RUG Rugby Resources Ltd

Rugby Mining Limited ("Rugby" or the "Company") (TSX VENTURE:RUG) is pleased to
announce that it has, subject to regulatory approval, entered into an option
agreement (the "Agreement") with Australian listed company, De Grey Mining
Limited ("De Grey"), to acquire an 80% interest in the Great Northern Gold
Project. 


The Agreement grants Rugby an option to earn an 80% interest in a 714 square
kilometre ("km") tenement package (the "Tenements") and an additional option to
purchase an 80% interest in a near surface historical resource at Wingina Well
(together with the Tenements, the "Great Northern Gold Project"). 


Rugby's CEO, Paul Joyce stated, "For two years the Company has been conducting a
comprehensive search to acquire a drill ready project, while it awaits
permitting for its prospective Cobrasco and Comita projects in Colombia and the
Mabuhay project in the Philippines. The Great Northern Gold Project satisfies
all parameters required by management including:




--  potential for discovering a high grade gold deposit; 
--  favourable permitting regime within a highly rated investment
    jurisdiction; 
--  excellent infrastructure with many of Australia's largest iron mines in
    the region; 
--  year round exploration and mining access; and 
--  reasonable drilling costs and drill rig availability. 



"Previous drilling at Wingina Well encountered intervals of high grade gold
mineralization within a larger lower grade system. Our aim will be to test for
further high grade zones in the untested areas both down dip and along strike.
We also see excellent potential for additional discoveries in extensive areas of
surficial cover that are underlain by greenstones intersected by regional
shears. Previous exploration identified specific targets within 30 km along
strike." 


The Great Northern Gold Project (previously Turner River Gold) is located in the
Pilbara district of Western Australia, 60 km south of Port Hedland (Figure 1
below). The region is home to a massive industrial base associated with oil,
natural gas, iron ore extraction and the Telfer gold mine operation (+10M oz of
gold produced since 1975 as reported on Newcrest Mining Limited's website(i)).
Infrastructure includes an international airport, seaport, railways, highways
and gas pipelines. 


Previous exploration (Figure 2 below) within the project area includes
geophysical and geochemical surveys, geological mapping and drill programs
comprising 4,171 drill holes for 224,442 metres ("m"). Most of the holes were
shallow and were used for geochemical sampling below extensive areas of thin
cover. This exploration has provided a large technical data base that will
assist in the development of new drill targets. 


(i) Source: http://www.newcrest.com.au/our-business/operations/telfer-wa

To date, most exploration was conducted at Wingina Well where 514 drill holes
and channel samples for a total of 40,967 m were completed. Drilling indicated
three higher-grade, parallel gold zones contained within lower grade envelopes
(Figures 3 and 4 below). Wingina Well has been subject to several historical
resource estimates however, they were not completed in compliance with National
Instrument 43-101 (NI 43-101) consequently the Company is not reporting any
resource estimates prior to further evaluation. 


Metallurgical testwork indicates the gold is fine-grained and free-milling.
Carbon in leach test work achieved gold recoveries up to 93% with low reagent
consumption and easy grinding of weathered material that forms the bulk of the
currently estimated mineral resource. Column leach tests (heap leaching) of
-12mm material achieved a 70% gold recovery in preliminary test work.


To view Figures 1-4, please visit the following link:
http://media3.marketwire.com/docs/935036_F1-4.pdf.


Great Northern Project Agreement Terms 

Pursuant to the Agreement, Rugby will pay De Grey AUD$100,000 within 5 days of
regulatory approval and will have two options as follows:




1.  a three year option to acquire an 80% interest in the Tenements by
    incurring a total of AUD$2 million in expenditures with a minimum
    expenditure commitment of AUD$500,000; and 
    
2.  an option to purchase an 80% interest in the historic near surface
    resource at Wingina Well for AUD$3 million, by paying AUD$2 million at
    any time within 54 months of date of the Agreement and a further AUD$1
    million within 30 days of a decision to mine any part of the historic
    resource at Wingina Well. 



Cisco Montes, the Company's Chief Geologist and a "qualified person" within the
definition of that term in NI 43-101, has supervised the preparation of the
technical information contained in this news release. 


