Rugby Expands the Cobrasco Copper-Molybdenum Discovery in Colombia - Reports 172m of 0.78% Copper Equivalent within 754m of 0.50% Copper Equivalent

Vancouver, Jan. 17, 2023 - The Board of Directors of Rugby Resources Ltd. ("Rugby" or the "Company") (TSX-V: RUG) is pleased to announce results for the second drill hole, (CDH002) on its Cobrasco copper-molybdenum discovery in western Colombia. Rugby commenced drilling in August with 2,283 metres ("m") completed to date.

Highlights

• CDH002 intersected 172m of 0.78% CuEq? within a broader interval of 754m of 0.50% CuEq? from a downhole depth of 152m. A near surface mineralised zone of 70m of 0.32% CuEq? was intersected from 18m. The hole was prematurely terminated at 946.1m in a wide fault zone.
• CDH002 was sited 400m south of CDH001 that returned 82m at 1.00% CuEq? within a broader interval of 808m of 0.46% CuEq? (see News Release dated October 31, 2022).
• CDH003 was collared from the same drill platform as CDH002. It was drilled in a northerly direction to test the mineralised upper part of CDH001 to a greater depth. Well above the target depth, it encountered visually strong copper-molybdenum mineralisation from 150m to its current depth of 300.6m. Drilling was suspended prior to Christmas and the hole is targeted to continue to a depth of 1,300m.
  
  

Figure 1 - Copper soil auger geochemistry showing drill hole collar position and drill hole traces.

Rugby's Chairman, Yale Simpson, stated "The drilling is beginning to demonstrate the full scope of the Cobrasco discovery. Figure 1 (above) says it all. The three drill holes are all well mineralised, yet they are testing only a portion of the system (as indicated by the copper soil geochemistry). Clearly the scope of the system is impressive with the size potential of a world class porphyry.

"At this stage Cobrasco simply needs drill holes to define the high grade "sweet spots" and to establish grade contours for the system. Drilling on CDH003 will be continued to its planned depth of 1,300 meters when a strategic partner is in place.

"Rugby is well positioned to contribute to Colombia's goal of discovering the strategic metals required globally to transition to a more sustainable future. In pursuing that goal, we are conducting operations with local participation and the highest environmental standards that I have seen in the exploration industry."

Table 1 - Collar Location

Table 2: Assay Results & Mineralised Intercepts

Cobrasco mineralisation is bornite dominant with lesser chalcopyrite and molybdenite (Figure 2). Penalty elements (particularly arsenic) are low. Based on this mineralogy the mineralisation would be expected to be amenable to the production of a high-grade copper concentrate using traditional mineral processing. Preliminary metallurgical testing to assess and document the metallurgy is planned.

Figure 2 - Bornite replacing chalcopyrite (Photomicrograph CDH003 285.7m)

Rugby's field exploration program will take precedence over drilling in Q1. Additional geological mapping, rock and soil sampling and general prospecting activities are essential. This program will very likely define additional porphyry targets.

Environment and Community

Rugby places a high priority on good environmental practices to ensure minimal impact from its activities. It has an ongoing site rehabilitation program including an active nursery program to safeguard the integrity of the ecosystem.

In January 2023, the Company commenced the design of a socio-environmental program to promote and protect the ecosystems of the area. The program will be conducted with students and teachers of the community and coordinated with local and national environmental agencies.

Rugby also has a prior consultation agreement ("CP") with the local community which provides for access to the project area and various programs to benefit the community. The Company is actively engaged with the community on programs to be funded in the coming months.

Technical Information and Quality Control & Quality Assurance

Rugby's sampling techniques and data management are conducted to industry standards. Sample assay results have been independently monitored through a quality control/quality assurance ("QA/QC") program that includes the insertion of blind certified reference materials (standards), blanks and duplicate samples. Logging and sampling were completed at a secured Company facility located in Quibdo, Colombia. Drill core was cut in half on site and samples were securely transported to ALS Minerals (ALS) facility in Medellin, Colombia where all sample preparation was completed. Sample pulps were forwarded to ALS' regional hub in Lima, Peru where all analytical work was conducted. All samples are assayed for gold by fire assay of a 30-gram charge with AAS finish (method Au-AA23) and 48 element ultra-trace level detection by four-acid digestion with ICP-AES/ ICP-MS finish (method ME-MS61). Over-limits or ore grade elements were assayed by four-acid digestion with ICP-AES finish (method OG62).

