Highlights

• A 31% increase in gold production to 342,085 oz (2008: 260,847 oz), including 17,786 oz from underground development at Chirano capitalized for financial reporting purposes.
• A 15% increase in average realized gold price to $996 per oz (2008: $866 per oz).
• A 9% decrease in cash operating costs to $391 per oz (2008: $428 per oz).
• Net income of $109 million (2008: $61.9 million).
• An 85% increase in proven and probable reserves at Tasiast.
• The discovery of the mineralized "Greenschist zone" at Tasiast over a 500 metre strike length, which is open to the north and south and down dip.
• The discovery of the Paboase underground deposit at Chirano.
• The completion of the Chirano and Tasiast plant expansions.
• Commencement of Akwaaba underground commercial production at Chirano.
• Commencement of dump leaching operations at Tasiast.
• A CAD $165 million equity financing.

Red Back expects production to increase to between 485,000 - 525,000 oz in 2010, a projected 42 - 54% increase from 2009, at a cash cost of between $390 - $420 per oz. Red Back's objective is to reach an annualized production rate of 800,000 oz during 2012 on the strength of CIL, dump leach and heap leach operations at Tasiast and the commencement of mining of the second underground deposit at Chirano.

Results of Operations

(amounts in thousands of dollars except for earning per share)	Year ended December 31,
	2009	2008	2007
Gold revenue	318,389	223,660	73,497
Net income (loss)	109,162	61,901	(91,904)
Earnings per share, basic	0.48	0.33	(0.70)
Earning per share, diluted	0.48	0.32	(0.70)
Total assets	961,131	701,702	557,134
Long-term liabilities	68,565	58,885	62,036

The Company reported record net income of $109 million for the year compared to $61.9 million in 2008. The significant contributing factors to the strong results in 2009 are:

• a 92% increase in mining operating profits due to increased production, a decrease in cash cost per oz and higher gold prices; and
• over $20 million in income contributions from corporate activities relating to a termination fee on the Moto transaction, a gain on sale of marketable securities (see "Liquidity and Capital Resources" section) and realized foreign exchange gains.

Lower operating costs per oz compared to 2008 are due to higher production, and lower power and mining costs at Chirano and Tasiast respectively. Royalties include an $8 million expansion fee due to the government of Mauritania upon completion of the plant expansion at Tasiast. In addition, the Company started depreciating the costs of the plant expansions at Chirano and Tasiast and amortizing the underground development costs at Chirano in the fourth quarter of 2009.

General and administration costs increased in 2009 compared to 2008 because of higher compensation and promotional costs during 2009. Stock-based compensation costs, also higher, are based to a large degree on the appreciation of the Company's share price, which in 2009 increased by almost 100%.

Results for the year also include other income of $13.2 million from the receipt of a termination fee from the Moto transaction, a $6.2 million gain from foreign currency transactions and a $3.0 million gain on sale of securities. The write-off of previously deferred exploration costs relates to early-stage mineral exploration licenses relinquished in the normal course of business following a review of their prospectivity.

The tables below summarize key operating statistics of the Company for the last quarter and the year.

	Three months ended Dec. 31, 2009			Three months ended Dec. 31, 2008
	Chirano	Tasiast	Total	Chirano	Tasiast	Total
Ore tonnes mined ('000t)	1,246	1,620	2,866	864	1,112	1,976
CIL Ore tonnes milled ('000t)	877	547	1,424	539	394	933
CIL Average grade (g/t)	2.2	2.8	2.4	2.0	3.7	2.7
CIL Average recovery	89.9%	90.2%	90.0%	91.9%	92.5%	92.2%
Gold produced, CIL (oz)	54,518	44,589	99,107	31,346	41,318	72,664
Gold produced, dump leach (oz)	-	12,083	12,083	-	-	-
Gold produced, total (oz)	54,518	56,672	111,190	31,346	41,318	72,664
Gold sold (oz) (Note 2)	52,225	49,922	102,147	28,778	40,719	69,497
Realized gold price per oz	$1,122	$1,110	$1,116	$783	$789	$786
Cash costs per oz (Note 3)
Operating	$445	$324	$386	$497	$319	$393
Royalty	$  34	$176	$103	$  26	$  24	$  25
Depreciation and amortization per oz (Note 4)	$174	$275	$223	$125	$224	$187

Note 1: Production statistics may not calculate exactly due to rounding.
Note 2: 2009 gold sold at Chirano excludes 3,782 oz recovered from underground operations and capitalized during pre-production development.
Note 3: This is a non-GAAP measure. It is calculated by dividing costs on the statement of income and retained earnings by gold oz sold.
Note 4: For Tasiast, approximately $94 per oz ($128) of depreciation and amortization are due to the amortization of the fair value excess on purchase of the Tasiast mineral properties on August 2, 2007.

	Year ended December 31, 2009			Year ended December 31, 2008
	Chirano	Tasiast	Total	Chirano	Tasiast	Total
Ore tonnes mined ('000t)	3,723	4,817	8,540	3,094	2,522	5,616
CIL Ore tonnes milled ('000t)	2,718	1,684	4,402	2,205	1,486	3,691
CIL Average grade (g/t)	2.3	2.9	2.5	1.9	3.1	2.5
CIL Average recovery	90.4%	91.9%	91.0%	91.8%	93.6%	92.8%
Gold produced, CIL (oz)	183,425	142,260	325,685	120,793	140,054	260,847
Gold produced, dump leach (oz)	-	16,400	16,400	-	-	-
Gold produced, total (oz)	183,425	158,660	342,085	120,793	140,054	260,847
Gold sold (oz) (Note 2)	165,052	154,720	319,772	120,285	137,993	258,278
Realized gold price per oz	$999	$992	$996	$873	$860	$866
Cash costs per oz (Note 3)
Operating	$443	$336	$391	$478	$384	$428
Royalty	$ 30	$ 81	$ 55	$ 26	$ 26	$ 26
Depreciation and amortization per oz (Note 4)	$123	$241	$180	$105	$227	$170

Note 1: Production statistics may not calculate exactly due to rounding.
Note 2: 2009 gold sold at Chirano excludes 17,786 oz recovered from underground operations and capitalized during pre-production development.
Note 3: This is a non-GAAP measure. It is calculated by dividing costs on the statement of income and retained earnings by gold oz sold.
Note 4: For Tasiast, approximately $93 per oz (2008: $128) of depreciation and amortization are due to the amortization of the fair value excess on purchase of the Tasiast mineral properties on August 2, 2007.

