Rusoro Mining Limited: Positive Feasibility Study on Expansion of Choco Mine to 20,000 Tonnes Per Day Completed

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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2012) - Andre Agapov, President and CEO of Rusoro Mining Ltd. (TSX VENTURE:RML) ("Rusoro" the "Company") is pleased to provide details on the recently completed positive feasibility study (the "Study") on the expansion of the Choco Mine to 20,000 tonnes per day. The Study was conducted by Micon International Limited ("Micon") in association with Ausenco and Knight Piesold, based on gold resources and reserves from the Choco 10 mine (95% owned) and the near-by Increible 6 (100% owned) gold deposit.
The Study demonstrates the viability of the project as proposed, and that expansion of the mine to process 20,000 tonnes per day is warranted.

Base Case Cash Flow Evaluation

The base case, which uses a gold price of US $1,225/ounce, evaluates to an internal rate of return (IRR) of 40% before tax and 30% after tax.
At the selected discount rate of 7.0%, the net present value (NPV7) of the cash flow is $1,261 M before tax and $758M after tax.
Over the LOM period, the average cash operating cost equates to $487/oz gold. The base case cash flow evaluation results are shown in the following table, which also shows the effects of discount rates of 5% and 9% for comparison.