Mr. Chris Verrico reports

RIO SILVER ARRANGES $1.3M PRIVATE PLACEMENT

Rio Silver Inc. has arranged a non-brokered private placement financing of up to 13 million units at 10 cents per unit for gross proceeds of up to $1.3-million.

Each unit consists of one common share and one transferable warrant. Each whole warrant is exercisable into one common share at 15 cents per share for three years from closing. If, following the final closing date of the private placement, the company's common shares close at or above 25 cents on the TSX Venture Exchange (or such other exchange on which the shares may trade) for 15 consecutive trading days, the company may accelerate the warrant expiry date by issuing a news release. The warrants would then expire 30 days from the date of that notice.

The private placements may be closed in one or more tranches subject to conditional approval from the TSX-V.

Subject to compliance with applicable laws and TSX-V approval, the company may pay finders' fees or commissions of up to 8 per cent and issue 8 per cent brokers' warrants to persons who assist in the introduction of investors to the company, which without limiting the foregoing may include cash, common shares and warrants, or a combination thereof.

The gross proceeds from the issue and sale of the units, excluding warrant proceeds, will be used for exploration and development of the company's projects in Peru and for general working capital purposes.

About Rio Silver Inc.

Rio Silver is a resource development company that has been selectively identifying and acquiring precious metal assets that are anticipated to produce near-term cash flow to best assist the company's exploration/development plans, in a non-dilutive, shareholder-friendly way. The company remains ever impressed and optimistic by the resilience and ingenuity of its host country as Peru continues to endorse supportive mining policies and continued growth, as evident by the continuing investment being witnessed throughout Peru.

We seek Safe Harbor.