RED BACK MINING INC.

Second Quarter Report

June 30, 2010

RED BACK MINING INC. MANAGEMENT DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION THREE AND SIX MONTHS ENDED JUNE 30, 2010 The following management discussion and analysis of the results of operations and financial condition (MD&A) for Red Back Mining Inc. (Red Back or the Company) should be read in conjunction with the unaudited consolidated financial statements for the three and six month periods ended June 30, 2010 and related notes thereto. The financial information in this MD&A is partly derived from the Companys consolidated financial statements prepared in accordance with Canadian generally accepted accounting principles. The effective date of this MD&A is July 30, 2010. Additional information about the Company and its business activities is available on SEDAR at www.sedar.com. The technical contents of this MD&A have been reviewed by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to NI 43-101. Mr. Stuart is the Vice President Exploration of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Red Back is a company engaged in operating, exploring, acquiring and developing mineral properties. It currently owns two gold mines in West Africa. In Ghana, it holds a 100% interest in the Chirano Gold Mine (Chirano) through Chirano Gold Mines Limited (CGML). The Government of Ghana has a right to acquire a 10% ownership of CGML, at no cost. In Mauritania, the Company holds a 100% interest in the Tasiast Gold Mine (Tasiast) through Tasiast Mauritanie Limited SA (TMLSA). In addition to government royalties, Tasiast is subject to a 2% royalty on life of mine gold production in excess of 600,000 oz. Red Back also holds various other exploration properties in Ghana, Mauritania and Cte D Ivoire.

Highlights With the gold price averaging over $1,200 per oz and gold production in excess of 100,000 oz in the quarter, Red Back is reporting strong profits from mining operations and operating cash flows during the three months ended June 30, 2010. Increasing mining volumes and grade from Akwaabas underground operations at Chirano will continue to increase the Companys production profile in the second half of the year notwithstanding lower production at Tasiast as a result of waterline failures that have affected dump leach operations. Annual production is now expected to be 445,000 - 465,000 oz at estimated cash operating costs of $435 - $470 per oz. The Companys second quarter highlights were: Total gold production of 106,362 oz (year-to-date: 202,522 oz). Average realized gold price of $1,215 per oz (year-to-date: $1,167 per oz). Profit from mining operations of $54.3 million (year-to-date: $97.9 million) Net income of $21.9 million (year-to-date: $55.1 million). Cash operating costs of $481 per oz (year-to-date: $476 per oz). CAD $600 million private placement from Kinross Gold Corporation (24 million shares at CAD $25 per share). On July 19, 2010, Red Back released an initial underground reserve of 920,000 oz at Paboase, the second underground deposit at Chirano. Decline development at Paboase commenced in the second quarter with first ore expected to be mined in the third quarter of 2011.

Results of Operations Net income for the three and six months ended June 30, 2010 was $21.9 million and $55.1 million respectively (June 30, 2009: $24.7 million and $50.0 million). While profits from mining operations have doubled compared to the previous quarter because of higher production and gold prices ($54.3 million vs. $27.0 million) net income has been affected by high non-cash stock-based compensation costs. 1

Variances in Chiranos cash operating costs per oz between the second quarter of 2010 and 2009 are due to the higher cost of underground mining operations, which had not reached commercial production until late 2009 and are ramping up to full mining levels in 2010, and one-time costs due to the re-structuring of labour force contracts. At Tasiast, second quarter cash operating costs per oz compared to the same period in 2009 are higher because of mining lower grade ore, as anticipated in the mining schedule, and increased energy unit costs. Stock-based compensation was $22 million in the second quarter of 2010 (June 30, 2009: $nil, as no share-based awards were granted). The valuation of share-based awards, whether calculated using the Black-Scholes economic model (stock options) or the intrinsic model (cash-settled share appreciation rights and deferred share units), is heavily influenced by the Company share price. Approximately $13 million of this expense is due to a combination of the increase in RBIs share price in the second quarter and not valuing and expensing 2009 stock option grants until the second quarter of 2010, when shareholders approved the Companys stock option plan. The fair values and the related expense of share-based awards do not necessarily reflect the actual amount that will be realized upon their future exercise. Summary of Financial Results Quarter Ended
Total revenue ($000) Net income (loss) ($000) Net income (loss) per share ($)

Jun 10
131,047 21,933 0.09

Mar 10
109,995 33,168 0.14

Dec 09
114,026 24,038 0.10

Sep 09
69,152 35,113 0.15

Jun 09
69,353 24,666 0.11

Mar 09
65,858 25,345 0.12

Dec 08
54,650 7,983 0.04

Sep 08
54,200 10,568 0.06

Key operating statistics for the second quarter and year-to-date are provided below.
Three months ended June 30, 2010 Chirano Tasiast Total Ore tonnes mined, open cut (000t) Ore tonnes mined, underground (000t) Ore tonnes placed on DL (000t) Average grade of DL tonnes (g/t) Ore tonnes milled (000t) Average grade (g/t) Average recovery Gold Gold Gold Gold produced, CIL (oz) produced, dump leach (oz) produced, total (oz) sold (oz) (Note 2) 867 223 858 2.3 89.8% 54,567 54,567 55,579 $1,225 1,551 1,150 0.7 499 3.0 89.5% 44,313 7,482 51,795 52,314 $1,204 2,418 223 1,150 0.7 1,357 2.6 89.7% 98,880 7,482 106,362 107,893 $1,215 Three months ended June 30, 2009 Chirano Tasiast Total 811 24 583 2.5 90.5% 43,264 43,264 37,273 $931 1,180 809 0.8 294 3.7 91.1% 33,399 3,574 36,973 37,722 $919 1,991 24 809 0.8 877 2.9 90.7% 76,663 3,574 80,237 74,995 $925

Realized gold price per oz

Cash operating costs per oz (Note 3) Operating $600 $355 $481 $430 $327 $378 Royalties $ 56 $ 69 $ 62 $ 31 $ 28 $ 29 Depreciation, amortization and accretion per oz (Note 4) $163 $163 $163 $111 $201 $156 Note 1: Production statistics may not calculate exactly due to rounding. Note 2: 2009 gold sold at Chirano excludes 4,208 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. Chiranos 2010 cash costs are net of silver credits of $7 (2009: nil) Note 4: For Tasiast, approximately $41 per oz (2009: $80 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.

