May 3, 2012 - Rainbow Expands Big Strike Land Package 4.4% Copper Showing at Referendum

TORONTO, ONTARIO, May 3, 2012-- Rainbow Resources Inc. (TSX VENTURE: RBW) ("Rainbow" or the "Company") is pleased to provide an update on its Big Strike Project in southeast British Columbia where the Company has staked new prospective ground near Nelson to expand its total land package by nearly 50% to 12,700 hectares.  Rainbow is a gold and silver exploration leader in the mineral-rich West Kootenay district and is preparing to launch its 2012 drill program in addition to carrying out aggressive prospecting aimed at identifying new discoveries throughout the Big Strike Project.

Rainbow Stakes Large Area Between Former Mine And Rhea

Based on favourable results from initial field work at Rhea, as reported by the Company March 23, 2012, combined with encouraging new information obtained by its prospecting team, Rainbow has staked almost the entire area between the Rhea Property and the former producing Second Relief Mine immediately to the south.  This 8-kilometre-long, 5-kilometre wide section is hosted by Nelson intrusives while the structurally important Red Mountain Fault cuts across the newly-staked area from north to south.  The Second Relief Mine, in the same Archibald formation as Rhea, was the third-largest gold-enriched skarn producer in British Columbia history (over 100,000 ounces of gold were produced).

International, Gold Viking Properties Drill-Ready

Rainbow's 2012 Big Strike drill program will start at the International and Gold Viking properties immediately upon receipt of permits and as soon as ground conditions allow.

Gold Viking, adjacent to the village of Slocan 70 kilometres north of Nelson, is a south-facing property where ground conditions are now improving rapidly.  Initial drilling will test a geological contact for silver and gold mineralization over a nearly 500-metre distance trending in a north to northwesterly direction.  Strong airborne conductors coincident with geochemical anomalies helped define numerous high-priority drill targets over this central area of the property.

Snow melt is typically slower at the flagship and higher elevation International Silver Property, approximately 70 kilometres to the north of Slocan.  Drilling will explore  a potentially rich vein system dominated by quartz with irregular massive sulphide bodies of galena, pyrite and sphalerite that could extend near-surface for several kilometres.

The Ottawa Property, immediately adjacent to Gold Viking and a former significant silver producer in the 1900's, is another high priority target for Rainbow in 2012.  The Ottawa claims, and an area 350 metres east of these claims, produced a total of 1.8 million ounces of silver in the 1900's at an average grade of 2,118 g/t Ag or 61.6 oz/ton.

The International, Gold Viking and Ottawa properties have never been previously drilled.

Two Major Areas Of Interest Outlined At Referendum Including 4.4% Historical Cu Showing

Rainbow's 2012 Big Strike prospecting program will begin at the Company's recently-optioned Referendum Property where two major areas of interest have been identified based on a review of previous limited exploration work and artisanal mining records.

On the eastern side of the property, Rainbow will be investigating a quartz-tourmaline stockwork system with open-pit potential. Historically, small-scale gold production from at and near-surface has occurred within an alteration zone measuring approximately 700 metres by 150 metres with ore processed at the Trail Smelter.  This zone has never been drill-tested and is open in all directions.

The western portion of the Referendum, meanwhile, has not been systematically explored for the potential of hosting a copper-gold porphyry deposit.  Elevated copper in soil geochemistry and the presence of feldspar porphyry, chloritic shears and malachite staining were reported over a 2 km strike length in 2005.  A 3-metre long chip sample, across the apparent width of one of the malachite stained outcrops, returned an assay value of 4.44% Cu and 13 g/t Ag.  Only three holes totalling just 300 metres have ever been drilled on this western portion of the Referendum Property (by Acrex Ventures Ltd. following the surface discovery in 2005).  Several sections of mineralization were intersected by Acrex with values up to 0.25% Cu and 0.86 g/t Au before the company turned its attention to other properties.

Fugro Airborne Survey Data

Moose Mountain Technical Services, Rainbow's resource consultants, have just received final heliborne electromagnetic survey data on most of the Big Strike properties and will be reviewing this information in the coming days.

Jewel Ridge Update

Moose Mountain Technical Services and Rainbow have completed a site visit and initial field work at the company's recently-optioned Jewel Ridge Property along the prolific Battle Mountain-Eureka Trend in Nevada.  The Company is eagerly anticipating a report on Jewel Ridge, including assay results from last month's sampling program, within the next 7 to 14 days as plans for Phase 1 drilling continue.  Jewel Ridge is along strike and contiguous to Barrick's Ruby Hill Mine to the north and the advanced-stage Lookout Mountain Project to the south.

Rainbow Corporate Video

The Company is pleased to announce that a corporate video on Rainbow Resources  ("People-Driven.  Discovery-Focused.  Follow The Rainbow") is now available for viewing at the Company's web site, www.RainbowResourcesInc.com, or by clicking on the following link:

http://rainbowresourcesinc.com/RBWCorporateVideoMay2012.php

Qualified Person

Rainbow's disclosure of a technical or scientific nature in this news release has been reviewed and approved by Mr. Jim Decker, P.Eng., a Director of Rainbow Resources, who serves as a Qualified Person under the definition of National Instrument 43-101.

Rainbow's shares are listed for trading on the TSX Venture Exchange under the symbol

RBW.V.  Rainbow currently has 33,923,163 common shares issued and outstanding.

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

Visit our website at www.RainbowResourcesInc.com.

Caution Regarding Forward-Looking Information

This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, future work programs and objectives and expected results from such work programs. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information and the risks identified in the Company's continuous disclosure record. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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.