Rusoro continues Venezuelan Consolidation, Acquires Hecla's Venezuelan Assets



    Second Tranche of US$80 million financing released

    Trading symbol (TSX-V): RML

    VANCOUVER, June 19 /CNW/ - Rusoro Mining Ltd. ("Rusoro") is pleased to
announce that it continues to implement its regional consolidation strategy
with the acquisition of Hecla Mining Company's ("Hecla") Venezuelan assets
which include the Block B - Isidora mining leases and the La Camorra mill
facility in Bolivar State, southeastern Venezuela. Hecla's Venezuelan assets
are being acquired for US$20 million in cash and 4,273,504 (US$5 million worth
of) Rusoro shares. The Hecla-Venezuela acquisition is subject to final
regulatory approval and is expected to close the week of June 23, 2008.
    As a result of reaching this strategic milestone, the second tranche of
Rusoro's syndicated US$80 million financing led by Peter Hambro Mining Plc
("PHM") in the amount of US$52 million has been released.
    Commenting on the acquisition, Rusoro CEO Andre Agapov states: "The
Hecla-Venezuela acquisition confirms our exceptional growth profile and allows
us to target an annual production rate of 220,000 ounces per year by the end
of 2008. We have received strong in-country support for this acquisition and
we look forward to employing our Venezuelan expertise to re-energize the
Hecla-Venezuela assets for the benefit of our shareholders and the local
communities."

    The Hecla-Venezuela Acquisition
    -------------------------------
    This acquisition provides Rusoro with an immediate and significant
increase in gold production, confirming Rusoro as a focused gold company with
an exceptional growth profile. The key benefits of this transaction to Rusoro
include:

    
    -   83% Increase in Gold Production. By the end of 2008, the annualized
        targeted production rate from the Hecla-Venezuela assets is expected
        to be 100,000 ozs/year, bringing Rusoro's aggregate targeted
        annualized production rate to approximately 220,000 ozs/year.

    -   Exceptional Production Growth Profile. With production capacity
        available at the La Camorra mill as well as production expansion
        plans underway at Choco 10, management expects to increase production
        to 400,000 oz/yr by 2011, subject to the scoping and feasibility
        studies currently underway at Choco.

    -   Exceptional Regional Synergies to Expedite Growth Profile. Hecla's
        fully operational La Camorra mill is situated approximately 2 km from
        Rusoro's San Rafael/El Placer ("SREP") deposits which are fully
        permitted for gold production, and 40 km from Rusoro's Ceiba deposit.
        The La Camorra mill has available capacity to treat SREP and
        Ceiba ore, which may eliminate the need to upgrade and expand the
        Emilia Mill facility. As a result, significant cost savings for
        Rusoro are anticipated.

    -   Unlocking Venezuelan Value. This is the Company's second significant
        acquisition in the region and Rusoro's proven ability to operate in
        and manage the Venezuelan social and political environments should
        enable the Company to unlock further value from its assets and
        explore additional regional consolidation opportunities.

    -   Increased Reserve and Resource Base. Rusoro currently has NI 43-101
        compliant resources of 6.63 M oz Au M&I (84.0 Mt @ 2.5 g/t) and
        6.22M oz Au Inferred (108.2 Mt @ 1.8 g/t). The Company expects the
        Hecla-Venezuela assets to add significant high quality gold ounces to
        the Company's portfolio. The Company has commissioned an NI 43-101
        report on the resources and reserves at the Isidora Mine and a
        resource estimate on the Twin Shears potential mineral deposit to
        bring these resource estimates in line with NI 43-101 and TSX Venture
        Exchange guidelines.
    

    Hecla's main Venezuelan asset is the Block B land package, including the
producing Isidora Mine, near the town of El Callao in Bolivar State,
southeastern Venezuela. Hecla also controls additional leases near El Callao
called the Puyero and Choco 7 projects. In total, Hecla's land position is
approximately 18,272 hectares.
    Hecla also holds the fully permitted and operational La Camorra mill (and
surrounding concessions north of the town of El Dorado) which was constructed
in 1994 and has undergone periodic upgrades since that time. The mill is
capable of processing 700 t/d through a modified carbon-in-leach process with
historical recovery averaging approximately 95%. Since 2005 the mill has been
processing ore from the Isidora Mine and small mining cooperatives at a rate
between 300 and 400 t/d, on a five days per week basis.
    The Isidora Mine is located 5 km from Rusoro's Choco 10 Mine and 112 km
north of the La Camorra mill. The mine commenced production in 2005 and to
date has produced a total of 190,000 ounces of gold at a rate of 250 to 300
t/d of high grade gold ore.
    As part of the agreement with Hecla, the parties anticipate that the La
Camorra mill and concession may revert to the Venezuelan State on or about
January 1, 2009. Rusoro will own the La Camorra assets until that time and is
pleased to announce that it is in discussions with the Venezuelan government
to explore opportunities with Minerven and MIBAM to form a joint venture
regarding the La Camorra and Block B - Isidora assets. Commenting on the
prospective joint venture, Rusoro CEO Andre Agapov states: "We would be
delighted to be selected as the partner of choice to work with Minerven and
MIBAM to explore a joint venture that will benefit both the Venezuelan people
and our shareholders and we are excited about the future opportunities that
this type of collaboration may present for our shareholders."

