Rainy River Resources' Project Updated With Higher Grades and Lower Costs

Rainy River Resources' Project Updated With Higher Grades and Lower Costs PR Newswire TORONTO, August 30, 2012 TORONTO, August 30, 2012 /PRNewswire/ -- RR.TSX Rainy River Resources Ltd. ("Rainy River" or the "Company" (TSX: RR)) is pleased to announce receipt of an updated and revised positive Preliminary Economic Assessment ("PEA") for its 100% owned Rainy River Gold Project ("RRGP") in western Ontario, Canada. The information presented below summarizes the results of a conceptual mine and processing scenario based on the February 24, 2012 National Instrument 43-101 ("NI 43101") mineral resource estimate, which includes assay data up to December 31, 2011. All currency amounts in this press release are expressed in Canadian dollars ($) unless otherwise noted. HIGHLIGHTS OF THE UPDATED PRELIMINARY ECONOMIC ASSESSMENT First 10 Years of Production: Average annual production of 308,000 gold ounces and 478,000 silver ounces. Average mill head grade of 1.45 g/t of gold, an increase of 50% over the first PEA. Average open pit grade improves by 39% to 1.25 g/t of gold with stockpiling of low grade material compared to the November 2011 PEA open pit grade of 0.90 g/t of gold. Average underground grade improves by 19% to 4.20 g/t of gold compared to the November 2011 PEA underground grade of 3.52 g/t of gold. Average cash costs of US$486 per ounce gold (including royalties and net of silver credits). Operating strip ratio of 2.