Mr. Raymond Threlkeld reports

RAINY RIVER RESOURCES INTERSECTS SIGNIFICANT MINERALIZATION IN CAP ZONE, WITH 15.0 G/T GOLD AND 24.4 G/T SILVER OVER 4.8 METRES

Rainy River Resources Ltd. has released assay results from the Rainy River gold project (RRGP) in Northwest Ontario. Results are summarized in the associated table.

Highlights

• CAP zone drilling continues to intersect potential underground grades and widths.
• Drill hole NR121069 intersected 4.8 metres grading 15.0 grams per tonne (g/t) gold and 24.4 g/t silver at a vertical depth of 472 metres.
• Drill hole NR07198W3 intersected 3.5 metres grading 12.0 g/t gold and 2.9 g/t silver at a vertical depth of 517 metres.
• Within the ODM zone and within the resource pit, drill hole NR111014 intersected 16.5 metres grading 12.7 g/t gold and 3.3 g/t silver, and continues to demonstrate the high-grade nature of the ore at depth.
• Within the ODM zone and below the resource pit, drill hole NR07198W1 intersected 10.5 metres grading five g/t gold and 1.4 g/t silver.

CAP zone

Drilling in 2012 on the CAP zone continues to demonstrate the future underground potential of this zone. Follow-up drilling was designed to expand upon the results from hole NR11937, which returned values of four g/t gold and 15.1 g/t silver over 12.0 metres (press release dated Feb. 2, 2012). Two additional holes, NR121069 and NR07198W3, drilled at the same relative elevation as the gold mineralization intersected in hole NR11937 intersected significant gold mineralization at 500 metres and at 175 metres, respectively, along strike to the east from NR11937. These intersections potentially represent two new mineralized shoots within the CAP zone that may be exploited through future underground mining. Drilling will begin to explore these zones in the plunge direction.

Drilling within the pit portion of the CAP zone will also continue to potentially convert inferred resources outlined in the latest mineral resource statement to higher confidence levels, which will be used in the pending feasibility study. Approximately 647,000 ounces within the pit continue to be classified as inferred resources (all zones) and will be targeted over the next few months. The current drilling is intended to move these ounces into measured and indicated resources.

CAP zone in pit

Five holes targeted inferred blocks and/or zone periphery within the pit portion of the CAP zone. Significant results include six metres grading 1.2 g/t gold and 5.3 g/t silver in hole NR121025 at a vertical depth of 79 metres, 55.5 metres grading 0.6 g/t gold and 2.8 g/t silver in hole NR121055 at a vertical depth of 248 metres and 14.1 metres grading 0.6 g/t gold and 3.4 g/t silver in hole NR121086 at a vertical depth of 106 metres.

CAP zone below pit

Deep drilling in the CAP zone in 2012 has continued to demonstrate good grades and significant thicknesses. Hole NR121069 intersected 4.8 metres grading 15.0 g/t gold and 24.4 g/t silver at 472 metres, the same elevation as NR11937 and approximately 500 metres along strike to the east from that hole, including 24 g/t gold and 33.7 g/t silver over 2.5 metres. Hole NR07198W3 intersected 3.5 metres grading 12.0 g/t gold and 2.9 g/t silver, at a similar elevation of 517 metres and approximately 175 metres along strike to the east from NR11937.

ODM -- in pit

Six additional holes have been completed deep within the resource pit, and several continue to demonstrate above-resource-grade values for this portion of the pit. These additional holes were assayed after the resource cut-off date of Dec. 31, 2011, and will be included in the next resource update. Hole NR111014 intersected 16.5 metres grading 12.7 g/t gold and 3.3 g/t silver at a vertical depth of 403 metres including six metres grading 33.2 g/t gold and 6.8 g/t silver at a vertical depth of 407 metres. Hole NR121055 intersected 1.6 g/t gold and 1.2 g/t silver over 33.0 metres at a vertical depth of 509 metres and hole NR121033 intersected 1.4 g/t gold and 1.3 g/t silver over 57.0 metres at a vertical depth of 462 metres.

ODM -- below pit

To better define Rainy River's underground resources, a long-term program of directional drilling and wedging is now under way. Hole NR07198W1 intersected 10.5 metres grading five g/t gold and 1.4 g/t silver at a vertical depth of 788 metres, hole NR07198W3 intersected 2.5 g/t gold and 1.6 g/t silver over six metres at a vertical depth of 763 metres and hole NR07198W2 intersected 4.5 metres grading 3.5 g/t gold and 2.9 g/t silver at a vertical depth of 774 metres. It is expected that this program will provide better continuity and certainty to the underground resources.

Commentary

Raymond Threlkeld, president and chief executive officer of Rainy River Resources, commented: "The results released today show the potential of the Cap zone to play a significant role in adding higher confidence ounces and in developing the underground potential of the Rainy River gold project. The ODM infill results are consistent with previous drilling, while the ODM below-pit results are also encouraging from an underground project perspective. With our strong cash balance and continued excellent drill results, we are well positioned to advance the project. A revised preliminary economic assessment is expected to be completed by mid-2012, followed by a resource update incorporating drilling from the first few months of this year. This midyear resource will be used for the feasibility study, targeted for completion in early 2013."

Qualified persons

Rainy River's exploration program in Richardson township is being supervised by Kerry Sparkes, PGeo, vice-president, exploration, a qualified person as defined by National Instrument 43-101. Mr. Sparkes is also the person responsible for the content of this news release. The company has a rigorous QA/QC (quality assurance/quality control) program in place to ensure best practices in sampling and analysis of drill core. All drill core is marked for sampling and then split in half with a diamond saw blade. Samples are placed in sealed bags with security tags. All samples were assayed using a standard fire assay, 30-gram nominal sample weight with an AA finish. Overlimit samples were reassayed with a gravimetric finish. Samples with visible gold were automatically analyzed for ore grade by 1,000-gram screen fire assay, with coarse and fine fractions being combined proportionately and the fine fraction being assayed twice. Standards, blanks and duplicates are inserted every 25 metres. ALS Canada Ltd. performed primary assaying, with duplicates being analyzed at Activation Laboratories Ltd. ALS Canada Ltd. and Activation Laboratories Ltd. implement independent QA/QC protocols that include the insertion of certified blanks and standards as part of their routine analysis.

                          DRILL RESULTS
              Vertical
                 depth    From          Length      Au       Ag
Hole ID            (m)     (m)  To (m)     (m)   (g/t)    (g/t)

NR07198W1          788   867.0   877.5    10.5     5.0      1.4
NR07198W2          728   807.0   808.5     1.5    27.5     22.7
NR07198W2          774   864.0   868.5     4.5     3.5      2.9
NR07198W2          784   879.0   880.5     1.5    10.3      7.0
NR07198W3          517   550.0   553.5     3.5    12.0      2.9
NR07198W3          727   808.5   810.0     1.5    16.1     13.3
NR07198W3          763   853.5   859.5     6.0     2.5      1.6
NR111014           403   466.5   483.0    16.5    12.7      3.3
Including          407   477.0   483.0     6.0    33.2      6.8
Including          405   477.0   478.5     1.5    48.7     11.6
And                409   481.5   483.0     1.5    81.7     13.9
NR121025            79    85.5    91.5     6.0     1.2      5.3
NR121025           396   456.0   523.5    67.5     0.6      0.9
NR121031           873 1,027.5 1,030.5     3.0    18.1      1.1
Including          874 1,029.0 1,030.5     1.5    34.4      0.7
NR121033           462   519.0   576.0    57.0     1.4      1.3
Including          445   519.0   532.5    13.5     3.0      2.2
NR121044           420   517.5   522.0     4.5     6.1      2.7
NR121055           248   247.5   303.0    55.5     0.6      2.8
Including          252   276.0   283.5     7.5     1.0      5.1
NR121055           509   597.0   630.0    33.0     1.6      1.2
Including          515   612.0   630.0    18.0     2.1      1.4
NR121066           681   892.5   898.5     6.0     2.7      1.7
NR121069           472   499.5   504.3     4.8    15.0     24.4
Including          473   501.8   504.3     2.5    24.4     33.7
NR121069           784   874.5   877.5     3.0     4.4      4.1
NR121086           106   104.4   118.5    14.1     0.6      3.4

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