Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

November 01, 2006 08:30 ET

Rainy River Discovers New Gold Zone and Records Best Intersection to Date-43.0 Metres Grading 5.42 Grams Per Tonne Gold

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 1, 2006) - Nelson W. Baker, President of Rainy River Resources Ltd. (TSX VENTURE:RR) is pleased to report that a step-out drill hole (NR06-106), drilled in mid-September between the 17 Zone and the Beaver Pond Zone in an area with no historical drilling, has recorded an uncut grade of 5.42 g/t Au over a 43.0 metres with a core interval of 17.67 g/t Au over 9.50 metres which represents the best gold intersection recorded by the Company on the property to date. Furthermore, because of the widespread visible gold observed throughout the 43-metre interval, this new zone, named the ODM Zone, is considered to be a distinctly separate mineralized zone (i.e. not part of the 17 Zone).

Three additional holes have been drilled subsequently, NR06-111, NR06-115 and NR06-117, to test the down plunge extension of this zone and all have recorded the same style of mineralization. Assays for these holes are pending. As well, this release provides the results for four (4) "fill-in" holes NR06-100, NR06-101, NR06-103 and NR06-104, drilled into the 17 Zone above the -100 m level. The detailed results for all holes are listed in Table I below. The Rainy River project is centered in Richardson Township approximately 80 kilometres south of Kenora in northwestern Ontario.

HIGHLIGHTS:

- NR06-106 (ODM ZONE) intersects 43.0 metres grading 5.42 g/t Au

- NR06-101 (17 ZONE) intersects 37.5 metres grading 2.27 g/t Au

- NR06-100 (17 ZONE) intersects 18.0 metres grading 1.94 g/t Au

- NR06-105 (17ZONE) intersects 1.5 metres grading 10.35 g/t Au

The ODM Zone lies within a 3 km long gold trend that also hosts the 17, Beaver Pond and West zones. The visible gold mineralization in the ODM Zone (only rare VG was noted in the 17 Zone) is associated with pyrite, sphalerite, galena and lesser chalcopyrite veins hosted within an altered west-northwest trending pyroclastic unit. Importantly, the zone was intersected at a vertical depth of just over 100 m, greatly enhancing its economic potential.

As indicated in a previous release dated October 16, 2006, 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 five holes to be included in the resource are expected shortly. The Rainy River Project will continue to be aggressively explored with three drill rigs. Exploration focus is now on tracing the extent of the ODM Zone and exploring for other gold zones along the 3 km gold trend. 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 Rainy River Project and the person responsible for the contents of this news release.

Nelson W. Baker, President

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.



TABLE 1
SUMMARY OF MAIN INTERSECTIONS - ODM ZONE, 17 ZONE
NR06-106, 100, 101, 103, 104, 105

ODM ZONE
--------
NR06-106 dip -61 depth 452 metres
--------
2 gold zones intersected

Length
From to (m) g/t Au

Zone 1 236.0 239.0 3.0 5.52

Zone 2 248.0 291.0 43.0 5.42

Incl. 250.0 259.5 9.5 17.67


17 ZONE
-------
NR06-100 dip -51 depth 420 metres
(50 metres west of NR06-05)

2 gold zones intersected

Length
From to (m) g/t Au

Zone 1 114.0 115.5 1.5 4.13

Zone 2 143.0 161.0 18.0 1.94


NR06-101 dip -51 depth 361 metres
-------- (30 metres NE of NR06-102)

1 gold zone intersected

Length
From to (m) g/t Au

Zone 1 89.0 126.5 37.5 2.27


NR06-103 dip -71 depth 500 metres
-------- (30 metres east of NR06-47)

1 gold zone intersected

Length
From to (m) g/t Au

Zone 1 495.5 497.0 1.5 3.32


NR06-104 dip -61 depth 500 metres
-------- (30 metres west of NR06-73)

3 gold zones intersected

Length
From to (m) g/t Au

Zone 1 245.0 246.5 1.5 10.35

Zone 2 302.0 303.0 1.0 10.25

Zone 3 477.0 485.0 8.0 1.35


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


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