Rainy River Resources Ltd

Rainy River Resources Ltd.

303 - 1620 West 8th Ave., Vancouver, BC V6J 1V4

T: 604.731.6900 F: 604.731.6999

RR.TSX-V

NEWS RELEASE July 17, 2007

DEEP INTERSECTION IN RAINY’S 17 ZONE RETURNS 16.5 M GRADING 7.21 G/T Au AND 14.0 M GRADING 4.15 G/T Au IN SAME HOLE AND OFF LAKE DRILLING INTERSECTS ANOMALOUS POLYMETALLIC MINERALIZATION

Nelson W. Baker, President of Rainy River resources Ltd. (RR.TSX-V) is pleased to provide the following update on the Company’s 100%-owned Rainy River Project located 80 kilometers south of Kenora, Ontario. In Richardson Township, where three drills are actively tracing the limits of the 17 Gold Trend and the 433 Zone, Rainy is pleased to provide the complete assay results for a total of nine holes designed to test the depth potential of the 17, ODM and HS Zones between the 320 m and 520 m levels and the strike extensions of both the 433 and the 17 East Zones. In addition, this release summarizes all other exploratory work completed by the Company in the Off Lake area, 23 kilometers to the northeast.

Of the nine holes in Richardson Township, five intersected the 17 Zone East between surface and the 200 m level. Two holes tested the down plunge extension of the ODM and HS Zones at or below the 300 m level while one hole was drilled to test the central part of the 17 Zone 320 m below surface and the final hole cut the 433 Zone. A current longitudinal section for the 17 and ODM Zone will be posted on the Company’s website (www.rainyriverresources.com) shortly.

HIGHLIGHTS

· NR07-176 (320 m level in central 17 Zone, deepest hole in section) intersects two separate gold intervals of 16.5 meters grading 7.21 grams per tonne and 14.0 meters grading 4.15 grams per tonne within a broad interval of 91.5 meters grading 2.31 grams per tonne.

· NR07-173 (320 m and 520 m levels in ODM Zone) intersects two separate gold intervals of 69.0 meters grading 0.51 grams per tonne and 5.8 meters grading 7.27 grams per tonne (deepest).

· NR07-169 (East Zone, near surface) intersects 0.70 meters grading 3.29% nickel and 0.84% copper in northeastern extension of 34 Zone and 7.0 meters grading 3.53 g/t Au.

· OL07-01,02,03 (Off Lake Area) intersect a broad intervals of anomalous zinc, silver, gold and lead values in sulphide-rich felsic volcanics similar to the Richardson Township mineralization.

The following summarizes the drill results from the nine Richardson Township holes zone-by-zone:

ODM AND HS ZONES EXTENDED DOWN PLUNGE:

NR07-173 was designed to test the ODM and HS Zones 60 m west and 80 m down plunge from the 55.7 m intersection grading 4.01 g/t Au recorded in NR07-156 and previously released on May 29, 2007. This 651-metre hole was successful in intersecting four separate gold intervals. Of significance, the bottom interval of 5.8 m (true width) grading 7.27 g/t Au at the 520 m level represents one of the deepest intersections to date in the ODM Zone area. This intersection is interpreted to be the down plunge extension of the HS Zone. A broader 54.0 m interval in NR07-173, considered to be the main ODM Zone because of the similar style of alteration and mineralization, returned 0.70 g/t Au.

NR07-174 was designed to test the ODM Zone 30 m east of NR07-156 and intersected a true width interval of 9.0 m grading 2.77 g/t Au. The complete analytical results for both holes are summarized in Table I appended to this release.

www.rainyriverresources.com

Rainy River Resources Ltd. RR.TSX-V

CENTRAL 17 ZONE (320 M LEVEL)

NR07-176 was drilled on section 7+50 West 50 m south of NR06-77 (1.5m of 55.60 g/t Au) in the central part of the 17 Zone at the 325 m level. Two separate true width intervals of 14.0 m grading 4.15 g/t Au (uncut) and 16.5 m grading 7.21 g/t Au (uncut) were intersected 43 m apart below this level. A broader 91.5 m interval, which includes that above intersections, graded 2.31 g/t Au (see Table I).

17 ZONE EAST (NEAR SURFACE)

NR07-164,NR07-166 and NR07-169 were drilled to intersect the upper part of the 17 Zone East between the 100 m and 200 m levels while NR07-160 and NR07-161 were designed to intersect this zone at the 300 m level. NR07-160 is located 30 m east of previously released NR07-137 (55.3 m of 1.96 g/t Au) while NR07-161 is 30 m west of NR07-136 (12.0 m of 7.16 g/t Au).

NR07-169 intersected 7.0m grading 3.53 g/t Au within a broader interval of 73.7m grading 0.73 g/t Au. Of significance, within this broad gold interval, a massive sulphide section consisting of pyrrhotite, pentlandite and chalcopyrite mineralization ran 3.29% nickel and 0.84% copper over a 0.7 m interval. This mineralization is considered to be near the northeastern limits of the 34 Zone nickel deposit which intrudes the 17 Zone. The Pd and Pt values for this intersection are pending. The detailed gold intervals for all holes are summarized in Table I, appended to this release.

