Mr. Alex Black reports

RIO2 PROVIDES FENIX GOLD MINE CONSTRUCTION UPDATE

Rio2 Ltd. has provided an update on progress made at Rio2's 100-per-cent-owned Fenix gold project currently under construction in the Atacama region, Chile. At the end of the first quarter of 2025, construction was 19 per cent complete and remains on track and on budget for first gold production in January, 2026.

Construction highlights for the five-month period from Nov. 1, 2024, to March 31, 2025, are as follows, with all amounts expressed in United States dollars:

• Health and safety -- A total of 657,048 person-hours have been worked on the project to date, with one lost-time incident for a finger injury, resulting in a lost-time incident frequency rate (LTIFR) of 1.52. The total incident frequency rate (TIFR) for the project as at March 31, 2025, was 8.19.
• Budget -- Total spend to date since October of $30.1-million for works completed, versus a budget of $30.5-million. These costs exclude corporate overheads and do not include preconstruction costs expended in 2022.
• Schedule -- The total project is currently 19 per cent complete, and the company expects to achieve first gold production in January, 2026. All long-lead-time procurement items are in hand.
• Construction progress -- Work was initiated on critical-path items, such as access road upgrade, ADR (adsorption, desorption and recovery) plant, leach pad phase 1 and PLS (pregnant leach solution) pond.
• Human resources -- A total of 1,240 personnel (including contractors) are currently employed at the project. Ninety-four per cent of the work force comprises Chileans, with 41 per cent of the work force from the Atacama region and 11 per cent of the work force female.
• Exploration -- Grade control drilling activities have commenced, focused on the pit areas covering the first three years of future production.

Virtual site imagery and photos

Updated 360-degree photography showing construction progress is available at the company's website.

A progressive photographic history of construction activities and grade control drilling is available at the company's website.

Timetable and next steps

Upcoming key milestones include:

• ADR plant building completed and closed in for winter -- May;
• Completion of the PSL pond -- April;
• Delivery of 10 ha of leach pad with overliner material placed -- May;
• Installation of the electrical switch rooms -- May;
• Commissioning of the ADR plant -- November;
• Completion of mine expansion study -- December;
• First gold pour -- January, 2026.

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 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 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 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 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. The companies reaffirm their commitment to apply environmental standards beyond those that are mandated by regulators, seeking to protect and preserve the environment of the territories that they operate in.

We seek Safe Harbor.