Tasiast gold mine, Mauritania

Tasiast's 30 year mining lease is located in the north-western part of Mauritania, approximately 300 kilometres north of the capital of Nouakchott and 162 kilometres east-southeast of the port city of Nouâdhibou. Tasiast's exploration licenses include a 60 kilometre strike length of the Aoueouat greenstone belt of Achaean age. To December 31, 2009, drilling in support of the resources and reserves only covers 8 kilometres of this belt. Red Back is continuing an extensive exploration program to identify prospective mineralized areas along this belt.

The current mine plan includes the Piment and the West Branch deposits. Drilling results to date have expanded the in-situ reserves from 2.3 million oz at December 31, 2008 to 3.0 million oz at August 31, 2009, as detailed in the table below.

	Tonnes (Mt)	Au (g/t)	Ounces (Moz)
Total Proven	33.8	1.43	1.56
Total Probable	30.0	1.45	1.40
Total Stockpile	3.7	0.76	0.09
Total	67.5	1.40	3.05
Note: the ore reserve estimate used a gold price of US$700

The existing ore body is open both at depth and along strike to the north and south. Drilling during 2009 generated a 75% expansion in the measured and indicated resource to 6.51 million oz (News release dated February 1, 2010). A drilling program to further expand the resource and reserves is currently underway. A new reserve estimate is expected before the end of the first quarter in 2010.

The reserves include lower grade oxide ore which is being processed by dump leaching. The Company is continuing test work to establish the recovery and processing characteristics of low grade fresh ore to enable processing by heap leaching. Results to date show an average recovery rate of 59%. Completion of this test work should occur in the first half of 2010 followed by the estimation of an initial heap leach reserve in the third quarter.

The expansion of the Tasiast processing facility was completed in 2009. The irrigation of the dump leach pads commenced in the fourth quarter and recoveries from dump leaching are expected to increase through 2010. At the same time, the new tailings facility became operational allowing for increased throughput in the expanded mill.

During the last three months of the year Tasiast produced 56,672 oz (2008: 41,318 oz) at a cash operating cost of $324 per oz (2008: $319 per oz). Tasiast's production for the full year was 158,660 oz (2008: 140,054 oz) at a cash operating cost of $336 per oz (2008: $384 per oz). The decrease in operating costs compared to 2008 in largely due to lower mining costs and higher production.

Royalties exceeded the expected rate of 3% of revenues due to the inclusion of an expansion fee paid to the government of Mauritania following receipt of the final permits relating to the plant expansion project. Expansion fees will also apply in 2010, the remaining period of time during which they are payable. The fees will be expensed proportionately to the production during the year. The total 2009 expansion fees were paid at the end of August and were expensed proportionately to the production of the last four months of the year. As a result, the fourth quarter of 2009 included $7.3 of the total $8 million paid in 2009.

The completion of the plant expansion combined with the operational dump leach pads will result in higher production in 2010 (245,000 -- 265,000 oz). Cash costs per oz are forecast to remain constant at $325 - $350 as the benefits of higher production are expected to be offset by a lower grade profile.

Chirano gold mine, Ghana

The Chirano mining lease, granted in April 2004, is situated in south-western Ghana, 100 kilometres southwest of Kumasi, Ghana's second largest city. The project is within the Bibiani gold belt and the present mining plan includes a series of open pit deposits and the high grade Akwaaba underground mine. Gold mineralization continues at depth below the current open pit designs at many of the deposits currently included in the mine plan. The initial underground inferred resource estimates for the Paboase and Suraw deposits were published in March 2009. Further mineralized high-grade intercepts resulted in an increase in the resource estimate of Paboase and Akoti, which now includes an indicated resource of 248,000 oz plus an additional 610,000 oz of inferred resources.

Underground mining at Akwaaba reached commercial levels of ore production at the end of October at which time capitalization of all mining costs other than the continuing development of the decline ceased.

Chirano's production in the fourth quarter of 2009 was 54,518 oz (2008: 31,346 oz) at a cash operating cost of $445 per oz (2008: $497 per oz). For the year, Chirano produced 183,425 oz (2008: 120,793 oz) at a cash operating cost of $443 per oz (2008: $478 per oz). Cash operating costs are lower compared to 2008 due to increased production, higher grade, and lower electricity charges.

The processing of increasing quantities of higher grade ore from Akwaaba and the utilization of the expanded processing facility will lead to increased production of 240,000 -- 260,000 oz in 2010. Cash costs are expected to be $460 - $490 per oz, slightly higher than in 2009 because of the impact of the higher cost underground mining operations.

Highlights for the Third Quarter

The results from operations during the third quarter of 2009 continue to show strong profits and operating cash flows notwithstanding lower production and higher cash costs at Tasiast due to delayed permits and start-up issues with the expanded operations. With the Tasiast permitting and production issues now resolved, throughput rates at both Tasiast and Chirano are ramping up to the levels anticipated for 2010. The Company expects increased production levels and lower cash costs in the fourth quarter.

Cash operating costs for the year are estimated at $385 per oz, unchanged from the original forecast. Forecast 2009 production has been reduced to between 350,000 and 370,000 oz, down from the original plan of 400,000 oz as a result of lower third quarter production at Tasiast.

The Company's third quarter highlights were:

• Total gold production of 80,247 oz (year-to-date: 230,892 oz), including 9,224 oz (year-to-date: 14,004 oz) from underground development at Chirano, capitalized for financial reporting purposes.
• Average realized gold price of $977 per oz (year-to-date: $939 per oz).
• Net income of $35.1 million (year-to-date: $85.1 million).
• Cash operating costs of $414 per oz (year-to-date: $393 per oz).
• Completion of the Chirano and Tasiast plant expansions.
• Commencement of dump leach operations at Tasiast.
• 33% increase in reserves at Tasiast, now exceeding 3 million oz.
• A major increase in the underground resource at Paboase South, Chirano.
• Receipt of a CAD $15.25 million break fee upon termination of the Moto acquisition transaction.

