Rusoro Mining Reinhard Updates Rusoro Mining by 24hgold

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Scoping Study Supports +500,000 oz/yr Gold Production with Lowest Quartile Operating Costs

Rusoro today released the results of a Preliminary Assessment, also known in the mining industry as a Scoping Study, completed by top-tier mining consultant Micon International. The Study uses US$700/oz gold for its base case, which we will also use in our assumptions, as Rusoro receives a 15-17% discount to the world spot price from the Venezuelan government.

With gold at US$900 today, that equates to about US$750 per gold ounce to Rusoro. With expected cash cost per ounce of only US$331, there's considerable margin for robust cash flow, making Rusoro one of the world's lowest cost producers.

Micon calculates that at a gold price of US$700/oz, the project generates an after-tax IRR of 51.7%; at US$850/oz it jumps to 120%. Payback at US$700 is only 2.1 years, which makes project finance folks very happy. These strong economics makes it likely that Rusoro will attract higher percentage debt funding - ultimately resulting in a higher return for shareholders.

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Rusoro's methodical progress towards another four-fold production expansion highlights the synergies of existing mine site infrastructure, and supports our long-held opinion that significant value will continue to be unlocked from several gold deposits already controlled by Rusoro. Organic growth through the drill bit and future resource calculations and scoping studies are already baked in the cake given their past acquisitions and controlled holdings.

As an added bonus, we expect that Rusoro will also continue to be the go-to proven operator in Venezuela, clearly holding the keys to unlock other stalled projects. Both the Brisas concession and the even larger Las Cristinas project next door have been awaiting environmental permitting for years, with little apparent willingness on the part of the government to see development proceed in a piece-meal manner. These two stalled projects represent another 30 million ounces of gold awaiting development.

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For more information please contact:

Keith Schaefer
Vanguard Shareholder Solutions
Tel: 604 608 0824
Toll Free: 1 866 591 0825

www.rusoro.com

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