Rye Patch Gold Corp.
TSX VENTURE : RPM
OTC Bulletin Board : RPMGF

Rye Patch Gold Corp.

December 17, 2010 09:15 ET

Rye Patch Gold Claims Additional Lands Along the Oreana Trend and Hires IR Consultant for European Markets

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2010) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCBB:RPMGF) ("Rye Patch" or the "Company") reports it has staked an additional 6.5 square kilometers along the Oreana trend. The claims cover the southern extension of a regionally mineralized stratigraphic contact within the Auld Lang Syne formation which is the host to the Section Line discovery at the Wilco property. Claims are located immediately south of the Wilco property in T27N, R32 E, Sections 12 and 14, and T27N, R33E, Section 18.

Within the 100% owned claims, several targets are present. The extension of the lithologic contact between claystone and siltstone has been mapped on the new claims. This target hosts the same stratigraphic and structural package as the Section Line discovery at Wilco. Mineralization at Section Line is hosted at the lithologic contact between the claystone and siltstone rock package. The upper zones are hosted within reactive siltstone units above the main contact zone. The bulk of the Section Line discovery is within the hinge zone of an east-west trending anticline. High-grade gold has been drilled on the north side of the anticline along east-northeast trending high-angle feeder zones within the North Basin target area. A core drill program is underway at Wilco to further test the high-grade gold zone.

A second target, identified through mapping, is a diatreme breccia. Several diatremes have been identified along the Oreana trend including Midway Gold's and Barrick's Spring Valley deposit located to the northeast along the Oreana trend. The outcrop exposure of the diatreme is 300 metres in a north-south direction by 425 metres in an east-west direction. The breccia contains weakly silicified clasts within a clay-altered and limonite stained matrix. On the north side of the breccia, several intrusive dykes and sills have been mapped. The sills appear to dip inward toward the diatreme while the dykes have a preferred north-south orientation. Geographically, the diatreme breccia forms the divide between a northeast and northwest trending drainage basin.

"The new zones are located on ground staked by Rye Patch Gold and show the Oreana trend has significant upside potential. At Wilco, the stratigraphic contact controlling the Section Line gold deposit is an important ore controlling component to the mineralization. Finding and mapping the diatreme breccias is an added bonus. The concept that a large porphyry-like system at depth is driving the gold and silver deposits in the district and along the Oreana trend is plausible," stated William C. (Bill) Howald, the Company's CEO and President.

The targets were identified through reconnaissance mapping along the regional stratigraphic contact zone. Additional detailed mapping and lithogeochemical sampling program is planned. The follow-up program will start immediately in the New Year with the intent to drill the targets in late summer.

As announced on May 18, 2010, May 11, 2009, and June 2, 2009 in respect of the Lincoln Hill, Wilco, and Jessup projects, Rye Patch Gold's resource inventory now totals 1,182,780 ounces of gold and gold equivalent in the measured and indicated category plus 2,727,100 ounces of gold and gold equivalent in the inferred category. The following table summarizes Rye Patch Gold's precious metal inventory in Nevada, USA.

Rye Patch Gold's NI 43-101 Resource Inventory(1)
Property   Tonnes (X 1,000) Gold Grade (g/t) Silver Grade (g/t) Contained Gold Ounces Contained Silver Ounces Contained Au & Au Equivalent Ounces(4)
Resource
Category 
Wilco(2) Measured 7,526 0.69 4.595 164,000 1,111,000 186,220
Indicated 30,844 0.51 3.601 522,000 3,638,000 594,760
Inferred 121,838 0.41 5.075 1,660,000 19,871,000 2,057,420
Jessup(2) Measured 7,775 0.51 8.745 128,000 2,184,000 171,680
Indicated 12,642 0.41 7.167 172,000 2,906,000 230,120
Inferred 4,494 0.55 7.922 77,000 1,146,000 99,920
Lincoln Hill(3) Measured - - - - - -
Indicated - - - - - -
Inferred 17,215 0.69 17.143 380,000 9,488,000 569,760
Total Measured & Indicated Resources 986,000 9,839,000 1,182,780
Total Inferred Resources 2,117,000 30,505,000 2,727,100
(1) All resources on 100% basis. Metallurgical recoveries and net smelter returns are assumed to be 100%. Conforms to 43-101 resource definitions;
(2) Cutoff grade for Wilco Measured and Indicated resource is reported at 0.2 g/t Au for oxide mineralisation and 1.45 g/t Au for sulphide mineralisation. The Inferred resource cut-off grade is reported at 0.2 g/t Au for oxide, sulphide and carbonaceous ore types; however, a higher opt Au cut-off grade may be required to upgrade the inferred resource to the measured and indicated resource category. Cut-off grade for Jessup is reported at 0.2 g/t Au for oxide mineralisation and 0.34 g/t Au for transition and sulphide mineralisation; and
(3) The Inferred resource is reported at a cut-off grade of 0.34 g/t (0.01 opt) Aueq for oxide and transitional ore types;
(4) Wilco, Jessup and Lincoln Hill resources includes Au equivalent ounces (Aueq.); where Aueq. = (Au ozs) + (Ag ozs X $Ag/oz)/$Au/oz, for Au/oz = $900, and Ag/oz = $18.

Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch Gold's CEO and President, is a Qualified Person as defined under National Instrument 43-101. He has verified the information contained in, and has reviewed and approved the contents of, this news release.

The Company also announces that it has retained the services of Sigorex Management GmbH ("Sigorex") as a consultant to promote investor relations in Europe. Sigorex is a german-based investor relations company whose Managing Director is Markus Kaempf.

Sigorex's engagement will commence on January 1, 2011 for a one-year term. In consideration for Sigorex's services, Rye Patch Gold has agreed to pay Sigorex an initial setup fee of EU15,000 and a monthly fee of EU5,000. Sigorex will assist in developing communications packages, organizing and making presentations, representing the Company at trade shows, liaising with the investment community, introducing the management of the Company to investors, and assisting in the presentation of information to those potential investors.

Subject to the approval of the TSX Venture Exchange (the "Exchange"), the Company will grant to Sigorex a stock option to acquire up to 200,000 common shares of the Company at an exercise price of $0.40 per share for a 5 year term and vesting in accordance with the policies of the Exchange.

Other than 100,000 common shares of Rye Patch Gold held by Sigorex prior to the date hereof and the aforementioned grant of the stock option, none of Sigorex and Markus Kaempf owns any securities of, or holds any interest in, Rye Patch Gold, or has any right or intent to acquire any securities of, or interest, in the Company.

Rye Patch Gold Corp. is exploring well-known mineral trends in Nevada - the world's fourth-richest gold region. Starting with 150,000 inferred ounces of gold in mid-2007, this well-funded Company now has 1.2-million ounces of gold and gold equivalent in the measured and indicated category, plus 2.7-million ounces of gold and gold equivalent in the inferred category. Rye Patch Gold is a Tier 1, Nevada-focused and discovery-driven company seeking to build a sizeable inventory of gold and silver resource 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 and silver projects. Rye Patch Gold is developing its primary assets – the advanced-stage Wilco, Lincoln Hill, Jessup, and Gold Ridge projects located along the emerging Oreana gold trend in west-central Nevada. The Company has established gold and silver resource milestones and time frames in order to build a premier resource development company. 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

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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