Moto Transaction

On June 1, 2009, Red Back and Moto Goldmines Limited ("Moto") entered into an arrangement agreement (the "Agreement") pursuant to which each outstanding common share of Moto would be exchanged for 0.45 of a common share of Red Back and $0.001. Red Back had a right to match a superior proposal received by Moto. On July 27, 2009 Moto advised Red Back that it had received a superior proposal. Red Back did not exercise its right to match and, accordingly, the Agreement was terminated. Under the terms of the Agreement Moto paid Red Back a CAD $15.25 million termination fee on August 5, 2009 (the "Moto Fee").

Results of Operations

Net income for the three and nine months ended September 30, 2009 was $35.1 million and $85.1 million, respectively (September 30, 2008: $10.6 million and $53.9 million). The third quarter results include other income of $13.2 million from the receipt of the Moto Fee, less professional and consulting costs related to the transaction, and a $4.1 million gain from foreign currency transactions. Year-to-date profits from mining operations are up 54% from the previous year because of higher revenues due to increased production and higher gold prices, only partially offset by higher costs.

Compared to last year, cash operating costs per oz for the first nine months of the year have decreased as a result of lower mining costs at Tasiast and increased production.

Summary of Financial Results
Quarter Ended	Sep 09	Jun 09	Mar 09	Dec 08	Sep 08	Jun 08	Mar 08	Dec 07
Total revenue ($'000)	69,152	69,353	65,858	54,650	54,200	60,396	54,414	26,220
Net income (loss) ($'000)	35,113	24,666	25,345	7,983	10,568	23,485	19,864	(89,989)
Net income (loss) per share ($)	0.15	0.11	0.12	0.04	0.06	0.12	0.11	(0.49)

Key operating statistics for the third quarter and on a year-to-date basis are provided below.

	Three months ended Sept. 30, 2009			Three months ended Sept. 30, 2008
	Chirano	Tasiast	Total	Chirano	Tasiast	Total
Ore tonnes mined ('000t)	839	1,053	2,830	704	527	1,231
Ore tonnes milled ('000t)	645	492	1,137	526	394	920
Average grade (g/t)	2.8	2.3	2.6	1.6	2.9	2.2
Average recovery	90.3%	91.0%	90.6%	92.8%	94.2%	93.4%
Gold produced, CIL (oz)	49,231	30,272	79,503	25,572	34,251	60,003
Gold produced, dump leach (oz)	-	744	744	-	-	-
Gold produced, total (oz)	49,231	31,016	80,247	25,572	34,251	60,003
Gold sold (oz) (Note 2)	40,007	30,791	70,798	27,142	36,362	63,504
Realized gold price per oz	$979	$974	$977	$860	$849	$853
Cash operating costs per oz (Note 3)
Operating	$392	$443	$414	$596	$403	$485
Royalties	$  27	$  58	$  41	$  14	$  25	$  21
Depreciation, amortization and accretion per oz (Note 3)	$108	$284	$184	$94	$213	$162

Note 1: Production statistics may not calculate exactly due to rounding.
Note 2: 2009 gold sold at Chirano excludes 9,796 oz recovered from underground operations and capitalized during pre-production development.
Note 3: This is a non-GAAP measure. It is calculated by dividing costs on the statement of income and deficit by gold oz sold. For Tasiast, approximately $108 per oz (2008: $133 per oz) of depreciation and amortization are due to the amortization of the fair value excess on purchase of the Tasiast mineral properties in 2007.

	Nine months ended Sept. 30, 2009			Nine months ended Sept. 30, 2008
	Chirano	Tasiast	Total	Chirano	Tasiast	Total
Ore tonnes mined ('000t)	2,477	3,197	5,674	2,246	1,406	3,651
Ore tonnes milled ('000t)	1,841	1,137	2,975	1,666	1,092	2,758
Average grade (g/t)	2.4	3.0	2.6	1.8	3.0	2.3
Average recovery	90.6%	92.2%	91.2%	91.7%	94.1%	92.7%
Gold produced, CIL (oz)	126,753	99,822	226,575	89,447	98,734	188,181
Gold produced, dump leach (oz)	-	4,317	4,317	-	-	-
Gold produced, total (oz)	126,753	104,139	230,892	89,447	98,734	188,181
Gold sold (oz) (Note 2)	112,827	104,798	217,625	91,507	97,274	188,781
Realized gold price per oz	$943	$935	$939	$901	$890	$895
Cash operating costs per oz (Note 3)
Operating	$442	$342	$393	$472	$412	$441
Royalties	$  28	$  37	$  32	$  26	$  27	$  26
Depreciation, amortization and accretion per oz (Note 3)	$100	$225	$160	$ 96	$228	$164

Note 1: Production statistics may not calculate exactly due to rounding.
Note 2: 2009 gold sold at Chirano excludes 14,004 oz recovered from underground operations and capitalized during pre-production development.
Note 3: This is a non-GAAP measure. It is calculated by dividing costs on the statement of income and deficit by gold oz sold. For Tasiast, approximately $93 per oz (2008: $133 per oz) of depreciation and amortization are due to the amortization of the fair value excess on purchase of the Tasiast mineral properties in 2007.

Tasiast Gold Mine - Mauritania

Tasiast's 30 year mining lease is located in the north-western part of Mauritania, approximately 300 kilometres north of the capital of Nouakchott and 162 kilometres east-southeast of the port city of Nouâdhibou. Tasiast's exploration licenses cover a 60 kilometre strike length of the Aoueouat greenstone belt, a 70 kilometres long by 15 kilometres wide north-south trending Archaen age, largely under-explored gold system. To date, drilling in support of the resources and reserves only covers 8 kilometres of this belt. Red Back is continuing an extensive exploration program to identify prospective mineralized areas along this belt.

The current mine plan includes the Piment and the West Branch deposits. Drilling results to date have expanded the in-situ reserves from 2.3 million oz at December 31, 2008 to 3.0 million oz at August 31, 2009, as detailed in the table below.



The existing ore body is open both at depth and along strike to the north and south. A drilling program to further expand the resource and reserves is currently underway. Recent results (News release dated October 28, 2009) at the West Branch deposit are expected to generate continued resource and reserve expansion.

The reserves include lower grade oxide ore expected to be processed by dump leaching. Irrigation of three dump leach pads has commenced, with significant recoveries expected in the fourth quarter.

The Company is also conducting test work to determine the estimated gold recovery rates of processing low grade fresh ore by heap leaching. Initial results show an average recovery rate of 59%. Completion of this test work and the calculation of an initial heap leach reserve are expected in the first half of 2010.

The expansion of the Tasiast processing facility is effectively complete, with only the gravity circuit and gold room requiring final commissioning. The new tailings facility is now operational and irrigation of the dump leach pads has now commenced following receipt of final permits in late August.

Tasiast's production in the third quarter of 2009 was 31,016 oz (2008: 34,251 oz) at a cash operating cost of $443 per oz (2008: $403 per oz). In the first nine months of the year Tasiast produced 104,139 oz (2008: 98,734 oz) at a cash operating cost of $342 per oz (2008: $412 per oz). Third quarter production and cash costs were adversely affected by delays in the receipt of operating permits and longer than anticipated commissioning and start up of the expanded facilities. In addition, a rare electrical storm in September damaged equipment preventing full operation of the water borefield, which in turn delayed the irrigation of the dump leach pads. This has deferred the recoveries of gold from dump leaching to the fourth quarter. On a year-to-date basis, cash operating costs remain low compared to 2008 principally because of higher production and lower mining costs.

With the plant expansion substantially complete and irrigation of the dump leach pads now fully operational, production is expected to increase in the fourth quarter. Red Back expects Tasiast production for the last quarter in 2009 to be between 60,000 and 70,000 oz and for the year between 165,000 and 175,000 oz at a cash operating cost of approximately $340 to $350 per oz.

Royalties exceed the expected rate of 3% of revenues because they include expansion fees paid to the government of Mauritania following receipt of the final permits relating to the plant expansion project. Higher royalty costs will apply for the remainder of 2009 and in 2010, the period of time during which these expansion fees are payable. The total 2009 expansion fees were paid at the end of August and are being expensed proportionately to the production of the last four months of the year. As a result, at September 30, 2009 $7.3 million has been recorded as a prepaid expense on the balance sheet and will be expensed in the fourth quarter.

Chirano Gold Mine - Ghana

The Chirano mining lease, granted in April 2004, is situated in south-western Ghana, 100 kilometres southwest of Kumasi, Ghana's second largest city. The project is within the Bibiani gold belt and the present mining plan includes a series of open pit deposits and the high grade Akwaaba Deeps underground mine. Gold mineralization continues at depth below the current open pit designs at many of the deposits currently included in the mine plan. First underground inferred resource estimates were confirmed in March 2009 for the Paboase South and Suraw deposits. Drilling at Paboase South is continuing to meet with success. During the third quarter, further mineralized high-grade intersects with significant widths were identified below the previously released inferred resource. Most recently (News release October 26, 2009), the Company has updated its underground resource estimate of Paboase South and Akoti, which now includes an indicated resource of 289,000 oz plus an additional 640,000 oz of inferred resources. The Company expects to calculate an initial mineral reserve for Paboase South in the first quarter of 2010, whereupon a decision will be made to commence development.

The decline at Akwaaba Deeps has advanced 1,478 metres as at October 31, 2009. Underground mining is ramping up and expected to reach 60,000 tonnes of ore per month before the end of 2009 and 100,000 tonnes per month in the first half of 2010.

The expansion of the Chirano processing facility to a nameplate throughput of 3.5 mtpa was completed and commissioned by the end of the third quarter. The expansion work included a new crushing facility to reduce ore to 80% passing 12.5mm, the addition of a third mill, the conversion of the SAG mill to a ball mill, and the addition of one pre-leach tank and three CIL leach tanks.

Chirano's production in the third quarter of 2009 was 49,231 oz (2008: 25,752 oz) at a cash operating cost of $392 per oz (2008: $596 per oz). In the first nine months of the year, Chirano produced 126,753 oz (2008: 89,447 oz) at a cash operating cost of $442 per oz (2008: $472 per oz). Cash operating costs are lower compared to the same periods in 2008 and to the earlier part of 2009 due to increased production and lower electricity charges. The higher production and lower electricity costs are expected to positively impact cash operating costs in the last quarter of 2009 as well.

Red Back expects fourth quarter gold production at Chirano to be between 60,000 to 70,000 oz as a result of the expanded plant production capacity and increasing volumes of higher grade ore from Akwaaba Deeps. For the year, Red Back expects production from Chirano to be between 185,000 and 195,000 oz at a cash cost of $440 to $450 per oz.

Highlights for the Second Quarter

• Net income of $24.7 million (year-to-date: $50.0 million)
• Total gold production of 80,238 oz. (year-to-date: 150,645 oz.)
• Average realized gold price of $925 per oz. (year-to-date: $921 per oz.)
• Cash operating costs of $378 per oz. (year-to-date: $383 per oz.)
• Commissioning of sections of the Chirano and Tasiast plant expansions
• First production blast at Akwaaba Deeps

Results of Operations

The table below summarizes the key operating statistics for the quarter and year-to-date.