About Rugby 

Rugby, with a treasury of $2.9 million, is an emerging mineral resource company
focussed on its exciting portfolio of projects having considerable potential for
significant mineral discoveries. Rugby benefits from the experience of its
directors and management who have either been directly responsible for
world-class mineral discoveries or have been on the management team of companies
having made such discoveries.


Cobrasco and Comita Projects, Colombia: Rugby owns 100% of the Cobrasco project,
subject to a 1% NSR and has an option to earn up to 60% of the adjacent Comita
project in western Colombia. Both projects host undrilled large scale porphyry
copper-gold targets which were recognised during a joint German-Colombian
government sponsored exploration program over 20 years ago. No systematic
exploration has been conducted since that time. The Rugby team is now in talks
with local drilling companies with a view to initiating a drilling campaign at
Cobrasco in the second half of the year, subject to obtaining the necessary
permits.


Mabuhay Project, Philippines: The Company holds an option to acquire up to 80%
of the Mabuhay project in Surigao Province. The Company considers the project to
have excellent potential for the discovery of both epithermal gold deposits and
gold-copper porphyry systems. An application for an Exploration Permit ("EP") is
currently being processed, however to minimise expenditures, the project will
remain under care and maintenance until the EP is granted.


Hawkwood Project, Australia: The Hawkwood Project is located in Queensland
Australia and covers 427 km2 of prospective gold, copper-gold and iron targets.
In January 2010, the Company entered into an agreement with Eastern Iron Limited
wherein Eastern Iron Limited can earn an 80% interest in iron ore targets in the
project area. To date Eastern Iron has conducted several programs, including
geophysical surveys and drilling.


For additional information you are invited to visit the Rugby Mining Limited
website at www.rugbymining.com.


RUGBY MINING LIMITED

Paul Joyce, President and CEO 

CAUTIONARY STATEMENT 

Certain of the statements made and information contained herein is
"forward-looking information" within the meaning of the British Columbia,
Alberta and Ontario Securities Acts. This includes statements concerning the
Company's plans at its projects including the expected approval of permits
required for exploration, timing of drilling programs, high grade potential at
the Great Northern Gold Project and drilling costs which involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking information. 


Forward-looking information is subject to a variety of risks and uncertainties
which could cause actual events or results to differ from those reflected in the
forward-looking information, including, without limitation, the effect on prices
of major mineral commodities such as copper, gold and iron by factors beyond the
control of the Company; events which cannot be accurately predicted such as
political and economic instability, terrorism, environmental factors and changes
in government regulations and taxes; the shortage of personnel with the
requisite knowledge and skills to design and execute exploration programs;
difficulties in arranging contracts for drilling and other exploration services;
the Company's dependency on equity market financings to fund its exploration
programs and maintain its mineral exploration properties in good standing;
political risk that a government will change, interpret or enforce mineral
tenure, environmental regulations, taxes or mineral royalties in a manner that
could have an adverse effect on the Company's assets or financial condition and
impair its ability to advance its mineral exploration projects or raise further
funds for exploration; risks associated with title to resource properties due to
the difficulties of determining the validity of certain claims as well as the
potential for problems arising from the interpretation of laws regarding
ownership of mineral properties in the Philippines and in the sometimes
ambiguous conveyancing characteristic of many resource properties, currency
risks associated with foreign operations, the timing of obtaining permits to
conduct exploration activities, the ability to conclude agreements with local
communities and other risks and uncertainties, including those described in each
of the Company's management discussion and analysis including those contained in
its year-end financial statements for the year ended February 28, 2013 filed
with the Canadian Securities Administrators and available at www.sedar.com. 


In addition, forward-looking information is based on various assumptions
including, without limitation, assumptions associated with exploration results
and costs and the availability of materials and skilled labour. Should one or
more of these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
described in forward-looking statements. Accordingly, readers are advised not to
place undue reliance on forward-looking information. Except as required under
applicable securities legislation, the Company undertakes no obligation to
publicly update or revise forward-looking information, whether as a result of
new information, future events or otherwise. 


NEITHER 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Rugby Mining Limited
Paul Joyce
President and CEO
604.688.4941 or Toll-free: 1.855.688.4941
604.688.9532 (FAX)
info@rugbymining.com
www.rugbymining.com

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