RYE Rhyolite Resources Ltd

Rhyolite Resources Ltd. (TSX VENTURE: RYE) ("Rhyolite" or "Company") is pleased to report that a minimum 1,500 metre diamond drill program is now underway on its wholly-owned Paxson gold project in east Alaska.

The initial drill holes will target the down dip and strike extension of a 2010 surface trench that assayed 8.85 grams gold per tonne over 7 metres within the Shalosky zone (Press Release November 10, 2010). The Shalosky zone is defined by a 1,100 metre by 50 to 500 metre greater than 100 parts per billion gold-in-soil geochemical anomaly. Gold-arsenic-antimony mineralization identified within the geochemical anomaly is hosted in an east-northeast trending shear zone that contains quartz-sulphide veining, brecciation and fault gouge within silica-altered schist.

The drill program will also test the Low showing where surface sampling in 2010 returned 13.37 grams gold per tonne over 3 metres (Press Release November 10, 2010) approximately 3 kilometres east-southeast of the Shalosky gold-in-soil anomaly.

The Company has increased the size of its land holdings by staking an additional 21 contiguous claims bringing its land package size up to 4,601 acres.

Rhyolite has granted incentive stock options to certain of its directors, officers, employees and consultants under its incentive stock option plan, entitling them to purchase up to a total of 500,000 shares at a price of $0.25 per share for a period of two years.

Qualified Person

Richard Graham, P.Geol., the President of Rhyolite and a Qualified Person, as defined by National Instrument 43-101, is responsible for the preparation of the technical information in this release.

About Rhyolite

Rhyolite has 26,891,450 shares issued and outstanding and approximately $2,300,000 cash in its treasury.

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.

On behalf of the Board,

Richard Graham, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts: Rhyolite Resources Ltd. Richard Graham (604) 488-8717