Red Eagle Mining Corporation announced that an initial NI 43-101 resource estimate for its 100% controlled Santa Rosa gold project has established an Indicated mineral resource of 7.34 million tones at 1.37 grams gold per tone containing 322,000 ounces gold and an Inferred mineral resource of 9.45 million tones at 1.50 grams gold per tone containing 456,000 ounces gold. All of these announced resources occur at the San Ramon deposit, one of numerous gold prospects undergoing exploration by Red Eagle Mining at the 390 km² Santa Rosa gold project. An updated resource estimate incorporating an additional 17,000 meters of drilling currently in progress at San Ramon is targeted to be released mid-2013.

This resource estimate was prepared by Mine Development Associates in accordance with the definitions in the Canadian National Instrument 43-101 (NI 43-101) based on 23,000 m drilled to date. For resource reporting, a cut-off grade of 0.30 g/t Au was determined to reflect expected mining and processing operating conditions. The majority of the Indicated resource occurs within 100m of the surface, where the deposit has been drilled to 50m centers.

The resource below 100m is primarily an Inferred resource drilled to approximately 100m centres to a depth of 250m, which is currently defined as the likely extent of a potential open-pit. Wider-spaced drilling indicates that mineralisation is present at depths of over 300m. Since the cut-off date for the resource estimate, an additional 17,000m drill program has been in progress.

The updated resource estimate will incorporate infill drilling to 50m centres to a depth of 250m which it is anticipated should upgrade a majority of the existing Inferred resources below 100m to the Indicated classification. In addition, the San Ramon gold deposit remains open at depth and, due to significant high grade resources (approximately 50% of the ounces in the Inferred resource average over 5g/t Au), indicates potential for underground mining. Therefore, the updated resource will also incorporate broad spaced drilling from 250m to 500m depth to establish an Inferred resource suitable for potential development by underground mining methods.