Mr. Alex Black reports

RIO ALTO TO PRODUCE 190,000-210,000 OUNCES OF GOLD IN 2013

Rio Alto Mining Ltd. anticipates 2013 gold production to be in the range of 190,000 to 210,000 ounces, which is identical to the previously revised production target for 2012. In 2012, Rio Alto produced 201,113 ounces. Gold production is expected to vary from quarter to quarter with the midpoints of production in the first quarter expected to be approximately 34,000 ounces, second quarter approximately 44,00 ounces, third quarter approximately 64,000 ounces and fourth quarter approximately 59,000 ounces, as shown in the table.

                                   PRODUCTION

                         Q1          Q2          Q3          Q4        Total

Ore               2,176,000   3,536,000   4,073,000   3,632,000   13,417,000
Au g/t                 0.50        0.47        0.56        0.61         0.54
Waste             6,125,000   5,923,000   5,467,000   5,858,000   23,373,000
Strip ratio            2.81        1.68        1.34        1.61         1.74
Ounces poured        33,948      43,605      63,820      58,808      200,181

The mine operating cash cost at La Arena for 2013 is expected to be in the range of $675 to $725 per ounce, which principally reflects the impact of lower ore grades in comparison with the average ore grade mined in 2012 combined with the cut back of the waste highwall at the Calaorco pit during the first half of the year. These factors combined with rising labour costs due to continued positive GDP growth in Peru and the strengthening Peruvian currency negatively impact the mine operating cash cost.

As part of a focus on cost control, the company has identified a number of opportunities to lower the cash cost from the stated guidance at La Arena during 2013. These opportunities include optimizing drill and blasting activities in both ore and waste, improving the productivity of shovels and haul trucks and the potential for an overcall of the grade of the ore that is mined as was experienced during 2012.

Total capital and exploration expenditures of $80-million to $100-million are planned for 2013. This projected expenditure is made up of $30-million in respect to the gold oxide project for expansion of the leach pad to life-of-mine capacity, $37-million related to La Arena phase II, $7-million related to exploration on the 27,000-hectare land package at La Arena, $2.5-million related to regional exploration and $9-million related to earn-ins with Duran Ventures Inc. and Santa Barbara Resources Ltd. on various properties located in southern Peru.

Alex Black, president and chief executive officer of Rio Alto, stated: "Two thousand thirteen will be our second year of commercial production at La Arena during which time we will be at a steady production rate of 36,000 tonnes of ore to the pad per day. Being at a steady production rate will enable us to focus on the optimization of the mining operation and cost control activities with the objective of minimizing the mine operating cash cost, whilst also advancing the development of phase II of the project. I am confident that our management team will be successful in maximizing gold production and minimizing cash costs during the year in a safe and sustainable manner."

We seek Safe Harbor.