Rhyolite Resources Ltd. Announces Increase to Previously Announced Private Placement Financing

Vancouver, British Columbia--(Newsfile Corp. - February 28, 2017) - Rhyolite Resources Ltd. (TSXV: RYE) ("Rhyolite" or the "Company") reports that the previously announced brokered private placement (January 26, 2017) of up to a maximum of 16,000,000 Units at a price of $0.10 per Unit has been increased to 20,000,000 Units at a price of $0.10 per Unit for gross proceeds of $2,000,000 (the "Offering").

Each Unit will consist of one (1) common share and one-half (1/2) share purchase warrant of Rhyolite ("Warrant"). Each whole Warrant shall entitle the holder thereof to acquire one additional common share of Rhyolite at an exercise price of $0.15 per share at any time on or before the date which is 24 months after the closing date of the Offering.

Leede Jones Gable Inc. (the "Agent") is acting as agent for the Offering. On closing, the Company may pay the Agent a commission in cash and/or warrants.

Closing of the Offering is subject to receipt of all necessary corporate and regulatory approvals, including that of the TSX Venture Exchange.

The funds raised from the issuance of the Units shall be used to finance potential acquisitions of new properties and for general working capital purposes.

ON BEHALF OF THE BOARD OF DIRECTORS OF
RHYOLITE RESOURCES LTD.

"Richard Graham"
Director, President and CEO

For further information please contact:

Richard Graham, P.Geol.
Telephone: 604-689-1428

Cautionary Statement for Forward Looking Information

Certain information set forth in this press release contains forward-looking statements. Specifically, this press release contains forward-looking statements concerning the anticipated use of proceeds of the Offering and the anticipated closing of the Offering. The anticipated closing date assumes that prior to that date, the Company will obtain all necessary regulatory approvals. The anticipated use of proceeds assumes that the Offering will occur as contemplated and assumes the existence of certain other conditions with respect to the capital expenditure program of the Company, general economic conditions, industry conditions, currency fluctuations, commodity prices. In each case, the risk factors that could cause actual results to vary from results expressed or implied by the forward looking statements contained in this press release are primarily events beyond the Company's control that preclude the Company from satisfying all applicable pre-conditions and include the risks that the Offering may not close, general economic conditions, industry conditions, currency fluctuations, volatility of commodity prices, exploration risk, escalation of operating and capital costs, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, acquisitions of new properties . These forward-looking statements may prove to be incorrect and undue reliance should not be placed on them. These forward-looking statements are made as of the date hereof and unless otherwise required by applicable law, the Company does not intend and does not assume any obligation to update or revise such forward-looking statements, whether as a result of new information, future events or otherwise.

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.

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