Mr. Christopher Verrico reports

RIO SILVER ANNOUNCES CLOSE OF FIRST TRANCHE OF PRIVATE PLACEMENT

Rio Silver Inc. has closed the first tranche of its previously announced non-brokered private placement for gross proceeds of $440,000.

Upon the completion of the offering, the company issued an aggregate of 8.8 million units of the company at a price of five cents per unit. Each unit consists of one common share of the company and one common share purchase warrant. Each warrant is exercisable into one additional common share of the company at a price of eight cents until Dec. 9, 2024, 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 calendar days after notice to the warrantholders through a news release announcing an earlier expiry date.

Three insiders of the company participated in the offering, namely: a company controlled by Christopher Verrico, chief executive officer, president and a director of the company, purchased 2.4 million units; Steve Brunelle, a director of the company, purchased one million units; and Richard Mazur, a director of the company, purchased one million units.

Proceeds from the offering will be used to finance the company's continuing business operations and for general working capital purposes.

The securities issued under the offering will be subject to a statutory hold until Oct. 10, 2023.

We seek Safe Harbor.