Red Mile Minerals Closes Second Tranche of Private Placement

TORONTO, ONTARIO -- (Marketwire) -- 10/03/11 -- Red Mile Minerals Corp. (TSX VENTURE: RDM) ('Red Mile' or the 'Company') is pleased to announce the second closing of its previously announced non-brokered private placement (the 'Offering'). Red Mile issued 400,000 flow-through units (the 'FT Units') at a price of $0.125 per FT Unit. Each flow-through unit is comprised of one common share and one-half of one non-flow-through share purchase warrant, with each whole warrant exercisable into a common share at an exercise price of $0.15 for a term of 24 months. Red Mile expects to close a third and final tranche of this financing in the next few weeks (please see the Company's news releases of August 9, 2011 and August 26, 2011 for further details on the financing).

A cash finder's fee of $2,750, representing 5.5% of the gross proceeds of the Offering, was paid by Red Mile in connection with the Offering as well as the issuance by Red Mile of a non-transferable option (the 'Finder Option') to acquire 36,000 units of Red Mile (the 'Finder Units'). The Finder Option is exercisable into Finder Units for a period of 24 months following the closing of the Offering at an exercise price of $0.125 per Finder Unit. Each Finder Unit will consist of one common share of Red Mile and one-half of one common share purchase warrant of Red Mile, with each whole warrant exercisable into a common share at an exercise price of $0.15 for a term of 24 months.

The gross proceeds of the Offering will be used to continue exploration activities primarily on the Company's Dorset property in Newfoundland.

The securities issued pursuant to the Offering will be subject to a four month hold period from the date of closing of the Offering.

About Red Mile Minerals

Red Mile Minerals is a tightly held mineral exploration company with a gold property along the prolific Destor-Porcupine gold-producing region in Ontario and the Dorset Property in Baie Verte, Newfoundland. Red Mile continues to seek additional mineral exploration opportunities where the company's exploration expertise and corporate share structure could substantially enhance shareholder value.

This press release contains forward-looking statements. More particularly, the press release contains forward-looking statements related to the anticipated closing of the Offering and the use of proceeds therefrom. The forward-looking statements contained in this document are based upon certain key expectations and assumptions made by Red Mile, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of and use of proceeds from the Offering. Although Red Mile believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Red Mile can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the Offering.

Additional information on these and other factors that could affect Red Mile's operations and financial results are included in reports, including Red Mile's quarterly and annual reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this document are made as of the date hereof and Red Mile undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

On behalf of the Board of Red Mile Minerals Corporation

John Hickey, President and CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Red Mile Minerals Corp.

John V. Hickey

President & CEO

(416) 637-2139
office@redmileminerals.com
www.redmileminerals.com