News Release No. 11-02
Rainy Mountain Grants Option on its Eva Kitto Property, Ontario
West Vancouver, British Columbia – March 31, 2011 – Rainy Mountain Royalty Corp. (the "Company" or "Rainy Mountain") is pleased to report that it has granted an option to Citation Resources Inc. (formerly called Attwell Capital Inc.) of Vancouver, BC ("Citation"-TSX-V: CTT) entitling Citation to acquire a 60% interest in the Company's jointly owned Eva Kitto property (the "Property"). The Property is owned by Rainy Mountain (as to an 85% interest) and International Bethlehem Mining Corp. ("International Bethlehem"-TSX-V: IBC) of West Vancouver, BC (as to a 15% interest). The Property is a platinum group element ("PGE") and precious metals property and is located near the town of Beardmore, Ontario (approximately 190 km northeast of Thunder Bay, Ontario).
Under the Option Agreement, Citation has the option to acquire a 60% interest in the Property upon paying the sum of $30,000 and issuing 200,000 post-consolidation shares of Citation (which shares and cash payment will be allocated to Rainy Mountain and International Bethlehem on a pro rata basis). As well, Citation is required to issue an additional 400,000 post-consolidation shares (200,000 shares by March 31, 2013 and 200,000 shares by March 31, 2014) and is also required to incur $750,000 in exploration expenditures on the Property ($250,000 in each year of the 3 year option term).
The Property is comprised of 16 staked claims with 210 claim units and an area of 31 square kilometres and is subject to a 3.5% net smelter return royalty, 2% of which can be purchased for $2.0 million. Citation has recently commissioned a technical report in respect of the Property which recommends a $350,000 work program consisting of 1,500 m of drilling and some mapping and prospecting.
For further information, contact Mr. Clive Shallow, investor 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, CEO
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.