Mar 23, 2012 - Rainbow Samples 1.6% Copper and 24.5 G/T Silver at Rhea

TORONTO, ONTARIO, March 23, 2012 -- Rainbow Resources Inc. (TSX VENTURE: RBW) ("Rainbow" or the "Company") is pleased to provide additional details on its 1,472-hectare Rhea Property, part of Rainbow's Big Strike Project that now includes a total of eight properties covering approximately 9,000 hectares in the West Kootenay region of southeast British Columbia.  Rhea is 13 kilometres southwest of Nelson and in the immediate vicinity of numerous past producers.  Moose Mountain Technical Services, Rainbow's resource consultants, conducted preliminary rock sampling at Rhea and completed a review of historical information pertaining to the property for a National Instrument 43-101 technical report expected to be filed on Sedar prior to month-end.  A detailed Fugro heli-borne electromagnetic survey was recently carried out over Rhea and results are expected sometime in April.

No systematic drill program has ever been undertaken at Rhea despite encouraging historical reports of significant mineralized zones on the property with showings of gold, silver, lead, zinc and copper. Multiple adits and trenches have been reported in addition to the existence of a strong hydrothermal alteration system.  A large and strong multi-element geochemical anomaly, measuring at least 3,000 metres by 2,000 metres, was located at Rhea in the late 1980's through an extensive soil survey.  A total of 837 sample sites were used.  The soil values suggest the potential for a skarn-type deposit similar to the past producing Second Relief Mine, the third-largest gold-enriched skarn producer in British Columbia, five kilometres to the south of Rhea - on strike and in the same Archibald Formation.

Meanwhile, the former Silver King Mine - the main historic producer (silver and copper) in the Nelson area - is six kilometres to the northeast of the six contiguous Rhea claims.  Two large masses of diorite porphyry, possibly related to the prolific Silver King Porphyry, have been identified at Rhea through historical work.

Due to a complex history of magmatic and tectonic activity in this part of the Kootenay Arc, a variety of mineral deposit types do exist in the area.

Moose Mountain Technical Services is looking forward to carrying out extensive field work at Rhea, in addition to reviewing the pending airborne survey results, in order to verify the above historical information and define precise targets for a proposed Phase 1 drill program.

Moose Mountain did collect a total of eight rock samples from the Rhea Property, during some initial prospecting, which averaged 4.3 g/t Ag. One sample taken from an historic trench assayed 1.6% copper and 24.5 g/t Ag.  Rainbow cautions that the grab samples taken by Moose Mountain may not be representative of mineralization on the property.

"A lot of encouraging information on Rhea collected during the 1980's was simply never followed up on for various factors including depressed metal prices," stated Rainbow President David W. Johnston.  "Rhea is right in between two former significant producers, so we're confident in the possibility of a discovery at this property.  This is why we expanded the size of Rhea late last year by acquiring additional claims, and just recently of course we optioned the Whitewater Property contiguous to Rhea.  Together with the Referendum claims slightly to the north, we have assembled a package of outstanding targets in this rich historical mining camp near Nelson which will give us an exciting and potentially rewarding drill program."

Corporate Developments

Rainbow is pleased to announce that its Annual General Meeting will be held beginning at 10:00 am Thursday, April 19, 2012, at the offices of Fogler Rubinoff, 95 Wellington St. West, in Toronto (12th floor).

Rainbow is committed to building shareholder value by acquiring and exploring high quality gold and silver properties in favorable jurisdictions.

"We are continuing to evaluate opportunities to expand our flagship Big Strike Project in the West Kootenays," stated Johnston, "in addition to adding a potential second project in North America that would give us year-round drilling capability.  We are committed to making 2012 a pivotal year for this young company, and we look forward to providing additional details on our International, Tin City and President properties prior to month-end."

The Company is also pleased to announce that a Rainbow "Round-Up" event, an information session regarding corporate developments during this first quarter, will be held Thursday, March 29, 2012, beginning at 2:30 pm in the Sovereign Suite on the 35th floor of the International Hotel in Calgary, Alberta (220 - 4th Ave. SW).  Rainbow cordially invites all market participants to take advantage of this opportunity to learn more about the Company and its plans for 2012.  David W. Johnston will host the event.  Please RSVP by email (david@RainbowResourcesInc.com) or phone (403-701-2781).

Quality Assurance/Quality Control

Rainbow's disclosure of a technical or scientific nature in this news release has been reviewed and approved by Mr. Robert Morris, P.Geo., of Moose Mountain Technical Services, who serves as a Qualified Person under the definition of National Instrument 43-101.  A comprehensive quality assurance/quality control program is in place to monitor precision and accuracy of assay results. Rock samples from Rhea were shipped to Loring Laboratories in Calgary, AB., for analysis.  Samples along with analytical standards were submitted for 30 Element ICP analysis including FA/AA for silver and gold.  Samples were digested with Aqua Regia at 95C for one hour and bulked to 20 ml with distilled water.  Dissolution was partial for Al, B, Ba, Ca, Cr, Fe, K, LA, Mg, Mn, Na, P, Sr, T and W.  Assays were 0.5 gram samples digested by a multi acid with a AA finish.

Rainbow's shares are listed for trading on the TSX Venture Exchange under the symbol RBW.V.  Rainbow currently has 33,508,163 common shares issued and outstanding.

For further information: David Johnston (403) 701-2781.

Visit our website at www.RainbowResourcesInc.com.

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.