News Release

Iron Oxide Copper Gold Zone Expanded on the Hamlin Property, Thunder Bay, Ontario

West Vancouver, British Columbia – July 28, 2010 –

Rainy Mountain Royalty Corp. (the “Company” or “Rainy Mountain”) has been informed by Xstrata Copper Canada, a division of Xstrada Canada Corporation (“Xstrata”) of Toronto, Ontario, that a drilling program of four core drill holes (drilled to a depth of 300-384 metres) has recently been completed on the Company’s Hamlin IOCG property currently under option to Xstrata. The drill program tested well beneath the known copper and gold mineralization and has been successful in intersecting mineralization (as summarized in the following table of assay results).

Wide zones of copper mineralization, contained in a hematized-pink breccia, were observed over core lengths of 280 metres. The drilling intersected and assays confirmed copper and gold mineralization which extended the known depth beyond 300 metres. Further drilling is being planned with the objective of extending the zone along strike to the east. The current core drill program completed 150-200 metre sections moving to the west, and leaving for future drilling the eastern extension, which is still open at depth. To the east, shallow core drill holes have been only drilled to a vertical depth of 75 metres and intersected similar mineralization containing copper-gold values. Mineralization has been identified over a significant strike length of 2300 metres.

A surface geological program has also continued on the property.

Assays were provided by Xstrata Copper in the attached Table from the drill program supervised by Gordon Maxwell, P.Geo who acted as the qualified person for the Xstrata drill program. ALS Chemex in Thunder Bay carried out preparations of the samples outlined in this news release and ALS Chemex in North Vancouver carried out assaying.

When analyzing for basemetal and silver, values (Copper, Zinc and Silver) were determined by ICP (inductively coupled plasma) after an aqua regia acid digestion. Assays exceeding 100 grams silver and 10,000 parts per million (ppm) copper were repeated using multi acid digestion and atomic absorption (AA). Check assays were run on high values. Gold values were determined by fire assay extraction on 30-gram samples followed by an AA finish.

Xstrata can earn a 51% interest in the Hamlin property (157 claims) by incurring $3 million in exploration expenditures and can earn a further 24% interest by incurring not less than $20 million in feasibility study expenditures. The Hamlin property is presently held by Rainy Mountain and Mega Uranium Ltd. on a 50/50 joint venture basis.

This news release has been reviewed and approved by Robert Middleton, P.Eng., who is acting as Qualified Person for the Company’s Hamlin IOCG property project in accordance with regulations under NI 43-101.

For further information, contact Mr. Clive Shallow, investor communications at 604-922-2030 or visit the Company’s new website atwww.rmroyalty.com (an updated Rainy Mountain Royalty Corp. website is currently being developed).

Rainy Mountain Royalty Corp.
"Ronald A. Coombes"
Ronald A. Coombes, President & CEO

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. This news release includes certain statements that may be deemed “forward-looking statements”. All statements, other than statements of historical facts, that address such matters as future exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Although the Company 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 forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.

← All news