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San Ramon Gold Deposit Continues to Advance in the Third Quarter

Vancouver, BC, December 3, 2013 - Red Eagle Mining Corporation (TSX-V: RD, OTCQX: RDEMF) is pleased to announce financial results for the third quarter ending September 30, 2013 and business highlights to date, including advancements at Red Eagle Mining's San Ramon Gold Deposit in Antioquia, Colombia.

Third quarter highlights and significant subsequent events:

Completion and filing of the NI 43-101 Technical Report pertaining to the positive Preliminary Economic Assessment ("PEA") for the San Ramon Gold Deposit (please see Red Eagle Mining's news release dated September 19, 2013). Highlights include (all amounts in US$):

-Assuming a long-term forecast gold price of $1,300/ounce: pre-tax estimated Net Present Value (5%) is $152 million, Internal Rate of Return is 47%, payback is 1.4   years and average cash costs are $540/ounce; 

-Project capital costs of $73 million plus $11 million contingency and $7 million of recoverable VAT; and 

-Year one production of 87,000 ounces of gold at a fully diluted grade of 8.1 grams gold per tonne and post-tax cash flow of $61 million.

 Table 1 - Summary of San Ramon Economic Results 

 $1,300/Ounce Gold  Pre-Tax  Post-Tax
 Net Cash Flow  $211 million   $159 million
 Net Present Value (5%)  $152 million  $113 million
 Internal Rate of Return  47%  37%
 Payback  1.4 years  1.7 years


Table 2 - Summary of San Ramon Key PEA Data 

 Average Annual Production  51,000 oz/year
 Processing Rate  1,000 tonnes/day
 Life of Mine ("LOM")  10 years
 Initial Capex (incl. $11M contingency)  $84 million
 Cash Costs  $540/ounce or $76/tonne
 Years 1-5 Fully Diluted Processed Grade  5.38 grams gold per tonne
 LOM Fully Diluted Processed Grade  4.76 grams gold per tonne
 CIL Gold Recovery  93%
  •  Submission of the mining technical work plan ("PTO") for the San Ramon Gold Deposit to the Secretary of Mines of Antioquia; 
  • Reported mapping, soil sampling and rock channel sampling at the Pavo Real Gold Project have identified a new area of mineralisation. Highlights include 33.7 grams gold per tonne, greater than 100 grams silver per tonne, 0.23% copper and 0.23% zinc over 0.50 metres. This most recent rock channel sampling programme was carried out in an area of high-level vein and hydrothermal breccia mineralisation associated with dykes of rhyodacite porphyry, where MMI soil sampling returned strong coincident Au, Ag and Cu anomalies (please see Red Eagle Mining's news release dated October 8, 2013);
  • Appian Natural Resources Fund LP ("Appian") acquired an additional 3,535,000 common shares of Red Eagle Mining in the market. This acquisition increased Appian's stake to 8,989,545 shares representing approximately 15.3% of Red Eagle Mining (please see Red Eagle Mining's news release dated September 4, 2013);
  • Acceptance as a Tier 1 issuer on the TSX Venture Exchange (please see Red Eagle Mining's news release dated (August 6, 2013);
  • The successful conversion of an 8,590 hectare application adjacent to the north of the San Ramon Gold Deposit from an application to a concession contract; and
  • The successful application for an additional 1,809 hectares adjacent to the north of the existing holdings at the Santa Rosa Gold Project along the mineralised trend and an additional 8,800 hectares within the Pavo Real Gold Project.

Work programme update:

Red Eagle Mining's work programme for 2014 includes:

  • Completion of a comprehensive feasibility level metallurgical programme with respect to higher grade ores commensurate with underground mining;
  • Permitting including filing the Environment Impact Assessment (currently being prepared by Tetra Tech, Inc.) with Corantioquia (environmental agency). This is the final stage in the permitting process;
  • Preparation of a Definitive Feasibility Study; and
  • Exploration of the remainder of the 320 km² Santa Rosa Gold Project, including testing with core drilling of a number of highly prospective targets identified to date. 

Selected financial data:

The following selected financial data is derived from our unaudited interim condensed consolidated financial statements for the nine month period ended September 30, 2013, as prepared in accordance with International Financial Reporting Standards (all amounts in CDN$).


                                                                                                         For the three months ended                              For the nine months ended

                                                                                                              September       September                                  September   September
30,2013             30,2012                                        30,2013         30,2012

Net loss of the period                                                                     $  2,042,632          $  2,079,607                            $  9,171,355      $  8,398,972

Comprehensive loss for the period                                                   2,075,283              2,188,116                                    9,227,118      8,443,153

Basic and diluted loss per share                                                               0.03                         0.06                                            0.16               0.22

 As at                                                                                     September 30, 2013                                                                   December 31, 2012

Cash and cash equivalents                                                              $   6,465,419                                                                             $   15,893,971

Total assets                                                                                            10,896,264                                                                                   20,385,464

Total liabilities                                                                                           6,617,991                                                                                   7,035,647

Shareholders' equity                                                                                4,278,273                                                                                  13,349,817

Cumulative exploration expense                                                         25,107,897                                                                                  17,526,147

For the three and nine month period ended September 30, 2013 Red Eagle Mining reported a net loss of $2.0 million and $9.2 million respectively, compared to net losses of $2.1 million and $8.4 million for the three and nine months ended September 30, 2012. The most significant contributions to the loss for the three and nine months ended September 30, 2013 was the cost of ongoing exploration of $1.8 million and $7.6 million respectively (2012: $1.6 million and $7.1 million).

This press release should be read in conjunction with the unaudited interim condensed consolidated financial statements and Management's Discussion and Analysis for the three and nine months ended September 30, 2013. These documents can be found onRed Eagle Mining's website or profile at

The PEA was prepared by Mine Development Associates in accordance with the definitions in Canadian National Instrument 43-101 ("NI 43-101"). The PEA is considered preliminary in nature. It includes Inferred mineral resources that are considered too speculative to have the economic considerations applied that would enable classification as mineral reserves. There is no certainty that the conclusions within the PEA will be realised. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The technical information contained in this news release has been reviewed and approved by Red Eagle Mining's Vice President of Exploration, Jeff Toohey P.Eng., who is a Qualified Person as defined under NI 43-101. 

About Red Eagle Mining

Red Eagle Mining Corporation is a well-financed gold exploration and development company with an experienced mine-development team. Management is focused on building shareholder value through discovering and developing gold projects with low costs and low technical risks in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Mining is developing the 320 km² historic Santa Rosa Gold Project located in the Antioquia Batholith. Development will initially commence with the San Ramon Gold Deposit where a positive Preliminary Economic Assessment supports project advancement. Feasibility and permitting are currently underway.

For further information on Red Eagle Mining contact:

Ian Slater
Chief Executive Officer

Red Eagle Mining Corporation 
Suite 920 -1030 West Georgia Street 
Vancouver, BC, V6E 2Y3 
+1 604 638 2545 
[email protected]

James Beesley 
Investor Relations 
[email protected] 
+1 604 682 4600 
+1 855 682 4600 toll free 
+1 778 389 7715 mobile

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to sell any 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.

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