Mr. Christopher Verrico reports

RIO SILVER ANNOUNCES CONVERTIBLE NOTE FINANCING

Rio Silver Inc. intends to issue up to $200,000 in convertible notes on a non-brokered private placement basis. Each note will be convertible at the option of the holder into one common share of the company at a conversion price of five cents per share during the first year of the notes and 10 cents during the second year of the notes.

The notes will mature in two years from the date of issuance and bear interest at the rate of 18 per cent per annum, payable quarterly, until the notes are converted or repaid. The company will be entitled to repay, without any penalty, any portion of the principal amount of the notes, together with accrued and unpaid interest, at any time commencing four months after the date of issuance, subject to giving the holders prior notice thereof to permit holders to convert the prepayment amount during the notice period. The notes will be unsecured and transferable, subject to resale restrictions under applicable securities laws and TSX Venture Exchange requirements. It is anticipated that one or more insiders of the company will subscribe pursuant to the financing.

The company plans to use the funds from the financing to finance continuing operations and for general working capital purposes. All securities issued in connection with the private placement will be subject to a statutory hold period of four months commencing from the date of issuance of the notes. Closing of the private placement is subject to customary conditions, including TSX Venture Exchange acceptance.

About Rio Silver Inc.

Rio Silver is a Canadian exploration and mine development company. Its business is to develop its 100-per-cent-owned Ninobamba project in Peru and to unlock the tremendous potential for shareholder value identified from the previous $10-million spent by Newmont and others at both the Ninobamba Main and the Jorimina zones. Its own recently commissioned and independently constructed exploration potential model for Ninobamba Main has identified more development potential. Benefits are also expected to soon materialize from the carried development of the new Palta Dorada gold-silver project, focusing on a near-term revenue stream.

We seek Safe Harbor.