	Three months ended June 30, 2009			Three months ended June 30, 2008
	Chirano	Tasiast	Total	Chirano	Tasiast	Total
Ore tonnes mined (‘000t)	811	1,180	1,991	697	540	1,237
Ore tonnes milled (‘000t)	583	294	877	595	374	969
Average grade (g/t)	2.5	3.3	2.8	1.7	3.0	2.3
Average recovery	90.5%	94.0%	91.7%	91.5%	93.0%	92.1%
Gold produced, CIL (oz)	43,264	33,399	76,663	29,764	34,955	64,719
Gold produced, dump leach (oz)	-	3,574	3,574	-	-	-
Gold sold (oz) (Note 2)	37,273	37,722	74,995	30,354	36,735	67,089
Cash operating costs per oz (Note 3)
Operating	$430	$327	$378	$431	$437	$434
Royalties	$ 31	$ 28	$ 29	$ 38	$ 27	$ 32
Depreciation, amortization and accretion per oz (Note 3)	$111	$201	$156	$103	$237	$183
	Six months ended June 30, 2009			Six months ended June 30, 2008
	Chirano	Tasiast	Total	Chirano	Tasiast	Total
Ore tonnes mined (‘000t)	1,638	2,139	3,777	1,542	879	2,421
Ore tonnes milled (‘000t)	1,196	645	1,841	1,140	698	1,838
Average grade (g/t)	2.2	3.4	2.6	1.9	3.0	2.4
Average recovery	90.8%	94.1%	91.9%	91.3%	94.0%	92.3%
Gold produced, CIL (oz)	77,522	69,549	147,071	63,695	64,483	128,178
Gold produced, dump leach (oz)	-	3,574	3,574	-	-	-
Gold sold (oz) (Note 2)	72,820	74,007	146,827	64,365	60,912	125,277
Cash operating costs per oz (Note 3)
Operating	$469	$299	$383	$420	$417	$418
Royalties	$ 29	$ 28	$ 28	$ 31	$ 27	$ 29
Depreciation, amortization and accretion per oz (Note 3)	$ 96	$200	$148	$ 97	$236	$165
Note 1: Production statistics may not calculate exactly due to rounding. Note 2: 2009 gold sold at Chirano excludes 4,208 oz (year-to-date: 5,675 oz) recovered from underground operations and capitalized during pre-production development. Note 3: This is a non-GAAP measure. It is calculated by dividing costs on the statement of income and deficit by gold oz sold. For Tasiast, approximately $80 per oz (year-to-date: $87 per oz) (2008, quarter and year-to-date: $139 per oz) of depreciation and amortization are due to the amortization of the fair value excess on purchase of the Tasiast mineral properties in 2007.

Tasiast Gold Mine

For the second quarter, Tasiast produced 36,973 oz at a cash operating cost of $327 per oz, in line with expectations. Red Back continues to forecast 2009 production at Tasiast of 230,000 oz at a cash operating cost of $320 per oz. The Company's ability to reach its production target depends in part on the prompt receipt of final permits for the utilization of a new tailings dam and full irrigation of the dump leach operations at Tasiast. The formation of a new government following presidential elections, held on July 18, 2009, should facilitate and expedite the issuance of these operating permits.

Under the plant expansion project, commissioning of the enhanced crushing circuit and second ball mill was completed near the end of the second quarter. The other elements of the expanded plant are expected to be operational before the end of the third quarter of 2009.

Red Back has commenced an aggressive $13 million exploration program over the remainder of the year to (1) fully define additional resources in the area between the Piment and West Branch deposits where drilling has identified a strong mineralized structure over a strike length of 350 metres and to a vertical depth of up to 180 metres, (2) complete infill drilling over the known nine kilometre strike length of the Piment and West Branch structures in order to re-calculate the project reserves and (3) conduct reconnaissance drilling elsewhere on Tasiast's exploration license holding that covers a 60 kilometre strike length of the under-explored Aoueouat greenstone belt.

Chirano Gold Mine

For the second quarter, Chirano produced 43,264 oz at a cash operating cost of $430 per oz. These levels are in line with Company budgets and 2009 production forecasts remain unchanged at 170,000 oz. Chirano is now enjoying reduced power costs and is expected to continue to benefit from reductions in power costs during the second half of the year. This should favourably impact cash operating costs, which are currently forecast at $480 per oz.

Commissioning of the crushing circuit for the expanded plant has now been completed. Commissioning of the ball mill and new CIL tanks is scheduled to occur in the third quarter of 2009. First production blast at the Akwaaba Deeps underground development occurred near the end of the second quarter. Underground mining is expected to ramp up by the fourth quarter of 2009 and reach full scale mining in 2010.

Following the identification of a first underground inferred resource for the Paboase South and Suraw deposits in March 2009, Red Back has confirmed further strong intercepts at depth at Paboase South (News release of July 27, 2009) and is stepping up its drilling program with the objective of delineating the extent of this resource.

Highlights for the First Quarter

• Gold production of 70,408 oz (Tasiast: 36,150 oz and Chirano: 34,258 oz)
• Cash operating costs of $389 per oz (Tasiast: $271 per oz and Chirano: $509 per oz)
• Average realized gold price of $917 per oz
• 39% increase in Mineral Reserves at Tasiast to 2.28 million oz
• Initial Inferred Mineral Resource of 0.49 million oz for the Paboase South and Suraw underground deposits at Chirano
• Closed Cdn $165 million equity financing

Tasiast Gold Project, Mauritania

In the first quarter, Tasiast achieved production of 36,150 oz at a cash operating cost of $271 per oz. Operating costs were lower than expected due to lower processing costs. Red Back estimates Tasiast 2009 cash operating costs to average $320 per oz based on forecast production of 230,000 oz.

The expansion of the Tasiast processing facility remains on schedule and on budget. Commissioning of the facility will commence this quarter.

Development of the new dump leach operation at Tasiast is substantially complete with production expected to ramp up through the year and total 30,000 oz for 2009.

Chirano Gold Project, Ghana

In the first quarter, Chirano produced 34,258 oz at a cash operating cost of $509 per oz. Cash operating costs are in line with budget for this quarter and are expected to decline through the year as the new crushing facility and plant expansion are commissioned. The new crushing facility was commissioned in April 2009 and the plant expansion continues as planned for commissioning in the third quarter. Red Back estimates Chirano's 2009 cash operating costs to average $480 per oz based on forecast production of 170,000 oz.

The development of the Akwaaba Deeps decline has now progressed to 770 metres and the first sub-level cave production is expected in May 2009.

Highlights for the Fourth Quarter

• Record gold production of 72,664 oz (Tasiast: 41,318 oz and Chirano: 31,346 oz)
• Cash operating costs of $393 per oz (Tasiast: $319 per oz and Chirano: $497 per oz)
• Average realized gold price of $786 per oz (year-to-date: $866 per oz)
• Akwaaba Deeps underground development delivers first ore to the mill
• First ore placed on dump leach pads at Tasiast
• Closed Cdn $60 Million equity financing

Tasiast Gold Project, Mauritania

In the fourth quarter, Tasiast achieved record production of 41,318 oz at a cash operating cost of $319 per ounce (year-to-date, 140,054 oz at $384 per ounce). Operating costs were lower than forecast due to increased production and lower mining costs. Red Back estimates Tasiast 2009 cash operating costs to average $320 per oz based on forecast production of 230,000 oz.

