Historical Data Suggests Potential For Large Mineralized System At Jewel Ridge As Drill Program Launches

Rainbow is pleased to announce that it is launching a Phase 1 reverse circulation drill program by the end of this month at the former producing Jewel Ridge Property along the prolific Battle Mountain-Eureka Trend in Nevada. Strategically located, Jewel Ridge is contiguous to Barrick Gold's Ruby Hill Mine to the north (127,000 ounces produced last year) while Timberline Resources' growing Lookout Mountain deposit is immediately to the south. Rainbow optioned Jewel Ridge in March of this year from Greencastle Resources Ltd. (VGN: TSX.V) and completed a successful surface exploration program immediately thereafter.

A reinterpretation of the geological potential of Jewel Ridge is beginning to emerge given

current gold prices and after Moose Mountain Technical Services recently acquired vast amounts of historical data on the property including hundreds of drill holes (mostly very shallow) going back to the 1970's. A compilation of this historical information from

Jewel Ridge has never been previously carried out and Rainbow looks forward to releasing more details as Moose Mountain continues its review. With this data, combined with results from upcoming drilling on a southern section of the property, Rainbow's geological and engineering teams will be aided immensely in their efforts to outline a potential deposit.

Based on an initial review of just some of the Jewel Ridge historical drill data, in addition to previous mining activities, the structural setting and style of mineralization, and the short program carried out in the second quarter, Moose Mountain is of the opinion that Jewel Ridge has strong potential to host a large mineralized system. Geochemical signatures at Jewel Ridge are also similar to those reported at both Ruby Hill and Lookout Mountain. A sediment hosted gold deposit and a carbonate replacement-type system (Au-Ag-Pb-Zn) are the exploration targets. Several past producing pits at Jewel Ridge are lined up on a primary mineralized structure that trends north for at least 3 km toward the Ruby Hill Mine. Oxidized zones, underground workings and trenching exist over a wide area.

Rainbow's Phase 1 program will focus on the past-producing and highly prospective Hamburg Pit area, 1,400 metres north of the former Windfall Mine which was Nevada's first heap-leach operation (1975). Rainbow's initial hole will be drilled from just north of the Hamburg Pit in the immediate vicinity of where Greencastle intersected 2.1 g/t Au over 39.6 metres, near-surface, in 2004.

Gold mineralization at the Hamburg Pit occurs within the Hamburg Dolomite and at the contact with the overlying Dunderberg Shale. Gold values are present throughout the Hamburg Dolomite which appears to be at least 200 metres thick. Northeast trending faults host higher-grade grade gold mineralization. The Hamburg-Dunderberg contact is a key feature of the Windfall Trend which produced an estimated 200,000 ounces of gold

from several deposits that began with the Windfall Mine and trended north onto Jewel Ridge.

Recent drilling by Timberline Resources at its Lookout Mountain Project has intercepted high-grade mineralization below the existing historical pit at Lookout Mountain. Given previous drill data from the Hamburg Pit, and evidence of underground sampling of high

grade zones near the pit, Rainbow believes this part of the Jewel Ridge Property is an ideal starting point for a drill program to depths of 200 metres (there has been very limited drilling below 100 metres) that could produce a significant discovery. Some historical intercepts at and immediately around the Hamburg Pit include the following (more will be released as additional data is reviewed):

Hamburg Pit Selected Historical Drill Data

 ---------------------------------------------- |Hole  |From (m)|To (m)|Length (m)|Grade (Au)| |--------------------------------------------| |N8423 |42.7    |61.0  |18.3      |2.53      | |--------------------------------------------| |N8422 |54.9    |79.2  |24.4      |1.16      | |--------------------------------------------| |N8414 |30.5    |36.6  |6.1       |4.11      | |--------------------------------------------| |HRC-13|79.2    |120.4 |41.1      |0.56      | |--------------------------------------------| |HRC-11|94.5    |134.1 |39.6      |2.10      | |--------------------------------------------| |HRC-4 |15.2    |33.5  |18.3      |0.76      | ----------------------------------------------

Note: Holes N8423, M8422, N8414 were drilled by Homestake Mining in the 1980's. Holes HRC-13, HRC-11 and HRC-4 were drilled by Greencastle in 2004.

Historical exploration results referred to in this release may not be compliant with NI-43-101 standards, and the Company has not independently verified these results