Rhyolite Resources Completes Disposition of Muckahi

Rhyolite Resources Ltd. (TSXV: RYE) (“

Rhyolite

” or the “

Company

”) announces that the Company has completed the transfer of ownership of its wholly-owned subsidiary, Muckahi Inc. (“

Muckahi

”), to Fred Stanford, pursuant to the terms of a mutual separation agreement (the “

Separation Agreement

”) entered into between the Company and Mr. Stanford and dated effective December 15, 2022. The transfer of ownership follows the resignation of Mr. Stanford as Chief Executive Officer of the Company, and a decision by the board of directors of the Company to cease further development of the Muckahi Mining System. The transfer, along with a cash payment of $420,000 which has been paid to Mr. Stanford pursuant to the Separation Agreement, addresses all remaining obligations owing to Mr. Stanford.

The Company has no further obligations related to the Muckahi Mining System, but retains a royalty (the “Royalty”) entitling the Company to receive ten percent of the gross revenue generated by any party from the use of the Muckahi Mining System, until such time as the Company has received Cdn$10,000,000.

In connection with the transfer and the resignation of Mr. Stanford, a total of 9,500,000 common shares previously issued in consideration for the acquisition of Muckahi have been returned to treasury and cancelled. Following completion of the cancellation, the Company has 107,185,253 common shares outstanding.

Forward-Looking Statements

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive regulatory approvals; the ability to attract financing on these terms or at all; the price of commodities; and the results of current exploration. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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 press release.

For further information, please contact:

RHYOLITE RESOURCES LTD.Cybill TsungChief Financial [e-mail]647 982-5890