The expansion of the Tasiast processing facility remains on schedule and on budget. Commissioning of this facility will commence in April, 2009.

Development of the new dump leach operation at Tasiast is ongoing and is estimated to contribute approximately 30,000 oz to total production in 2009.

Chirano Gold Project, Ghana

In the fourth quarter, Chirano produced 31,346 oz at a cash operating cost of $497 per ounce (year-to-date, 120,793 oz at $478 per ounce). Cash operating costs are expected to remain at these levels until completion of the new crushing facility and plant expansion, which remain on schedule and on budget for commissioning in Q1 and Q3 2009 respectively. Red Back estimates Chirano's 2009 cash operating costs to average $480 per oz based on forecast production of 170,000 oz.

The development of the Akwaaba Deeps decline has now progressed to 605 metres and is on schedule and on budget.

Highlights

The Company's highlights for the third quarter were:

• Total gold production of 60,003 oz (year-to-date, 188,181 oz), in line with forecast for the year.
• Average realized gold price of $853 per oz (year-to-date, $895 per oz) based on 63,504 oz of gold sold in quarter (year-to-date, 188,781 oz).
• Net income of $10.6 million (year-to-date, $53.9 million).
• Average monthly cash flow from operations, before changes in working capital, of $6.9 million (year-to-date, $8.6 million).
• Cash operating costs of $485 per oz (year-to-date, $441 per oz).
• Chirano and Tasiast plant expansions remain on target for commissioning in the first quarter of 2009.
• Akwaaba Deeps underground development remains on schedule with first delivery of ore to the mill in the fourth quarter of 2008.
• Commencement of construction of commercial dump leach pad at Tasiast.
• Purchase of a 12.8% interest in Mineral Deposits Limited, a Australian resource company with assets in Senegal, West Africa.

Red Back expects to produce approximately 255,000 oz of gold from its two operating mines in 2008, 4% more than originally forecast, at an average cash operating cost of approximately $450 per oz.

The results in the third quarter of 2008 continue to reflect the Company's strong operating performance notwithstanding a decrease in the gold price in the third quarter. To date, the Company's operating cash flows and working capital position have supported the underground development of Akwaaba Deeps at Chirano and expansions of both the Chirano and Tasiast production plants. Management is engaged in negotiations to establish a corporate bank debt facility which would provide Red Back with greater flexibility in its capital plans or in responding to new opportunities.

Results of Operations

Net income for the three and nine months ended September 30, 2008 were $10.6 and $53.9 million respectively (September 30, 2007: $0.7 million and loss of $1.9 million). The significantly improved results from operations compared to the previous year are mainly attributable to:

• Tasiast's contributions to revenues (year-to-date, $86.6 million) and operating profits (year-to-date $21.7 million) in 2008;
• a 68% increase in realized revenue per ounce at Chirano as a result of the unwinding of all forward gold sale contracts in late 2007 and increased gold prices;

Operating costs have increased in line with general cost pressures in the industry, driven primarily by high energy costs at both operations. In addition, costs at Chirano have also been negatively impacted by ongoing crushing issues due to the hardness of the ore and the mining of lower grade ore following a pit wall failure at the higher grade Tano pit. Depreciation and amortization include the amortization of mineral property costs at Tasiast, calculated on a unit of production basis using the recorded fair value of these assets on acquisition and the estimated reserves as at December 31, 2007.

Chirano gold mine, Ghana

The Chirano mining lease, granted in April 2004, is situated in southwestern Ghana, 100 kilometres southwest of Kumasi, which is Ghana's second largest city. The project is within the Bibiani gold belt along strike to the south of the Bibiani gold mine. It is currently comprised of eleven deposits: Akwaaba, Suraw, Akoti South, Akoti North, Akoti Extended, Paboase, Tano, Obra South, Obra, Sariehu and Mamnao. Gold mineralisation continues at depth below the current open pit designs at many of the deposits currently included in the mine plan. Drilling at Akwaaba in 2007 established a high grade underground resource which is now being developed as an underground operation. The underground development of Akwaaba Deeps is well underway, with work on the decline having reached 430 m as at October 30, 2008. First development ore from Akwaaba Deeps is expected to be delivered to the mill before the end of 2008. Chirano's 2008 gold production is currently estimated at approximately 120,000 oz, increasing to 250,000 oz in 2010.

In order to support the new Akwaaba Deeps underground development, the Company is expanding the Chirano processing facility to a nominal throughput of 3.5 mtpa. In addition to increasing capacity, the expansion also addresses the rock hardness issue identified in 2007. A new crushing facility will reduce ore to 80% passing 12.5mm, optimizing milling efficiencies with the addition of a third mill and the conversion of the SAG mill to a ball mill. Commissioning of the expanded plant is expected to commence in the first quarter of 2009.

Revenue per oz has increased significantly compared to the same period in 2007 because:

• the average spot gold price increased by over 20% during the current twelve month period; and
• in the first nine months of 2007, 66% of gold sales were delivered into fixed-price forward sales contracts. The Company settled these contracts in the fourth quarter of 2007 to take full advantage of the strong gold price going forward.

Chirano's cash operating costs per oz for the three and nine months ended September 30, 2008 are $596 and $472 compared to $360 and $376 for the same periods in 2007. The cash costs in the third quarter were much higher than originally anticipated due principally to three factors. First, the government of Ghana increased the cost of electricity by more than 100% on July 1 in response to higher energy costs. Second, auxiliary portable crushing continues to be necessary to address the hardness of the pit ore. This extra cost will cease upon completion of the new crushing facility in late 2008. Third, a pit wall failure at the Tano deposit necessitated a change in mining schedule which resulted in the mining of lower grade ore. The wall failure will be addressed as part of a pit wall cut back at Tano in 2009. Cash costs are expected to remain higher than originally forecast for the balance of the year until the new crushing circuit becomes operational and mining of ore from Akwaaba Deeps commences. On an annual basis, Red Back expects Chirano's 2008 cash operating costs per ounce to average approximately $495 per oz.

