Rugby Resources : Discovers Silica Veins on the Venidero Gold-Silver Project, Argentina

For Immediate Release: NR23-08

Rugby Resources Discovers Silica Veins on the Venidero Gold-Silver Project, Argentina

Vancouver, B.C., June 7, 2023 - Rugby Resources Ltd. ("Rugby" or the "Company") (TSX-V: RUG) is pleased to announce that recent exploration has significantly enhanced the potential of the Company's Venidero epithermal gold-silver project in Santa Cruz Province, Argentina.

Highlights

• Multiple areas of silica alteration with blocks of vein material identified.
• New ground magnetic surveying and reprocessing of previous survey data has defined prospective structures for ore deposition.
• Follow-upmapping and geochemical sampling is planned.
• The project is undrilled.

The Venidero project comprises 80 square kilometres ("km") near the western margin of the Deseado Massif, Santa Cruz Province, Argentina (Figure 1). It is 60 km south of Newmont's Cerro Negro gold mine (reserves of 2.56 million ounces of gold grading 8.89 g/t - 2021 Newmont Reserves Release).

Figure 1 - Venidero Project Location

Venidero gold mineralisation is within the same Jurassic Chon Aike volcanic formation that hosts the Cerro Negro deposit. Prior to this program, exploration had identified two high priority targets at the "Gorgonzola Vein" and another 12 km to the south, referred to as the "Silica Cap" (Figure 2).

Figure 2 - Processed Landsat image showing gold geochemistry and prospect location

The undrilled north-south trending Gorgonzola Vein displays high level hydrothermal breccia and chalcedonic to opaline colloform banded veins within a regional fault structure. Previous surface rock chip sampling returned grades up to 4.45 g/t gold (Figures 2 and 3). Textures and geochemistry indicate the veins are exposed at a high level within an epithermal gold vein system. Drilling is required to test the system at deeper levels as shown in the Conceptual Model (Figure 4).

Figure 3 - Gorgonzola vein gold geochemistry (left) and epithermal silica outcrops (right)

Figure 4 - Low sulphidation epithermal deposit model applied to the Gorgonzola Vein

Rugby has conducted two ground magnetic surveys: a Northern grid with readings on 80 metres ("m") spaced 045° lines and a Southern grid with readings on 200m spaced E-W lines.

The recent 132-line km ground magnetic program on the Southern grid shows a strong magnetic low (structure) that bifurcates from the main trend towards the southeast (Figure 5). Prospecting during the course of the survey on the Southern grid discovered 14 areas of low temperature silica, including blocks of vein material up to 1m in diameter. The silica zones are up to 100m long and appear to be related to interpreted structures within magnetic lows which are considered prospective for ore deposition (Figure 5). The veins were not sampled during the program due to lack of suitable sampling equipment, however detailed mapping and geochemical sampling of the prospective areas will be conducted when the area is accessible following winter.

Rugby's Chairman, Yale Simpson stated: "Venidero is emerging as an extensive epithermal vein field. The geologists who discovered the Cerro Moro gold silver deposit identified strong north-westerly structures within the ground magnetic data at Venidero. It is well known that such flexures are important for localising gold silver mineralisation. The magnetics also define favourable structures under overburden in the central sector of the vein system. Experience has shown that sulphide-rich veins can be higher grade and preferentially eroded. This is certainly the case at Cerro Moro and Cerro Negro".

Figure 5 - RTP Magnetic surveys with interpreted structures (white dashed lines) and sample locations

(black circles)

An exploration campaign comprising geological mapping and detailed rock chip geochemistry is planned for H2-2023.

Qualified Person

Paul Joyce, Rugby's Chief Operating Officer, Director and a "qualified person" ("QP") within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has verified the scientific and technical information that forms the basis for this news release. Paul Joyce is a Fellow of the Australian Institute of Geoscientists (registered member # 1908).