Columbia.

About Ruby Red Resources Inc.

Ruby Red is a small company with a large land position in southeastern British Columbia, Canada. The Company's mission is: to define quality mineral exploration opportunities that can be developed in a sustainable and environmentally responsible manner and that can contribute to the economic and social well-being of local communities.

In recent years the Company has concentrated its efforts on the Kimberley Gold Trend ("KAT"), which blankets a large portion of the Company's properties. The KAT is a metal-rich boomerang-shaped region roughly 30 km wide and 100 km long, extending from the Purcell Mountains in the west, across the Rocky Mountain Trench where it bends north to occupy a swath of the western Rocky Mountains.

Certain statements contained in this press release constitute forward-looking statements (the "forward-looking statements"). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements and information.

Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking statements include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, including fluctuations in commodity prices; governmental regulation of the mining industry, including environmental regulation; geological, technical and drilling problems; unanticipated operating events; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for commodities; liabilities inherent in mining operations; changes in tax laws and incentive programs relating to the mining industry; and the other factors described in our public filings available at Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking statements to conform such statements to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. The reader is cautioned not to place undue reliance on forward-looking statements.


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