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Rio Narcea Announces Record Fourth Quarter and Year End 2006 Production Results and Preliminary Unaudited Cash Flow

Rio Narcea Announces Record Fourth Quarter and Year End 2006 Production Results and Preliminary Unaudited Cash Flow

TORONTO, ONTARIO -- (MARKET WIRE) -- 01/30/07 -- Rio Narcea Gold Mines, Ltd. ("Rio Narcea" or "the Company")(TSX: RNG)(AMEX: RNO) today announced its fourth quarter and full year production results from its 100 % owned Aguablanca nickel-copper mine in southern Spain for 2006, as well as preliminary unaudited cash flow figures.

The Company produced 3.6 million pounds of nickel and 3.9 million pounds of copper during the fourth quarter of 2006, from processing 418,600 tonnes of ore. Production for the year totalled 14.1 million pounds nickel and 14.6 million pounds of copper, from processing a total of 1,468,000 tonnes of ore. 2006 represents the first full year of commercial production at Aguablanca.

Operating cash flow for the Company before changes in working capital was $31.4 million for the fourth quarter of 2006 and $ 85.5 million for the year, of which Aguablanca contributed $26.8 million in the fourth quarter and $84.6 million for the year. Operating cash flow for the Company was $43.7 million for the fourth quarter and $78.7 million for the year, of which Aguablanca contributed $35.0 million in the fourth quarter and $79.6 million for the year. As at December 31, 2006, cash and cash equivalents totalled $79.8 million, and short and long term debt amounted to $72.0 million.

Aguablanca Operating Results 2006
---------------------------------

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                                  1Q       2Q       3Q       4Q  Year 2006
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Ore Milled (tonnes)          314,700  359,700  375,000  418,600  1,468,000
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Nickel head grade (%)           0.68%    0.61%    0.60%    0.54%      0.60%
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Copper head grade (%)           0.54%    0.49%    0.51%    0.47%      0.50%
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---------------------------------------------------------------------------
Nickel recovery (%)             75.4%    73.2%    68.0%    72.3%      72.3%
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Tailings nickel grade (%)       0.17%    0.16%    0.19%    0.15%      0.17%
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Copper recovery (%)             90.9%    91.2%    88.2%    91.0%      90.3%
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Tailings copper grade (%)       0.05%    0.04%    0.06%    0.04%      0.05%
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Nickel production (000 lb)     3,541    3,558    3,399    3,604     14,102
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Copper production (000 lb)     3,412    3,515    3,740    3,914     14,581
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Nickel Sales (000 lb)          3,898    3,075    3,166    3,890     14,029
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Copper Sales (000 lb)          3,590    3,075    3,242    4,423     14,330
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Financial Results 2006 (US$ Million)(1)
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                                           1Q    2Q    3Q    4Q   Year 2006
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Operating cash flow before changes in
 working capital (2)                     12.1  23.1  18.9  31.4        85.5
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 of which attributable to Aguablanca (2) 14.2  22.3  21.2  26.8        84.6
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Operating cash flow                       1.8  14.8  18.5  43.7        78.7
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 of which attributable to Aguablanca      6.8  14.2  23.6  35.0        79.6
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---------------------------------------------
                                   12/31/2006
---------------------------------------------
Cash & Cash Equivalents                  79.8
---------------------------------------------
Total Debt                               72.0
---------------------------------------------
 Long-term bank debt                     41.7
---------------------------------------------
 Short-term bank debt                    30.3
---------------------------------------------

(1) Preliminary unaudited results

(2) Cash provided by operating activities before changes in working capital is a non-GAAP measure not to be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to the "Non-GAAP measures" section in the Company's most recent MD&A.

Market Data 2006 ($/lb)
-----------------------

---------------------------------------------------------------
                            1Q     2Q      3Q     4Q  Year 2006
---------------------------------------------------------------
Nickel price - 3 month    6.77   8.90   12.09  14.44      10.55
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Copper price - 3 month    2.20   3.24    3.46   3.22       3.03
---------------------------------------------------------------

Construction at Tasiast continues to be on schedule and key operations personnel are in place.

Rio Narcea Gold Mines, Ltd. is a growing Canadian mineral resource company with operations, development projects and exploration activities in Spain, Mauritania and Portugal. The Company currently produces nickel and copper at its Aguablanca mine in southern Spain. Construction of its new Tasiast gold project in Mauritania, West Africa, is underway, with production expected in 2007. The Company also has a strategic interest in Chariot Resources Limited, which provides exposure to the significant potential of the Marcona Copper Project in southern Peru.

Forward-looking Statements

This press release may contain certain "forward looking statements" within the meaning of the United States securities laws. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, capital expenditures, exploration efforts, financial needs, and other information that is not historical information. The forward-looking statements contained herein are based on Rio Narcea's current expectations and various assumptions as of the date such statements are made. Rio Narcea cannot give assurance that such statements will prove to be correct.

Factors that could cause Rio Narcea's actual results to differ materially from these statements include, but are not limited to, changes in gold and nickel prices, the timing and amount of estimated future production, unanticipated grade changes, unanticipated recovery problems, mining and milling costs, determination of reserves, costs and timing of the development of new deposits, metallurgy, processing, access, transportation of supplies, water availability, results of current and future exploration activities, results of pending and future feasibility studies, changes in project parameters as plans continue to be refined, political, economic and operational risks of foreign operations, joint venture relationships, availability of materials and equipment, the timing of receipt of governmental approvals, capitalization and commercial viability, the failure of plant, equipment or processes to operate in accordance with specifications or expectations, accidents, labour disputes, delays in start-up dates, environmental costs and risks, local and community impacts and issues, and general domestic and international economic and political conditions.

Rio Narcea undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The reader is cautioned not to place undue reliance on forward looking statements.

Contacts:
Rio Narcea Gold Mines, Ltd.
Chris von Christierson
Chairman & CEO
+ (44) 207 629 2252
Email: [email protected]

Rio Narcea Gold Mines, Ltd.
Omar Gomez
C.F.O.
+ (34) 98 573 3300
Email: [email protected]
Website: www.rionarcea.com

Roth Investor Relations, Inc.
Michelle Roth
(732) 792-2200
Email: [email protected]
Website: www.rionarcea.com

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