Rusoro Mining Ltd.: Gold Production Continues to Meet Guidance for 2009 With Record Low Cash Cost in Q3 of US$288 Per Ounce

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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2009) - Rusoro Mining Ltd. ("Rusoro" or "the Company") (TSX VENTURE:RML), is pleased to report its financial results for the three- month period ended September 30, 2009 ("Q3 2009"). The Company's Q3 2009 consolidated financial statements and management's discussion and analysis ("MD&A") have been filed on SEDAR (www.sedar.com).


All amounts set out in this news release are unaudited and in United States Dollars unless otherwise stated.


Q3 2009 Highlights


- Cash cost per ounce Au sold a record low of $288 per oz (Q3 2008: $805).


- Production of 35,376 ounces of gold (Q3 2008: 22,082).


- Initiated a feasibility study (to advance the positive Preliminary Assessment completed in Q2), to evaluate the potential for gold production expansion of the Choco Mine operation to a production rate of 558k oz Au/yr, which will source gold resources and reserves from the Choco Mine and the near-by Increible 6 gold deposit.


- Drilling at Isidora continues to expand high grade gold zones for future development.


- Advanced construction of the Alvarez underground ramp which will provide access to the main mineralized areas in the contiguous San Rafael and El Placer concessions ("SREP"). Construction is on track towards the goal of intercepting and test sampling the main mineralized zone in Q1 2010.


- Ended the quarter with $57 million in cash, cash equivalents and short-term investments with 35,374 ounces of gold warehoused and secured in country (45,356 ounces at Nov. 25, 2009).


Key Operating Statistics for the Choco Mine and Isidora Mine:


The data below is for 100% of the Choco Mine (open-pit mining operation) and 50% of the Isidora Mine (underground mining operation).



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3 Months Ended 3 Months Ended
September 30, September 30,
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2009 2008
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Choco Isidora Total Choco Isidora Total
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Ore tonnes mined ('000 t) 666 9 675 569 n/a 569
Ore tonnes milled ('000 t) 498 9 507 567 n/a 567

Average grade (g/t) 1.87 25.83 2.30 1.92 n/a 1.92
Average recovery rate (%) 93% 90% 93% 87% n/a 87%

Gold produced (ounces) 29,456 5,920 35,376 22,082 n/a 22,082

Gold sold (ounces) 32,502 6,019 38,521 21,755 n/a 21,755

Total mining operating
expenses $(000) 9,036 2,372 11,408 21,082 n/a 21,082
- asset retirement
obligations
accretion $(000) (97) (67) (164) (292) n/a (292)
- impairment of
inventories $(000) - - - (3,274) n/a (3,274)
- fair value
differential of
inventory acquired
$(000)(1) - (156) (156) - n/a -
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Total cash costs
$(000)(2) 8,939 2,149 11,088 17,516 n/a 17,516
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Total cash costs per
ounce sold $(3) 275 357 288 805 n/a 805
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Average spot gold
price $ n/a n/a 934 n/a n/a 825
Average realized gold
price $(4) n/a n/a 686 n/a n/a 676
Discount to spot gold
price(4) n/a n/a 27% n/a n/a 18%

Official exchange rate
(BsF to US Dollar) n/a n/a 2.15 n/a n/a 2.15
Average implicit exchange
rate (BsF to US Dollar) n/a n/a 6.47 n/a n/a 3.75
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1. In calculating cash costs per ounce sold the Company has excluded the
difference between the book value and fair value of inventory acquired
at the date of acquisition of the 50% interest in the Isidora Mine.
2. Total cash costs used in the calculation of cash costs per ounce is
calculated as mining operating expenses from the consolidated statement
of operations excluding accretion expense related to the asset
retirement obligations, impairment of inventories and expense of the
fair value differential between the book value and fair value of
inventory acquired at the date of acquisition of the 50% interest in
the Isidora Mine.
3. Cash costs per ounce sold is a non-GAAP measure. Total cash costs per
ounce sold as shown above is calculated by dividing the total cash
costs by the gold ounces sold during the period. Cash costs per ounce
sold includes all expenditures incurred at the mine site such as mining,
processing, administration, royalties and production taxes but excludes
reclamation, capital and exploration expenditures, adjustment to foreign
currency conversion rate and the fair value differential between the
book value and fair value of inventory acquired at the date of
acquisition of the 50% interest in the Isidora Mine.
4. Average realized gold price is impacted by a discount to spot price of
gold and by the timing of gold sales. The Company did not conduct gold
sales in August or September of 2009. As the Company did not conduct
gold sales in August or September of 2009, the average spot gold price
reported for the three months ended September 30, 2009 is the July 2009
average spot gold price.




Choco Mine Q3


During Q3 2009, the Company's 95%-owned Choco Mine produced 29,456 oz Au and had a cash cost per ounce sold of $275 as compared to 22,082 oz Au and a cash cost of $805 per ounce sold, reported in Q3, 2008. Cash costs were less than forecasted due mainly to lower overall costs and higher-grade (g/t) ore processed, as well as continued enhanced recoveries due to the installation of a new kiln and carbon recovery system in Q2. The Company's guidance for 2009 remains at 135,000 ounces of gold production at the Choco Mine operations at a cash cost per ounce guidance of approximately $375 per oz Au.


