Redback Rights Issue

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    This just out.....Too good to be true but it is....



    RED BACK MINING NL 2002-05-29 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    On 16 April 2002, Red Back Mining NL ("Red Back") announced a
    non-renounceable 2 for 9 entitlements issue at 20 cents per Share
    ("the Issue"). The Issue is jointly, fully and unconditionally
    underwritten by major shareholders African Lion Limited, Macquarie
    Bank Limited and Resolute Mining Limited ("Resolute") for no fee.

    The Prospectus for the issue was lodged at the Australian Securities
    and Investments Commission on 29 May 2002. The timetable for the
    issue is as follows:

    Announcement of Entitlements Issue 16 April 2002
    Application to ASX for official quotation of Shares 16 April 2002
    Prospectus Lodged with ASIC and ASX 29 May 2002
    Notice to Option Holders sent 29 May 2002
    Record Date to determine entitlements to Shares 13 June 2002
    Prospectus and Entitlement and Acceptance Form
    despatched 17 June 2002
    Closing daft for acceptance and payment of 20 cents
    per Share 4 July 2002
    Shares quoted deferred settlement 5 July 2002
    ASX Notified of under subscriptions 9 July 2002
    Despatch Date 12 July 2002

    The Issue is to fund the Bankable Feasibility Study ("BFS") at Red
    Back's Chirano Gold Project in Ghana. The BFS which is budgeted to
    cost $3.6 million is scheduled to be completed in October 2002.

    The Directors of Red Back are pleased to be able to offer Red Back
    shareholders registered at the Record Date of 13 June 2002 the
    opportunity of purchasing additional shares at a 42% discount to the
    current share price.

    Details of the current resource inventory at the Chirano project were
    released on 1 May 2002 and updates to pro-feasibility economics and
    the award of the BFS contract to Lycopodium Pty Ltd were announced on
    16 May 2002.

    In summary, Indicated and Inferred Resources at Chirano total 26.77
    million tonnes grading 2.2g/t for 1.87 million ounces. Of these
    resources, 15.76 million tonnes grading 2.3g/t for 1.19 million
    contained ounces have been optimised into open pits. Approximately
    77% of these pit optimised ounces are contained within a 3km long
    central pit complex. Annual production over a 7.5 year mine life is
    estimated at 140,000 ounces per annum from a 2.0 million tonne per
    annum treatment plant with estimated cash costs of approximately
    US$200 per ounce. At a gold price of US$300 per ounce pre-capital
    undiscounted cash flow is estimated at US$97.6 million.

    As announced on 16 April 2002, Red Back has entered into a strategic
    relationship with Resolute which includes a first right of refusal
    over Resolute's Obotan treatment plant. The BFS will examine the
    suitability of relocating the Obotan plant and adapting plant design
    to Chirano ore.


    S Jackson
    COMPANY SECRETARY

 
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