Rainbow Resources Announces Financing of up to $1,600,000

TORONTO, ONTARIO, January 28, 2010 -- Rainbow Resources (TSXV:RBW) Inc. (TSX VENTURE:RBW)("Rainbow" or the "Company") announces that it intends to complete a non-brokered private placement (the "Private Placement") of up to 10,000,000 units (the "Units") at a price of $0.16 per Unit for gross proceeds of up to $1,600,000. Each Unit will consist of one common share and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one common share of the Company (the "Warrant Share") at a price of $0.25 per Warrant Share for a term of 18 months from the closing date.

The Units will be subject to a four month statutory hold period from the date of issuance.

The net proceeds of the Private Placement will be used for exploration of the Company's St. Paul Bay Project in Fairlie, Heysen and Baird townships in Ontario and for general working capital.

The Private Placement is conditional upon receipt of approval by the TSX Venture Exchange.

Rainbow Resources Inc. is a junior exploration company focused on the Company's St. Paul Bay Project which consists of 12 contiguous unpatented claims covering approximately 192 hectares in the common corner of Fairlie, Heysen and Baird townships in Ontario, Canada. Rainbow's shares are listed for trading on the TSX Venture Exchange under the symbol RBW.V. Rainbow currently has 16,840,000 common shares issued and outstanding.

For further information: R. Brian Murray, President & CEO (416) 985-7810

Clark Kent, Investor Relations (647) 519-2646