Six months ended June 30, 2010 Chirano Tasiast Total Ore tonnes mined, open cut (000t) Ore tonnes mined, underground (000t) Ore tonnes placed on DL (000t) Average grade of DL tonnes (g/t) Ore tonnes milled (000t) Average grade (g/t) Average recovery Gold Gold Gold Gold produced, CIL (oz) produced, dump leach (oz) produced, total (oz) sold (oz) (Note 2) 1,585 352 1,653 2.1 89.6% 98,507 98,507 100,000 $1,179 3,116 2,108 0.7 1,016 3.0 89.5% 84,998 19,017 104,015 106,580 $1,156 4,701 352 2,108 0.7 2,669 2.4 89.6% 183,505 19,017 202,522 206,580 $1,167

Six months ended June 30, 2009 Chirano Tasiast Total 1,638 34 1,196 2.2 90.8% 77,522 77,522 72,820 $922 2,139 1,334 0.7 645 3.5 92.7% 69,549 3,574 73,123 74,007 $919 3,777 34 1,334 0.7 1,841 2.7 91.4% 147,071 3,574 150,645 146,827 $921

Realized gold price per oz

Cash operating costs per oz (Note 3) Operating $593 $366 $476 $469 $299 $383 Royalties $ 49 $ 66 $ 57 $ 29 $ 28 $ 28 Depreciation, amortization and accretion per oz (Note 4) $152 $157 $155 $ 96 $200 $148 Note 1: Production statistics may not calculate exactly due to rounding. Note 2: 2009 gold sold at Chirano excludes 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 retained earnings by gold oz sold. Chiranos 2010 cash costs are net of silver credits of $9 (2009: nil) Note 4: For Tasiast, approximately $41 per oz (2009: $87 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 Tasiasts 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 Noudhibou. Tasiasts exploration licenses include an 80 kilometre strike length of the Aoueouat greenstone belt of Achaean age. To date, drilling in support of the resource and reserve has only tested 10 kilometres of this belt. The present life of mine plan includes the currently defined portions of the Piment and the West Branch deposits. The existing ore body is open both at depth and along strike to the north and south. Eleven drill rigs currently operate at Tasiast and plans are in place to increase the drill fleet to 21 rigs as part of an extensive exploration program to further expand the resource and reserve. A reserve update is expected by the end of the third quarter and will include an initial heap leach reserve. Tasiasts production in the second quarter of 2010 was 51,795 oz (2009: 36,973 oz) at a cash operating cost of $355 per oz (2009: $327 per oz). In the first half of the year, Tasiast produced 104,015 oz (2009: 73,123 oz) at a cash operating cost of $366 per oz (2009: $299 per oz). Compared to the same period in 2009, cash operating costs were higher because of scheduled lower grade ore profile, resulting in increased processing and energy unit costs, only partially offset by lower mining costs. As a result of a larger asset base following completion of the plant expansions in 2009, depreciation in 2010 has not increased significantly compared to the same period in 2009. This is because of increased reserves, which has a positive effect on unit-of-production calculations. Subject to the effect of increasing production, this is expected to continue to be the case for the balance of the year. Production from dump leach operations at Tasiast continues to be affected by failures in the second waterline from the Company's bore field located 60 kilometers from the plant. The failing sections of the pipeline are being replaced with work expected to be completed in the fourth quarter, at which time full 3

dump leach irrigation rates will resume. Consequently, it is anticipated that 2010 forecast gold production at Tasiast will be lower at 205,000 215,000 oz at a cash operating cost of $375 to $400 per oz. Royalties for 2010 will be higher than the legislated rate of 3% of revenues because of fees accruing to the government of Mauritania from the 2009 plant expansion project. Government royalties will reduce back to the legislated rate of 3% in 2011. An advance payment towards the 2010 expansion fee was made in the first quarter. As a result, at June 30, 2010 $4.7 million has been recorded as a prepaid expense on the balance sheet and will be expensed during the balance of the year. 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. Mining at Paboase, the second underground deposit for which an inaugural reserve of 920,000 oz was released on July 19, 2010, is expected to commence late 2011. Exploration at Chirano is now focused on testing the depth potential of the Chirano shear on a systematic basis over a 10 km strike length. Five rigs are currently on site working on this program. Chiranos production in the second quarter of 2010 was 54,567 oz (2009: 43,264 oz) at a cash operating cost of $600 per oz (2009: $430 per oz). In the first half of the year, Chirano produced 98,507 oz (2009: 77,522 oz) at a cash operating cost of $593 per oz (2009: $469 per oz). Cash operating costs are higher compared to the same periods in 2009 due to the higher cost of underground mining operations, which in 2009 did not reach commercial levels of production until the fourth quarter and are ramping up to full mining rates in 2010, and the impact of one-time costs from the re-structuring of contracts for the labour force ($95 per oz for the quarter; $53 per oz for the first half of the year). This was due to contractual negotiations with the unions which resulted in a change to fixed term contracts. Underground mining at the high grade Akwaaba operation is scheduled to ramp up to a full production rate of approximately 100,000 tonnes per month in the fourth quarter with significant increases in production forecast starting in the third quarter. This will result in lower cash costs per oz as higher mining volumes are achieved. For the year, Red Back continues to forecast production from Chirano to be between 240,000 and 250,000 oz at a cash operating cost of $485 to $525 per oz, after taking into account the full year impact of the one-time labour contract re-structuring costs estimated at $25 per oz. Other Income Statement Items Interest expense in 2010 relates to stand-by fees and deferred financing charges on an undrawn revolving debt facility. Interest income is higher in 2010 compared to 2009 because of a higher average cash balance on hand notwithstanding lower interest rates. General and administrative costs in the second quarter of 2010 reflect higher corporate development activities. They also include costs relating to a Company-sponsored site visit to its African operations by a group of financial analysts in both 2009 and 2010. Costs in 2010 to date also include a non-cash $484,000 charge relating to common shares issued out of treasury for a donation in support of the promotion of the mining industry. The granting of stock-based awards and the determination of their vesting period is at the discretion of the Board. Stock options and deferred share units were granted during the second quarter of 2010. In 2009, the majority of share-based awards were granted in the fourth quarter. Stock-based compensation reflects the amortization of the fair value of share-based awards over their vesting period. The fair value of stock options is determined using the Black-Scholes economic model, and it is highly impacted by the share price at the time the valuation is made, usually at the time of grant. The fair value of cash settled share appreciation rights and deferred share units is determined by changes in value of the share price and, for deferred share units, by the share price at the time of 4

