Mr. Richard Graham reports

RHYOLITE RESOURCES LTD. ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS

Rhyolite Resources Ltd. will hold its annual and special meeting of shareholders on March 23, 2011, for the following purposes:

• To receive and consider the audited financial statements of the company for the financial year ended June 30, 2010, and the report of the auditors thereon;
• To fix the board of directors of the company to be elected at the meeting at three members and to elect the board of directors of the company for the ensuing year;
• To appoint the auditors of the company for the ensuing year and to authorize the board of directors of the company to fix the auditors' remuneration;
• To consider, and if thought appropriate, to approve, with or without variation, an ordinary resolution relating to the renewal of the stock option plan of the company;
• To consider and, if thought appropriate, approve an amendment to the company's articles to divide the issued and outstanding common shares of the company on a two-for-one basis;
• To transact such other business as may properly be brought before the meeting or any adjournment thereof.

Rhyolite believes that the stock split will enhance liquidity in the company. The company currently has a total of 9,200,100 common shares issued and outstanding. Following the stock split, the company will have a total of 18,400,200 common shares issued and outstanding.

The stock split is subject to shareholder approval at the meeting and TSX Venture Exchange acceptance.