Mr. Alex Black reports

RIO2 REPORTS ON FENIX GOLD MINE PROGRESS

After completing Rio2 Ltd.'s highly successful debt and equity financing announced on Oct. 21, 2024, the company has provided an update on the progress made by its Chilean subsidiary, Fenix Gold Ltd., which is currently constructing the Fenix gold mine located in the Maricunga gold belt of the Atacama region, in Chile. Advancements include the commencement of hiring of the company's Chilean work force, mobilization of civil construction and plant construction contractors, completion of civil works for the processing plant site, and commencement of construction of the heap leach pad and adjoining PLS pond. The company has also entered a fixed price contract totalling $49-million (U.S.) (plus GST) with its plant construction contractor, HLC Chile SPA, for the construction of the Fenix gold mine adsorption, desorption, and gold recovery (ADR) plant, associated infrastructure, and site electrical distribution lines. Long lead items such as gensets, principal pumps and electrical switchgear facilities have been purchased directly by Fenix Gold. Rio2 will provide guidance in January, 2025, for the construction schedule and associated budget, along with a projection of when the first gold production is expected to be achieved.

Andrew Cox, president and chief executive officer, commented: "Since closing our debt and equity financing in October, we have made excellent progress on all fronts related to the construction of our Fenix gold mine. The execution of the mine built on our proven alliance approach with our civil contractor and plant contractor is progressing as planned and the negotiation of a fixed price contract for the plant construction is a positive bonus to managing and controlling our construction budget. We are extremely happy to see the positive impact that we are making to employment in the Atacama region and look forward to providing regular quarterly updates through construction in 2025."

Implementation of SAP S/4Hana Cloud

Rio2 also announces that it has selected the Grow with SAP solution for enterprise resource planning (ERP) and Syntax as its implementation partner. This ERP software solution will be used by Rio2 to manage the company's core business processes, including finance, human resources, supply chain and procurement, all within a unified view of activity and single source of information. The Grow with SAP solution will help streamline business operations by centralizing data across different departments and disciplines, allowing for better decision making and improved efficiency.

Syntax will work with Rio2 to implement SAP S/4Hana Cloud through Grow with SAP. Rio2 selected Syntax as its implementation partner due to the company's confidence in Syntax's ability to execute the implementation successfully, as well as Syntax's significant expertise in and understanding of the mining industry.

"Digital transformation is not a nice to have; it's necessary for successfully operating in today's mining industry," said Michelle Smith, vice-president, Syntax mining practice. "Syntax is proud to work with Rio2 to streamline processes, enhance data visibility and enable smarter decisions while accelerating their transformation journey."

The implementation of SAP S4/Hana Cloud will support Rio2 at the mine site and in its corporate offices. On site, SAP S/4 Hana Cloud will support the operations team during the construction of the Fenix gold mine and afterward when Fenix is in production; off site, the implementation will allow Rio2's corporate offices to analyze vital data, as well as optimize financial reporting. The company is targeting a "go-live" of SAP S/4Hana Cloud in Q2 2025.

"As we move towards the next phase of our company with the construction of the Fenix gold mine, we are really excited about the implementation of SAP S/4Hana Cloud. It's a scalable solution that will Grow alongside us, improving both our operations and finance functions," says Kathryn Johnson, executive vice-president -- chief financial officer and corporate secretary. "We are also pleased to be working with Syntax on this project. We felt that Syntax's long-standing experience and reputation for excellence working with mining companies across Canada, the U.S. and globally made them a great match for our business."

Rio2 is familiar with SAP capabilities, as its mining contractor also leverages SAP tools in its business activities. This existing synergy between Rio2 and its mining contractor should result in increased efficiency, reducing costs and directly contributing to operational effectiveness.

About Syntax

Syntax provides comprehensive technology solutions and trusted professional, advisory, and application management services to power businesses' mission-critical applications in the cloud. With 50 years of experience and 800-plus customers around the world, Syntax has deep expertise in implementing and managing multi-ERP deployments in secure private, public, hybrid or multicloud environments. Syntax partners with SAP, Oracle, JD Edwards, AWS, Microsoft and other global technology leaders to ensure customers' applications are seamless, secure, and at the forefront of enterprise technology innovation.

SAP, SAP S/4Hana, Grow with SAP, and SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries.

Implementation of VRIFY 3-D visualization

Rio2 has been working closely with VRIFY Technology Inc. over the past few months and recently implemented the VRIFY system to help showcase the company's Fenix Gold Project as it progresses through construction into production over the next 12 to 24 months. Rio2 believes the VRIFY platform will provide enhanced communication and visualization of the company's Fenix Gold mine setting, scale and historical data as the project advances.

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 on and designed in 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 and will generate employment for at least 1,200 people during the construction phase and 550 people during the 17-year operations phase. The mine being contemplated at the project 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 Ronoel Vega, MinEng, MMBA, FAusIMM, who is a qualified person under NI 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 (NI 43-101). 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 a 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 Ltda., 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 and economics) of responsible development. Rio2 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 it operates in.

We seek Safe Harbor.