Good afternoon!

Please find enclosed a news release issued this afternoon.  If you have any questions or require further information, please do not hesitate to call.

Best regards,

Sophia Shane

Ph. 604-689-7842

RED BACK CLOSES PURCHASE OF TASIAST GOLD MINE

August 2, 2007... (RBI – TSX) – Red Back Mining Inc. (the “Company” or “Red Back”) reports that it has exercised its option to acquire a 100% interest in the Tasiast gold mine and significant exploration acreage located in Mauritania, West Africa, from Lundin Mining Corporation (“Lundin”).

The Company has paid the purchase price (US$225 Million) to Lundin, paid out the Tasiast debt facility with Macquarie Bank Limited (US$42.5 million plus US$0.3 million interest) and retired the gold hedging structure (US$10.1 million).The result is that the Company is now the 100% owner of Tasiast, which is debt free and unhedged.

The Tasiast gold mine was officially opened by the President of Mauritania, His Excellency Sidi Mohamed Ould Cheikh Abdallahi, on July 18, 2007 with representatives of the Company in attendance. Tasiast is in the commissioning process with commercial production expected early in the fourth quarter of 2007. Initial annual production rates are scheduled at 108,000 ounces of gold at an average grade of 3.25 g/t.

The Tasiast deposit is within an extensive gold system that is largely under-explored.  The deposit is open along strike and at depth.  Tasiast is the first mine in the highly prospective 70 kilometre long by 15 kilometre wide north-south trending Archaen age Aoueouat greenstone belt, which is geologically similar to other Archaen greenstone belts in the world that host major gold deposits.  The Tasiast property covers a 60 kilometre strike length of the Aoueouat greenstone belt, virtually encompassing an entire mining district in the country.

Mineral reserves at Tasiast are currently 11,984,000 tonnes @ 2.7 g/t Au for 1,040,000 contained ounces (News Release July 17, 2007). An extensive exploration program is underway at Tasiast and will be expanded by the Company towards converting Inferred resources (18,633,000 tonnes @ 1.94 g/t Au containing 1,165,000 ounces gold) into mineral reserves. A new resource/reserve estimate for Tasiast is expected in the first quarter of 2008. Concurrently, the Company will conduct an engineering review at Tasiast towards a near term expansion of processing capacity.

Richard Clark, President and CEO of Red Back, commented, “We are very pleased with the acquisition of Tasiast. This represents the first step in an aggressive growth strategy by the Company. The next steps are the development of the first underground operation at the Chirano gold mine in Ghana, the expansion of the Chirano processing facility, increasing resources and reserves at Tasiast, and the expansion of the Tasiast plant. The successful realization of these programs over the next 12-24 months will establish the Company as a significant mid-tier gold producer, well positioned for even further growth.”

The Company is well funded to continue its growth objectives. After the Tasiast purchase the Company has approximately US$75 million in cash and only US$19 million in debt.

The technical contents of this release have been reviewed by Hugh Stuart, BSc., MSc, a Qualified Person pursuant to NI-43101. Mr. Stuart is the VP - Exploration of the Company and a Member of the Australasian Institute of Mining and Metallurgy. This News Release contains forward looking statements which are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking statements. The Company does not intend to update this information and disclaims any legal liability to the contrary.

FORWARD-LOOKING INFORMATION

This press release contains “forward-looking information” that is based on Red Back’s current expectations, estimates, forecasts and projections.  This forward-looking information includes, among other things, statements with respect to Red Back’s plans, outlook and business strategy.  The words “may”, “would’, “could”, “should”, “will”, “likely”, “expect’, “anticipate”, “intend”, “estimate”, “intend”, “plan”, “forecast”, “project”, “estimate” and “believe” or other similar words and phrases are intended to identify forward-looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Red Back’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.  Such factors include, but are not limited to:  uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for Red Back’s mineral products or increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters.

This list is not exhaustive of the factors that may affect our forward-looking information.  These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information.  Red Back disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

ON BEHALF OF THE BOARD

(signed) “Richard P. Clark,” President

For further information, please call Sophia Shane at (604) 689-7842.