Ruby Creek Closes Mining License and Equipment Acquisitions

NEW YORK, Dec. 5, 2011 /PRNewswire/ -- Ruby Creek Resources, Inc. (OTCBB: RBYC), a gold exploration and mining company with operations in Tanzania, is very pleased to announce that it now owns Gold Standard Tanzania assets.  Ruby Creek closed November 29, 2011 on the Gold Standard acquisitions referred to in the News Releases of January 12, 2011, May 24, 2011, August 2, 2011 and October 4, 2011.

Our new assets include 95% ownership of the following: a 10 year, 10 sq km mining license, a property package of two Prospecting Licenses of 40 and 89 sq km, a Regional Environmental Report on the combined 139 sq km (54 sq mile) properties and an established mining camp all from the privately held company, Gold Standard Tanzania Ltd.  The properties are immediately adjacent to and on the west-northwest border of Ruby Creek's Gold Plateau Project.  Additionally Ruby Creek received 100% ownership of mining equipment located on-site and in Dar es Salaam including excavators, dump trucks, loaders, bulldozers, supply vehicles, and other mining equipment that greatly increases our production and support capacity.  The total acquisition costs including the mining license, property and mining equipment was US$3,000,000 plus the assumption of $585,000 in debt.

Closing was originally anticipated for the end of April 2011 but during the due diligence period several issues were discovered such as damaged or missing equipment and creditor issues.  Over the curse of this period, Ruby Creek, and Gold Standard were able to renegotiate terms and appropriate adjustments were made.  For instance, the debenture conversion prices were increased and the cash component was decreased by amending the two cash payments totaling $1,000,000 to $100,000 cash and 1.2 million shares at a price of $0.75; amending two $1,000,000 convertible debentures (convertible at $0.50 per share) to one $974,000 convertible debenture (convertible at $1.00 per share) and one $1,026,000 convertible debenture (convertible at $0.75 per share) and reducing debt by a $200,000 creditor payment Ruby Creek made in April 2011.  The full details of the amendment to the purchase documents, as well as the terms of the transaction, are available in Ruby Creek's Current Reports on Form 8-K filed with the SEC on December 5, 2011 and August 15, 2011.

This delay in closing has pushed Ruby Creek's planned startup of commercial gold production and first gold revenues forward approximately six weeks into January 2012.  Test mining is continuing on the MK 1 and MK 2 Prospecting Licenses and hand mining and testing was carried out on the GS1 Mining License.  In preparation for commercial production, Ruby Creek is completing the move of additional mining equipment to the GS1 mining license area (see October 10, 2011 press release) from the Songea region.  Gold Plateau Project Manager Bob Gray is coordinating with all resources to set and optimize the equipment to achieve the goal of a 200 tons/hour processing rate.

Gold Standard Tanzania completed and received approval of a regional Environmental and Sociological Impact Assessment (ESIA).  The data from this ESIA will form the basis for and expedite Ruby Creek's planned multiple ESIA reports to cover our 1500 sq km (579 sq mile) Gold Plateau Project.

Bob Moriarty, President of Gold Standard Ltd. comments: "We are pleased to have finally closed the deal with Ruby Creek.  The Gold Plateau area has incredible promise for being a large gold deposit.  I look forward to starting gold production."

Robert Slavik, President and CEO of Ruby Creek, commented, "Completing the Gold Standard acquisitions is another big step forward for our Company.  I am excited that Ruby Creek now has its first mining license and more mining equipment, clearing the way to the startup of commercial gold production on our Gold Plateau project.  This completes a vital phase in Ruby Creek's Gold Plateau development plans.  I also want to say that I sincerely appreciate Bob Moriarty's efforts to make this work.  There were unforeseen and complicated issues, but great cooperation and adjustments have helped make this a successful closing and ultimately added great value to Ruby Creek.  The final terms we received more than offsets our short production delay.  The acquisitions bring not only the certainty of a 10-year mining license, but also add the very valuable regional environmental data.  We believe this regional report will allow us to rapidly increase the number of planned mining licenses on our Gold Plateau Project.  With gold prices doubling since I first came to Tanzania in April 2008, this is a great time for everyone involved as we work towards becoming Tanzania's newest gold producer.  It has been an amazing two years since our first gold property acquisition in the south of Tanzania and our Project has grown so much larger than we initially envisioned.  I am very thankful for all the people who have joined our Company, sharing our dream and step by step are helping to make this a reality."

About Ruby Creek Resources, Inc.

Ruby Creek Resources, Inc. (www.rubycreekresources.com) is a gold exploration and mining company.  Ruby Creek operates in Tanzania through its subsidiaries, Ruby Creek Gold (Tanzania) Limited and Ruby Creek Resources (Tanzania) Limited.  Ruby Creek is the operator of the Tanzania Gold Plateau Project, establishing operations and infrastructure, along with the permitting process in support of the full development and commencement of gold mining operations on the Project.

Forward-Looking Statements

This news release may include certain forward-looking statements.  All statements, other than statements of historical fact, included in this release are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.  This notice expressly qualifies all forward-looking statements in this release.  The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments.  Such forward-looking statements are necessary estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements.  It is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by the Company.  They include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors, which may be identified, from time to time in the Company's public announcements.

On behalf of Ruby Creek Resources, Inc.

Robert Slavik
President and CEO

SOURCE Ruby Creek Resources, Inc.