grant as well. As a result, the fair values and the related expense of share-based awards do not necessarily reflect the actual amount that will be realized upon their future exercise. A significant portion of the high stock-based compensation in the second quarter of 2010 ($9 million) is directly attributable to the increase in Red Backs share price during the same period. In addition, in accordance with accounting measuring principles, options granted in late 2009 were not valued until approved by shareholders in May 2010. Consequently, stock-based compensation in the quarter ended June 30, 2010 not only reflects share-based awards granted in that quarter but also the additional amount relating to the 2009 grants of stock options. Foreign exchange gains realized in the first quarter were $2.7 million when Red Back reduced its holdings of Canadian dollars. Minority interest of $1.5 and $2.5 million for the second quarter and the first half of the year, respectively, reflect the Government of Ghanas right to back-in to a 10% ownership of CGML, at no cost, and is recognized only to the extent of accumulated retained earnings in the operating subsidiary. At June 30, 2009, the subsidiary still had an accumulated deficit and, therefore, no minority interest had been recognized. Income Taxes The income tax expense for the second quarter and year-to-date in 2010 relates fully to the Ghanaian operations. Future income taxes were recorded using the Ghanaian income tax rate of 25%. Current income taxes relate to a special tax levy that applies to Ghanaian companies in selected industries, including the mining sector. This levy, calculated at 5% of net income before income taxes, is temporary and applicable only to the end of 2010. No income tax provision is recorded for the Tasiast operations in Mauritania as they are exempt from income tax until the end of 2010. Other comprehensive income Other comprehensive income includes the effect of realized and unrealized foreign exchange gains on cash balances held in a currency other than the US dollar. As at June 30, 2010, Red Back held CAD $691 million (December 31, 2009: CAD $118.2 million) and AUD $18.4 million (December 31, 2009: $nil).

Liquidity and Capital Resources On May 7, 2010 the Company issued 24 million common shares at a price of CAD $25 per share for gross proceeds of $577 million (CAD $600 million) under a private placement financing with Kinross Gold Corporation. At June 30, 2010 the Company had cash and cash equivalents of $730 million (December 31, 2009: $150 million) and working capital of $819 million (December 31, 2009: $218 million). Capital cost additions for property, plant and equipment for the first six months of the year total $30.5 million and can be summarized as follows:
(Amounts in millions of dollars)

Plant enhancement projects Mining fleet Others Total

Chirano $ 6.4 2.1 $ 8.5

Tasiast $ 5.0 11.3 5.7 $ 22.0

Total $ 11.4 10.6 8.5 $ 30.5

To June 30, 2010 additions to mineral properties total $66.5 million and can be summarized as follows:
(Amounts in millions of dollars)

Exploration Underground development, Akwaaba and Paboase Open pit cut backs Tailings dam lifts Dump and heap leach development Total

Chirano $ 8.2 15.0 10.9 5.9 $ 40.0

Tasiast $ 18.2 4.0 3.3 $ 25.5

Others $ 1.0 $ 1.0

Total $ 27.4 15.0 10.9 9.9 3.3 $ 66.5

During the second quarter, Red Back increased its estimated Tasiast capital project expenditures from $48 million to $103 million. New or expanded capital projects for the year include: $29.0 million of mining equipment in addition to the previously budgeted expansion of the mining fleet, in anticipation of increasing mining activities from the dump and heap leach operations $7.7 million of additional capital towards the design and construction of dump and heap leach infrastructure $5.8 million for camp expansion to accommodate expanding operations and construction $5.6 million in further expansion of TSF II, the current tailings dam, and sustaining capital $4.5 million for the replacement of sections of the 500 mm water pipeline $2.4 million of additional mobile equipment in support of the dump and heap leach plant construction These new or expanded projects are part of a developing plan to expand operations at Tasiast over the next two to five years in response to the discovery of the Greenschist zone. At Chirano, capital projects are proceeding as planned and, overall, no significant costs variances are expected. In addition, exploration programs at Tasiast and Chirano in the amount of $24.9 million and $8.8 million, respectively, were approved for the second half 2010. As at June 30, 2010, the Company had capital purchase commitments totalling $53.8 million, including $39 million towards the expansion of the Tasiast mining fleet.