    
    Summary of Hecla's Venezuelan Reserves, Resources and Exploration

    -------------------------------------------------------------------------
                Isidora Mine Reserves as of December 31, 2007
    -------------------------------------------------------------------------
    Reserves                      Tonnes (t)      Grade (g/t)       Gold (oz)
    -------------------------------------------------------------------------
    Proven                          70,298            37.20           84,029
    -------------------------------------------------------------------------
    Probable                       109,149            28.80          101,056
    -------------------------------------------------------------------------
    Total Reserves                 179,447            32.10          185,085
    -------------------------------------------------------------------------
                Isidora Mine Resources as of December 31, 2007
    -------------------------------------------------------------------------
    Resources                     Tonnes (t)      Grade (g/t)       Gold (oz)
    -------------------------------------------------------------------------
    Measured                       158,135            28.97          147,265
    -------------------------------------------------------------------------
    Indicated                      443,512            17.36          247,574
    -------------------------------------------------------------------------
    Total Resources                601,647            20.41          394,839
    -------------------------------------------------------------------------
    Note - Mineral resources are inclusive of mineral reserves.

    -------------------------------------------------------------------------
                 Isidora Mine Inferred Resources as of December 31, 2007
    -------------------------------------------------------------------------
    Inferred                      Tonnes (t)      Grade (g/t)       Gold (oz)
    -------------------------------------------------------------------------
    Inferred                       119,455            13.60           52,235
    -------------------------------------------------------------------------
    Total                          119,455            13.60           52,235
    -------------------------------------------------------------------------
    

    The resource and reserve estimates at the Isidora Mine were previously
reported by Hecla as part of their SEC 10-K filing for 2007. Rusoro has
commissioned an NI 43-101 technical report to be prepared to confirm these as
current and CIM compliant mineral resource and reserve estimates. The report
is expected to be completed in the next 45 days.
    Twin Shears, also situated on the Block B concession, is a potential
mineral deposit between 0.7 to 1.3 Mt and an average grade between 10 to 13
g/t Au. A resource estimate is currently underway and the results are expected
to be reported as an NI 43-101 compliant resource within 45 days. Until the
estimate is available the disclosure of a potential mineral deposit requires
the statement that the potential quantity and grade must be considered
conceptual in nature, and that there has been insufficient exploration to
define a mineral resource and that it is uncertain if further exploration will
result in the target being delineated as a mineral resource.
    The interpretation of the Twin Shears potential mineral deposit is based
on a total of 36 diamond drill hole intersections along a 1 km portion of a
2.2 km long structure. The structure is adjacent to the principal structures
in the Isidora Mine. The mineralized zone has variable widths generally
between 1 and 4 metres.
    Under the terms of the definitive stock purchase agreement signed today,
Rusoro will acquire all of Hecla's Venezuelan assets for US$20 million in cash
and 4,273,504 (US$5 million worth of) Rusoro common shares.
    Company President George Salamis stated that, "The successful completion
of this transaction will dramatically expand and accelerate Rusoro's
production growth profile and offers an excellent opportunity to fast track
production at the SREP and surrounding deposits, while positioning Rusoro as
an intermediate gold producer with a strong platform for further growth. In
addition, we view the exploration potential for further gold discoveries on
these concessions as excellent."

    Advisors
    --------
    Rusoro's financial advisor is Endeavour Financial International
Corporation and its legal advisors are Anfield Sujir Kennedy & Durno in
Canada, Gersten Savage LP in the United States and Figueiras & Annicchiarico
in Venezuela.

    Qualified Person: Mr. Gregory Smith, P.Geo, the Vice-President 
Exploration of the Company, is the Qualified Person as defined by National
Instrument 43-101, and is responsible for the accuracy of the technical
information in this news release.

    ON BEHALF OF THE BOARD

    "Vladimir Agapov"

    Vladimir Agapov, Chairman

    Forward-looking statements: This document contains statements about
expected or anticipated future events and financial results that are
forward-looking in nature and as a result, are subject to certain risks and
uncertainties, such as general economic, market and business conditions, the
regulatory process and actions, technical issues, new legislation, competitive
and general economic factors and conditions, the uncertainties resulting from
potential delays or changes in plans, the occurrence of unexpected events, and
the Company's capability to execute and implement its future plans. Actual
results may differ materially from those projected by management. For such
statements, we claim the safe harbour for forward-looking statements within
the meaning of the Private Securities Legislation Reform Act of 1995.

    The TSX Venture Exchange has not reviewed and does not take
    responsibility for the adequacy or accuracy of this release





For further information:

For further information: George Salamis, President, Tel: (604) 632-4044,
Fax: (604) 632-4045, Toll Free: 1-800-668-0091, Symbol: TSX-V: RML, Email:
info@rusoro.com, Website: www.rusoro.com

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