Mr. Alex Black reports

RIO2 DESALINATED WATER UPDATE FOR EXPANSION OF THE FENIX GOLD MINE

Rio2 Ltd. has provided comprehensive and exhaustive due diligence and negotiations, Rio2's Chilean subsidiary, Fenix Gold Ltd., has signed two separate memorandum of understandings (an MOU) with two companies that have desalinated water distribution facilities located in the Copiapo area, to undertake studies for the potential supply of desalinated water to the Fenix gold mine located in the Atacama region, Chile. The studies will evaluate the potential expansion of their desalination facilities at operating plants and constructing a pipeline and associated infrastructure from their distribution facilities in Copiapo.

Andrew Cox, president and chief executive officer of Rio2, stated: "This is a significant milestone for the planned future expansion of the Fenix gold mine, and we are very pleased to have got to this position with the two potential water providers. This could be the first time desalinated water is transported from the coast to a high-altitude mine in the Atacama region of Chile. We are very happy to be at the forefront of this exciting project and look forward to turning it into a reality."

Alex Black, executive chairman of Rio2, stated: "I am very proud of the work that Andrew and the entire Fenix Gold senior management team have completed over the past several months to achieve this important milestone. With first gold production guided for January, 2026, the next five years of our activities at Fenix Gold will be both exciting and transformational for the company."

Both water companies will be required to first complete a four-month conceptual study for the potential supply of water. At the end of this four-month study period, Fenix Gold will analyze each study submission and select the preferred water provider who will develop a feasibility study for the preferred option to supply desalinated water to the Fenix gold mine.

Once the feasibility study has been completed, and internal approvals are secured, Fenix Gold and the selected provider will enter into exclusive negotiations for a joint development agreement. Prior to executing the joint development agreement, Fenix Gold will have the sole right to include other potential miners to partner in the agreement.

Now that these MOUs have been executed and study work has commenced, timelines for the proposed expansion of the Fenix gold mine are projected to be as follows:

• Completion of a prefeasibility study -- Q1 2026;
• Mineral reserve and resource update -- Q4 2026;
• Completion of a feasibility study -- H2 2027;
• Capital expenditure approvals and commitment for the expansion -- Q1 2029;
• Completion of desalinated water supply works and completion of project capital works -- H2 2030;
• Commencement of ramp up to higher rate of production -- H2 2030.

Timing is indicative and may vary depending upon various factors associated with permitting and approvals. The company will provide regular updates of progress and any revisions to projected timing.

In expanding the Fenix gold mine, the company will be targeting an expanded rate of production of 80,000 tonnes of ore per day, to produce a targeted amount of at least 300,000 ounces of gold per annum for approximately 10 years.

Fenix gold project

The Fenix gold project is one of the largest undeveloped gold oxide, heap leach projects in the Americas, hosting a measured and indicated mineral resource (as such term is defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects) of 4.8 million ounces of gold which the company believes will make a positive contribution to the Atacama region and Chile. The project is an example of modern gold mining where a full complement of technical, environmental and social considerations has been consulted and designed from the outset. The project represents a significant investment in the gold mining business in Chile by a junior mining company of approximately $235-million (U.S.) of initial and sustaining capital, generating employment for at least 1,200 people during the construction phase and 800 people during the 17-year operations phase. The mine being contemplated will be a run-of-mine heap leach operation; no crushing or tailings storage facilities are required, thereby minimizing the overall impact and footprint of the project.

The scientific and technical content of this news release has been reviewed, approved and verified by Enrique Garay, MSc, PGeo/FAIG, who is a qualified person under National Instrument 43-101. For additional information regarding the project, including key parameters, assumptions and risks associated with its development, see the independent technical report entitled "NI 43-101 Technical Report on the Feasibility Study for the Fenix Gold Project" pursuant to National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. The feasibility study is dated Oct. 16, 2023, with an effective date of Oct. 16, 2023, a copy of which document is available under Rio2's SEDAR+ profile.

About Rio2 Ltd.

Rio2 is a mining company with a focus on development and mining operations with a team that has proven technical skills as well as successful capital markets record. Rio2 is focused on taking its Fenix gold project in Chile to production in the shortest possible time frame based on a staged development strategy. Rio2 and its wholly owned subsidiary, Fenix Gold Ltd., are companies with the highest environmental standards and responsibility with the firm conviction that it is possible to develop mining projects that respect the three pillars (social, environment, economics) of responsible development. As related companies, the company reaffirms its commitment to apply environmental standards beyond those that are mandated by regulators, seeking to protect and preserve the environment of the territories that the company operates in.

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