Mr. Paul Joyce reports

DRILLING UPDATE FOR THE GREAT NORTHERN GOLD PROJECT, AUSTRALIA

Rugby Mining Ltd. has released preliminary gold results from recently completed drilling at the Great Northern gold project in the Pilbara region of Western Australia.

The program, comprising five drill holes for a total of 1,191 metres, was conducted at the Wingina prospect to test for depth extensions to the high-grade footwall gold zone. Five reverse circulation/rotary precollared drill holes and four diamond drill tails were drilled. Unfortunately, due to excessive hole deviation and difficult ground conditions, only one hole (RWG002) was successfully drilled to the target depth.

Preliminary gold assays have been received for all the drill holes and include the following significant results:

• RWG002: 61.5 metres at 1.14 grams per tonne gold from 196.4 metres(i);
• RWG003: one metre at 14.49 grams per tonne gold from 255.3 metres;
• RWG005A: 10.0 metres at 2.59 grams per tonne gold from 266.0 metres and three metres at 5.15 grams per tonne gold from 301.0 metres.

(i) Assumed 3.4 metres of no core recovery assayed zero grams per tonne gold.

Rugby's president and chief executive officer, Paul Joyce, stated: "We are encouraged that our initial drilling on the Wingina prospect has shown a continuation of gold mineralization at depths below the historical shallow oxide mineral resource (not compliant with National Instrument 43-101).

"Given the large size of the property at 714 square kilometres, and the number of undrilled geophysical and geochemical targets, Rugby will focus on defining shallow oxide and underlying high-grade deposits to supplement the historical (non-NI 43-101-compliant) Wingina gold resource.

"Magnetic anomalies in areas adjoining the known high-grade gold mineralization remain untested. One such target, the Crescent magnetic anomaly, is scheduled for follow-up and geochemical sampling is under way to better define the potential target. With the number of shallow targets available for testing and difficult drilling conditions at Wingina, further deep drilling is not planned at this time."

All results are preliminary as assays are being verified with check samples to be assayed at another independent laboratory.

Rugby has an option to earn an 80-per-cent interest in the Great Northern gold project from Australian-listed company, De Grey Mining Ltd.

Quality control and assurance

Blanks and certified standards were inserted into the sample stream as part of Rugby's quality assurance and control program, as prescribed by National Instrument 43-101 requirements. Core samples were cut in half-lengths using a diamond saw, with one half retained in secure storage for logging, and the other half sent to Genalysis Laboratory Services lab in Perth, Western Australia, for mineral analyses.

All samples were prepared using Genalysis's SP66 method (drying, crushing and pulverizing), and assaying for gold by Genalysis's FA50/OE04 technique in which a 50-gram charge was split from each sample for fire assay with an ICP-OES finish. Check assaying is currently under way at ALS Laboratory Services, Perth. Both ALS and Genalysis are independent and ISO-9001:2000 certified laboratories with no association to Rugby.

Francisco Montes, Rugby's chief geologist and a qualified person within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has verified the technical information that forms the basis for this news release.

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