Mr. Jeffrey Reeder reports

RIO SILVER ANNOUNCES TERMINATION OF NINOBAMBA PROPERTY OPTION AGREEMENT AND EXTENSION OF WARRANTS

Rio Silver Inc. and Magellan Gold Corp. have agreed to mutually terminate the property option agreement signed on Oct. 24, 2016, and relating to the company's 100-per-cent-owned Ninobamba silver/gold project in Peru. The additional details of the option agreement were previously announced on Oct. 24, 2016.

The company also announces that it intends to apply to the TSX Venture Exchange to amend the terms of a total of 1.25 million outstanding share purchase warrants issued pursuant to a private placement that closed on Jan. 19, 2017. These warrants are exercisable at a price of six cents per share and are currently set to expire on July 19, 2018, as set out in the press release of the company on Jan. 19, 2017. The proposed amendment is limited to the extension of the expiry date of the warrants without changes to the exercise price of six cents per warrant share. Subject regulatory approval, the proposed new date for expiry of the warrants is Jan. 19, 2020.

We seek Safe Harbor.