Red Eagle Mining Corporation provided an update on operations at the Santa Rosa Gold Project, Antioquia, Colombia. Underground development continues to advance well.  Since third quarter 2016 when the decline moved through oxidized material requiring support into competent granodiorite, daily advance rates have substantially increased from 3 metres per day to 22 metres per day.  The main and secondary ramps have advanced a total of 1.4 kilometres from the portal.  Four 100 metre strike length stoping blocks have been opened up on the 50, 75 and 100 metre levels, including 12 ore development headings with 6 main stopes. The 10,000 metre stope delineation drill programme completed in December, 2016 and underground face samples have positively reconciled grade against the resource model. Underground production crews continue to increase their expertise and efficiency.  Production rates are expected to accelerate in February and March as the underground team adjusts to more controlled stoping methods and additional production faces open up.  The mine plan has 10 stopes operating in March, subsequently ramping up to full operations with 14 stopes.  At any given time half the stopes will be in production at an estimated rate of 150 tonnes per day and half will be in support and filling. Exploration drilling is currently underway testing the eastern extent of the San Ramon Gold Deposit and the Rojo target 3 kilometres to the west of the processing facility. Commercial production of 750 tonnes per day is anticipated to be achieved by the end of first quarter 2017.  As at December 31, 2016, Red Eagle Mining held $4 million in cash and is managing working capital while advancing to positive cash flow in the coming months. The technical information contained in this news release has been reviewed and approved by Red Eagle Mining's Vice President Exploration, Jeff Toohey P.Eng., who is a "Qualified Person" as defined under National Instrument 43-101.