Good morning!

Please find enclosed a news release issued this morning.  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 CDN $375 MILLION PRIVATE PLACEMENT

May 10, 2007... (RBI – TSX) – Red Back Mining Inc. (the “Company” or “Red Back”) is pleased to announce that it has closed its previously announced private placement (the “Offering”) of 69,444,000 units (the “Units”) of the Company at a price $5.40 per Unit raising gross proceeds of approximately $375 million.  Each Unit consisted of 0.2 special warrants (the “Special Warrants”) and 0.8 subscription receipts (the “Subscription Receipts”) of the Company.  Each whole Special Warrant entitles holders to receive, without payment of any further consideration, one common share in the capital of the Company (a “Common Share”) at any time prior to the date which is the earlier of: (i) the third business day following the date a final receipt has been issued by the securities regulatory authorities in Canada for a short form prospectus qualifying the Common Shares; and (ii) four months and a day following the closing of the Offering.  Each Subscription Receipt entitles the holder to receive, without payment of additional consideration, one Common Share immediately following the acquisition by the Company of the Tasiast Gold Project (the “Acquisition”) and the satisfaction of certain other conditions (the “Release Conditions”). 

The proceeds of the sale of the Subscription Receipts in the amount of approximately $300 million, being 80% of the Offering (the “Escrow Funds”), have been deposited with, and are being held by, an escrow agent to be released upon satisfaction of the Release Conditions and will be used to fund the Acquisition and for general corporate and working capital purposes.  If the Release Conditions have not been met on or prior to the date which is 90 days following the closing of the Offering, the Escrow Funds will be returned in full to the holders of the Subscription Receipts and the Subscription Receipts will be cancelled.  The net proceeds of the sale of the Special Warrants in the amount of approximately $72.2 million, being 20% of the Offering less expenses, have been released to the Company and will be used for general corporate and working capital purposes.

The Offering was completed on a private placement best efforts agency basis by a syndicate of agents led by GMP Securities LP, and including Cormark Securities Inc., Scotia Capital Inc., Haywood Securities Inc., Dundee Securities Corporation and Paradigm Capital Inc.     

All securities issued pursuant to the Offering are subject to a four-month hold period provided, however, that the Company has agreed to use commercially reasonable best efforts to obtain a final receipt for a short form prospectus qualifying the distribution of the Common Shares underlying the Special Warrants and the Subscription Receipts within 90 days following the closing of the Offering. 

The Company currently operates the Chirano Gold Project located in Ghana, West Africa which has budgeted production in 2007 of 137,000 ounces of gold.  The acquisition of the Tasiast Gold Project in Mauritania is expected to add a minimum of 100,000 ounces of gold annually to the Company’s production profile.

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
Website:  www.redbackmining.com

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.