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

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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:

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    -   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.
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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."

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