Grayd Resource Corporation

Grayd Resource Corporation
Rhyolite Resources Ltd.

September 10, 2007 12:00 ET

Rhyolite Mobilizes Drill to Delta Project, Alaska

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2007) - Rhyolite Resources Ltd. (TSX VENTURE:RYE) ("Rhyolite") and Grayd Resource Corporation (TSX VENTURE:GYD) ("Grayd") announce that a diamond drill has been mobilized to the Super Cub target of the Delta property in Alaska.

The initial 300 metre drill program is designed to test a gravity anomaly that was defined during the 2006 exploration program. The geophysical anomaly lies virtually straight up-hill from gold-rich, massive sulphide boulders in a talus that have returned assays averaging 12.2 grams gold per tonne, 222.2 grams silver per tonne, plus 0.8% copper, 11% lead and 7.5% zinc (Press Release March 19, 2007). The drill program is expected to test the anomaly from two drill sites that are spaced 100 metres apart.

To the south of the Super Cub target, the Delta property hosts a National Instrument 43-101 compliant inferred resource estimation of 15.4 million tonnes grading 3.8% zinc, 0.6% copper, 1.7% lead, 1.7 g/t gold and 62 g/t silver in seven deposits.

Through its US subsidiary, Rhyolite Resources (USA) Inc., Rhyolite can earn a 100% interest in the Delta property from Grayd by incurring $2.5 million in exploration expenditures by December 31, 2010 and make escalating stock payments totaling 5 million shares or, at its election, a number of shares with a deemed value at the time of issuance not to exceed $5 million, between 2008 and 2010. Grayd will retain a 2% NSR if Rhyolite vests.

Richard Graham P.Geol., President of Rhyolite, is a Qualified Person as defined by National Instrument 43-101, and is responsible for the preparation of the technical information in this release. All dollars are in Canadian currency unless otherwise stated.

Forward-Looking Statement

Some statements in this report contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, expenditures, transactions and financings. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, risks related to actual results of exploration activities, the timing and amount of expenditures and the completion of transactions and financings.

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

Contact Information

  • Rhyolite Resources Ltd.
    Richard Graham
    (604) 689-1428
    (604) 681-4692 (FAX)
    Grayd Resource Corporation
    Marc A. Prefontaine
    (604) 681-7446
    (604) 684-9877 (FAX)
    Freeform Communications Inc.
    (604) 288-7222