GOLD DEVELOPMENT – Tasiast gold mine gets green light

MAURITANIA - Toronto-based RIO NARCEA GOLD MINES has given the green light to development of its Tasiast gold mine. The total capital expenditure is estimated to be $63.5 million. The mine is expected to begin production in mid-2007, averaging 105,000 oz of gold annually at a cash operating cost of US$240/oz over an eight-year mine life.

The Tasiast gold project has measured and indicated resources of approximately 12.07 million tonnes averaging 3.06 g/t Au, or 1.19 million oz of gold, which includes proven and probable reserves within four open pits of 9.01 million tonnes averaging 3.06 g/t Au. In addition, inferred resources total 12.4 million tonnes averaging 2.25 g/t Au. Mineralization remains open at depth. As a result there is good potential for extension of the mine life beyond the eight years of current open pit reserves.

Further information is available from CEO John Hick at 416-956-7470 or go to www.RioNarcea.com.