TORONTO, ONTARIO--(Marketwire - May 29, 2012) - Rainy River Resources Ltd. ("Rainy River" or the "Company") (TSX:RR) is pleased to announce assay results from the Rainy River Gold Project ("RRGP") in northwest Ontario. Results are summarized in Table 1.

HIGHLIGHTS

• Down plunge drilling designed to demonstrate grade continuity within both the starter pit and main pit returns 4.5 g/t gold and 5.7 g/t silver over 55.5 metres and 3.3 g/t gold and 2.1 g/t silver over 349 metres.
• Down plunge drilling within the CAP Zone also demonstrates excellent grade continuity.
• Infill drilling program for Feasibility Study now complete, with project drilling in 2012 totalling 108 km.
• High Grade Silver Zone continues to produce consistent silver grades over significant widths.

To view Map 1, please visit the following link: http://media3.marketwire.com/docs/RRRMap1.pdf

To view Map 1A, please visit the following link: http://media3.marketwire.com/docs/RRRMap1A.pdf

To view Map 1B, please visit the following link: http://media3.marketwire.com/docs/RRRMap1B.pdf

To view Map 2, please visit the following link: http://media3.marketwire.com/docs/RRRMap2.pdf

To view Map 3, please visit the following link: http://media3.marketwire.com/docs/RRRMap3.pdf

To view Map 4, please visit the following link: http://media3.marketwire.com/docs/RRRMap4.pdf

GRADE CONTINUITY DRILLING IN-PIT

As part of an ongoing effort to demonstrate continuity along the plunge trend of the deposit and to continue to move high quality ounces to the measured category, several down plunge holes have been drilled within the ODM Zone (medium grade to high grade zones) and within the CAP Zone. Results are tabulated for the first holes in each of these zones, and demonstrate excellent grade continuity.

NR121236 was drilled for 702 metres along the plunge of the ODM Zone and entirely within the open pit. Controlled drilling was employed to steer the hole; however, the hole did exit and re-enter the main trend throughout its course. NR121236 intersected 4.5 g/t gold and 5.7 g/t silver over 55.5 metres from 55.5 to 111.0 metres down-hole and within the envisioned starter pit. The hole re-entered the higher grade portion of the ODM Zone at 255 metres down hole, and remained on target for the next 349 metres, returning an average grade of 3.3 g/t gold and 2.1 g/t silver over the entire length.

NR121176 was designed to test for down plunge continuity within the CAP Zone. Significant intersections included 40.5 metres grading 1.4 g/t gold and 5.3 g/t silver from 31 to 71.5 metres down-hole, 22.5 metres grading 1.1 g/t gold and 4.6 g/t silver from 97.5 to 120 metres down-hole, and 1.0 g/t gold and 4.7 g/t silver over 29.5 metres from 252.5 to 282 metres down hole.

INFILL DRILLING

Since the February 24, 2012 National Instrument 43-101 compliant resource estimate, Rainy River Resources has continued to systematically target all remaining inferred resources within the open pit for upgrading, and possible inclusion in, the Feasibility Study. Approximately 675,000 ounces of inferred material remained to be targeted for the conversion to the higher confidence categories of measured and indicated, including the above noted holes. The Company has now completed its infill program in preparation for its Feasibility Study, with drilling in 2012 totalling 108 km and project drilling to-date totalling 686 km. Selected results within the open pit include:

ODM

• 5.8 g/t gold and 2.8 g/t silver over 51.0 metres at a vertical depth of 100 metres in NR121024;
• 1.7 g/t gold and 1.7 g/t silver over 47 metres at a vertical depth of 110 metres in NR121030;
• 2.9 g/t gold and 1.5 g/t silver over 37 metres at a vertical depth of 116 metres in NR121050; and
• 1.8 g/t gold and 2.0 g/t silver over 57.0 metres at a vertical depth of 104 metres in NR121177.

BP Zone

• 8.1 g/t gold and 4.6 g/t silver over 16.5 metres at a vertical depth of 99 metres in NR121152, including 78.6 g/t gold and 10.7 g/t silver over 1.5 metres; and
• 34.9 g/t gold and 24.8 g/t silver over 3.0 metres at a vertical depth of 253 metres in NR121130.

433 Zone

• 1.1 g/t gold and 2.9 g/t silver over 67.5 metres at a vertical depth of 124 metres in NR121117;
• 2.0 g/t gold and 0.8 g/t silver over 12.0 metres at a vertical depth of 304 metres in NR121164; and
• 1.6 g/t gold and 2.9 g/t silver over 18.0 metres at a vertical depth of 90 metres in NR121131.

HS

• 1.4 g/t gold and 0.5 g/t silver over 25.5 metres at a vertical depth of 124 metres in NR121143; and
• 1.9 g/t gold and 2.6 g/t silver over 6.0 metres at a vertical depth of 131 metres in NR121162.

17 Zone

• 2.2 g/t gold and 19.2 g/t silver over 17.0 metres at a vertical depth of 158 metres in NR121061; and
• 0.9 g/t gold and 1.7 g/t silver over 51.0 metres at a vertical depth of 190 metres in NR121190.

