Rugby Resources Ltd. announced that recent exploration has significantly enhanced the potential of the Company's Venidero epithermal gold-silver project in Santa Cruz Province, Argentina. The Venidero project comprises 80 square kilometres (“km”) near the western margin of the Deseado Massif, Santa Cruz Province, Argentina. 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).

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”. 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. 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.

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. 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. 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. An exploration campaign comprising geological mapping and detailed rock chip geochemistry is planned for the second half of 2023.

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).