Jan 18, 2013 - Rainbow Explores Strategic Alternatives for Flake Graphite Land Package

TORONTO, ONTARIO, January 18, 2013:  Rainbow Resources Inc. (TSX VENTURE: RBW) ("Rainbow" or the "Company") is pleased to report that it is actively pursuing options aimed at unlocking the value of its large flake graphite land package in the immediate vicinity of western North America's only producing natural flake graphite mine in southeast British Columbia, operated by privately-held Eagle Graphite Corporation.  This strategic balancing of Rainbow's resource portfolio will assist the Company in directing maximum resources to accelerate development of the Jewel Ridge Gold-Silver Property in Nevada, an advanced exploration project, and its Gold Viking Property in B.C.'s Slocan Valley where first-ever drilling has resulted in the discovery of significant gold and silver mineralization as reported by Rainbow January 2, 2013.      

Meanwhile, the Company has issued 1,000,000 incentive stock options to consultants, exercisable for up to two years at a price of $0.15 per share.  The options will vest under normal vesting terms and will be subject to any applicable regulatory hold periods.  

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

Visit our website at www.RainbowResourcesInc.com.

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 OTCQX International under the symbol RIINF.   Rainbow has 41,627,719 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.