RYE Rhyolite Resources Ltd

Rhyolite Resources Ltd. ("Rhyolite" or the "Company") (TSX VENTURE: RYE) reports that the initial drill hole into the Low target on its wholly-owned Paxson gold project in the Tintina Gold Belt, eastern Alaska has returned significant gold values.

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                                                             Weighted Grade
Drill Hole             From (m)         To (m)   Interval (m)     (g/t Gold)
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WG11-05                   19.5           21.9            2.4            3.2
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And                       26.9           54.3           27.4            1.9
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Includes                  38.7           52.3           13.6            3.4
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Includes                  40.2           43.0            2.8           14.2
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Hole WG11-05 was drilled to the south, angled at -45 degrees and tested the Low target located approximately 3.2 km east southeast of the Shalosky zone where the results from the first two diamond drill holes of the 2011 program returned (Press Release August 18, 2011):

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                                                             Weighted Grade
Drill Hole             From (m)         To (m)   Interval (m)     (g/t Gold)
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WG11-01                   56.1           77.1           21.0            1.9
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Includes                  56.1           59.1            3.0            7.2
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Includes                  70.1           71.8            1.7            6.3
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And                       97.5           99.0            1.5            2.7
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                                                             Weighted Grade
Drill Hole             From (m)         To (m)   Interval (m)     (g/t Gold)
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WG11-02                   88.3          111.4           23.1            3.5
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Includes                  90.4          103.6           13.2            5.4
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The lengths indicated are drilled intervals and do not necessarily represent true widths of mineralized sections. Additional drilling is warranted to assess the geometry of the intercepted structures. The results from holes WG11-03 and WG11-04 drilled at the Shalosky zone are still awaited due to pending assays from infill sampling required on the holes.

Based on the initial results of the 2011 diamond drill program, Rhyolite has staked an additional 106 contiguous mineral claims at its wholly-owned Paxson gold property.

The Paxson property now comprises 135 mineral claims for a total of 8,670 hectares (86.7 square kilometers). The objective of the property addition is to cover the projections of multi-kilometer scale structures that appear to control the gold mineralization on the Paxson property. Of particular interest to the property expansion is the northeast and southwest extensions of the Shalosky zone.

To date, the Shalosky zone is defined by a 1,100-metre-by-50- to 500-metre greater-than-100-part-per-billion gold-in-soil geochemical anomaly. However, compilation work and prospecting in 2011 indicates that the controlling Shalosky structure may extend for a much greater strike distance. Prospecting along the southwestern projection of the Shalosky structure by Rhyolite in 2011 has intermittently identified siliceous breccia in float and sub-parallel structures for over 1.6 km west of hole WG11-01. Assay results from the surface sampling program are pending.

Rhyolite also reports that the 2011 Paxson reconnaissance diamond drill program has now been successfully completed. A total of eight diamond drill holes comprising 1,388 meters have tested the Shalosky zone over a 600 meter strike length and down to depths of approximately 160 meters below surface, 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 meters (Press Release November 10, 2010), and two holes comprising 323 meters were collared approximately 2.8-km west of the Low zone at the Hunter showing where surface sampling returned grab samples of up to 50.8 grams gold per tonne (Press Release November 10, 2010). All diamond drill holes completed to date have encountered sulphide bearing structures. Results from remaining 11 diamond drill holes will be released once received and compiled.

Details and results from the 2011 program are being compiled into a brand new corporate website that is currently nearing completion. Rhyolite expects that the new website will be launched by the end of September and will serve as a hub for investors to keep up to date with the company, its developments and to review the exploration data in more detail.

Quality control/Quality assurance

The 2011, mineralized intervals in the BTW-size drill core were sawn longitudinally and half the drill core was sampled in intervals not exceeding 3.0 meters. All samples are 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