Mr. Christopher Verrico reports

RIO SILVER ANNOUNCES PROPOSED SHARES FOR DEBT TRANSACTION

Subject to the approval of the TSX Venture Exchange, Rio Silver Inc. intends to settle an aggregate of $293,250 of indebtedness owed to certain arm's-length and non-arm's-length creditors through the issuance of an aggregate of 1,396,428 common shares at a deemed price of 21 cents per common share and 420,238 common share purchase warrants of the company; 976,190 of the common shares (and no warrants) will be issued to non-arm's-length creditors.

Each warrant is exercisable into a common share at the price of 28 cents per common share for a period of three years from the date of issue.

All common shares and warrants issued to settle the debt will be subject to a hold period of four months and one day from the date of issuance. The transaction is subject to TSX Venture Exchange approval. Completion of the transaction will allow the company to improve its current working capital deficiency position.

We seek Safe Harbor.