Rainy River Resources Ltd.

Rainy River Resources Ltd.

October 16, 2006 08:45 ET

Rainy Intersects 30.0 Meters Grading 4.48 Grams Per Tonne Gold, 98.42 Feet Grading 0.158 ozs Per Ton

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - Nelson W. Baker, President of Rainy River Resources Ltd. (TSX VENTURE:RR), is pleased to report the final results (see Table 1, below) of an additional five shallow holes (NR06-96, NR06-97, NR06-98, NR06-99 and NR06-102) that were drilled to intersect the near surface extension of the 17 Zone gold mineralization located in the southern half of Richardson Township. Drill hole NR06-102, the most easterly of the five holes (see location plan posted on our website www.rainyriverresources.com), was successful in intersecting an impressive true width interval of 30.0 metres grading 4.48 grams per tonne gold. Although the gold mineralization was well distributed throughout the 30.0-meter interval, two higher grade sections grading 9.11 grams per tonne gold over 9.0 metres and 5.92 grams per tonne gold over 19.5 metres were recorded. The Company's 100%-owned Rainy River Project lies about 80 kilometres south of Kenora, Ontario, in an under explored, poorly exposed greenstone belt area that has excellent infrastructure and which can be explored cheaply all year-round.





A sufficient number of drill holes have now been drilled into the 17 Zone above the -300 m level to provide an initial NI 43-101 resource estimate for this gold deposit. The final results for an additional ten holes into the 17 Zone are still pending. Many other holes that are peripheral to this resource estimate have demonstrated that the 17 Zone is open down plunge well below the -300 m level and along strike, and may link with the Beaver Pond Zone, 500 metres further to the west. The Rainy River Project will continue to be aggressively explored with three drill rigs. Future exploration focus will be on tracing the 17 Zone Gold Trend west toward the Beaver Pond Zone and to drill a number of untested priority targets previously defined within the large, 6 square kilometre gold system centered in Richardson Township. In addition, once the down-hole geophysical probe results are interpreted, one drill rig will be dedicated to tracing the westerly extension of the rich #34 Nickel Zone.

Quality Control

Rainy River has implemented the following quality assurance/quality control (QA/QC) procedures for the Rainy River Project drill program:

Core was logged then sawed in half, with one side bagged and labeled; the remaining half was placed in core boxes for a permanent record and stored on site. All samples were transported to ALS Chemex Laboratories Ltd. facility at Thunder Bay, ON for crushing and pulverization, with pulps then sent to the Val D'Or, Quebec and Vancouver, BC labs for analysis. All samples sent for analyses were prepared using a jaw crusher, which was cleaned with compressed air between samples. A 250-gram split of the crushed sample with 70% passing through a 10 mesh screen was pulverized with 85% passing through a 200 mesh screen. Fire assays were performed using 30-grams of sample with assays equal to or greater than 10 g/t calculated gravimetrically, and lower-grade samples measured by atomic absorption. Assays greater than 100 g/t were re-analyzed by fire assay using 50-grams of sample and measured gravimetrically. Multi-element analyses were performed using 1-gram of sample digestedin aqua regia and analyzed by inductively coupled plasma atomic emission (ICPAES). Blanks and Standards (one high grade and one low grade) were inserted sequentially at least every 20th sample into the drill core samples before shipment. All the blanks returned no significant gold values. Standards displayed standard deviations of less than 0.16 g/t Au and geometric means of +/- 1% of the known grade. Core sample size varied from 0.5 to 2.0 metres with an average sample size of 1.14 metres. Quality control was monitored using a high grade (5.911 g/t Au) and low grade (1.315 g/t Au) gold standard from Rocklabs Ltd. as well as a locally sourced crushed blank.

Nelson W. Baker, P.Eng. is the Qualified Person for the Project and the person responsible for the contents of this news release.

Nelson W. Baker, President

Rainy River Resources Ltd.

The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from targeted results. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The Company relies upon litigation protection for forward-looking statements.

NR06-102, 96, 97, 98, 99

NR06-102 dip -51 depth 368 metres (30 metres east of NR06-95)
1 gold zone intersected
From to Length (m) g/t Au
Zone 1 123.5 153.5 30.0 4.48
Incl. 123.5 143.0 19.5 5.92
Incl. 128.0 137.0 9.0 9.11

NR06-96 dip -51 depth 302 metres (30 metres west of NR06-95)
2 gold zones intersected
From to Length (m) g/t Au
Zone 1 217.5 239.0 13.4 2.40
Zone 2 236.2 239.0 2.8 5.53

NR06-97 dip -51 depth 302 metres (50 metres west of NR06-94)
2 gold zones intersected
From to Length (m) g/t Au
Zone 1 185.0 192.5 7.5 1.01
212.0 216.5 4.5 1.25

NR06-98 dip -51 depth 300 metres (30 metres north of NR06-94)
1 gold zone intersected
From to Length (m) g/t Au
Zone 1 100.5 106.5 6.0 1.50

NR06-99 dip -51 depth 302 metres (30 metres west of NR06-96)
2 gold zones intersected
From to Length (m) g/t Au
Zone 1 168.5 183.5 15.0 1.32
Zone 2 230.0 239.0 9.0 2.37
Note: All core intervals listed in Table 1 are estimated to be true
widths and all gold values reported are uncut.

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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