Rainbow Announces Granting of Stock Options

TSX-V: RBW

RAINBOW RESOURCES INC.

Suite 1500, 330 Bay Street, Toronto, Ontario, M4G 2B1

January 4, 2011 For Immediate Distribution

Rainbow Announces Granting of Stock Options

Rainbow Resources Inc. (RBW: TSX-V) (“Rainbow”) announces that it has granted a total of 1,670,000 stock options to officers, directors and consultants of the Company. The options are exercisable at a price of $0.16 and have terms that range from two to five years. The options are subject to regulatory approval.

Rainbow Resources Inc. is a junior mining exploration company focused on gold exploration in the Red Lake District of Northwestern Ontario. The Company’s St. Paul’s Bay project consists of 12 unpatented claims covering approximately 192 hectares.

Rainbow currently has 16,740,000 common shares issued and outstanding.

For more information, please contact:

R. Brian Murray, President & CEO (416) 985-7810 Alex Falconer, CFO (416) 637-1063 Clark Kent, Investor Relations (647) 519-2646

Visit our website at www.rainbowresourcesinc.com

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.