Contingency In late 2009, CGML received a notice of re-assessment of prior years income tax returns from the Ghanaian tax authorities denying approximately $90 million of past, current and future income tax deductions and imputing additional revenues of approximately $30 million, both related to the tax treatment of hedge contracts entered into in 2005 as part of the original bank project financing required for the construction of the Chirano Gold Mine. CGML is vigorously defending its original tax filing position. The final outcome of this matter is not determinable at this time. Should the re-assessment be ultimately upheld, it would result in the recognition of additional future income tax liabilities of approximately $22 million.

Transactions with Related Parties During the first six months of the year, Red Back paid $0.6 million (June 30, 2009: $0.2 million) to a company controlled by a director for management services.

Critical Accounting Estimates There have been no material changes to the critical accounting estimates discussed in the annual MD&A filed on SEDAR on February 26, 2010. 6

Significant Accounting Policies The Company continues to follow the accounting policies described in the audited consolidated financial statements for the year ended December 31, 2009 that was filed on SEDAR on February 26, 2010.

International Financial Reporting Standards In January 2006, the Canadian Accounting Standards Board adopted a strategic plan, which includes the decision to move financial reporting for Canadian publicly accountable enterprises to a single set of globally accepted high-quality standards, namely, International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. The effective implementation date of the conversion from Canadian generally accepted accounting principles (Canadian GAAP) to IFRS is January 1, 2011, with an effective transition date of January 1, 2010 for financial statements prepared on a comparative basis. Red Back is engaged in an assessment and conversion process which includes consultation with external consulting firms and expects to be ready for the conversion to IFRS in advance of January 1, 2011. As part of the conversion process, the Company has offered IFRS specific training to senior financial reporting personnel and directors. As more fully discussed in the Management Discussion and Analysis for the first quarter ended March 31, 2010 disseminated on May 3, 2010, the Company has completed the first two phases of its conversion to IFRS. Phase one, an initial general diagnostic of its accounting policies and Canadian GAAP relevant to its financial reporting requirements to determine the key differences and options with respect to acceptable accounting standards under IFRS was completed in late 2008. Phase two, an in depth analysis of the IFRS impact in those areas identified under phase one is now effectively also complete, subject to changes in circumstances and pronouncements between now and the end of the year. Phase three, the implementation of the conversion process, including the completion of the opening balance sheet as at January 1, 2010 together with related discussion and notes, will be carried out in the second half of 2010.

Financial Instruments and Related Risks The Companys financial instruments consist of cash and cash equivalents, accounts receivable, marketable securities, and accounts payable and accrued liabilities. Cash and cash equivalents are classified as available for sale financial assets, recognized at fair value, with any unrealized gain or loss recorded in other comprehensive income. The fair value of all other financial instruments approximates their carrying values, due to their short-term maturity or capacity of prompt liquidation. As at June 30, 2010, the Companys currency risk was due to CAD $691 million of cash balances (CAD $118.2 million at December 31, 2009) and AUD $18.4 million ($nil at December 31, 2009). Based on this exposure, a 10% change in the Canadian/US dollar exchange rate would give rise to an increase/decrease in other comprehensive income of approximately $66 million and a 10% change in the Australian/US dollar exchange rate would give rise to an increase/decrease in other comprehensive income of approximately $1.6 million. The Company has no other significant exposure to single individual currencies other than the US dollar because its revenues and the majority of its costs are measured in US dollars. Red Back does not currently have financial instruments that are exposed to significant commodity or credit risks because the Company has not engaged in derivative commodity transactions or have large loans and receivables with third parties requiring a review of credit worthiness. Further, the Company is not exposed to significant liquidity risk because of the nature of the financial assets it currently holds. In addition, cash and cash equivalents are held through large financial institutions and, as at June 30, 2010, were with counterparties with high credit ratings. 7

Outstanding Share Data As at July 30, 2010 the Company had 256,781,885 common shares issued and outstanding and 6,211,336 share options outstanding under its stock-based incentive plan.

Uncertainties and Risk Factors There has been no material change in the uncertainties and risk factors affecting Red Backs activities that were discussed in the annual MD&A filed on SEDAR on February 26, 2010.

Outlook Except for the increase in reserve estimates at Chirano and the higher treasury from the CAD $600 million private placement, which are discussed in earlier sections of this MD&A, during the second quarter there were no significant changes in the business outlook of the Company discussed in the annual MD&A filed on SEDAR on February 26, 2010.

Internal Controls over Financial Reporting and Disclosure Controls Management is responsible for the design of internal controls over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements in accordance with accounting principles generally accepted in Canada. The Company believes its internal controls and procedures are effective in providing reasonable assurance that financial information is recorded, processed, summarized and reported in a timely manner. There have been no changes in Red Backs internal control over financial reporting during the quarter ended June 30, 2010 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting. Management is also responsible for the design and effectiveness of disclosure controls and procedures to provide reasonable assurance that material information related to the Company, including its consolidated subsidiaries, is made known to the Companys certifying officers.

Cautionary Note Regarding Forward-Looking Statements This document contains forward looking statements concerning anticipated developments and events that may occur in the future. Forward looking statements include, but are not limited to, statements with respect to the future price of gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward looking statements can be identified by the use of words such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements in the section entitled Risk Factors, there may be other factors that cause actions, events or results not to 8

be as anticipated, estimated or intended. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. These forward looking statements are made as of the date of this document and, other than as required by applicable securities laws, the Company assumes no obligation to update or revise them to reflect new events or circumstances.

