Chief of Operations Enrique Munoz of Rio Narcea Gold Mines shows his approval of the Knelson batch-type concentrator performance.

ASTURIUS, Spain - One year after of the installation of two (2) Variable-Gravity (VG) KC-CD12 Knelson Concentrators at the Rio Narcea Gold Mine, the company announced it's expectations to carry forward last months record-setting gold recoveries through the second quarter with production forecast at 55,000 oz. for the three-month period.

As announced in a press release dated June 2001, Rio Narcea Gold Mines has been achieving unprecedented fine gold recovery from copper flotation concentrates.

The two KC-CD12 batch-type concentrators were fitted with optional Variable Gravity Packages which enable the units to be operated at up to 200 "G"s.

Upon the conclusion of a rigorous testing campaign carried out by Knelson area representative South West Metallurgical Services, the justification for this installation was made based on improved payment on free gold which could be extracted from copper concentrates. By removing as much gold as possible to a gravity product, this fine gold application produces saleable high grade gold concentrate. This gold concentrate is paid at a significant premium compared with the revenues received from the smelter for gold values in the copper concentrate. Payback on this installation was less than 90 days.

Ish Grewal, Manager of Knelson's Research & Testing Centre had commented "It's quite remarkable when you consider that the Knelson units are achieving in excess of 70% recovery from this very difficult product when over 83% of the values in the feed are in the -38 micron fraction."**

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** Source: June 15th, 2001 press release "Knelson Concentrator Excels at -38 Micron Gold Recovery"

Rio Narcea ups forecast on record month

Source: The Northernminer Daily Electronic Newsletter - Tuesday, June 4th, 2002

June 4th, 2002

Rio Narcea Gold Mines pumped out a record 29,336 oz. of gold from its El Valle operation in Spain, during May, more than twice the previous monthly production record.

The company expects the record-setting pace to run through the second quarter with production for the three-month period pegged at 55,000 oz.

The good news emanates from the high-grade Carnela zone, where mining began in March.
Grades have exceeded expectations and the blending of Charnela's ore with other lower grade
ore has increased plant feed grades to 13 grams gold per tonne. Plant recovery has averaged more than 96%.

So far this year, Rio has produced 67,133 oz. of gold. The company now expects full-year production to tally to about 155,000 oz. at cash costs less than US$150 per oz.

During 2001, Rio poured a record 124,363 oz. gold at an estimated cash cost of US$190 per oz. from El Valle. The plant at El Valle ran through 649,142 tonnes of ore with an average head grade of 6.5 grams gold per tonne. The company ended 2001 on a high note with record fourth-quarter production of 34,543 oz., nearly 18% more than a year earlier.

In 2000, the plant processed 723,588 tonnes running 4.6 grams to produce 97,016 oz. gold. Recovery rates between the two periods climbed to 91.2% from 89.7%.

On Monday, the company's shares were up a dime, or 5.6% at $1.90 in mid-afternoon trade on the Toronto Stock Exchange.