Rye Patch Gold Corp.
OTC Bulletin Board : RPMGF

Rye Patch Gold Corp.

February 05, 2010 14:51 ET

Rye Patch Gold Corp. Issues Shares and Warrants to Finder in Substitution for Compensation Option

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 5, 2010) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCBB:RPMGF) ("Rye Patch" or the "Company") announces that in connection with its recently completed non-brokered private placement (the "Private Placement"), the Company issued an option (the "Compensation Option") to a corporation (the "Finder") at arm's length to the Company to purchase up to 721,000 units of the Company. The Compensation Option was issued to the Finder as a finder's fee in connection with the Private Placement, which was completed on January 7, 2010.

Subject to the approval of the TSX Venture Exchange, the Compensation Option will be returned to the Company for cancellation and the Company will, in substitution for the Compensation Option, issue to the Finder a total of 721,000 common shares ("Common Shares") of the Company and 360,500 non-transferable common share purchase warrants ("Warrants") of the Company (collectively, the "Finder's Securities"). Each Warrant will entitle the Finder to purchase one Common Share at a price of $0.35 for a period of two years from the Private Placement closing date.

The Common Shares and Warrants comprising the Finder's Securities, and the Common Shares underlying the Warrants, are subject to a hold period that expires four months and one day from the date of issuance of the Finder's Securities.

Rye Patch Gold Corp. 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 project located within the emerging Oreana gold trend in west-central Nevada and the Jessup project in Churchill County, 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 Howald'

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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