Rainy River Announces Closing of $55 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Rainy River Resources Ltd. (TSX VENTURE:RR) ("Rainy River" or "the Company") is pleased to announce that it has closed its private placement of an aggregate of 11,114,000 units ("Units"), priced at $4.95 per Unit, for gross proceeds of $55,014,300 on a bought deal private placement basis, as previously announced on February 1, 2010 and February 19, 2010 (the "Offering"). The Offering was led by Wellington West Capital Markets Inc. and included Canaccord Financial Ltd., Genuity Capital Markets and Sandfire Securities Inc. (collectively, the "Underwriters").

Each Unit is comprised of one common share (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant will entitle the holder to acquire one additional Common Share at a price of $7.10 per share for a period of 24 months following the closing of the Offering.

In connection with the Offering, the Underwriters received a cash commission of $3,300,858 (equal to 6% of the gross proceeds from the Offering).

The net proceeds from the Offering will be used to advance the Rainy River Gold Project located in Northwestern Ontario and for working capital purposes.

Additional Information about the Financing

The Units will be subject to a four-month hold period under applicable Canadian securities laws.

The securities being offered have not, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, US persons absent US registrations or an applicable exemption from the US registration requirements. This release does not constitute an offer for sale of securities in the United States.