-Royalty covers Rubicon’s F2 Gold System-

VANCOUVER, Aug. 31, 2011 /PRNewswire/ – Rubicon Minerals Corporation (RMX:TSX | RBY:NYSE-AMEX) (“Rubicon“) is pleased to announce that Franco-Nevada Corporation (“Franco“) has purchased all of the right, title and interest of Dominion
Goldfields Corporation (“DGC“) in the 2% net smelter returns royalty payable on that part of
Rubicon’s Phoenix Gold Project in Red Lake, Ontario lying beneath the
waters of Red Lake (i.e. excluding mining properties covering the land
portion of the Project) (the “Royalty“). The transaction did not trigger any rights of first refusal on the
Royalty, however, the Royalty remains subject to Rubicon’s prior right,
exercisable at any time, to purchase 25% of the Royalty (being 0.5% of
the 2% net smelter returns) for US$675,000. Rubicon acquired the
Phoenix Gold Project under option from DGC in 2002 and later earned,
subject to the Royalty, a 100% interest in and to the Project.

Franco purchased the Royalty from DGC pursuant to a royalty purchase
agreement and issued to DGC, as consideration for the purchase of the
Royalty, 550,000 common shares of Franco, such shares having an
aggregate value of C$23,232,000.

David Adamson, President & CEO of Rubicon, commented: “Franco-Nevada
Corporation is a recognized premier gold royalty company and we welcome
their purchase of the Royalty. We see their involvement as another
strong validation by an industry leader of our Phoenix Gold Project
following close on the heels of the recent purchase by Agnico-Eagle
Mines of a 9.2% stake in Rubicon.”

David Harquail, President & CEO of Franco, commented: “We are very
pleased to have a royalty interest on Phoenix, a very high grade
deposit in the prolific Red Lake camp. We believe Phoenix will be a
long life gold mine in Canada that will add to Franco-Nevada’s long
term growth.”

About Rubicon Minerals Corporation
Rubicon Minerals Corporation is an exploration and development company,
focused on exploring and developing its high-grade gold discovery at
its Phoenix Gold Project in Red Lake, Ontario. Rubicon controls over
100 square miles of prime exploration ground in the prolific Red Lake
gold district of Ontario which hosts Goldcorp’s high-grade, world class
Red Lake Mine.

RUBICON MINERALS CORPORATION
“David W. Adamson”
President & CEO

_______________________________________________________________________________________________________

The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.

SOURCE Rubicon Minerals Corporation