Rye Patch Goal: Ten Million Ounces

Resource Investing News

Rye Patch has acquired advanced assets and explored aggressively towards its goal of a 10-million ounce gold inventory within 36 months. The company’s Nevada focus arose from management’s considerable knowledge of the region and Nevada’s key position in world gold output.

Overview

Rye Patch has acquired advanced assets and explored aggressively towards its goal of a 10-million ounce gold inventory within 36 months. The company’s Nevada focus arose from management’s considerable knowledge of the region and Nevada’s key position in world gold output. The state currently produces 78% of U.S. gold and 8% worldwide.

Management is seeking new acquisitions in Nevada, and the timing is excellent. As market conditions decline, attractive projects are coming available on very favorable terms to make Rye Patch well positioned to capitalize on new opportunities in this rapidly-changing market.

Property Summaries

Wilco Project

Exploring under an option agreement with Newmont Mining, Rye Patch has defined two key gold zones with resources to date of 625,500 ounces measured and indicated and 1,124,700 ounces inferred. The company has completed more than 19,000 metres of reverse circulation drilling and 900 metres of core drilling planned in 2009 to upgrade and expand the resource.

The Newmont Agreement Rye Patch can earn a 100% interest in the Wilco project from Newmont Mining by spending $3 million in exploration and development on the project by December 2010. Newmont can also elect to regain up to a 70% interest in the project by spending an additional $20 million in development work.

At Wilco, a 2009 drill program is focusing on a potential high-grade gold feeder system within the North Basin target. The last drillhole from the 2008 campaign, WR-087, returned the thickest and highest grade gold zone on the property – 38.1m @ 2.61 g/t Au. The North Basin has gold shows around the margin of its 1 kilometre diameter dimension, and geophysics shows a magnetic low (magnetite alteration) located under the centre of the basin. The drill program is budgeted at US$320,000.

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Lincoln Hill/Gold Ridge Project

The Lincoln Hill and adjacent Gold Ridge properties securely position Rye Patch along the Humboldt gold trend and Rochester mining district of Western Nevada. The Lincoln Hill area has supported active exploration for nearly 150 years, and underground mining in the early 1900s reportedly averaged 7.5 ounces of gold per ton. Most of this work occurred along a 7,000-foot strike length where mine tailings and numerous dumps are found today. Significant visible gold is evident, as well.

Rye Patch drilled 2,550 meters in 18 RC holes on both the Lincoln Hill and Gold Ridge targets in 2008, cutting a multi-ounce gold and silver intersection in hole LR-013. The results included 25 feet grading 2.2 ounces of gold per ton starting at 90 feet down hole. In addition, there were numerous significant gold intervals encountered in the program. A second drill program is underway to follow up on LR-013 results. The program will test the high-grade breccias zone along strike and down dip.

Core and RC drilling show the main Lincoln Hill target contains significant high-grade gold and silver along northeast trending structures within the broader quartz stockwork halo zone. The core shows the broader stockwork mineralization has a high-angle as well as a horizontal or bedding controlled component. LRC-002 intersected veins and veinlets and shows visible gold in several veins over the 15.8 metre zone. The vein arrays are hosted within a thicker zone of altered, silicified rhyolite volcanic rocks. The intersection of the favorable units within altered rhyolite and northeast structures appear to control high-grade gold and silver distribution within the stockwork gold zone. LRC-003 shows the disseminated nature of the stockwork zone with 33.1 metres grading 1.10 g/t gold.

A first ever NI43-101 resource estimate will be completed on the Lincoln Hill project once all assays have been received and integrated into the drillhole database. The Company believes that Lincoln Hill will become our third gold resource and will add to Rye Patch’s inventory of gold in Nevada.

Management

Joe Kajszo – Chairman. Mr. Kajszo is co-founder of Rye Patch Gold. A geologist by training, Mr. Kajszo co-founded and also served as President and Director of Nevada Pacific Gold Inc. from 1997 to 2004. Prior to that Mr. Kajszo served as Vice President – Exploration for Robert Friedland’s Ivanhoe Capital Corp. Ivanhoe’s umbrella included a number of public companies such as Venezuela Goldfields (KM 88 in Venezuela), First Dynasty Gold (Fort Knox Mine in Alaska), Diamond Field Resources (Voiseys Bay massive sulfide deposit in Labrador), and African Minerals Corp (Platreef PGM-Cobalt deposit in South Africa). Mr. Kajszo has 26 years of experience in the mining and mineral exploration industry worldwide including direct involvement in projects in Africa, China and North and South America.

William C. (Bill) Howald – President, Chief Executive Officer and Director. Mr. Howald is a co-founder of Rye Patch Gold. Prior to joining Rye Patch, he was General Manager of Exploration, United States and Latin America, for Placer Dome Inc. During his tenure at Placer Dome, Mr. Howald was an integral part of the teams that delivered over 80Mozs of gold resources to the Placer portfolio. A number of these resources are now being mined; these include Pipeline, Turquoise Ridge, and Bald Mountain Mines in Nevada, and Puren in Chile. Others, such as Pueblo Viejo in the Dominican Republic, Donlin Creek in Alaska and Cortez Hills in Nevada, are in the feasibility stage and are heading for production decisions. Mr. Howald has 22 years in the international gold exploration and mining industry gained primarily in Nevada, Mexico, and Central and South America.

Mark T. Brown – Chief Financial Officer. Mr. Brown, a chartered accountant, is the President of Pacific Opportunity Capital Ltd., a company that advises and invests in emerging companies. He was formerly employed by PricewaterhouseCoopers, Miramar Mining Corporation and Eldorado Gold Corporation, and is a director or officer of several mineral resource companies. His broad experience includes raising equity and debt capital, negotiating acquisitions and dispositions, establishing and cooperating rapid growth companies and managing tax planning.

Charles C. Russell – Director. Mr. Russell has a Fellow Institution of Materials, Mining and Metallurgy (FIMMM) from Camborne School of Mines in Cornwall, UK. Mr. Russell has been retired from June 1996 to present. He is also an independent Director of Golden Reign Resources Ltd. Mr. Russell has 50 years of experience in the mining industry including VP Mining & Technology for Ivanhoe Capital Corp., General Manager for Ashanti Gold Fields in Ghana and General Manager for National Iron Ore Co. in Liberia.

Jonathan Challis – Director. Mr. Challis is a mining engineer with an MBA degree from Cranfield University. Within the last five years Mr. Challis has served as President, CEO and Director of Shore Gold Inc. (diamond exploration) from 1999 to December 2003; President, COO and Director of Cornerstone Capital Resources Inc. (gold exploration) from January 2004 to January 2005; and President and Director of Solex Resources Corporation (uranium exploration) from February 2005 to present. He is currently a director of Peregrine Diamonds Ltd., Crossroads Exploration, Russian Diamonds PLC, and Doubloon Exploration Corp. Mr Challis has over 30 years experience in the operation, management, financing and analysis of mining projects around the world.

Bernard Poznanski – Corporate Secretary. Mr. Poznanski has been a partner of Koffman Kalef LLP, Business Lawyers, since its inception in April 1993. Mr. Poznanski has acted as counsel for a wide variety of companies listed on the TSX, the former Canadian Venture Exchange (now the TSX Venture Exchange), the American Stock Exchange and NASDAQ. His practice areas are focused on advising mining and technology companies in connection with corporate finance and corporate/commercial matters and international projects.

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