Tasiast gold mine, Mauritania

On August 2, 2007, the Company exercised an option to acquire a 100% interest in Tasiast and significant exploration acreage in Mauritania from Lundin Mining Corporation. Tasiast operates under a 30 year mining permit granted by the government of Mauritania in January 2004. The permit area is located in the northwestern part of the country, approximately 300 km north of the capital of Nouakchott and 162 kilometres east-southeast of the port city of Nouâdhibou.

Tasiast is the first mine within an extensive, largely under-explored gold system. This system is a 70 kilometres long by 15 kilometres wide north-south trending Archaen age, Aoueouat greenstone belt, which is geologically similar to other Archaen greenstone belts in the world that host major gold deposits. The Tasiast property covers a 60 kilometre strike length of the Aoueouat greenstone belt, virtually encompassing an entire mining district in the country. The mineralization is open along strike and at depth.

Gold mineralization discovered to date occurs in two parallel trends: the Piment Zone, which is continuous over a 4.5 km strike length, and the West Branch, which has been defined by soil sampling, trenching and drilling over a one kilometer strike length. The Piment zone hosts the bulk of the current resources at Tasiast and all of the reserves, with five open pits defined over the strike of the mineralisation.

Current drilling at Piment is expected to add and convert further resources and will test the potential of the newly defined Piment Footwall Zone. Drilling at the West Branch Prospect, 2 km south of the Tasiast plant site, is designed to expand and convert the current resource at that deposit.

Tasiast reached name plate plant production very late in December 2007 with the installation of a new primary crusher. Commercial production was achieved at the beginning of 2008. Tasiast is now expected to produce approximately 135,000 oz of gold in 2008, its first year of operation.

Gold production is sold at spot prices. Cash operating costs per oz at Tasiast for the three and nine months ended September 30, 2008 were $403 and $412 respectively. Diesel costs were high in the quarter as the Mauritanian government, which regulates the country's oil price, made adjustments in light of market conditions. Notwithstanding higher material and fuel costs to date, Red Back anticipates that operating costs will decrease in the fourth quarter reflecting a decline in commodity prices, particularly oil, and the conversion of mining operations to owner-mining. Costs will be further positively affected by the completion of modifications to the heavy fuel oil ("HFO") power generation plant resulting in full operation of the HFO plant. On an annual basis, Red Back expects Tasiast's 2008 cash operating costs per ounce to approximate $400 per oz.

Red Back is proceeding with expanding the Tasiast processing facility to increase production to approximately 2.5 mtpa. Commissioning of this facility is expected in the first quarter of 2009. Upon completion of the expansion, Tasiast is forecast to produce 250,000 oz of gold per annum from 2010.

The Tasiast resource contains significant quantities of lower grade material. Test leaching work undertaken over the last few months indicates that conventional "dump" leaching may be commercially viable. Low grade material is now being deposited on a commercial scale dump leach pad. Completion of a second water line being constructed as part of the overall plant expansion will allow for the irrigation of the pad in 2009. Work is underway to update the reserve calculations at Tasiast to include the lower grade ore to be processed by dump leaching.

Highlights for the Second Quarter include:

• Total gold production of 64,719 oz (year-to-date, 128,178 oz), in line with forecast for the year.
• Average realized gold price of $900 per oz (year-to-date, $916 per oz) based on 67,089 oz of gold sold in quarter (year-to-date, 125,277 oz).
• Net income of $23.5 million (year-to-date, $43.3 million).
• Average monthly cash flow from operations, before changes in working capital, of $9.3 million (year-to-date, $9.5 million).
• Cash operating costs of $434 per oz (year-to-date, $418 per oz).
• Discovery of high grade mineralization below the Paboase South open pit at Chirano.
• Tasiast moves to "owner-mining" by acquiring the contractor's mining fleet.
• Ongoing positive results from leaching tests at Tasiast.

Chirano Gold Mine -- Ghana (Red Back 90%)

The project is within the Bibiani gold belt along strike to the south of the Bibiani gold mine. There are eleven deposits that currently comprise the Chirano project: Akwaaba, Suraw, Akoti South, Akoti North, Akoti Extended, Paboase, Tano, Obra South, Obra, Sariehu and Mamnao. Gold mineralisation continues at depth below the current open pit designs at many of the deposits currently included in the mine plan. Drilling at Akwaaba in 2007 established a high grade underground resource which is now being developed as an underground operation.

Underground reserves at Akwaaba Deeps have now recently been determined to be 1.04 million oz based on the sub-level caving mining method. The development of Akwaaba Deeps is well underway, with work on the decline having commenced as planned in the second quarter. First ore from Akwaaba Deeps is expected to be delivered to the mill in the fourth quarter of 2008. In addition, open pit reserves have reached 1.38 million oz. Chirano's 2008 gold production is currently estimated at approximately 130,000 oz, increasing to 250,000 oz by 2010.

In order to support the new Akwaaba Deeps underground development, the Company is expanding the Chirano processing facility to a nominal throughput of 3.5 mtpa. In addition to increasing capacity, the expansion also addresses the rock hardness issue identified in 2007. The new crushing facility will reduce ore to 80% passing 12.5mm, optimizing milling efficiencies with the addition of a third mill and the conversion of the SAG mill to a ball mill. Commissioning of the expanded plant is expected in the first quarter of 2009.

Exploration drilling at depth along the Chirano shear zone has recently resulted in the discovery of Paboase South Deeps, a new, high grade structure below the Paboase South open pit (June 10, 2008 news release). This discovery, together with early positive results under other surface deposits, confirms the potential for Chirano to host other high grade deposits at depth.

Revenue per oz has increased significantly compared to the same period in 2007 because:

• the average spot gold price increased by over 30% during the current twelve month period; and
• in the first half of 2007, 66% of gold sales were delivered into fixed-price forward sales contracts. The Company settled these contracts in the fourth quarter of 2007 to take full advantage of the strong gold price going forward.

Chirano's cash operating costs per oz for the three and six months ended June 30, 2008 are $431 and $420 compared to $375 and $386 for the same periods in 2007. The increase is largely due to higher material and fuel costs and the mining of lower grade ore. Cash costs for the second half of the year will continue to be under pressure as higher electricity charges have come into effect in Ghana (June 27, 2008 news release). As a result, on an annual basis, Red Back expects Chirano's 2008 cash operating costs per ounce to average approximately $450 per oz, compared to an initial forecast of just under $400.

