Mr. Chris Verrico reports

RIO SILVER INC. COMPLETES TRANSACTION WITH PERUVIAN METALS CORP.

Rio Silver Inc. has sold its 50-per-cent interest in the Palta Dorada property to Peruvian Metals Corp. The consideration for the sale is $250,000 (U.S.) with the company retaining a 3-per-cent net smelter royalty (NSR). Total payments from the NSR will be capped at $2-million (U.S.) while the company is guaranteed $250,000 in minimum royalty payments over the next five years.

An initial payment of $25,000 (U.S.) has been received and four monthly payments due of $25,000 (U.S.) with a final $125,000 (U.S.) payment being received in June, 2024. The royalty payments will be paid semi-annually having a guaranteed minimum semi-annual payment amount of $25,000 (U.S.) over the next five-year period starting December, 2024. Cash flow from Palta Dorada, potentially generating larger semi-annual royalty payments to the company, is expected late 2024 to early 2025 with the property being located near Peruvian Metals' Aguila Norte processing plant.

The company is also pleased to announce significant progress toward gaining social licence in order to facilitate a diamond drilling campaign at the Joramina zone forming the western flank of the company's flagship, Ninobamba gold-silver project in south-central Peru. The company has assisted the communities in the area to reorganize their affairs, allowing them to complete the necessary access agreements which will allow them to receive the benefits that successful exploration will generate.

Chris Verrico, chief executive officer of Rio Silver, commented: "The sale of our Palta Dorada interest to Peruvian Metals allows us to retain a significant NSR on the property and focus efforts on our Ninobamba area properties. Peruvian Metals is now able to fast-track its development, augmenting Rio Silver's highly valuable 3-per-cent royalty stream. We also welcome the immediate cash payments over the next several months along with the guaranteed royalty payments to offset annual fixed costs. This cash will aid the company to explore and develop our flagship Ninobamba Au-Ag project and pick up where Newmont had left off, internally concluding that Jorimina had significant potential, enough to support a robust mid-sized mining enterprise with significant upside potential. Our 100-per-cent unincumbered ownership of the Ninobamba/Jorimina properties will propel Rio Silver's advancement up and amongst Peru's most notable new precious metal discoveries."

Jeffrey Reeder, PGeo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation or approved the scientific and technical disclosure contained in this news release.

About Rio Silver Inc.

Rio Silver is a Canadian exploration and development company focused on Peru. The company holds a 100-per-cent interest in the very prospective Ag-Au Ninobamba where more than $10-million (U.S.) has been spent on exploration by the company and previous operators. The company continues to review precious and base metal properties in Peru, and has been maintaining its interest in its Ontario Gerow Lake property.

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