RED BACK MINING INC. INTERIM CONSOLIDATED BALANCE SHEETS (in Thousands of United States Dollars, Unaudited) June 30, 2010 ASSETS Current assets Cash and cash equivalents Accounts receivable Marketable securities (Note 2) Inventories (Note 3) Prepaid expenses $ 730,488 38,634 1,526 87,546 5,132 863,326 307 284,877 478,306 $ 1,626,816 LIABILITIES Current liabilities Accounts payable and accrued liabilities Taxes payable $ 43,355 1,073 44,428 $ 43,256 929 44,185 $ 150,471 32,795 76,779 2,298 262,343 490 269,246 429,052 $ 961,131 December 31, 2009

Deferred charges Property, plant and equipment, net (Note 4) Mineral properties and related expenditures (Note 5)

Non current liabilities Asset retirement obligations (Note 6) Future income tax liability Other liabilities

11,722 64,128 11,463 87,313 3,549

11,492 55,000 2,073 68,565 1,008

Minority interest Shareholders equity Share capital (Note 7) Contributed surplus (Note 8) Accumulated other comprehensive income Retained earnings

1,342,415 19,963 7,217 121,931 1,491,526 $ 1,626,816

758,243 7,201 15,099 66,830 847,373 $ 961,131

Commitments and contingency (Note 11)

Approved by the Board: Richard P. Clark Director Lukas H. Lundin Director

See accompanying notes to interim consolidated financial statements.

RED BACK MINING INC. INTERIM CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (in Thousands of United States Dollars, Unaudited) Three months ended June 30 2010 2009 Gold Sales Costs and expenses Operating Depreciation and amortization Accretion Royalties Profit from mining operations General and administrative Interest expense and bank charges Stock based compensation Write-off of exploration costs Interest income $ 131,047 52,279 17,599 115 6,730 54,324 3,162 181 21,982 (899) 24,426 29,898 29,898 1,078 5,387 6,465 23,433 1,500 21,933 99,998 $ 121,931 $ 0.09 $ 0.09 $ 69,353 28,346 11,684 134 2,212 26,977 2,198 96 (255) (431) 1,608 25,369 472 472 25,841 1,175 1,175 24,666 24,666 (16,987) $ 7,679 $ 0.11 $ 0.11 Six months ended June 30 2010 2009 $ 241,043 99,142 31,926 230 11,841 97,904 5,224 368 27,368 166 (1,146) 31,980 65,924 2,671 2,671 68,595 1,826 9,128 10,954 57,641 2,540 55,101 66,830 $ 121,931 $ 0.23 $ 0.23 $ 135,211 56,289 21,769 269 4,134 52,750 3,487 243 1,308 (627) 4,411 48,339 3,020 472 3,492 51,831 1,820 1,820 50,011 50,011 (42,332) $ 7,679 $ 0.22 $ 0.22

Income before undernoted items Gain on sale of securities Foreign exchange gain

Income before income taxes Current income tax expense Future income tax expense

Net income before minority interest Minority interest Net income Retained earnings, beginning of the period Retained earnings, end of the period Income per common share basic Income per common share diluted Weighted average number of shares outstanding: basic diluted

247,519,214 250,661,197

229,490,917 231,193,423

239,834,436 242,740,664

223,840,535 225,127,826

See accompanying notes to interim consolidated financial statements.

RED BACK MINING INC. INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (in Thousands of United States Dollars, Unaudited) Three months ended June 30 2010 2009 Cash flows from operating activities Net income Items not affecting cash Amortization and depreciation Accretion Deferred charges Foreign exchange gain Future income taxes Gain on sale of marketable securities Minority interest Shares issued as a donation (note 7(a)(ii)) Stock based compensation Write-off of exploration costs Net changes in non-cash working capital items Accounts receivable and prepaid expenses Inventories Accounts payable and accrued liabilities Cash flows used in investing activities Mineral properties and related expenditures Purchase of property, plant and equipment Purchase of marketable securities Proceeds from sale of marketable securities Cash flows from financing activities Common shares issued Debt repayment Deferred charges Effect of exchange rate changes on translation of cash denominated in a currency other than the US dollar Increase in cash Cash and cash equivalents, beginning of the period Cash and cash equivalents, end of the period Six months ended June 30 2010 2009

$ 21,933 17,603 115 103 5,387 1,500 21,360 68,001 (6,730) (7,992) 10,151 63,430 (35,141) (27,191) (954) (63,286) 578,550 578,550 (8,921) 569,773 160,715 $ 730,488

$ 24,666 11,689 134 33 (472) 1,175 (255) 36,970 (880) (6,171) (4,805) 25,114 (21,646) (17,676) (39,322) 5,688 (700) 4,988 11,696 2,476 134,702 $ 137,178

$ 55,101 31,933 230 183 (2,671) 9,128 2,540 484 23,808 166 120,902 (8,673) (10,767) (972) 100,490 (66,520) (29,370) (954) (96,844) 582,154 582,154 (5,783) 580,017 150,471 $ 730,488

$ 50,011 21,778 269 33 (472) 1,820 (3,020) 1,308 71,727 (1,884) (7,686) (7,472) 54,685 (42,724) (42,543) 26,297 (58,970) 134,870 (28,000) (700) 106,170 13,088 114,973 22,205 $ 137,178

See accompanying notes to interim consolidated financial statements.

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in Thousands of United States Dollars, Unaudited) Three months ended June 30 2010 2009 Income for the period Gain on marketable securities reclassified to net income on realization Foreign exchange gain on net assets denominated in a currency other than the US dollars reclassified to net income on realization Unrealized gain on marketable securities available for sale, net of applicable future income taxes Unrealized foreign exchange gain (loss) on net assets denominated in a currency other than the US dollar Total other comprehensive income Comprehensive income for the period $ 21,933 $ 24,666 Six months ended June 30 2010 2009 $ 55,101 $ 50,011 (5,044)

(472)

(2,671)

(472)

572

572

(8,921) (8,349) $ 13,584

11,696 11,224 $ 35,890

(5,783) (7,882) $47,219

13,088 7,572 $57,583

See accompanying notes to interim consolidated financial statements.

