Mr. Christopher Verrico reports

RIO SILVER INC. ANNOUNCES CLOSE OF SECOND AND FINAL TRANCHE OF PRIVATE PLACEMENT AND GRANT OF INCENTIVE STOCK OPTIONS

Rio Silver Inc. has closed the second and final tranche of its previously announced non-brokered private placement subject to regulatory approval.

In connection with the completion of the second tranche, the company issued an aggregate of 1,588,000 units of the company at a price of five cents per unit for gross proceeds of $79,400. 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 per share until Jan. 17, 2025, unless the closing price of the common shares of the company is 15 cents or higher on the TSX Venture Exchange 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. The securities issued under the second tranche will be subject to a statutory hold until Nov. 18, 2023.

The proceeds from the offering will be used to finance the company's continuing business operations and for general working capital purposes. No finders' fees were paid in connection with the offering.

Three insiders of the company participated in the offering, namely: a company controlled by Christopher Verrico, chief executive officer and a director of the company, purchased an aggregate of 3.16 million units; Steve Brunelle, a director of the company, purchased an aggregate of 1.16 million units; and Richard Mazur, a director of the company, purchased an aggregate of 1,728,000 units. The offering is a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The issuance of the securities comprising the units to the insiders is exempt from the valuation requirements and the minority approval requirements of MI 61-101 by virtue of the exemptions in sections 5.5(a) and 5.7(1)(a) of MI 61-101, by virtue of the fair market value of the consideration for the units being less than 25 per cent of the company's market capitalization.

The company also announces that it has granted an aggregate of 3.55 million incentive stock options to directors, officers and other consultants of the company, exercisable at a price of five cents with the following exercise periods: (i) one year as to 1.35 million options; (ii) two years as to 450,000 options; and (iii) five years as to 1.75 million options, from the date of grant. The grant of these options is subject to the approval of the exchange.

We seek Safe Harbor.