Rainy River Resources Ltd.

Rainy River Resources Ltd.

August 18, 2008 08:30 ET

Rainy River Announces Normal Course Issuer Bid

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2008) - The Board of Directors of Rainy River Resources Ltd. (TSX VENTURE:RR) (the "Company") announced today that it has filed with the TSX Venture Exchange a notice of intention to make a normal course issuer bid (the "Bid") for certain of its Common shares. Pursuant to the Bid, the Company intends to purchase, through the facilities of the TSX Venture Exchange, up to 2,000,000 of its outstanding Common shares. The Company anticipates that the Bid will commence by August 25, 2008 and will terminate by August 25, 2009. The Company has 57,633,190 Common shares outstanding. The shares that may be purchased under the Bid represent approximately 3.47% of the Company's outstanding Common shares. The actual number of shares that may be purchased and the timing of any such purchases will be determined by the Company. Purchases pursuant to the Bid will be conducted through Canaccord Capital Corporation, and the price that the Company will pay for the shares will be the market price at the time of the purchase. All shares purchased under the Bid will be cancelled.

Said Rainy River President Nelson Baker, "We believe that recent market prices of our Common shares do not properly reflect the underlying value of the Company. With our positive drilling results to date and a treasury of $34.1 million which we estimate will be more than enough to fund operations for the next two years, we believe that the issuer bid is in the best interest of our shareholders. It will provide some liquidity for those shareholders who wish to dispose of their shares and enhance the potential future value of the shares which remain outstanding."

The proposed Bid remains subject to the prior acceptance of the TSX Venture Exchange. Following acceptance by the TSX Venture Exchange, shareholders may obtain a copy of the completed Bid notice, without charge, by contacting the Company.

On behalf of the Board of Directors of Rainy River Resources Ltd.

Nelson W. Baker, President

Forward-Looking Statements: his press release contains forward-looking statements within the meaning of Canadian securities laws applicable to the Company's disclosures, regarding the proposed purchase of up to 2 million Company Common shares pursuant to an issuer bid and the adequacy of its current working capital position. While the Company believes that the proposed issuer bid is likely to proceed and to be completed, it can give no assurance that its expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions that any forward-looking statements made by the Company are not guarantees of future results, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, unanticipated changes in the market for the Common shares or the Company's inability to obtain the necessary TSXV acceptance to proceed with the proposed bid. Readers are urged to review the Company's public filings available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of the risk factors associated with the Company's business and their potential effects. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities.

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

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