Impressive results in the eastern portion of the Burns block.

The new gold-silver zone is hosted within a strongly sheared and altered dacite volcanic units and is the easterly strike extension of the main ODM17 gold-silver zone which constitutes the bulk of Rainy River Resources' deposit and Bayfield's high grade gold-silver zones 600-700 metres to the west.

Highlights:

 

--  Hole RR12-12 intercepted 13.5 metres of 5.13 g/t gold and 25.21 g/t
    silver including 3.0 metres of 14.45 g/t gold and 53.95 g/t silver
    starting at 584 metres down hole.
--  The intercept in hole RR12-12 is contained within a wider mineralized
    interval of 18.0 metres assaying 4.22 g/t gold and 21.54 g/t silver.
--  Hole RR12-12 continues to demonstrate that this developing gold-silver
    zone is getting thicker and higher in grade with depth within the
    controlling, south dipping shear zone.
--  Mineralization is being found within a 50 to 60 metre wide zone of
    shearing, sericite-silica alteration and polymetallic base metal sulfide
    and local electrum mineralization.
--  This east-central zone of mineralization is completely open down dip and
    down the interpreted SSW plunge. The zone is also open onto Rainy River
    Resources' lands to the east.

The results of the four holes completed over the last month continue to show that this significant zone of gold and silver mineralization is improving in grade and thickness down dip of previously reported discovery hole RR11-205. All the drilling in this new zone to date has allowed Bayfield to partially outline mineralization within the NE portion of the Burns Block. The entire down plunge extension target in the SE portion of the Burns Block remains completely unexplored. At least 250 metres of down plunge area and the corresponding lateral dimensions remain to be drilled.

Strong shear foliation, sheared and sericite alteration of the dacite volcanic wall rocks is accompanied by abundant sphalerite, galena and arsenopyrite with local smears, crack fills and pin points of native gold and electrum.

Eastern Burns Block Early-Stage Exploration/Delineation Discussion:

The assay results for holes RR12-9, RR12-10, RR12-11 and RR12-12 detailed in this announcement continue to show that strong gold and silver mineralization is present over an expanding area down dip. Hole RR12-12 intersected the new zone 200 metres north of the south boundary of the Burns Block. This is the furthest south intercept completed to date. The assays results from the main mineralized zone in RR12-12 are the richest to date in this new zone.