RYE Rhyolite Resources Ltd

Rhyolite Resources Ltd. ("Rhyolite" or the "Company") (TSX VENTURE: RYE) reports that the assay results from the first two holes of its on going diamond drill program on its wholly owned Paxson gold property in eastern Alaska have yielded significant gold values.

Hole WG11-01   7.2 g/t gold over 3.0 meters (56.1m - 59.1m) within
               2.8 g/t gold over 8.8 meters (56.1m - 64.9m) and

               6.3 g/t gold over 1.7 meters (70.1m - 71.8m) within
               2.1 g/t gold over 7.0 meters (70.1m - 77.10m) and

               2.7 g/t gold over 1.5 meters (97.54m - 99.06m).

Hole WG11-02   5.4 g/t gold over 13.2 meters (90.4 - 103.6m) within
               3.5 g/t gold over 23.1 meters (88.3 - 111.4m).

Holes WG11-01 and WG11-02 targeted the Shalosky zone, which is defined by a 1,100 metre by 50 to 500 metre greater than 100 parts per billion gold-in-soil geochemical anomaly.

Hole WG11-01 tested for mineralization approximately 40 meters vertically below a 2010 surface trench that assayed 8.85 grams gold per tonne over 7 meters. The hole was angled at -50 degrees and intersected three distinct structural zones within an envelope of lower grade (0.10 g/t) gold mineralization.

Hole WG11-02 was collared from the same site as WG11-01 and angled at -65 degrees to test the structures at deeper depths along the same section. This hole intersected mineralization approximately 80 meters vertically below the 2010 trench and returned 5.44 grams gold per tonne over 13.2 meters (90.4-to-103.6 meters) within a broader zone of mineralization averaging 3.5 grams gold per tonne over 23.1 meters, starting at 88.3 meters downhole. Sample values within the 23.1 meter intercept range from 0.41 g/t gold to 23.1 g/t gold. All intervals are downhole widths; there has been insufficient drilling to determine true thickness.

To date, a total of five diamond drill holes comprising 789 meters have been completed at the Shalosky zone, four diamond drill holes comprising 536 meters have been completed 3.2-km east southeast at the Low zone where surface sampling in 2010 returned 13.37 grams gold per tonne over 3 metres (Press Release November 10, 2010), and two holes comprising 323 meters have been completed at the Hunter showing, which is located approximately 2.8-km west of the Low zone. All diamond drill holes completed to date have encountered sulphide bearing structures. Results from additional drill holes will be released once received and compiled.

Quality control/Quality assurance

Mineralized intervals in the B-size drill core were sawn longitudinally and half the drill core was sampled in standard intervals not exceeding 1.5 metres in length. Core samples were transported in security-sealed bags to the lab for analyses. All samples collected in 2011 were sent for gold fire assay and 48-element ICP analysis to ALS Chemex Labs. Samples were prepared in ALS Chemex's Fairbanks prep facility and then sent to Reno Nevada for analysis. Gold fire assays were on 50 gram pulp splits with an AA finish. One in every ten samples contains a control (blank or gold standard).

Qualified Persons

The foregoing disclosure has been reviewed, compiled and is the responsibility of Richard A. Graham, P. Geol., President of Rhyolite and a "qualified person" for the purpose of NI 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS OF RHYOLITE RESOURCES LTD.

Richard Graham, President and CEO

Forward-Looking Statement

Some statements in this report contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, expenditures, transactions and financings. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, risks related to actual results of exploration activities, the timing and amount of expenditures and the completion of transactions and financings.

Neither the 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.

Contacts: Rhyolite Resources Ltd. Richard Graham, P.Geol. 604-488-8717