433 ZONE

As reported in a previous release dated May 17, 2007, a fence of four north trending holes (NR-154, 155, 156 and 158) spaced 60 m apart were drilled to test the down plunge projection of the 433 Zone gold mineralization at about the 150 m level. The most westerly hole, NR07-158, intersected a 69.0 m true width horizon grading 0.51 g/t Au and a second interval 1.5 m thick grading 4.29 g/t Au. Results for the other three holes were previously released. NR07-157, 60 m east of NR07-158, recorded a 28.9m true width interval grading 5.19 g/t Au. A summary of all four holes is included in Table I.

SUMMARY OFF LAKE AREA EXPLORATION

During the summer of 2006 and in May 2007, a team of experienced prospectors discovered and subsequently traced an extensive area of mineralized pyroclastic rocks consisting of strong pyrite mineralization with visible sphalerite (Zn), galena (Pb) and malachite (Cu) staining associated with pyroclastic rocks, considered to be the same age as the Richardson Township volcanic event, centered in the Off Lake area approximately 23 kilometers to the northeast. Gold values as high as 8.0 g/t were recorded from grab samples collected by the prospectors.

Recently three, 150 m drill holes (OL07-1, 2, 3) were drilled to test three different surface showings discovered by the prospectors near local roads. All three holes were successful in intersecting broad intervals of mineralized pyroclastic rocks with anomalous base metal mineralization. In particular, OL07-01 intersected a 30-m mineralized interval with associated base metal sulphides with up to 2.2% Zn over 1.5 m, 1.03 % Zn over 4.5 m, and 2.20 g/t Au over 1.5 m with associated Pb.

More systematic drilling is planned for the Off Lake area following the completion of the on-going prospecting campaign. Three drill rigs are actively drilling in Richardson Township.

Nelson W. Baker, P.Eng., is the Qualified Person for the project and the person responsible for the contents of this news release.

Quality Control

Rainy River has implemented a quality control program to ensure best practice in sampling and analysis of the drill core. The procedures of the QA/QC program are detailed in Rainy’s website at www.rainyriverresources.com.

Nelson W. Baker
President

Table 1

SUMMARY OF MAIN INTERSECTIONS

ODM & HS ZONES

Hole / From
(m) / To
(m) / Interval
(m) / Gold
(g/t)
NR07-173 / 311.20 / 312.80 / 1.60 / 2.91
347.80 / 352.00 / 4,20 / 2.28
347.80 / 352.00 / 4.20 / 2.86
ODM (MAIN) / 420.00 / 474.00 / 54.00 / 0.70
HS ZONE / 643.70 / 649.50 / 5.80 / 7.27
NR07-174 / 391.50 / 400.50 / 9.00 / 2.77
17 ZONE (CENTRAL-320 M LEVEL)
Hole / From
(m) / To
(m) / Interval
(m) / Gold
(g/t)
NR07-176 / 362.00 / 453.50 / 91.50 / 2.31
Incl. / 368.00 / 282.00 / 14.00 / 4.15
Incl. / 425.00 / 441.50 / 16.50 / 7.21

17 ZONE EAST (NEAR SURFACE)

Hole / From
(m) / To
(m) / Interval
(m) / Gold
(g/t) / Ni
% / Cu
%
NR07-164 / 125.00 / 186.50 / 61.50 / 0.42
Incl. / 182.00 / 186.50 / 4.50 / 2.67
NR07-166 / 207.50 / 224.00 / 16.50 / 1.86
NR07-160 / 267.50 / 281.00 / 13.50 / 0.86
Incl. / 267.50 / 269.00 / 2.40 / 4.08
NR07-161 / 288.50 / 290.00 / 1.50 / 1.81
437.00 / 438.50 / 1.50 / 5.49
NR07-169 / 81.50 / 83.00 / 1.50 / 2.13
2nd Zone / 220.00 / 287.00 / 67.00 / 0.77
Incl. / 247.00 / 256.00 / 9.00 / 2.93
Incl. / 249.00 / 256.00 / 7.00 / 3.53
Incl. / 250.00 / 252.00 / 2.00 / 7.74
Ni-Cu / 207.30 / 208.00 / 0.70 / 3.29 / 0.84

433 ZONE

Hole / From
(m) / To
(m) / Interval
(m) / Gold
(g/t)
*NR07-154 / 189.10 / 207.50 / 18.40 / 1.41
Including / 204.50 / 207.50 / 3.00 / 4.47
*NR07-155 / 168.50 / 188.00 / 19.50 / 2.86
Including / 173.00 / 188.00 / 15.00 / 3.38
180.50 / 188.00 / 7.50 / 3.82
*NR07-157 / 98.00 / 104.50 / 6.50 / 1.50
185.00 / 220.50 / 35.50 / 3.81
Including / 186.50 / 215.40 / 28.90 / 5.19
240.50 / 272.00 / 31.50 / 0.42
NR07-158 / 216.50 / 285.50 / 69.00 / 0.51
311.00 / 312.50 / 1.50 / 4.29

* Results previously reported

All widths and intervals are true width and all quoted gold grades are uncut.

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.

The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from targeted results. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The Company relies upon litigation protection for forward looking statements.