Mr. Alex Black reports

RIO ALTO ANNOUNCES NET INCOME OF US$15.2 MILLION FOR Q2 2014

Rio Alto Mining Ltd.'s net income for the quarter ended June 30, 2014, was $15.2-million or nine cents per share. Cash provided by operations for the quarter amounted to $22.4-million. The World Gold Council adjusted production cost was $569 per ounce for the quarter.

Highlights for the quarter included:

• Gold produced was 54,517 ounces, of which 50,830 ounces were sold at an average realized price of $1,276 per ounce. The remaining ounces were delivered to Red Kite under the company's gold prepayment agreement. In July, 2014, the company delivered the final 3,881 notional ounces to settle the prepayment.
• WGC adjusted production cost per ounce was $569.
• WGC all-in sustaining costs per ounce were $772.
• WGC all-in costs per ounce were $879.
• Net income amounted to $15.2-million (nine cents per share).
• Cash provided by operations was $22.4-million.
• Capital investments amounted to $12.1-million and exploration spending was $1.4-million.

"Another strong operational and financial performance was achieved at La Arena during Q2. Our management team continues to focus on the optimization of costs at the mine which has resulted in the company beating its financial guidance for the first half of the year," commented Alex Black, president and chief executive officer.

Subsequent to the end of the second quarter, Rio Alto has closed its acquisition of Sulliden Gold Corp. Ltd. and has commenced re-engineering studies to determine the capital cost and timing of the starter gold project the company intends to build at Shahuindo during 2015. Results of the re-engineering studies are currently planned to be released to the public during the fourth quarter of 2014. At this stage, it is anticipated that the first gold pour will be achieved at Shahuindo by the end of 2015/early 2016. The company also anticipates completing the current oxide drilling program at La Arena by mid-September and the feasibility study for the phase II copper/gold sulphide project by year-end in preparation for a new mineralized resource and reserve statement for La Arena to be released in January, 2015.

This release should be read in conjunction with Rio Alto's second-quarter 2014 financial statements and related management's discussion and analysis, which may be found at the company's website, on the SEDAR website and on the EDGAR website.

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