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RMO.V ·

Rainy Mountain Looks to Expand the Extent of the Brunswick Property Gold Structure

Exploration Programs

2489 Bellevue Avenue, West Vancouver, BC V7V 1E1 Tel 604 922 2030 Fax 604 922 2037

Trading symbols: TSX-V: RMO

Frankfurt: EK7N-FF

News Release No. 17-01

Rainy Mountain Looks to Expand the

Extent of the Brunswick Property Gold Structure

West Vancouver, British Columbia – January 3, 2017 – Further to its news releases da ted

December 2 and December 12, 2016, Rainy Mountain Royalty Corp. (the “Company” or “Rainy

Mountain”) is pleased to report additional findings in connection with the Company’s recently

completed exploration program and proposed grid expansion on its optio ned gold exploration

property (the “Brunswick Property” or “Property”) located in the Timmins area of Ontario.

The Brunswick Property covers a six mile long section of the Ridout Fault Shear Z one, which is

an extension of the Larder Lake Break (fault zone), as associated with the Kirkland Lake and

Larder Lake Gold Camps (the Kirkland Lake Gold Camp is 125 km northeast of the Property

and the Larder Lake Gold Camp is 167 km northeast of the Property).

The recent geological mapping and outcrop sampling on the Brunswick Property have identified

a 1 km (1 ,000m) long arsenic -antimony (“As -Sb”) anomaly, which is a potential indicator of

nearby gold mineralization , along an offset extension of the larger shear z one outlined on the

eastern half of the P roperty adjacent to the outcropping gold showing. This work suggests the

extension of the gold bearing zone has been fault offset , and continues westward onto the

central part of the 6 mile (10 km) long Property. An expansion of the present grid 1.8 km to the

west is part of the Company’s exploration program planned for early 2017 to cover this

structural offset and to fill in a gap between the As -Sb anomaly and the grid that was surveyed

by the recently completed Induced Polarization Resistivity Survey (“IP Surv ey”) covering the

gold zone. This leaves a 1.2 km prospective area adjacent to the numerous drill targets that

have already been identified on the eastern grid.

Furthermore, the Company has now received results from assaying the grab samples taken

from the Brunswick Property during its exploration in December 2016. Results of which yielded

other scattered As -Sb anomaly areas adjacent to the gold zone and shears extending to the

east of the east grid. Additional grid extensions to the east of the east grid are also planned and

will be done during the winter to allow traversing of any ponds on either end of the Property.

Drilling is planned to follow up on the numerous t argets located by the IP S urvey and any

additional targets that may turn up during the grid expansion.

Rainy Mountain is now in the process of filing a final report on work completed to date in order

to meet the requirements of the JEAP Program (Junior Exploration Assistance Program) which

could result in a rebate of up to 33% (approximately $50,000) of the $150,000 exploration

program completed to date.

This news release has been reviewed and approved by Robert Middleton, P.Eng., who is acting as

the Company’s Qualified Person for the Brunswick Property project, in accordance with regulations

under NI 43-101.

For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604 -922-

2030, or visit the Company’s website at www.rmroyalty.com.

RAINY MOUNTAIN ROYALTY CORP.

“Douglas L. Mason”

_________________________________

Douglas L. Mason, Chief Executive Officer

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

This news release includes certain statements that may be deemed “forward -looking statements” within the meaning

of applicable securities legislation. All statements, other than statements of historical facts, that address such matters

as future exploration, d rilling, exploration activities, potential mineralization and resources and events or

developments that the Company expects, are forward looking statements and, as such, are subject to risks,

uncertainties and other factors of which are beyond the reasonab le control of the Company. Such statements are not

guarantees of future performance and actual results or developments may differ materially from those expressed in,

or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in

forward-looking statements include such matters as market prices, exploitation and exploration results, continued

availability of capital and financing, and general economic, market or business conditions. Any forward -looking

statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is

stated as of the current date and subject to change after that date and the Company does not undertake any

obligation to update publi cly or to revise any of the forward -looking statements, whether as a result of new

information, future events or otherwise, except as may be required by applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein

in the United States. The securities described herein have not been and will not be registered under the United States

Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit

of a U.S. person absent an exemption from the registration requirements of such Act.