RNC Gold Inc.

January 10, 2005 10:00 ET

RNC Gold Confirms Bulk Tonnage Gold Target Open Along Strike and at Depth


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RNC GOLD INC.

TSX SYMBOL: RNC

JANUARY 10, 2005 - 10:00 ET

RNC Gold Confirms Bulk Tonnage Gold Target Open Along
Strike and at Depth

TORONTO, ONTARIO--(CCNMatthews - Jan. 10, 2005) - Not for release in the
United States

RNC Gold Inc. (TSX:RNC) today announced that additional assay results
from 4,350 chip samples and four preliminary diamond drill holes on the
recently identified bulk tonnage gold target at the Company's Bonanza
property in northeastern Nicaragua have confirmed that this large target
remains open along strike and at depth.

"This Phase 1 work helps to validate our theory that this widely
disseminated mineralization extends well below surface," said J. Randy
Martin, President & CEO, RNC Gold Inc. "We have made an expanded
exploration program a priority and, in addition to further trenching, an
initial RC drill program totaling 7,000-10,000 meters is scheduled to
begin early in 2005."

The principal findings of the Phase 1 exploration are:

- Analyses received for the most recent 1,258 surface trench chip
samples have extended the main area of gold in saprolite (weathered -
oxidized bedrock) by another 150 meters to the northeast. Trench Line
45E, the most northeasterly trench and Trench Line 34E, across the
middle of zone of interest, returned gold values as follows:



-------------------------------------------------------------------
Trench_ID From To Length Gold
(m) (m) (m) (g/t)
-------------------------------------------------------------------

-------------------------------------------------------------------
L 45 E 1) 4.7 487.8 483.1 0.92
Includes 89.9 486.2 396.3 1.01

2) 496.9 522.9 26.0 0.80
Includes 496.9 510.7 13.8 1.31

3) 577.7 740.8 163.1 0.65
includes 678.3 740.8 62.5 1.57

L 34 E 1) 21.3 568.5 547.2 0.32
includes a) 64.8 80.8 16.0 0.78

b) 93.0 202.7 109.7 0.65
incl. 143.3 158.5 15.2 0.85

c) 227.1 242.3 15.2 0.70

2) 890.2 903.9 13.7 0.97
-------------------------------------------------------------------


(See sketch Map attached)

- Less than 0.4% assayed above 10 g/t gold eliminating the need to cut
high values.

- The four diamond drill holes encountered vertical thicknesses of
mineralized saprolite varying between 20 and 40 meters and thickening
toward the Neblina structure to the northwest.

- Gold values for the diamond drill holes are reported in the table
below. The highest individual gold values are centered on individual
quartz veins.


Table of Assays for the Diamond Drilling of the Foundling NE-Tesoro veins



---------------------------------------------------------------------
Hole_ID From To Meters Gold (g/t) Geol. Unit
---------------------------------------------------------------------

---------------------------------------------------------------------
FNE-04-19 0.0 27.5 27.5 0.55 Saprolite
includes 9.0 13.0 4.0 1.50

FNE-04-20 0.0 41.2 41.2 2.05 Saprolite
includes 0.0 13.0 13.0 5.55
or 4.0 6.0 2.0 26.60

FNE-04-21 0.0 32.9 32.9 1.11 Saprolite
includes 27.0 33.0 6.0 4.41
or 30.0 33.0 3.0 7.95

FNE-04-22 0.0 29.3 29.3 0.24 Saprolite
33.5 36.4 2.9 4.87 Andesite oxydised
includes 35.0 36.4 1.4 9.15
---------------------------------------------------------------------


- Trench Line 45E is cut at low angle to the NW trending Tesoro
mineralized structure which is an important controlling factor for the
emplacement of the gold mineralization, especially where it intersects
the prevalent northeast trending mineralized veins.

- Most of the trenching completed to date has been conducted on lines
spaced 120 to 150 meters apart across the northeast trending Neblina and
Foundling mineralized structures defining more clearly a zone of surface
gold mineralization 730 meters long and 500 meters wide on average.

- The zone remains open in both directions along strike and parallels
the Neptune and Capitan mine-Venus mineralized structures located 250
and 650 meters to the southeast, respectively. The latter has previously
been sampled on surface by trench L29E which returned 52 m of 0.72 g/t
gold including 29 m of 0.86 g/t gold, 47.6 m of 0.78 g/t gold including
30.5 m of 1.0 g/t gold, and 148 m of 0.60 g/t gold including 78 m of 1.0
g/t gold (press release of Nov. 8 2004). See note on reporting
procedures.

Sampling, analytical and reporting procedures

Continuous 1.5 meter chip samples were collected by digging a further 6
inches on the floors of the trenches and bagging 3 to 5 kilograms of the
saprolite and, in some cases, colluvium (broken up bedrock fragments in
soil), brown soil and/or fresh bedrock where saprolite was not
available. The samples were shipped in barrels to the CAS Laboratory in
Tegucigalpa, Honduras, for preparation where the samples were dried and
pulverized to a minus 150 mesh to produce a 300 gram pulp sample. The
samples were then shipped to Acme Laboratories in Vancouver, B.C.,
Canada, for analysis by ICP-MS (induced coupled plasma) using splits of
0.5 grams leached in hot (95§C) Agua Regia. Gold analyses were prepared
using a larger 15 gram split size for a more representative sample.
Samples duplicates are analysed at regular intervals. The first batch of
2,500 samples was analyzed for the 30 element package for better
characterization of the mineralized system. Samples are currently being
analyzed for copper, lead, zinc, gold and silver. In this press
release, composites of gold analyses are reported for various cutoff
grades using a 0 maximum dilution width and minimum edge values
corresponding to the selected cutoff grade. In the November 8, 2004
press release, composite analyses were reported without specifying a
maximum dilution width and minimum edge values.

The qualified person on the project is Denis Francoeur, M.Sc, P.Geo., a
practicing member (#0781) of the Association of Professional
Geoscientists of Ontario.

About RNC Gold

RNC Gold Inc. is a gold mining company focused on projects in the
Caribbean basin. From its current production base of 100,000 ounces of
gold, RNC is positioned for growth through operational efficiencies,
exploration potential on property around its present mines, through
construction of new mines and the acquisition of new projects.

The Company's main assets include the La Libertad and Bonanza mines in
Nicaragua, the Cerro Quema project in Panama and the Picachos
exploration property in Mexico as well as the option to acquire 25% of
the San Andres mine in Honduras.

NOTE: There is a Map available on CCNMatthews' website at:
http://www2.ccnmatthews.com/database/fax/2000/RNC%20Map%200110.pdf


-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    RNC Gold Inc.
    J. R. Martin
    President and CEO
    416 365-9777
    or
    RNC Gold Inc.
    T.W. Lough
    Vice President Finance
    416 365-9777
    or
    The Equicom Group
    Martti Kangas
    416-815-0700