Cap Zone

• 25.2 g/t gold and 124.0 g/t silver over 1.5 metres at a vertical depth of 162 metres in NR121174; and
• 1.9 g/t gold and 6.2 g/t silver over 21.0 metres at a vertical depth of 302 metres in NR121214.

South Zone

South Zone is located to the southwest and adjacent to the Cap Zone. South Zone diamond drilling within the pit intersected:

• 12.9 g/t gold and 2.8 g/t silver over 4.5 metres at a vertical depth of 33 metres in hole NR121032; and
• 74.1 g/t gold and 4.4 g/t silver over 1.5 metres at a vertical depth of 40 metres in hole NR121235.

Silver Zone

Infill drilling continued to confirm consistent silver grades over significant widths within the newly discovered Silver Zone. The February 24, 2012 NI 43-101 Mineral Resource Statement calculated 654,790 ounces of silver in the indicated category at a 1.07 g/t gold-equivalent grade totaling 14,570 gold-equivalent ounces.

Significant new results include NR11944E intersecting 119.8 g/t silver and 0.2 g/t gold over 17.0 metres at a vertical depth of 202 metres and NR12188 intersecting 110.1 g/t silver and 0.2 g/t gold over 15.0 metres at a vertical depth of 246 metres.

Exploration Update

With the infill program complete, Rainy River Resources will now focus its exploration efforts on developing deeper targets and extensions of all mineralized zones at depth. The Company will immediately begin the demobilization of the drill fleet dedicated to the infill program. Six diamond drill rigs will be demobilized by May 31, and a seventh rig will be demobilized in early September. The Company will continue its exploration activities with the five diamond drill rigs at site.

COMMENTARY

Raymond Threlkeld, President and CEO of Rainy River Resources Ltd., commented: "The infill results released today continue to show the consistency of the mineralization within the conceptualized pit of the Rainy River Gold Project. In particular, the intersection of 3.3 g/t gold over 349 metres in NR 121236 shows how continuous the mineralization is down plunge; this is an excellent result for the project. We are very excited to have concluded our infill program with all of the required drilling completed for the Feasibility Study. We will release the remaining assays from the program when we receive those results."

"Most recently, we commenced the Project Environmental Assessment with the filing of our proposed Terms of Reference for the Provincial process, and the filing of the draft Project Description for the Federal process. As Rainy River continues down the development track, we anticipate releasing our revised Preliminary Economic Assessment in early Q3, followed by a resource update, incorporating the infill program to-date, by late summer. The Feasibility Study will in turn incorporate this resource update and is targeted for release in the first half of 2013."

Qualified persons

Rainy River's exploration program in Richardson Township is being supervised by Kerry Sparkes, P.Geo., Vice-President Exploration, a Qualified Person as defined by National Instrument 43-101. Mr. Sparkes P.Geo. is also the person responsible for the content of this news release. The Company has a rigorous QA/QC program in place to ensure best practices in sampling and analysis of drill core. All drill core is marked for sampling and then split in half with a diamond saw blade. Samples are placed in sealed bags with security tags. All samples were assayed using a standard fire assay, 30 gram nominal sample weight with an AA finish. Over-limit samples were re-assayed with a gravimetric finish. Samples with visible gold were automatically analyzed for Ore Grade by 1000g screen fire assay, with coarse and fine fractions being combined proportionately and the fine fraction being assayed twice. Standards, blanks and duplicates are inserted every 25 metres. ALS Canada Ltd. performed primary assaying, with duplicates being analyzed at Activation Laboratories Ltd. ALS Canada Ltd. and Activation Laboratories Ltd. implements independent QA/QC protocols that include the insertion of certified blanks and standards as part of their routine analysis.

About Rainy River 

Rainy River Resources Ltd. is a Canadian precious metals exploration company whose key asset is the Rainy River Gold Project, a large gold system centred in Richardson Township (part of Chapple Township). As of March 31, 2012, the Company had approximately $100 million in cash and cash equivalents, and is well funded for its 2012 plans to 1) commence a feasibility level study on the RRGP; 2) continue growing the existing resource through exploration; 3) conduct a condemnation program in areas identified for potential mine facilities; and 4) continue regional exploration. RRGP is very well located in the southwestern corner of northern Ontario, near the U.S. border. It is accessed by a network of roads and is close to hydro-electric infrastructure. The Rainy River district has a skilled labour force and is one of the lowest-cost areas for mineral exploration and development in Canada. The Company is working to advance the early-stage discoveries at its TPK Joint Venture Property, also in Ontario, where it can earn a 51% interest in the property from Northern Superior Resources Inc. Ontario has low political risk and, according to the annual Fraser Institute global survey of the mining industry, has consistently ranked as one of the top jurisdictions embracing mineral development.

RAINY RIVER RESOURCES LTD.

Raymond W. Threlkeld, President & CEO

CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS

This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. These statements include the possible conversion of inferred resources into higher confidence categories of resources. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.