Rye Patch Gold Corp.

Rye Patch Gold Corp.

October 03, 2007 14:03 ET

Rye Patch Gold Corp. Completes Acquisition of the Jessup Project, Nevada From Midway Gold Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2007) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(TSX VENTURE:RPM.WT) ("Rye Patch Gold", or the "Company") is pleased to announce that it has completed the acquisition of the Jessup project from Midway Gold Corp. ("Midway"), previously announced on August 21, 2007.

The Jessup project is located in the historic Jessup mining district in Churchill County, Nevada, and is comprised of 36 unpatented mining claims owned by Rye Patch Gold and one patented mining claim and 99 unpatented mining claims held by Rye Patch Gold under leases with the various claim owners.

Rye Patch has also expanded the size of the property by the staking of 73 new unpatented mining claims.

A resource estimate for the Jessup project was prepared by Mine Development Associates (MDA) in February 1998, which reported 8,376,000 tons with a grade of 0.024 oz Au/ton, amounting to approximately 200,000 ounces of gold. The cut-off grade used for the estimate was 0.010 oz Au/ton.

This estimate was not classified under any of the categories of measured, indicated and inferred resources under National Instrument 43-101 ("NI 43-101") and is considered a historical estimate under NI 43-101. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and Rye Patch Gold is not treating the historical estimate as current mineral resources or mineral reserves as defined in NI 43-101. Accordingly, Rye Patch Gold cautions that this historical estimate should not be relied upon.

In addition, recent rock chip sampling completed by Rye Patch's technical team has returned gold values from altered outcrops found on the property. Of the 34 samples taken, six returned values greater than 4 grams per ton and two returned values greater than 16 grams per ton.

Dr. Radu Conelea, AIPG Certified Professional Geologist #06871, the Company's Chief Geologist, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has reviewed the technical disclosure in this press release.

As consideration for Midway's sale of the Jessup project to Rye Patch Gold, the Company issued to Midway a total of 2,000,000 units ("Units") of the Company, each Unit comprising of one common share ("Share") of the Company and one-half of one non-transferable common share purchase warrant ("Warrant"), with each whole Warrant entitling Midway to purchase one common share of Rye Patch Gold for a period of 24 months from the closing date at an exercise price of Cdn.$1.00. The TSX Venture Exchange has approved the sale of the Jessup project to Rye Patch Gold.

In addition to the TSX Venture Exchange's four month hold period, the Shares comprising the Units are subject to additional resale restrictions over two years commencing September 28, 2007 (the "Closing Date"), with 20% of the Shares to be released from such resale restrictions on the Closing Date and on the sixth, twelfth, eighteenth, and twenty-fourth month thereafter.

Rye Patch Gold has also reimbursed Midway for Midway's costs in connection with the Jessup project in the amount of US$246,367, which included advance royalty payments to underlying claim owners and claim maintenance fees.

Rye Patch Gold Corp. is a Nevada-focused and discovery-driven company building a sizeable inventory of gold assets in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in acquisition, exploration and development of quality resource-based gold deposits. Rye Patch Gold is developing its primary asset - the advanced-stage Wilco project located within the Humboldt Gold Trend in west-central Nevada, and has now acquired the Jessup project in Churchill County, Nevada.

Rye Patch Gold trades on the TSX Venture Exchange under the symbol RPM and the Company's warrants trade under the symbol RPM.WT. For more information about Rye Patch Gold, please visit our website at www.ryepatchgold.com.

On behalf of the Board of Directors

William C. (Bill) Howald, CEO & President

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

Contact Information