Mr. Alex Black reports

RIO ALTO PRODUCES A RECORD 214,742 OUNCES OF GOLD IN 2013

Rio Alto Mining Ltd.'s La Arena gold mine produced and sold a quarterly record of 70,551 ounces of gold during the three months ended Dec. 31, 2013 (214,742 ounces of gold poured for the 12 months ended Dec. 31, 2013, compared with guidance of 190,000 to 210,000 ounces for the year).

Ore and waste production from the La Arena gold mine for the fourth quarter of 2013 is shown in the table.

              LA ARENA Q4 2013 PRODUCTION

                    Actual      Au     Planned      Au
                    tonnes    (g/t)     tonnes    (g/t)

Ore mined        4,077,748    0.59   3,632,000    0.61
Waste mined      5,163,924           5,858,000
Ounces poured       70,551              58,808

               LA ARENA Q4 2013 PRODUCTION

                    Actual      Au     Planned      Au
                    tonnes    (g/t)     tonnes    (g/t)

Ore mined       14,507,292    0.59  13,417,000    0.54   
Waste mined     22,997,357          23,373,000          
Ounces poured      214,742             200,181

Gold production exceeded plan for the year due to better-than-expected ore grade of 0.59 gram per tonne compared with planned grade of 0.54 g/t and tonnes of ore mined exceeding plan by 8 per cent.

Production for 2014 and cost guidance

The company forecasts producing between 190,000 and 210,000 ounces of gold in 2014 at adjusted operating costs forecasted to be in the range of $629 to $695 per ounce of gold sold. All-in sustaining costs, including selling, general and administrative costs, exploration, and sustaining capital, are forecast to fall within a range of $824 to $911 per ounce and all-in costs within a range of $990 to $1,094 per ounce for the year.

The 2014 production forecast and operating cost estimates are based on the following assumptions:

• Gold recovery of 87 per cent from the run-of-mine, dump leach operation;
• Throughput of 32,000 tonnes per day ore;
• Average grade of 0.62 g/t gold;
• Waste-to-ore ratio of 1.63 to 1;
• Diesel of $4.00 per gallon;
• Peruvian-Sol-to-U.S.-dollar foreign exchange rate of 2.8 to 1.

Rio Alto's 2014 cost per ounce projection is based on sales of between 190,000 and 210,000 ounces of gold and the cost estimates shown in the table.

                              2014 COST ESTIMATES
                       (In thousands, except per ounce)
                                                                   Per ounce
Mining                                                73,608
Processing and power                                  17,477
Worker profit participation                            7,321
Mine and Lima administration                          32,877
Refining costs net of silver revenue                     734
Adjusted operating costs                             132,017    $629 to $695
Corporate administration                               2,711
Reclamation                                            3,000
Sustaining capital                                    35,373
All-in sustaining costs                              173,101    $824 to $911
Phase II capital                                      26,069
Exploration                                            8,229
Other                                                    500
Total all-in costs                                   207,899  $990 to $1,094

The company expects these parameters to fluctuate during the year. The 2014 forecast should be treated as full year average estimates. Quarterly results will vary from these estimates.

Looking beyond 2014, the company will complete an update of the gold oxide resources and reserves at La Arena in February. In conjunction with the reserve estimate, the company will release an updated life-of-mine production plan, financial model and sustaining capital estimate for the oxide mine.

Capital budget for 2014

The 2014 La Arena sustaining capital budget is $35.4-million and includes the key items outlined below:

• Pad construction -- $20.8-million;
• Waste dump construction -- $4.0-million;
• Acid water treatment plant -- $2.2-million;
• Local school expansion -- $800,000.

Phase II budget for 2014

The 2014 La Arena phase II budget is $26-million, which includes feasibility study costs, power line and substation, and surface rights acquisition.

Exploration budget for 2014

The company plans to drill approximately 14,500 metres of reverse circulation (RC) infill and extension drilling around the Calaorco open pit during 2014, with the objective of adding to the existing resources and reserves. Approximately 5,000 metres of RC exploration drilling is also planned for each of the Carmen and El Alizar exploration targets located on the 27,000-hectare land package at La Arena. Also planned is approximately 10,000 metres of condemnation and scout drilling in the immediate area surrounding the La Arena oxide mine and areas designated for infrastructure for the future sulphide mine.

The cost of exploration activities and drilling is estimated to amount to $8.2-million.

"The production of 214,742 ounces of gold from the second year of commercial production at the La Arena gold mine significantly exceeded management's expectations, and was due in large part to the hard work and focus of the Lima-based management team and everyone involved in mine operations. The board of directors would like to express its appreciation for the commitment and effort of everyone involved in the mine development and its operation, and looks forward to a solid performance in 2014 despite challenging market conditions," commented Alex Black, president and chief executive officer.

Rio Alto intends to release its fourth quarter and 2013 financial results in late March.

The company's exploration programs are designed and managed by Enrique Garay, MSc, PGeo (AIG member), vice-president of geology of Rio Alto, qualified person within the meaning of National Instrument 43-101, who has reviewed the contents of this news release.

We seek Safe Harbor.