RED BACK MINING INC. NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (Tables in Thousands of United States Dollars, Unaudited) 1.

Nature of Operations and Basis of Presentation Red Back Mining Inc. (Red Back or the Company) is a mineral resource corporation engaged in operating, exploring, acquiring and developing mineral properties. The Company currently owns two gold mines in West Africa. In Ghana, it holds a 100% interest in the producing Chirano Gold Mine (Chirano). Upon the Government of Ghana exercising its right to back-in to a 10% ownership of Chirano Gold Mines Limited (CGML), at no cost, the Company will hold a 90% interest in Chirano with the Government of Ghana holding 10%. In Mauritania, the Company holds a 100% interest in the Tasiast Gold Mine (Tasiast). The Company also holds various other exploration properties in Ghana, Mauritania and Cte D Ivoire. The interim consolidated financial statements are prepared in accordance with Canadian generally accepted accounting principles applicable to interim financial statements. They follow accounting policies and methods of their application consistent with the annual consolidated financial statements as at December 31, 2009, but they do not conform in all respects with the disclosure requirements of generally accepted accounting principles for annual financial statements. Accordingly, they should be read in conjunction with the Companys December 31, 2009 annual consolidated financial statements.

2.

Marketable Securities Marketable securities consist of shares in a public company that has been classified as available for sale financial assets. They are recorded at their fair value of CAD $0.80, calculated based on the June 30, 2010 closing price on the relevant stock exchange. The Companys original cost of the shares was CAD $0.50 per share.

3.

Inventories June 30, 2010 Stockpile ore Dump leach material Gold in circuit Gold in safe Materials and supplies $ 27,290 6,010 5,071 2,784 46,391 $ 87,546 December 31, 2009 $ 24,059 4,521 3,442 4,718 40,039 $ 76,779

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4.

Property, Plant and Equipment June 30, 2010 Accumulated Depreciation $ 53,641 2,769 2,461 $ 58,871 December 31, 2009 Accumulated Net Book Depreciation Value $ 39,706 2,406 1,921 $ 44,033 $ 247,834 1,878 9,554 9,980 $ 269,246

Cost Plant and equipment Motor vehicles Buildings Construction in progress $ 297,907 4,845 11,647 29,349 $ 343,748

Net Book Value $ 244,266 2,076 9,186 29,349 $ 284,877

Cost

$ 287,540 4,284 11,475 9,980 $ 313,279

5.

Mineral Properties and Related Expenditures Chirano Balance, December 31, 2008 Exploration and evaluation costs Development expenditure Change in estimated asset retirement obligations Amortization Write-off of deferred exploration costs Balance, December 31, 2009 Exploration and evaluation costs Development expenditure Amortization Write-off of deferred exploration costs Balance, June 30, 2010 $ 126,016 6,302 49,207 (13,765) $ 167,760 8,185 31,852 (10,309) $ 197,488 Tasiast $ 249,276 15,868 12,392 1,333 (23,779) $ 255,090 18,235 7,222 (6,791) $ 273,756 Other Projects $ 6,106 2,206 (2,110) $ 6,202 1,026 (166) $ 7,062 Total $ 381,398 24,376 61,599 1,333 (37,544) (2,110) $ 429,052 27,446 39,074 (17,100) (166) $ 478,306

Included in the above balance for Chirano are $42.1 million (December 31, 2009: $32.1 million) of stripping costs incurred subsequent to commencement of production. Amortization of these costs during the three and six months ended June 30, 2010 amounted to $2.6 million and $3.4 million respectively (June 30, 2009: $nil). Chirano Gold Mine Chirano comprises one mining lease and one prospecting license held through the Companys 100% owned subsidiary, CGML. Upon the Government of Ghana exercising its right to back-in to a 10% ownership of CGML, at no cost, the Company will hold a 90% interest in CGML with the Government of Ghana holding 10%. Tasiast Gold Mine Tasiast comprises one mining lease held through the Companys 100% owned subsidiary Tasiast Mauritanie Limited SA (TMLSA). Other Exploration Projects The Company owns interests in a number of other exploration properties in Ghana, Mauritania and Cte DIvoire. These interests are represented by various prospecting licenses and option agreements. Exploration on these properties is ongoing.

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6.

Asset Retirement Obligations Six Months Ended June 30, 2010 Chirano Tasiast Total Balance, beginning of period Change in estimate Accretion expense Balance, end of period $ 7,512 150 $ 7,662 $ 3,980 80 $ 4,060 $ 11,492 230 $ 11,722 Year Ended December 31, 2009 $ 9,768 1,333 391 $ 11,492

The Company has calculated the fair value of the asset retirement obligations using a discount rate of 4.0%. 7.

