Mr. Christopher Verrico reports

RIO SILVER ACQUIRES THE MINAS MARIA NORTE PROJECT IN A PROLIFIC MINING DISTRICT IN SOUTHERN PERU

Rio Silver Inc. has signed a definitive agreement for the acquisition of the Minas Maria Norte high-grade polymetallic silver exploitation/exploitation property from Peruvian Metals Corp., being subject to regulatory approval.

The property is located in southern Peru in the historic Huachocolpa mining district, municipality of Huancavelica. The property has been held by Peruvian for the past 18 years adjacent to significant silver production with announced world-class expansion plans. Previous exploration campaigns by Peruvian show that the property hosts many polymetallic veins with significant gold credits. Located in the heart of the prolific Huachocolpa silver district, environmentally friendly hydro power, good infrastructure, labour and logistical support are available.

Two significant mineral processing flotation plants operate nearby: Compania Minera Kolpa plant at 1,440 tonnes per day and SilverX Mining's plant called Recuperada at 720 tonnes per day. These plants are located eight kilometres and 13 km, respectively, from Maria Norte. In addition, SilverX's Tangana mining unit, which is part of its Nueva Recuperada project, is currently in production and is located 2.5 km to the southwest of Maria Norte. It appears that the subparallel mineralized structures on Maria Norte are similar to the mineralized structures on the Tangana mining unit. SilverX completed a preliminary economic assessment of the area and is published on SEDAR+ in April, 2023.

The Maria Norte property is 368 hectares in size covering numerous gold-silver-zinc-lead veins that display evidence of historic artisanal exploitation. Five gold-bearing polymetallic structures were mapped by the company's geologists and remain open along strike. The lengths of the structures as currently mapped are 40 to 400 metres with variable widths from 0.15 to four metres and occur in a vein corridor nearly 600 metres wide.

The main structure at Maria Norte, the Castorindo zone, has provided the highest-grade gold values from within the land package, having five samples ranging in width from 0.18 to 0.70 metre and assaying 13.5 to 40.3 grams per tonne gold along with 162.9 to 1,128 grams per tonne silver. High-grade silver (1,848 grams per tonne) was also encountered at the Jess structure on a sample 0.3 metre in width. Other veins not yet mapped include five samples with widths of 0.2 to 0.7 metre with gold values ranging from 0.89 to 1.55 grams per tonne, silver values ranging from 82.8 to 682 grams per tonne, and up to 4.3 per cent zinc and 9.7 per cent lead.

Also included in the acquisition is a small, isolated concession covering 33 hectares south of the Maria Norte main concession block. Sampling and mapping by Peruvian's geologists identified a mineralized structured believed to be a small portion of the principal vein structure known as Tangana West, a component of SilverX's Nueva Recuperada project, Huancavelica.

Acquisition terms

Rio Silver will acquire from Peruvian its wholly own Peruvian subsidiary which holds the concessions. Consideration includes a cash down payment of $15,000 and the issuance of 15 million Rio Silver common shares and five million warrants. The warrants will have a strike price of five cents per share and an exercise period of two years. Cash payments totalling $250,000 (U.S.) will be also payable over a five-year period. A net smelter royalty will be granted to Peruvian in an amount equal to 1.5 per cent, after subtracting the minimum royalty payments semi-annually.

Rio Silver chief executive officer Chris Verrico stated: "We are very excited for the potential of Maria Norte to drive shareholder value, enabling the company to redirect its focus to the pursuit of near-term cash flow potential and the prospect of significant organic growth, strategically made possible in the very important Huachocolpa mining district.

"Maria Norte is directly adjacent to and on trend with active mine production with demonstrated world-class silver potential that speaks volumes for the company's expectations for advancement towards sustainability.

"We believe that this acquisition and its potential development will be aided by the company's other royalty streams and is well supported by Peru's unique small mines permitting regime, which can accelerate the initial development. We remain ever impressed and optimistic by the resilience and ingenuity of our host country as Peru continues to endorse supportive mining policies and continued growth, as is currently evident by the tremendous investment being witnessed throughout Peru.

"We remain ever impressed and optimistic by the resilience and ingenuity of our host country as Peru continues to endorse supportive mining policies, ensuring continued growth and opportunity throughout Peru."

About Rio Silver Inc.

Rio Silver is a resource company that has been selectively identifying and acquiring precious metal assets that are anticipated to produce near-term cash flow to best assist the company's exploration/development plans in a non-dilutive, shareholder-friendly way.

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

We seek Safe Harbor.