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Abstract
(CCNMatthews - Feb. 26, 2007) - Rubicon Minerals Corporation (TSX:RMX) (AMEX:RBY) is pleased to announce that former Goldcorp Inc. Chairman and CEO, Rob McEwen will join with Rubicon in an exciting new North American gold exploration vehicle which will have an important Red Lake focus. In the proposed transaction, McEwen would acquire a major stake in Rubicon through a minimum investment of $10 million. Through wholly-owned Evanachan Limited, McEwen has also agreed to vend-in to Rubicon a 513,000 acre land package in the area of the world-class Pogo gold mine in Alaska in exchange for shares. Rubicon will also acquire a 225,000 acre land position in prospective northeast Nevada, currently held by Lexam Explorations Inc a company in which McEwen is the major shareholder in exchange for shares. McEwen will serve as a strategic advisor to the management of Rubicon for a minimum period of two years.
The land package being acquired by the new Rubicon includes significant land holdings in Alaska consisting of approximately 513,000 acres around the Pogo Mine of Teck-Cominco/Sumitomo, which is entering commercial production and is expected to produce between 350,000 and 500,000 ounces of gold annually over a 10 year mine life. With this acquisition, the new Rubicon will become the largest land holder in the Pogo district and one of the largest land holders in Alaska. Rubicon has also agreed to acquire from Lexam Explorations Inc. approximately 225,000 acres of its highly prospective gold exploration properties in Elko County, northeastern Nevada.
The proposed transactions are subject to, among other things, Rubicon Board of Directors' approval of a definitive agreement between Lexam, Rubicon and Evanachan, the satisfactory completion of due diligence investigations and Rubicon shareholder approval. In addition, Evanachan and Lexam would be entitled to a termination fee of 3% of the value of the proposed transactions, to be allocated in proportion to their ownership in the New Rubicon, if Rubicon shareholders reject the proposed transactions.