Share Capital (a) The Company has an unlimited number of without par value common shares authorized of issuance. Shares Issued and Outstanding: Six Months Ended June 30, 2010 Number of Shares Amount Balance, beginning of period Issued by short-form prospectus (i) Issued as a share donation (ii) Issued by private placement (iii) Issued on exercise of options Fair value of options exercised (iv) Balance, end of period (i) Year Ended December 31, 2009 Number of Shares Amount $ 607,914 126,966 17,512 5,851 $ 758,243

231,826,634 $ 758,243 206,095,970 - 22,000,000 28,250 484 24,000,000 576,797 827,000 5,357 3,730,664 1,534 256,681,884 $ 1,342,415 231,826,634

On February 12, 2009, the Company raised gross proceeds of $132.5 million (CAD $165 million) by issuing 22.0 million common shares at a price of CAD $7.50 per share under a short form prospectus financing. On March 1, 2010 the Company made a donation of 28,250 common shares from treasury at a total deemed fair value of approximately CAD $500,000. On May 7, 2010, the Company raised gross proceeds of $577 million (CAD $600 million) by issuing 24.0 million common shares at a price of CAD $25 per share under a private placement financing. Upon exercise of options the pro-rata carrying value is recognized in share capital and the contributed surplus is reduced accordingly.

(ii)

(iii)

(iv)

(b) The Company has two stock option plans (the 2007 Plan and the 2009 Plan) to grant incentive stock options to directors, officers, employees and consultants of the Company. The term of any option granted under both plans is fixed by the Board of Directors and may not exceed 10 years from the date of grant. No optionee shall be entitled to a grant of more than 10% of the Companys outstanding issued shares. The vesting of options is at the discretion of the Board.
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Changes in the number of issued and outstanding options are outlined in the table below: Six Months Ended June 30, 2010 Weighted Average Options Exercise Price Outstanding (CAD $) Balance, beginning of period Cancelled Exercised Forfeited Granted Balance, end of period 5,733,336 (827,000) (225,000) 1,630,000 6,311,336 8.30 6.79 8.49 27.28 13.39 Year Ended December 31, 2009 Weighted Average Options Exercise Price Outstanding (CAD $) 7,379,000 (1,025,000) (3,730,664) (110,000) 3,220,000 5,733,336 5.84 6.81 5.30 6.08 9.92 8.30

The Company used the Black-Scholes option pricing model in calculating the fair value of stock options granted in the period. The key assumptions used were a risk-free rate of 1.6% to 2.3% (2009: 0.5% - 2.2%), an expected volatility of 42% to 76% (2009: 47% - 80%), an expected option life of one to four years (2009: one to four years), no dividend payments, and a forfeiture rate of 0% to 12% (2009: 0% - 12%). At June 30, 2010, there was $21.2 million (December 31, 2009: $1.8 million) of unearned future compensation costs relating to unvested stock options expected to be recognized over the course of the next three years. (c) The Company has a SARs Plan under which the Company can grant SARs up to a number equal to 2% of its issued and outstanding common shares to officers, employees and consultants or other eligible participants. Under the SARs Plan, SAR recipients are entitled to receive the cash value equal to the increase in the price of Red Back common shares between the time of grant and the time of the exercise of the SARs. The term and vesting conditions of any SAR granted under the plan is fixed by the Board of Directors. No SAR recipient is entitled to a grant of SARs exceeding 1% of the Companys outstanding issued shares. Six Months Ended June 30, 2010 Outstanding Fair SARs Value Balance, beginning of period Exercised Forfeited Granted Change in value Balance, end of period 1,550,000 (63,000) (150,000) 325,000 1,662,000 $ 1,442 (563) (442) 17,621 $ 18,058 Year Ended December 31, 2009 Outstanding Fair SARs Value 1,550,000 1,550,000 1,442 $ 1,442 $

Unearned future compensation costs for unvested SARs expected to be recognized over the course of the next two years account for $10.5 million (December 31, 2009: $1.2 million) of the above balance. (d) The Company has a DSUs Plan under which the Company can grant DSUs up to a number equal to 1% of its issued and outstanding common shares to non-executive directors of the

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Board. Under the DSUs Plan, DSU recipients are entitled to receive the cash value of Red Back common shares at the time of their retirement. The vesting conditions of any DSU granted under the plan are fixed by the Board of Directors. Six Months Ended June 30, 2010 Outstanding Fair DSUs Value Balance, beginning of period Granted Redeemed Change in value Balance, end of period 99,000 52,000 (16,000) 135,000 $ 1,392 1,334 (316) 1,055 $ 3,465 Year Ended December 31, 2009 Outstanding Fair DSUs Value 99,000 99,000 1,383 9 $ 1,392 $

(e) In 2009, the Company granted cash-settled share-based awards based on the increase in Red Backs share price during the period of time in 2009 when no equity-based compensation plan was available to certain officers and employees. The estimated unearned future compensation costs relating to these incentive awards at June 30, 2010 is $2.1 million (December 31, 2009: $4.9 million) and is expected to be recognized over the course of the next 6 to 12 months. 8.

Contributed Surplus Six Months Ended June 30, 2010 Balance, beginning of period Fair value of stock-based compensation Fair value of options exercised Balance, end of period $ 7,201 14,296 (1,534) $ 19,963 Year Ended December 31, 2009 $ 10,506 2,546 (5,851) $ 7,201

9.

Related Party Transactions During the six months ended June 30, 2010 the Company paid $0.6 million (June 30, 2009: $0.2 million) to a company controlled by a director for management services. At June 30, 2010, $nil was due to this company.