Tasiast Gold Mine -- Mauritania (Red Back 100%)


The Tasiast deposit is the first mine within an extensive, largely under-explored gold system. This system is a 70 kilometres long by 15 kilometres wide north-south trending Archaen age, Aoueouat greenstone belt, which is geologically similar to other Archaen greenstone belts in the world that host major gold deposits. The Tasiast property covers a 60 kilometre strike length of the Aoueouat greenstone belt, virtually encompassing an entire mining district in the country. The deposit is open along strike and at depth.

Gold mineralization discovered to date occurs in two parallel trends: the Piment Zone, which is continuous over a 4.5 kilometer strike length, and the West Branch, which has been defined by soil sampling, trenching and drilling over a one kilometer strike length. The Piment zone hosts the bulk of the current resources at Tasiast and all of the reserves, with five open pits defined over the strike of the mineralisation.

Current drilling at Piment is designed to add and convert further resources and to test the potential of the newly defined Piment Footwall Zone. Drilling at the West Branch Prospect, 2 km south of the Tasiast plant site, is designed to expand and convert the current resource at that deposit.

Tasiast reached name plate plant production very late in December 2007 with the installation of a new primary crusher. Commercial production was achieved at the beginning of 2008 as determined by management based on quantitative and qualitative measures. Tasiast is expected to produce approximately 125,000 oz of gold in 2008, its first year of operation, an increase of 13% compared to original projections.

During the second quarter, Tasiast terminated its third party mining contract and negotiated the acquisition of the related mining fleet for a price of approximately $18 million. The Company expects to realize sizeable mining cost savings over the mine life by taking control of mining operations. In addition, the termination of the contract removes the Company's only significant foreign exchange exposure to Euros.

Gold production is sold at spot prices. Cash operating costs per oz at Tasiast for the three and six months ended June 30, 2008 were $437 and $417. Diesel costs increased 37% during the second quarter as the Mauritanian government, which regulates the country's oil price, made adjustments in light of market conditions. Notwithstanding higher material and fuel costs, Red Back anticipates that costs will decrease over the second half of 2008 to average approximately $400 per oz for the year. Cost reductions from the decision to go to owner-mining operations should be realized starting in the third quarter. In addition, the recent installation of a power generation plant that utilizes cheaper heavy fuel oil should be fully functional by the end of the third quarter, upon completion of manufacturer's modifications to meet original equipment specifications.

Red Back is proceeding with expanding the Tasiast processing facility to increase production to approximately 2.5 mtpa. Commissioning of this facility is expected in the first quarter of 2009. Upon completion of the expansion, Tasiast is expected to produce in excess of 200,000 oz of gold per annum.

The Tasiast resource contains significant quantities of lower grade material. Ongoing test leaching work indicates that conventional "dump" or "heap" leaching may be commercially viable. Two pilot dump leach pads have been constructed at site using lower grade material and preliminary results indicate that the oxide material leaches rapidly. Continued positive results from ongoing test work may result in a heap/dump leaching processing operation with a positive overall economic impact in the form of increased reserves, annual production growth and lower cash operating costs.

Highlights for the First Quarter include:

• Commencement of commercial production at Tasiast
• Total gold production of 63,459 oz
• Average realized gold price of $935 per oz
• Net income of $19.9 million
• Average monthly cash flow from operations of $10.3 million
• Cash operating costs of $400 per oz
• Significant increases in Tasiast's measured and indicated resources (63% to 1.89 million oz) and proven and probable reserves (58% to 1.64 million oz)
• New, higher reserve estimates at Chirano (1.91 million oz), inclusive of underground reserves at Akwaaba Deeps (0.77 million oz)

Chirano Gold Mine -- Ghana (Red Back 90%)

Plant Expansion
The expansion of the Chirano processing facility to a nominal throughput of 3.5 mtpa remains on schedule. In addition to increasing capacity, the expansion is addressing the rock hardness issue which affected operating costs in 2007. A new crushing facility is expected to be operational in October 2008 with commissioning of the full plant expansion occurring during the first quarter of 2009. Notably, the new ball mill and related equipment is already on site. Upon completion of the plant expansion, annual gold production at Chirano is expected to increase to 250,000 oz.

Akwaaba Deeps
The construction of the Akwaaba Deeps underground mine has commenced. First ore from the underground mine is expected to be delivered to the mill in the fourth quarter of 2008. A further reserve updated for Akwaaba Deeps will be released by the end of the Second Quarter of 2008.

Exploration
A deep drilling program is underway at Akwaaba Deeps to test the continuation of the ore body to depth. Results are anticipated by the end of June 2008. Other exploration at Chirano is focussed on identifying additional high grade mineralization at depth below and between the other existing surface deposits.


Tasiast Gold Mine -- Mauritania (Red Back 100%)

Plant Expansion
The expansion of the Tasiast processing facility to a nominal throughput of 2.5 mtpa is ongoing. Commissioning of this facility is expected in early 2009. With the completion of the expansion, gold production at Tasiast is projected to exceed 200,000 oz per annum.

The new Heavy Fuel Oil ("HFO") power plant at Tasiast was commissioned in April and is now running at design capacity. With the HFO plant online, operating costs are expected to decrease significantly.

Heap and Dump Leach Test Work
The construction of the test dump leach pads (News Release: April 7, 2008) is now complete and irrigation of the pads will be commenced shortly. Bench scale testing to this point suggests that dump/heap leaching of the lower grade oxide material at Tasiast is achievable with significant benefit to the project. A development decision in this regard is anticipated in the third quarter of 2008.

Exploration
A 20,000m drill program is continuing at the West Branch deposit, 2km south of the main Piment Zone. This program is aimed at defining the first reserve report at the West Branch. A revised reserve calculation for Tasiast, including the West Branch, is expected to be released by mid 2008.

Corporate
With cash flow from operations funding the capital development programs and production on target to meet annual projections, the Company is well positioned to grow towards its target of one million ounces of annual gold production.

Management continues to assess opportunities for growth and is very positive about the future prospects for West Africa and the Company.