Aug 24, 2012 - Drilling Underway at Rainbow's International Silver Property

TORONTO, ONTARIO, August 24, 2012:  Rainbow Resources Inc. (TSX VENTURE: RBW) ("Rainbow" or the "Company") is pleased to report that a Phase 1 diamond drilling program at the Company's 100%-owned International Silver Property in southeastern British Columbia is reaching targeted depths of 100 to 130 metres, intersecting highly deformed quartz-mica schist/gneiss as expected.  Initial drilling is focused on an exposed quartz dominated structure featuring disseminated to massive galena, pyrite and rare sphalerite.  Drill core is being logged, split and sent in for assaying using multi-element analysis in testing for silver, gold, lead and zinc mineralization.

The number of drill site locations is being increased and an additional drill program update will follow in the near future.  Moose Mountain Technical Services, Rainbow's resource consultants, are overseeing this first-ever drill program at the International Property.

The exploration target at the International is a high-grade, near-surface silver deposit.

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

Visit our website at http://www.RainbowResourcesInc.com

Qualified Person

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.

About Rainbow Resources

Rainbow is a newly-listed Canadian based junior exploration company focused on building shareholder wealth through aggressive exploration in two favorable and proven mining jurisdictions - the West Kootenays in southeast British Columbia (silver, gold and flake graphite), and Nevada where Rainbow's Jewel Ridge Gold-Silver Project is in

the heart of a major producing district. Rainbow's shares are listed for trading on the TSX Venture Exchange under the symbol RBW.V, and on the OTC Pink Sheets under the symbol RIINF.  Rainbow currently has 35,553,163 common shares issued and outstanding.

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 of this news release.