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10. Segmented Information Three Months Ended June 30, 2010 Mauritania Others Total $ 62,973 (22,163) (8,584) 32,226 (3,988) 28,238 $ (17,390) $ (17,390) $ 131,047 (59,009) (17,714) 54,324 (32,391) $ 21,933

Ghana Gold revenues Operating costs and expenses Depreciation, amortization and accretion Profit from mining operations Other income (costs) Net income (loss)

$ 68,074 (36,846) (9,130) 22,098 (11,013) $ 11,085

Ghana Gold revenues Operating costs and expenses Depreciation, amortization and accretion Profit from mining operations Other income (costs) Net income (loss)

Six Months Ended June 30, 2010 Mauritania Others $ 123,154 (45,969) (16,801) 60,384 (5,871) 54,513 $ (18,506) $ (18,506)

Total $ 241,043 (110,983) (32,156) 97,904 (42,803) $ 55,101

$ 117,889 (65,014) (15,355) 37,520 (18,426) $ 19,094

Ghana Gold revenues Operating costs and expenses Depreciation, amortization and accretion Profit from mining operations Other income (costs) Net income (loss)

Three Months Ended June 30, 2009 Mauritania Others Total $ 34,668 (13,371) (7,600) 13,697 (39) 13,658 $ (1,058) (1,058) $ 69,353 (30,558) (11,818) 26,977 (2,311) $ 24,666

$ 34,685 (17,187) (4,218) 13,280 (1,214) $ 12,066

Ghana Gold revenues Operating costs and expenses Depreciation, amortization and accretion Profit from mining operations Other income (costs) Net income (loss)

Six Months Ended June 30, 2009 Mauritania Others $ 68,036 (24,206) (14,881) 28,949 (39) 28,910 $ (1,424) (1,424)

Total $ 135,211 (60,423) (22,038) 52,750 (2,739) $ 50,011

$ 67,175 (36,217) (7,157) 23,801 (1,276) $ 22,525

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Ghana Current assets Capital assets, net of depreciation and amortization $ 90,928 307,586 398,514 (25,201) (14,387) (17,886) $ 341,040

As at June 30, 2010 Mauritania Others $ 87,311 454,246 541,557 (17,164) (8,881) (46,242) $ 469,270 $ 685,087 1,658 686,745 (2,063) (3,466) $ 681,216 $

Total 863,326 763,490 1,626,816 (44,428) (26,734) (64,128) $ 1,491,526

Current liabilities Non-current liabilities Future income tax liabilities

Ghana Current assets Capital assets, net of depreciation and amortization $ 62,630 274,950 337,580 (21,166) (8,702) (8,758) $ 298,954

As at December 31, 2009 Mauritania Others $ 69,666 422,403 492,069 (16,115) (4,123) (46,242) $ 425,589 $ 130,047 1,435 131,482 (6,904) (1,748) $ 122,830

Total $ 262,343 698,788 961,131 (44,185) (14,573) (55,000) $ 847,373

Current liabilities Non-current liabilities Future income tax liabilities

Additions to Property Plant and Equipment Ghana Mauritania Others Total Period ended June 30, 2010 Period ended June 30, 2009 $ 8,480 $ 17,020 $ 21,989 $ 23,015 $ $ $ 30,469 $ 40,035

The Company operates only in the gold sector. 11. Commitments and contingencies At June 30, 2010, the Company had purchase commitments totaling approximately $53.8 million (December 31, 2009: $17.1 million) of which approximately $39 million is for mining fleet expansion at Tasiast. Late in 2009, CGML received a notice of re-assessment of prior years income tax returns denying approximately $90 million of past, current and future income tax deductions and imputing additional revenues of approximately $30 million, both related to the tax treatment of hedge contracts entered into in 2005 as part of the original bank project financing required for the construction of the Chirano Gold Mine. CGML is defending its original tax filing position. The final outcome of this matter is not determinable at this time. Should the re-assessment be ultimately upheld, it would result in the recognition of additional future income tax liabilities of approximately $22 million.

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12. Management of Capital The Companys objectives in managing its capital resources are to safeguard the entitys ability to continue as a going concern and, thereby, maximize returns to shareholders in the context of the market. The Company satisfies its capital requirements through careful management of its cash resources and by utilizing bank indebtedness or equity issues, as necessary, based on the prevailing economic conditions of both the industry and the capital markets and the underlying risks characteristics of the related assets. Red Back continues with capital expansion programs at its two mining operations. The Company expects to fund these programs from operating cash flow and existing treasury. Red Back also has an undrawn $30 million corporate bank debt facility to provide it with additional flexibility in pursuing internally generated growth initiatives, or responding to new opportunities. The Company is not currently subject to any externally imposed requirements on its shareholders equity and there has been no change with respect to the overall capital risk management strategy during the six month period ended June 30, 2010.

CORPORATE DIRECTORY

OFFICERS Richard Clark President and Chief Executive Officer Lukas Lundin Chairman of the Board Alessandro Bitelli Chief Financial Officer Simon Jackson Vice President Corporate Development Kevin Ross Chief Operating Officer Hugh Stuart Vice President - Exploration Kathy Love Corporate Secretary DIRECTORS Richard Clark Lukas Lundin Michael Hunt Corporate Governance and Nominating Committee Robert Chase Audit Committee Corporate Governance and Nominating Committee Compensation Committee Brian Edgar Lead Director Audit Committee Compensation Committee Corporate Governance and Nominating Committee George Brack Audit Committee Compensation Committee

AUDITORS PricewaterhouseCoopers, LLP Vancouver, British Columbia, Canada LEGAL COUNSEL Blake Cassels & Graydon LLP Vancouver, British Columbia, Canada CORPORATE OFFICE Suite 2101 - 885 West Georgia Street Vancouver, British Columbia Canada V6C 3E8 Telephone: (604) 689-7842 Fax: (604) 689-5452 REGISTERED AND RECORDS OFFICE Blake Cassels & Graydon LLP 2600 - 595 Burrard Street P.O. Box 49314 Vancouver, British Columbia Canada V7X 1L3 REGISTRAR AND TRANSFER AGENT Computershare Trust Company of Canada Vancouver, British Columbia and Toronto, Ontario Canada SHARE LISTING Toronto Stock Exchange Symbol: RBI CUSIP No.: 756297107 S.E.C.: 12g3-2(b) Exemption Number: 82-4286