Ruby Red announces financing with MineralFields Group



    
    /NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OR TO UNITED
    STATES NEWS WIRE SERVICES/

    TSX VENTURE: RRX
    

    CALGARY, Aug. 26 /CNW/ - Ruby Red Resources Inc. ("Ruby Red") or the
("Company") is pleased to announce that it proposes to complete a non-brokered
private placement of units ("Units") of Ruby Red to the MineralFields Group.
An aggregate of 2,500,000 Units will be placed at a price of $0.20 per Unit
for gross proceeds of $500,000. Each Unit will consist of one common share
issued on a "flow-through" basis and one common share purchase warrant of Ruby
Red. Each warrant will entitle the holder to purchase one additional common
share of Ruby Red at a price of $0.30 per common share for a period of
24 months from the closing of the offering. The net proceeds from the offering
will be used to fund Ruby Red's exploration, development and acquisition
programs. The offering remains subject to the approval of the TSX Venture
Exchange.

    About MineralFields, Pathway and First Canadian Securities(R)

    MineralFields Group (a division of Pathway Asset Management) is a
Toronto-based mining fund with significant assets under administration that
offers its tax-advantaged super flow-through limited partnerships to investors
throughout Canada during most of the calendar year, as well as hard-dollar
resource limited partnerships to investors throughout the world. Pathway Asset
Management also specializes in the manufacturing and distribution of
structured products and mutual funds. Information about MineralFields Group is
available at www.mineralfields.com. First Canadian Securities(R), a division
of Limited Market Dealer Inc., is active in leading resource financings (both
flow-through and hard dollar PIPE financings) on competitive, effective and
service-friendly terms, with investors both within, and outside of
MineralFields Group.

    About Ruby Red Resources Inc.

    Ruby Red was formed to participate in the acquisition, exploration and
development of mineral claims in the Fort Steele Mining Division of British
Columbia for the purpose of exploring for precious and base metals. Ruby Red
holds 100% working interests in 144 mineral claims (approximately
44,000 hectares), all located within 80 kilometres of Cranbrook, B.C. in the
Purcell and Rocky Mountains.

    Except for statements of historical fact, this news release contains
certain "forward-looking information" within the meaning of applicable
securities law. Forward-looking information is frequently characterized by
words such as "plan", "expect", "project", "intend", "believe", "anticipate",
"estimate" and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are made, and
are subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
anticipated in the forward-looking statements, which include but are not
limited to risks inherent in the mining industry, regulatory and economic
risks, and risks associated with the Company's ability to implement its
business plan. The Company undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions should
change except as required by law. The reader is cautioned not to place undue
reliance on forward-looking statements.

    
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED, AND DOES NOT ACCEPT
    RESPONSIBILITY FOR, THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    





For further information:

For further information: Randall Tronsgard, Vice-President, Corporate
Development of Ruby Red, at (403) 770-1346

Organization Profile

RUBY RED RESOURCES INC.

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