Mr. Paul Joyce reports

RUGBY RESOURCES DISCOVERS SILICA VEINS ON THE VENIDERO GOLD-SILVER PROJECT, ARGENTINA

Recent exploration has significantly enhanced the potential of Rugby Resources Ltd.'s Venidero epithermal gold-silver project in Santa Cruz province, Argentina.

Highlights

• Multiple areas of silica alteration with blocks of vein material identified;
• New ground magnetic surveying and reprocessing of previous survey data have defined prospective structures for ore deposition;
• Follow-up mapping and geochemical sampling are planned;
• The project is undrilled.

The Venidero project comprises 80 square kilometres near the western margin of the Deseado massif, Santa Cruz province, Argentina. It is 60 km south of Newmont's Cerro Negro gold mine (reserves of 2.56 million ounces of gold grading 8.89 grams per tonne -- 2021 Newmont reserves release).

Venidero gold mineralization is within the same Jurassic Chon Aike volcanic formation that hosts the Cerro Negro deposit. Prior to this program, exploration had identified two high-priority targets at the Gorgonzola vein and another 12 kilometres to the south, referred to as the Silica Cap.

The undrilled north-south-trending Gorgonzola vein displays high-level hydrothermal breccia and chalcedonic to opaline colloform banded veins within a regional fault structure. Previous surface rock chip sampling returned grades up to 4.45 grams per tonne gold. Textures and geochemistry indicate the veins are exposed at a high level within an epithermal gold vein system. Drilling is required to test the system at deeper levels as shown in the conceptual model.

Rugby has conducted two ground magnetic surveys: a northern grid with readings on 80-metre-spaced 045-degree lines and a southern grid with readings on 200-metre spaced east-west lines.

The recent 132 line km ground magnetic program on the southern grid shows a strong magnetic low (structure) that bifurcates from the main trend toward the southeast. Prospecting during the course of the survey on the southern grid discovered 14 areas of low temperature silica, including blocks of vein material up to one m in diameter. The silica zones are up to 100 m long and appear to be related to interpreted structures within magnetic lows which are considered prospective for ore deposition. The veins were not sampled during the program due to lack of suitable sampling equipment, however detailed mapping and geochemical sampling of the prospective areas will be conducted when the area is accessible following winter.

Rugby's chairman, Yale Simpson, stated: "Venidero is emerging as an extensive epithermal vein field. The geologists who discovered the Cerro Moro gold--silver deposit identified strong northwesterly structures within the ground magnetic data at Venidero. It is well known that such flexures are important for localizing gold silver mineralization. The magnetics also define favourable structures under overburden in the central sector of the vein system. Experience has shown that sulphide-rich veins can be higher grade and preferentially eroded. This is certainly the case at Cerro Moro and Cerro Negro."

An exploration campaign comprising geological mapping and detailed rock chip geochemistry is planned for the second half of 2023.

Qualified person

Paul Joyce, Rugby's chief operating officer, director and a qualified person (QP) within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has verified the scientific and technical information that forms the basis for this news release. Mr. Joyce is a fellow of the Australian Institute of Geoscientists (registered member No. 1908).

About Rugby Resources Ltd.

Rugby Resources is an exploration company conducting discovery-stage exploration on a portfolio of copper, gold and silver targets in Colombia, Argentina and Chile. Rugby recently discovered the large-scale Cobrasco copper-molybdenum porphyry and is advancing the discovery to demonstrate its full potential. Cobrasco is located in the Western Cordillera, a mineral belt that hosts large-scale copper molybdenum mines/discoveries in Chile, Peru, Ecuador and Panama. The Cobrasco segment of the mineral belt has not been subjected to modern exploration.

The discovery of significant new copper opportunities such as Cobrasco is essential for the mining industry to supply the copper necessary to transition from fossil fuels to advanced electrification.

The company benefits from the experience of its directors and management, a team that has either been directly responsible for world-class mineral discoveries or has been part of the management teams responsible for such discoveries. Prior companies under their management included Exeter Resource Corp. and Extorre Gold Mines Ltd., which held significant projects in South America. These companies were taken over by Goldcorp (Newmont) and Yamana respectively.

We seek Safe Harbor.