Mr. Paul Joyce reports

RUGBY OPTIONS NEVADA GOLD-SILVER PROJECT

Rugby Mining Ltd. has, subject to regulatory and TSX Venture Exchange approval, entered into an option agreement to acquire a 100-per-cent interest in the Jessup gold-silver project, Nevada.

Jessup, situated 100 kilometres northeast of Reno, is located within the highly favourable mining jurisdiction of Nevada, and comprises approximately 10 square kilometres of mining claims. The Jessup deposit is a volcanic-hosted, low-sulphidation gold-silver epithermal system with an existing historical National Instrument 43-101 measured and indicated mineral resource containing 300,000 ounces of gold and 5.09 million ounces of silver.

The company will be required to conduct further assessment of previous drilling and new resource modelling to confirm the details of the Jessup project NI 43-101 technical report as written by Scott E. Wilson for Rye Patch Gold Corp., July 16, 2009. The company believes the data are suitable to report in this news release for informational reference only.

Rugby's president and chief executive officer Paul Joyce stated: "We are excited to explore Jessup, a project located in a mining district that hosts excellent infrastructure and which management considers highly prospective. Given the downturn in the resource market, we have been able to secure Jessup with very favourable terms. Our exploration focus will be to search for new discoveries of high-grade gold-silver mineralization to complement the historical, potentially open-pittable resource at Jessup."

Previous exploration at Jessup comprised 335 drill holes and 36 trenches for a total of 37,726 metres with most holes drilled to define the historical oxide mineral resource. However, the historical drilling is considered too shallow or not systematic enough to confirm the geological controls to the high-grade gold-silver mineralization intersected in a number of drill holes such as JP06-50C which intersected 1.5 metres of 50.6 grams per tonne (g/t) gold and 926 g/t silver from a depth of 19.8 m. These higher-grade intersections are potentially the structurally controlled steeply dipping feeder zones to the relatively flat-lying historical oxide gold-silver resource. Significant drill intersections are shown on the company's website, however, complete silver assays are not available for all intervals.

Metallurgical cyanide leach tests previously conducted on the oxide material averaged 84 per cent gold recovery and indicated that the oxide mineralization may be suitable for heap leach extraction. Limited cyanide testwork on the unoxidized material achieved a maximum of 47 per cent gold recovery and is unlikely to be amenable to cyanide heap leach processes. Further metallurgical testwork is required on this unoxidized material.

Agreement terms

The agreement allows for a 45-day diligence period to permit legal and tenure diligence on the project. Following this diligence period, Rugby will have an initial three-year option to acquire a 100-per-cent interest in the Jessup project by:

1. Making equal annual cash payments totalling $90,000 (U.S.);
2. Incurring annual exploration expenditures of $50,000 (U.S.), $75,000 (U.S.) and $100,000 (U.S.), respectively, over the three years;
3. Prior to the end of the third year, at Rugby's election, pay $800,000 (U.S.) to exercise the option. The concession holder will retain 0.8-per-cent net smelter royalty interest in Jessup upon the exercise of the option.

Rugby may extend the option exercise period for a further three years by paying $100,000 (U.S.) annually as an advance NSR payment. Rugby has the option to purchase part or all of the NSR at any time before Dec. 31, 2028, for $100,000 (U.S.) per 0.1-per-cent increment (total $800,000 (U.S.) for 0.8 per cent), less any advance royalty payments paid to the concession holder. Upon purchase of the NSR Rugby will pay an underlying 1.6-per-cent net royalty from production pursuant to prior underlying property agreements.

Project update

The company's permit application over large project areas to allow for drilling at its prospective Cobrasco project in Colombia has been unsuccessful to date. Following recent advice from local consultants, the company plans to amend its permit application to smaller areas over specific drill sites.

Permitting in the Philippines has slowed ahead of an upcoming federal election, and the Mabuhay project exploration permit application, although at an advanced stage, is awaiting approval.

The company has commenced metallurgical testwork and recently completed a regional geochemical survey to identify new drill targets at its Great Northern project in Australia.

Bryce Roxburgh, a director and chairman of Rugby, and a qualified person (QP) within the definition of that term in National Instrument 43-101, standards of disclosure for mineral projects, has recently inspected the Jessup property and verified the technical information that forms the basis for this news release.

We seek Safe Harbor.