Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

June 16, 2009 08:00 ET

Rainy River Resources Ltd.: Infill Drilling Between ODM/17 and HS/433 Zones Yields Robust Gold Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2009) - Rainy River Resources Ltd. (TSX VENTURE:RR) (the "Company") is pleased to report gold results from 19 holes drilled within the northern portion of the conceptual mine pit in the area of the 433 Zone subsequent to Hole NR08-318, the final hole included in the resource estimate reported in the Company's May 27, 2009 news release. SRK Consulting (Canada) Inc. estimated NI43-101 compliant gold resources at 2.2 million ounces in the indicated category and 1.8 million ounces in the inferred category for a total of 4.0 million ounces. Four of the 19 new drill holes, Nos. 320, 332, 334 and 335, were briefly mentioned in the Company's March 26 news release. Significant gold-bearing intervals from all 19 holes are shown in Table 1 and the hole locations can be viewed on the Company's website at www.rainyriverresources.com.

The 433 Zone

The 433 Zone is 400 m north of and stratigraphically underlies the main ODM/17 Zone in the south-dipping caldera dacite sequence. Approximately 10 percent of the established resources occur in the 433 Zone. This zone is distinctly elongated rather than tabular like the ODM/17 Zone, with a width (strike extent) of 150 m, a plunge length exceeding 400 m and possibly reaching 2000 m based on widely spaced deep drill holes, and a variable thickness of 10 to 70 m. The elongated form suggests that the gold may have been concentrated at the intersection between the horizontal strata of the paleocaldera and a subvertical fissure. At the 400 m level, the zone is cut by a diabase dyke. The thinner HS Zone and several mineralized lenses occur between the 433 and ODM/17 Zones.

Drill Results

The 19 new holes targeted the area above the 400 m level because the conceptual pit depth in this area is 350 m. The deepest holes - those furthest to the south - were collared on or immediately south of the ODM/17 Zone and crosscut the top of this zone as well as the HS and 433 Zones and intervening gold lenses.

All holes returned significant gold intersections and most holes intersected more than one gold zone or lens. Major intersections from the top of the ODM/17 Zone include 48 m of 0.99 g/t gold in Hole 334, 31.5 m of 1.38 g/t in Hole 344, 18 m of 3.07 g/t plus 10.5 m of 2.33 g/t in Hole 356 and 60 m of 2.25 g/t in Hole 357. Holes 334 and 344 were collared directly over the ODM/17 Zone and thus clipped only the north side of the zone whereas Holes 356 and 357 cut the entire zone. Importantly, the average grade of these new intersections is considerably higher than both the 1.24 g/t average for the current indicated resources and 0.88 g/t average for the inferred resources. This positive enrichment trend mirrors the trend identified in the resource update, where infill drilling significantly improved the resource grade. Obtaining such robust intersections at the top of the ODM/17 Zone is noteworthy because this part of the resource would be developed first, accelerating payback of initial capital costs.

Notable intersections obtained from the 433 Zone, or the interval encompassing both the 433 and HS Zones and/or intervening mineralized lenses, include 21 m of 2.55 g/t gold in Hole 319, 51.7 m of 1.93 g/t in Hole 320, 12 m of 1.33 g/t in Hole 321, 16.5 m of 1.31 g/t in Hole 326, 41.6 m of 1.62 g/t in Hole 332, 16 m of 1.17 g/t in Hole 334, 10.5 m of 2.06 g/t in Hole 335, 67.5 m of 1.26 g/t in Hole 342, 17.8 m of 2.61 g/t in Hole 344, 10.5 m of 2.33 g/t plus 13.5 m of 1.58 g/t plus 15 m of 3.23 g/t in Hole 356, and 9 m of 3.43 g/t plus 13.5 m of 1.04 g/t in Hole 357. Again, most of these intercepts are thick, significantly exceed resource grade and are relatively close to surface in the area that would be developed during the early years of an open pit mining operation.

Management's Assessment

Management of Rainy River Resources is very pleased with the robust results being obtained in the shallow, northern portion of the conceptual pit shell lying between the ODM/17 and 433 Zones and will continue to aggressively drill this area. The shallow depth of the resources here, in combination with the apparent improvement in grade being obtained from the infill drilling, implies accelerated payback of capital costs. Moreover, some of the intermediate lenses that are being intersected within the pit shell are sizeable and well mineralized and should contribute significantly to the overall gold resources.



