Mr. Chris Verrico reports

RIO SILVER INC. GENERATES ROYALTY REVENUE AND CONFIRMS ADDITIONAL UPCOMING SHARE ISSUANCE FROM MAGMA SILVER

Rio Silver Inc. has received the first $100,000 (U.S.) advanced royalty payment from Magma Silver Corp. pursuant to the previously announced option agreement on its Ninobamba gold-silver property in Peru.

Under the terms of the option agreement, Magma Silver has the right to earn a 100-per-cent interest in the Ninobamba project upon full exercise of the option. The agreement provides for total payments of $260,000, which have been received, and additional milestone payments of up to $2-million (U.S.), including $500,000 (U.S.) in advanced royalty payments to be paid over the next five years. The initial $100,000 (U.S.) payment received will be credited against a 2-per-cent net smelter return (NSR) royalty retained by Rio Silver.

Magma Silver retains the right to repurchase 1 per cent of the NSR for $1-million (U.S.) at any time prior to commercial production.

In addition, Rio Silver confirms that it has previously received 2.5 million common shares of Magma Silver and will receive a further 2.5 million common shares on April 15, 2026, pursuant to the terms of the agreement.

Management commentary:

"This is an important milestone for Rio Silver as we begin to realize value from our royalty portfolio," said Chris Verrico, president and chief executive officer of Rio Silver. "The receipt of advanced royalty payments and the upcoming additional share issuance from Magma Silver reinforces the strength of our broader asset base and provides meaningful non-dilutive exposure as we continue advancing Maria Norte."

"Our focus remains on disciplined execution at Maria Norte, while maintaining strategic exposure to additional upside through royalties and equity positions that can generate value without shareholder dilution."

Why this matters to investors

This milestone demonstrates that Rio Silver is not solely an exploration- or development-stage company, but one that is actively generating revenue through its royalty interests. The receipt of advanced royalty payments provides immediate non-dilutive capital, while the retained 2-per-cent NSR royalty and equity position in Magma Silver offer continuing exposure to future production and asset appreciation.

The upcoming issuance of an additional 2.5 million shares in Magma Silver further strengthens Rio Silver's balance sheet and provides continued leverage to exploration success and development progress at Ninobamba. Together, these elements enhance financial flexibility and support the company's capital-efficient approach to advancing its core silver-dominant assets.

Additional corporate update

The company also announces that it has granted an aggregate of 1.62 million stock options pursuant to its stock option plan. The options are exercisable at a price of 43 cents per common share:

• Options to buy 800,000 shares have been granted to directors and officers of the company, expiring on March 31, 2031.
• Options to buy 820,000 shares have been granted to consultants of the company, expiring on March 31, 2028.

The options vest in accordance with the company's stock option plan and are subject to acceptance by the TSX Venture Exchange.

About Rio Silver Inc.

Rio Silver is a Canadian resource company advancing high-grade, silver-dominant assets in Peru, the world's second-largest silver producer. The company is focused on near-term development opportunities within proven mineral belts, and is supported by a seasoned technical and operational team with deep experience in Peruvian geology, underground mining and district-scale exploration. With a clear development strategy and a growing portfolio of highly prospective silver assets, Rio Silver is establishing the foundation to become one of Peru's next emerging silver producers.

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