ALS is independent of Rugby and is certified and ISO 9001 & 17025, by the IQNet and "Standards Council of Canada", respectively. The Company is not aware of any drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the reported data.

1 Copper Equivalent ("CuEq") grades were calculated using the following formula: CuEq % = Copper (%) + (Molybdenum (%) x 5). The calculations assume 100% metallurgical recovery and are indicative of the gross in-situ metal value assuming metal prices of USD $3.50/lb Cu and USD $20.00/lb Mo.

Qualified Person

Paul Joyce, Rugby's Chief Operating Officer, Director and a "qualified person" ("QP") within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has verified the scientific and technical information that forms the basis for this news release. Paul Joyce is a Fellow of the Australian Institute of Geoscientists (registered member # 1908).

About Rugby

Rugby Resources Ltd. is an exploration company conducting "discovery stage" exploration on a portfolio of copper, gold and silver targets in Colombia, Argentina and Chile. The Colombian Cobrasco project is located in the western cordillera belt which hosts large scale copper molybdenum mines in Chile, Peru, and Panama (and more recent significant projects discovered in Ecuador). This belt has not been subjected to modern exploration in Colombia. Rugby has been conducting exploration at Cobrasco under the current regulatory environment in compliance with requirements established in national regulations and looks to continue its exploration activities to demonstrate the economic potential of a major discovery for Colombia. The discovery of significant copper resources is essential for the world to move from fossil fuels to advanced "green" electrification.

The Company benefits from the experience of its directors and management, a team that has either been directly responsible for world-class mineral discoveries or has been part of the management teams responsible for such discoveries. Prior companies under their management included Exeter Resource Corp. and Extorre Gold Mines Ltd., which held significant projects in South America. These companies were taken over by Goldcorp (Newmont) and Yamana respectively.

For additional information you are invited to visit the Rugby Resources Ltd. website at www.rugbyresourcesltd.com.

CAUTIONARY STATEMENT

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the British Columbia, Alberta and Ontario Securities Acts. This includes statements concerning the Company's proposed exploration plans for the Cobrasco project in Colombia and El Zanjon project in Argentina, progress on obtaining approval for its exploration concession applications in Colombia, the expected timing of drilling and/or geophysics programs, budgeted costs to conduct exploration programs including drilling, high grade potential and potential for mineral discoveries at its projects and the style or occurrence of the mineralisation which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The Company holds certain of its projects under option agreements, which require annual cash payments, expenditure and/ or drilling requirements in order to maintain its interest. Should the Company not be able to meet its obligations or renegotiate the agreements it will lose its rights under the option agreement. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the effect on prices of major mineral commodities such as copper and gold by factors beyond the control of the Company; events which cannot be accurately predicted such as political and economic instability, terrorism, environmental factors and changes in government regulations and taxes; the shortage of personnel with the requisite knowledge and skills to design and execute exploration programs; difficulties in arranging contracts for drilling and other exploration services; the Company's dependency on equity market financings to fund its exploration programs and maintain its mineral exploration properties in good standing; political risk that a government will change, interpret or enforce mineral tenure, environmental regulations, taxes or mineral royalties in a manner that could have an adverse effect on the Company's assets or financial condition and impair its ability to advance its mineral exploration projects or raise further funds for exploration; risks associated with title to resource properties due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the interpretation of laws regarding ownership or exploration of mineral properties in the Philippines, Argentina, Chile and Colombia and in the sometimes ambiguous conveyancing characteristic of many resource properties, currency risks associated with foreign operations, the timing of obtaining permits to conduct exploration activities, the ability to conclude agreements with local communities and other risks and uncertainties; risks related to the current military conflict between Russia and Ukraine; and the ongoing effects of the COVID-19 pandemic and including those described in each of the Company's management discussion and analysis and those contained in its financial statements for the year ended February 28, 2022 filed with the Canadian Securities Administrators and available at www.sedar.com. In addition, forward-looking information is based on various assumptions including, without limitation, assumptions associated with exploration results and costs and the availability of materials and skilled labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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