Mr. Chris Verrico reports

RIO SILVER COMPLETES SALE OF PALTA DORADA AG-AU PROPERTY, PERU

Rio Silver Inc. has received the balance of the $250,000 (U.S.) cash required for the sale of its 50-per-cent interest in the Palta Dorada Au-Ag (gold-silver) property, from Peruvian Metals Corp. Additional consideration for the sale has the company retaining a 3-per-cent net smelter royalty (NSR) on the property. Total payments from the NSR will be capped at $2-million (U.S.) while the company is guaranteed $250,000 (U.S.) in minimum royalty payments over the next five years.

The royalty payments due have guaranteed minimum semi-annual payments of $25,000 (U.S.) payable over a five-year period, commencing December, 2024. Cash flow generated from the Palta Dorada royalty could potentially exceed the minimum semi-annual royalty payment amount, as Peruvian advances a bulk sampling campaign at Palta Dorada, expected to commence Q1 2025 and augmented by its proximity to Peruvian Metals' Aguila Norte processing plant.

The company is also pleased to announce that, following minor delays in the permitting cycle, it remains confident that it will be in receipt of full permission from MEM (Ministry of Energy and Mines, Peru) during Q4 2024, for a diamond drilling program at the Jorimina project. Jorimina is a prominently mineralized zone, hosting gold, silver and copper and forming the western flank of the company's flagship, Ninobamba Ag-Au target, in south-central Peru.

Chris Verrico, chief executive officer of Rio Silver, commented: "The sale of our 50-per-cent interest in Palta Dorada to Peruvian Metals provides the company with a significant NSR (net smelter royalty) enabling us to focus on our Ninobamba project. Peruvian is now able to finance its 100-per-cent consolidated ownership of the Palta Dorada property enabling a fast-track development plan which could augment Rio Silver's, highly valuable, 3-per-cent royalty stream. This non-dilutive cash source (royalty stream) will aid the company's exploration and development of its flagship Ninobamba Au-Ag and Jorimina properties located in the highly productive and underexplored Ayacucho silver-gold belt in south-central Peru and continue on where Newmont had left off. Newmont had discovered Jorimina and, in an internal preliminary feasibility study, concluded, in a 2012 report, that Jorimina has significant potential, significant enough to support a robust mid-sized mining enterprise with the further potential of becoming something much larger, due to the proximity of a mineralizing porphyry source. Our 100-per-cent ownership of the Ninobamba/Jorimina properties will propel Rio Silver's advancement amongst Peru's most notable precious metal developers."

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 with an oversized per cent of insider, friends and family ownership, 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 while maintaining its interest in its Ontario Gerow Lake, critical metals project.

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