Table 1

----------------------------------------------------------------------------
Core
From To Length Au
Hole (m) (m) (m) (g/t) Zone
----------------------------------------------------------------------------
NR09-319 197.0 218.0 21.0 2.55 HS
Incl. 212.0 215.0 3.0 12.73 HS
290.0 309.5 19.5 0.62 433
344.8 347.0 2.2 1.16 FW LENS
----------------------------------------------------------------------------
NR09-320(i) 188.8 240.5 51.7 1.93 433
Incl. 192.5 198.5 6.0 3.67 433
Incl. 230.0 237.5 7.5 5.97 433
----------------------------------------------------------------------------
NR09-321 152.0 156.5 4.5 0.96 HS
168.5 170.0 1.5 1.46 LENS
203.0 204.5 1.5 1.23 LENS
279.5 291.5 12.0 1.33 433
317.0 318.5 1.5 1.66 LENS
----------------------------------------------------------------------------
NR09-323 290.0 293.0 3.0 2.47 433
323.0 336.5 13.5 0.98 433
344.0 347.0 3.0 3.14 433
374.0 378.5 4.5 2.14 433
398.0 401.0 3.0 1.12 433
467.0 468.5 1.5 1.31 433
285.5 287.0 1.5 1.63 LENS
309.5 342.5 33.0 0.83 433
570.5 572.0 1.5 3.34 FW LENS
587.0 588.5 1.5 4.16 FW LENS
----------------------------------------------------------------------------
NR09-324 219.5 236.0 16.5 0.95 HS
285.5 287.0 1.5 1.63 LENS
309.5 342.5 33.0 0.83 433
570.5 572.0 1.5 3.34 LENS
587.0 588.5 1.5 4.16 LENS
----------------------------------------------------------------------------
NR09-326 230.0 233.0 3.0 5.78 HS
399.5 416.0 16.5 1.31 433
----------------------------------------------------------------------------
NR09-331 59.0 129.5 70.5 0.83 433
Incl. 0.00 10.5 10.5 2.60 433
281.0 341.0 22.5 0.70 433
363.5 372.5 9.0 0.86 433
401.0 413.0 12.0 0.90 433
----------------------------------------------------------------------------
NR09-332(i) 96.5 98.0 1.5 26.66 HS
137.0 141.5 4.5 1.62 HS
224.0 225.5 1.5 7.43 433
248.0 249.5 1.5 3.03 433
267.5 281.0 13.5 0.84 433
320.0 327.5 7.5 0.66 433
363.5 405.5 41.6 1.62 433
Incl. 398.3 405.5 7.2 7.52 433 H-GRADE
----------------------------------------------------------------------------
NR09-333 194.0 207.5 13.5 0.43 HS/433
NR09-334(i) 59.0 107.0 48.0 0.99 17 ZONE
Incl. 89.5 99.5 10.0 2.17 17 ZONE
114.5 150.5 36.0 0.86 17 ZONE
286.6 293.0 6.4 0.60 LENS
309.5 325.5 16.0 1.17 HS
Incl. 309.5 315.5 6.0 1.84 HS
332.0 333.5 1.5 1.47 LENS
354.5 359.0 4.5 1.14 LENS
379.0 402.5 23.5 0.75 433
423.5 434.0 10.5 1.28 433
444.5 452.0 7.5 2.11 433
473.0 477.8 4.8 0.91 433
----------------------------------------------------------------------------
NR09-335(i) 257.0 267.5 10.5 2.06 HS
258.5 263.0 4.5 3.12 433
----------------------------------------------------------------------------
NR09-336 49.0 56.0 7.0 0.80 HS
81.5 89.0 7.5 0.88 HS
143.0 144.5 1.5 1.44 LENS
215.0 222.5 7.5 0.72 LENS
237.5 252.5 15.0 0.57 433
263.0 266.0 3.0 1.01 433
297.5 303.5 6.0 1.07 433
428.9 437.0 8.1 0.57 433
----------------------------------------------------------------------------
NR09-341 98.0 104.0 6.0 2.06 433
150.0 152.0 2.0 2.55 433
178.0 182.0 4.0 1.39 433
191.0 201.5 10.5 0.86 433
213.5 233.0 19.5 0.67 433
252.0 253.1 1.1 51.13 FW LENS
----------------------------------------------------------------------------
480.5 482.0 1.5 1.50 FW LENS
NR09-342 63.5 131.0 67.5 1.26 433
Incl. 125.0 131.0 6.0 8.91 433
----------------------------------------------------------------------------
NR09-344 68.0 105.5 37.5 1.38 17 ZONE
Incl. 89.0 93.5 4.5 6.36 17 ZONE
216.5 221.0 4.5 1.75 HS
278.0 279.5 1.5 1.12 HS
473.2 491.0 17.8 2.61 433
Incl. 483.5 491.0 7.5 5.22 433 H-GRADE
----------------------------------------------------------------------------
NR09-345 50.0 51.5 1.5 3.97 17 ZONE
57.5 86.0 28.5 0.78 17 ZONE
98.0 105.5 7.6 1.46 HS
357.5 369.5 12.0 3.47 433
Incl. 357.5 360.5 3.0 11.41 433 H-GRADE
272.0 275.0 3.0 14.62 HS
----------------------------------------------------------------------------
NR09-346 65.0 93.5 27.0 1.56 17 ZONE
Incl. 89.0 93.5 4.5 7.48 17 H-GRADE
117.5 164.0 46.5 0.49 17 ZONE
----------------------------------------------------------------------------
NR09-356 98.0 116.0 18.0 3.07 17 ZONE
Incl. 111.5 116.0 4.5 10.31 17 H-GRADE
167.0 177.5 10.5 2.33 HS
Incl. 170.0 174.5 4.5 4.72 HS
195.5 209.0 13.5 0.87 LENS
240.5 254.0 13.5 0.90 LENS
497.0 510.5 13.5 1.58 433
527.0 542.0 15.0 3.23 433
Incl. 537.5 542.0 4.5 8.44 433 H-GRADE
----------------------------------------------------------------------------
NR09-357 140.0 200.0 60.0 2.25 17 ZONE
Incl. 179.0 189.5 10.5 5.28 17 ZONE
257.0 266.0 9.0 3.43 HS
414.5 428.0 13.5 1.04 433
----------------------------------------------------------------------------