During Q3 2009 the Company initiated a Feasibility Study to follow up on the positive Preliminary Assessment (PA), completed by Micon International Limited, to evaluate the viability of a major expansion at the Choco Mine and Choco Mine Mill and which will incorporate the nearby Increible 6 gold deposit. The initial PA is detailed in a report dated June 2, 2009 and titled "Technical Report on the Preliminary Assessment of the Expansion of Production at Choco 10, Bolivar State, Venezuela". The PA outlined favourable economics for a significant expansion from 135,000 oz Au/yr (2009 guidance) to an average of 558,000 oz Au/yr at cash cost of US$331/oz Au over the life of mine (LOM). Micon International Limited will continue on as the Company's engineering consultants on the project and will be responsible for overseeing the feasibility study through to its completion. The scoping study results were reported in the news release dated May 19, 2009, which is available on SEDAR at www.sedar.com.


Isidora Mine Q3


During Q3 2009, the Company's 50% owned Isidora Mine produced 5,920 oz Au (net to the Company) and had a cash cost per ounce sold of $357. The Company continues to forecast 70,000 ounces of gold production at Isidora Mine for 2009 (35,000 net to the Company) at a cash cost guidance of approximately $350 per oz Au.


The Company is on schedule with its exploration program at Isidora Mine designed to expand existing resources to support future gold production with 7,963 meters of drilling (21 holes) completed during Q3 2009, bringing the total in 2009 to 20,362 meters (45 holes). Results received to date from the drilling completed in Q2/Q3 2009 are reported in the table below.



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Karin Vein M & S Veins
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Au TW Au TW
Hole-ID From To (g/t) (m)(i) Hole-ID From To (g/t)(m)(i)
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HCH-273 370.50 372.57 3.37 1.69 HCH-271 403.56 405.48 11.51 1.58
HCH-275b 372.47 374.16 8.84 1.77 HCH-274 397.80 398.23 5.28 0.37
HCH-277 331.70 335.63 14.61 4.41 HCH-276 331.70 335.63 7.70 1.10
HCH-277 353.35 354.48 9.67 1.01 HCH-278 426.66 428.10 41.81 1.19
HCH-279 386.00 386.64 18.67 0.59 HCH-281 418.54 419.36 8.38 0.68
HCH-279 389.15 389.66 7.25 0.47 HCH-283 402.50 404.77 19.62 1.93
HCH-280 356.49 357.15 3.94 0.65 HCH-285 427.13 429.31 11.97 1.73
HCH-282 357.03 357.30 18.93 0.27 HCH-285 430.88 431.70 10.07 0.65
HCH-282 358.87 359.65 13.88 0.77 HCH-288a 429.80 430.50 12.18 0.48
HCH-284 470.30 471.03 6.5 0.61 HCH-288a 432.32 433.33 5.09 0.69
HCH-284 477.96 479.78 3.96 1.52 HCH-289 389.00 389.30 10.91 0.23
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Note: TW is True Width in metres.




Drilling was successful in confirming the continuity along strike and to depth of the main mineralized zones (M and S Veins) including immediately adjacent and below the existing mine workings. Additionally the drilling extended along the central structure of the Isidora gold deposit approximately 400 metres to the west (F Vein area) and 350 metres to the east (Karin Vein - below the old Chile Mine).


Diamond drilling was conducted by Versacore and Perforaciones Tecnodrill of Puerto Ordaz, Venezuela. All drilling and drill sampling have been completed using industry standard practices. All drill core is described in detail and photographed and one-half of the core remains for inspection and reference.


Sample analyses have been conducted at SGS labs, Actlabs and Triad Labs located in El Dorado, Tumeremo and El Callao, Venezuela. All sample analyses were completed using industry standard fire assay practices. A detailed program of quality assurance / quality control (QA/QC) includes standard samples, blanks and duplicate check samples which are randomly inserted into the sample stream. Additionally check assays are completed on pulps and sample rejects at the primary lab as well as on duplicate pulps at a second lab. A review of the QA/QC results shows no significant bias and all results are considered highly reliable. Sample rejects for all drill samples are stored in Rusoro's secure facilities in Tumeremo, Venezuela, and will continue to be available for any further testing which may be required. All QA/QC is completed under the direction of G.F. Smith, P.Geo, Vice-President, Exploration of the Company. A technical report on the Isidora Mine titled "Technical Report on the Mining and Processing Operations of Hecla Mining Company, Estado Bolivar, Venezuela," dated August 1, 2008 was previously filed by the Company and is available on SEDAR at www.sedar.com."


San Rafael/El Placer (SREP) Development Project Q3


During Q3 2009 the Company continued to make progress on the pre-feasibility study initiated in Q2 at SREP. As well the Alvarez Ramp was advanced to within 500m of the main mineralized zones at the project and is on course for completion in Q1 2010. The Pre-feasibility study is being conducted by Whillans Mine Studies Ltd. The engineering consulting firm has previously advised the company concerning the development of the Alvarez Ramp. Based on the amount of data already compiled and the engineers intimate and ongoing knowledge of the project the Company expects that the study can be completed in early 2010. The SREP Project currently has National Instrument 43-101 ("NI 43-101") compliant resources of 399,000 oz Au indicated (639,000t @ 19.41g/t) and 523,500 oz Au Inferred (703,000t @ 23.16g/t) as detailed in a report titled "Technical Report on the San Rafael-El Placer and Days Vein Deposits, Bolivar State, Venezuela" dated October 2, 2008.


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 and scientific information within this news release.


Cautionary Non-GAAP Measures


Total cash costs per ounce sold is a non-GAAP measure. The Company believes that, in addition to conventional measures, prepared in accordance with GAAP, certain investors use the cash costs per ounce data to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP as it does not have any standardized meaning prescribed by GAAP. Data used in the calculation of total cash costs per ounce may not conform to other similarly titled measures provided by other precious metals companies.


ON BEHALF OF THE BOARD