Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

January 17, 2007 08:15 ET

Rainy River Resources Ltd.: 1408-Metre Hole Intersects 8.02 g/t Gold Over 4.3 Metres Below 1000-Metre Level-Believed to Be Down Plunge Extension of the "ODM Zone"

Three Drill Rigs Start January 16, 2007

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 17, 2007) - Nelson W. Baker, President of Rainy River Resources Ltd. (TSX VENTURE:RR) is pleased to report the final results for eight drill holes completed on the Company's Richardson Township gold project prior to the holiday period. Of the eight holes, only one, NR06-121, targeted the ODM Zone. Five holes (NR06-122, NR06-125, NR06-127, NR06-129 and NR06-132) targeted the eastern extension of the 17 Zone while the remaining two holes (NR06-123 and NR06-124) were designed to test the upper contact of the mineralized felsic volcanic package approximately 500 metres south of the 17 Zone Gold Trend.

The results from an additional four drill holes completed prior to the holiday period and targeting the ODM Zone, are expected to be received from the laboratory shortly.

A summary of all gold intervals is listed in Table I below and the detail intervals will be posted on our website www.rainyriverresources.com. The Rainy River Project is situated about 80 kilometres south of Kenora, northwestern Ontario.

HIGHLIGHTS:

- NR06-121 intersects four gold intervals, the deepest below 1000-metre level

- NR06-132 intersects 9.81 g/t Au over 4.5 metres (17 Zone)

- NR06-125 intersects 1.12 g/t Au over 36.0 metres (17 Zone, east end)

Hole NR06-121, the most westerly of four deep holes drilled to date to confirm the vertical continuity of the gold mineralizing system, targeted the down plunge extension of the ODM Zone. This hole was successful in intersecting four separate gold intervals between 668.5 metres and 1360.0 metres, representing the deepest intersections recorded in the history of the property and demonstrating remarkable continuity of gold mineralization below previously tested depths along the 17 Gold Trend. The intersection between 1355.7 to 1360.0 metres, grading 8.02 grams per tonne gold over 4.3 metres, lies approximately 800 metres down plunge from the impressive, high grade gold intervals previously released from the Company's newest discovery, the ODM Zone. Due to the similar nature of both the host rock and gold mineralization between the ODM Zone and the deeper intersection in this hole, the exploration potential for a large gold resource is greatly enhanced.

Drill crews and field personnel have now mobilized at the site in preparation for the resumption of drilling using three rigs scheduled to begin January 16, 2007. Initially, drilling will focus on the definition of the ODM Zone, testing the 17 Gold Trend westerly toward the Beaver Pond Zone and defining the 433 Zone. As well, a recently completed down hole Pulse EM survey probing the four deep holes completed in the southern part of the property has highlighted a conductive response that may be caused by massive sulphides. This geophysical conductor will be drill tested. Finally, several high priority gold and base metal targets have emerged from the Company's systematic mapping and prospecting program conducted in the Off Lake area last summer. At least six drill holes are planned for the Off Lake area later in the campaign.

Quality Control

Rainy River has implemented quality assurance/quality control (QA/QC) procedures for the drill program that has recently described in detail in the December 04, 2006 news release. Mr. Baker, PEng., is the Qualified Person (QP) for the Rainy River Project and the person responsible for the contents of this release.

Nelson W. Baker



TABLE 1: SUMMARY OF MAIN INTERSECTIONS
#17 ZONE
NR06-121 (ODM Zone)
NR06-122, 129, 132, 125, 127 (17 Zone, east end)
NR06-123, 124 (Upper Contact)

NR06-121 dip -80 depth 1408 metres (200 metres west of NR06-108)
4 gold zones intersected

-----------------------------------------------
From To Length(m) g/t Au
-----------------------------------------------
Zone 1 669.4 672.1 2.7 4.02
-----------------------------------------------
Zone 2 946.0 955.0 9.0 1.47
-----------------------------------------------
Zone 3 1328.5 1333.0 4.5 1.38
-----------------------------------------------
Zone 4 1355.7 1360.0 4.3 8.02
-----------------------------------------------


NR06-122 dip -71 depth 599 metres (50 metres south of NR06-70)
1 gold zone intersected

-----------------------------------------------
From To Length(m) g/t Au
-----------------------------------------------
Zone 1 431.0 434.0 3.0 1.02
-----------------------------------------------


NR06-129 dip -71 depth 480 metres (30 metres south of NR06-114)
1 gold zone intersected

-----------------------------------------------
From To Length(m) g/t Au
-----------------------------------------------
Zone 1 252.4 257.0 4.5 1.08
-----------------------------------------------


NR06-132 dip -71 depth 550 metres (30 metres south of NR06-129)
6 gold zones intersected

-----------------------------------------------
From To Length(m) g/t Au
-----------------------------------------------
Zone 1 252.5 258.5 6.0 1.17 17 Zone
Zone 2 288.5 293.0 4.5 9.81
Zone 3 332.0 336.5 4.5 1.08
Zone 4 368.0 374.0 6.0 1.06
Zone 5 390.5 399.5 9.0 1.13
Zone 6 411.5 422.0 10.5 1.71


NR06-125 dip -61 depth 300.7 metres (120 metres east of NR06-113)
2 gold zones intersected

-----------------------------------------------
From To Length(m) g/t Au
-----------------------------------------------
Zone 1 146.0 182.0 36.0 1.12 17 Zone
Incl. 146.0 149.0 3.0 4.18
Incl. 153.5 158.0 4.5 3.60
Zone 2 188.0 195.4 7.4 0.85
-----------------------------------------------


NR06-123 dip -61 depth 362 metres (130 metres NE of NR06-108)
1 gold intersection

-----------------------------------------------
From To Length(m) g/t Au
-----------------------------------------------
Zone 1 447.5 449.0 1.5 1.34
-----------------------------------------------


NR06-124 dip -61 depth 320.0 metres (60 metres east of NR06-123)
No significant gold intersections

Note: All core intervals listed in Table 1 are estimated to true widths and
all gold values are uncut.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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