Sun Valley Gold LLC: Control and Direction Over Common Shares and Warrants of Rye Patch Gold Corp.

SUN VALLEY, IDAHO--(Marketwire - Aug. 7, 2009) - Sun Valley Gold LLC ("Sun Valley") announced today that it has acquired control and direction over 6,666,667 units ("Units") of Rye Patch Gold Corp. ("Rye Patch") on behalf of Sun Valley Gold Master Fund, Ltd. (the "Master Fund"), a client account over which it has discretionary trading authority. The Units, which are beneficially owned by the Master Fund, were acquired as part of a private placement by Rye Patch (the "Private Placement") of a total of 21,031,666 Units for a subscription price of $0.15 per Unit. Each Unit consists of one common share of Rye Patch and one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one common share of Rye Patch at a subscription price of $0.20 per share until February 6, 2011. Following the completion of the Private Placement, Sun Valley exercises control and direction over 8,666,667 common shares of Rye Patch and 8,666,667 share purchase warrants for and on behalf of the Master Fund. The 8,666,667 common shares of Rye Patch over which Sun Valley exercises control and direction for and on behalf of the Master Fund represent approximately 13.29% of the issued and outstanding common shares of Rye Patch. If exercised, the 8,666,667 share purchase warrants over which Sun Valley exercises control and direction for and on behalf of the Master Fund would, together with the 8,666,667 common shares of Rye Patch over which Sun Valley exercises control and direction for and on behalf of the Master Fund, represent approximately 23.47% of the issued and outstanding common shares of Rye Patch (after giving effect to the exercise of such share purchase warrants, but not the exercise of any other share purchase warrants issued by the Issuer). The sole shareholders of the Master Fund are Sun Valley Gold International, Ltd., of which Sun Valley is the Investment Manager, and Sun Valley Gold, L.P., of which Sun Valley is the General Partner. Sun Valley manages investment accounts for the Master Fund, and has discretionary trading authority of the securities of Rye Patch issued to the Master Fund. The Units were acquired for investment purposes. Sun Valley and the Master Fund may increase or decrease their ownership of securities of Rye Patch depending upon future market conditions. FOR FURTHER INFORMATION, OR TO OBTAIN A COPY OF THE EARLY WARNING REPORT FILED BY SUN VALLEY AND THE MASTER FUND UNDER APPLICABLE SECURITIES LEGISLATION, PLEASE SEE THE CONTACT INFORMATION BELOW: