Mr. Christopher Verrico reports

RIO SILVER ANNOUNCES PRIVATE PLACEMENT FINANCING

Rio Silver Inc. has arranged a non-brokered private placement of up to 10 million units of the company at a price of five cents per unit for gross proceeds of up to $500,000. Each unit will consist of one common share of the company and one share purchase warrant. Each warrant will entitle the holder to acquire one additional common share of the company at a price of eight cents per common share. The warrants will expire 18 months from the date of issuance unless the closing price of the common shares of the company is 15 cents or higher for 15 consecutive trading days any time after the date that is four months after closing, in which case the warrants will expire 30 days after notice to the warrantholders through a news release announcing an earlier expiry date.

It is anticipated that certain insiders of the company will participate in the offering. The proceeds from the offering will be used to finance continuing the company's business operations and for general working capital purposes. The company may pay certain finders' fees in connection with a portion of the offering, subject to the policies of the TSX Venture Exchange.

All securities issued in connection with the offering will be subject to a statutory hold period of four months and a day commencing from the date of issuance. The closing of the offering is subject to regulatory approval, including exchange acceptance.

About Rio Silver Inc.

Rio Silver is a Canadian exploration and mining company. Its business is to develop its 100-per-cent-owned Ninobamba project in Peru and to unlock the potential for shareholder value at both the Ninobamba Main and the Jorimina zones. The company's 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, with a focus on a near-term revenue stream.

We seek Safe Harbor.