Note: All mineralized intervals in Table 1 are estimated to be close to true
width and gold values listed are uncut. The four holes designated with
an (i) have been previously reported.


Qualified persons

Rainy River's exploration program in Richardson Township is being supervised by Stuart Averill, P.Geo. Vice-President Exploration and is being managed by Wally Rayner, P.Geo., Project Manager, both Qualified Persons within the meaning of National Instrument 43-101. The Company's regional exploration manager, C.J. Baker, M.Sc., is managing the Company's Off Lake exploration program 15 km to the northeast. Nelson W. Baker, P.Eng. is the Qualified Person for the project and Stuart Averill is the person responsible for the contents of this news release. The Company continues to implement a rigorous QA/QC program to ensure best practices in sampling and analysis of drill core. The procedures of the QA/QC program are detailed on Rainy River's website at www.rainyriverresources.com.

About Rainy River Resources Ltd.

Rainy River Resources is a Canadian precious metals exploration company whose key asset is the Rainy River gold project. With a $22 million treasury, the Company is well funded to conduct a dual-focused program consisting of: 1) definition diamond drilling of the main gold resource with accompanying scoping-style studies, and 2) selective diamond drill testing of high-priority gold targets defined primarily by RC drilling within the large gold system centered in Richardson Township. The Company's property is extremely well located in the southwestern corner of northern Ontario near the U.S. border. It is accessed by a network of roads and is close to hydro-electric infrastructure. The Rainy River district has a skilled labour force and is one of the lowest-cost areas for mineral exploration and development. Ontario has low political risk and, according to the annual Fraser Institute global survey of the mining industry, has consistently ranked as one of the top jurisdictions embracing mineral development.

RAINY RIVER RESOURCES LTD.

Stuart A. Averill, Vice-President, Exploration

This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

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

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