Mr. Alex Black reports

RIO ALTO PRODUCES A RECORD 222,255 OUNCES OF GOLD IN 2014

Rio Alto Mining Ltd.'s La Arena gold mine produced and sold 57,908 ounces of gold during the three months ended Dec. 31, 2014. Two hundred twenty-two thousand two hundred fifty-five ounces of gold were poured for the 12 months ended Dec. 31, 2014, compared with guidance of 200,000 ounces to 220,000 ounces for the year.

Ore and waste production from the La Arena gold mine for the fourth quarter of 2014 is shown in the table.

                          Actual              Planned           Difference

                  Tonnes  Au g/t       Tonnes  Au g/t   Tonnes/oz   Au g/t

Ore mined      3,389,691    0.60    2,399,539    0.60     990,152     0.01
Waste mined    3,656,417            3,831,410            (205,993)

                          Actual               Planned          Difference

Strip ratio                 1.08                  1.60               (0.52)
Ounces poured             57,908                49,628               8,280

Ore and waste production from the La Arena gold mine for 2014 is shown in the table.

                          Actual              Planned           Difference

                  Tonnes  Au g/t       Tonnes  Au g/t   Tonnes/oz   Au g/t


Ore mined     15,274,666    0.52   11,576,660    0.62   3,698,006    (0.10)
Waste mined   17,332,139           18,885,439          (1,553,300)

                          Actual              Planned           Difference

Strip ratio                 1.13                 1.63                (0.50)
Ounces poured            222,255              208,022               14,233

2015 production and cost guidance

The company forecasts its La Arena gold mine will produce between 210,000 ounces of gold and 220,000 ounces of gold in 2015 at adjusted operating costs as defined by the World Gold Council to be in the range of $570 per ounce of gold sold to $600 per ounce of gold sold. WGC all-in sustaining costs -- including selling, general and administrative costs, exploration, and sustaining capital -- are forecast to fall within a range of $730 per ounce to $765 per ounce, with WGC all-in costs within a range of $740 per ounce to $775 per ounce for the year.

The 2015 production forecast and operating cost estimates are based on the following assumptions:

• Combined gold recovery of 83.4 per cent from the run-of-mine, dump leach operation;
• Average grade -- 0.59 gram per tonne gold;
• Waste-to-ore ratio of 1.37:1;
• Diesel of $3.90 per gallon;
• Peruvian sol to United States dollar foreign exchange rate of 2.9:1.

Rio Alto's 2015 cost-per-ounce projection is based on sales of between 210,000 ounces of gold and 220,000 ounces of gold and the cost estimates shown in the table.

                                               $(000)              Per ounce

Mining                                         62,592                       
Processing and power                           14,954                       
Worker profit participation                     8,040                       
Mine and Lima administration                   39,756                       
Refining costs net of silver                                                
revenue                                           881                       
Adjusted operating costs                      126,223           $570 to $600
Corporate administration                        3,549                       
Reclamation                                     1,500                       
Sustaining capital                             29,146                       
All-in sustaining costs                       160,418           $730 to $765
Phase II capital                                  926                       
Exploration                                     1,200                       
Other                                             500                       
Total all-in costs                            163,044           $740 to $775

The company expects these parameters to fluctuate during the year. The 2015 forecast should be treated as full-year average estimates. Quarterly results will vary from these estimates.

Looking beyond 2015 guidance, the company will release an update of the gold oxide and copper/gold sulphide resources and reserves at La Arena in late January. In conjunction with this resource/reserve update, the company will release results and details of the prefeasibility study for its La Arena phase II project.

2015 sustaining capital budget

The 2015 La Arena sustaining capital budget is $29.1-million and includes the key items outlined in the table.

Pad and waste dump construction   $14.9-million
Processing plant modifications     $2.2-million 
Community relations                $2.6-million 
Permits and engineering            $1.4-million 
Land purchases                     $6.0-million 
Other                              $2.0-million 

2015 exploration strategy and budget

The company has had a successful year in adding ounces through exploration. For 2015 the company has decided to be prudent with its cash and reduce further oxide gold exploration until the current volatility of the gold price stabilizes. A total of $7.4-million was originally budgeted to further test extensions to gold oxide mineralization around the Calaorco open pit. The budget will be reduced to $1.2-million for 2015. The company will advise the market if and when it feels market conditions have improved enough to reinitiate exploration at La Arena.

Shahuindo development plan

The company reiterates its plans to commence construction at its Shahuindo project during 2015 with the objective of producing first gold by January, 2016. A financing package for the first stage of construction at Shahuindo is currently being finalized and will be announced shortly.

"Exceeding our 2014 gold production guidance has been a great achievement given the current low gold price environment. The hard work and focus of the Lima-based management team and mine operations personnel to achieve this result allows Rio Alto to stand out from its peers as a solid, performance-oriented, high-margin mid-tier gold producer. The forecasted performance at La Arena and the development plans for Shahuindo during 2015 all bode well for the company's future. The board of directors would like to express its appreciation for the commitment and effort of everyone involved in achieving the company's solid performance during 2014 and looks forward to an exciting and productive 2015 at both La Arena and Shahuindo," commented Alex Black, president and chief executive officer.

Rio Alto intends to release its fourth-quarter and 2014 financial results on March 16, 2015.

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

We seek Safe Harbor.