Mr. Chris Verrico reports

RIO SILVER INC. ANNOUNCES $3.0 MILLION NON-BROKERED PRIVATE PLACEMENT LED BY ERIC SPROTT

Rio Silver Inc. has arranged a non-brokered private placement financing for gross proceeds of up to $3-million.

Under the offering, subject to regulatory approval, the company intends to issue up to 8,571,429 units at a price of 35 cents per unit. Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share of the company at a price of 50 cents per share for a period of 24 months from the date of issuance, subject to accelerated expiry in the event the common shares of the company trade at a price greater than 75 cents for 15 consecutive trading days.

The net proceeds from the offering are expected to be used for advancement of the company's Maria Norte project in Peru, access development, metallurgical programs and general working capital purposes.

Closing and regulatory matters

Closing of the offering is subject to receipt of all necessary approvals, including approval of the TSX Venture Exchange. All securities issued under the offering will be subject to a statutory hold period in accordance with applicable securities laws, expiring four months and one day from the date of issuance.

The company may pay finders' fees in connection with the offering in accordance with the policies of the TSX-V.

About Rio Silver Inc.

Rio Silver is a Canadian resource company advancing high-grade, silver-dominant assets in Peru, the world's second-largest silver producer. The company is focused on near-term development opportunities within proven mineral belts and is supported by a seasoned technical and operational team with deep experience in Peruvian geology, underground mining and district-scale exploration. With a clear development strategy and a growing portfolio of highly prospective silver assets, Rio Silver is establishing the foundation to become one of Peru's next emerging silver producers.

We seek Safe Harbor.