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RMO.V ·

Winter Drill Program Underway on the Brunswick Property, Ontario

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. 18-01

Winter Drill Program Underway on the Brunswick Property, Ontario

West Vancouver, British Columbia – January 10, 2018 – Rainy Mountain Royalty Corp. (the

“Company” or “Rainy Mountain”) is pleased to announce that it has commenced drilling on the

east grid of the Company’s optioned gold exploration property (“Brunswick Property” or

“Property”) located 140 km south of Timmins, Ontario. The Company intends to proceed with a

proposed 1500m drill program (see news release dated October 12, 2017 for details on the

proposed drilling program ) to follow up on the August 2017 trenching results and to test the

extensions of the original gold showing (see news release dated September 12, 2017 for

trenching results). These new targets on the extension have been exposed by trenching and

induced polarization (“IP”) surveys. Other parallel shear zones will also be tested . Step out drill

holes (along strike to Drill Hole BE17 -04) will be drilled to trace anomalous gold (Au) and

arsenic (As) values that are potential indicators of a nearby gold zone (see news release dated

July 12, 2017).

On the west grid of the Property , five drill holes have been selected to test IP anomalies

adjacent to gold values obtained from prospecting surface grab samples that assayed 6.6 gm

gold (Au), 4.05 gm gold (Au) and 2.56 gm gold (Au) (see news release dated August 28, 2017

for trenching and prospecting details).

The geophysical grid will also be expanded to cover the remaining unsurveyed parts of the east

and west grids of the Property in search of additional drill targets. This is expected to add

another 5.1 km of strike length coverage to the Property.

In connection with the expenditures on the current drill program, the Company anticipates

receiving a Junior Exploration Assistance Program Grant (“JEAP Grant”) of up to 33% of the

exploration expenditures (to a cap of $300,000 in expenditures ) by the Ontario Prospectors

Association. To qualify for the JEAP Grant, the Company’s exploration expenditures must be

completed by March 30, 2018.

Based on its exploration results to date, the Company believes that t he Brunswick Property

covers a full 6 miles (9.6 km) of a set of shear zones that parallel the Ridout Fault system, which

is interpreted to be the continuation of the Larder Lake Break. Five shears have been defined by

IP-Resistivity surveys and initial drilling has tested each shear with just one hole to confirm that

these anomalies were in fact serici te-iron carbonate (ankerite) altered shears with quartz -pyrite.

The Brunswick Property is located 140 km south of Timmins, Ontario and is road accessible

from Highway 560 that links Highway 144 to Shiningtree and Kirkland Lake.

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 gold exploration project, in accordance

with regulations under NI 43-101.

For further information, con tact Mr. Clive Shallow, S hareholder 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 E xchange 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 the Company’s proposed drill program and planned exploration expenditures on the Brunswick Property, as well

as future exploration, drilling, 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 reasonable 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, mark et 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 n ot undertake any

obligation to update publicly 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 n ot 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.