Rio Silver Completes Sale of Palta Dorada Ag-Au Property, Peru

VANCOUVER, Oct. 08, 2024 - Rio Silver Inc. (TSXV:RYO) ("Rio Silver" or the "Company") is pleased to announce that the Company has received the balance of the $250,000 US cash required for the sale of its 50% interest in the Palta Dorada Au-Ag Property, from Peruvian Metals Corp. ("Peruvian"). Additional consideration for the sale has the Company retaining a 3% Net Smelter Royalty ("NSR" or "Royalty") on the property. Total payments from the NSR will be capped at $2 million US while the Company is guaranteed US $250,000 in minimum royalty payments over the next five years.

The royalty payments due have guaranteed minimum semi-annual payments of $25,000 US payable over a five year period, commencing December 2024. Cash flow generated from the Palta Dorada Royalty could potentially exceed the minimum semi-annual royalty payment amount, as Peruvian advances a bulk sampling campaign at Palta Dorada, expected to commence Q1 2025 and augmented by its proximity to Peruvian Metals' Aguila Norte Processing Plant.

The Company is also pleased to announce that following minor delays in the permitting cycle, it remains confident that it will be in receipt of full permission from MEM (Ministry of Energy and Mines, Peru) during Q4, 2024, for a Diamond Drilling program at the Jorimina project. Jorimina is a prominently mineralized zone, hosting gold, silver and copper and forming the western flank of the Company's flagship, Niñobamba Ag-Au target, in south-central Peru.

Chris Verrico, Chief Executive Officer of Rio Silver commented: "The sale of our 50% interest in Palta Dorada to Peruvian Metals provides the Company with a significant NSR (Net Smelter Royalty) enabling us to focus on our Ninobamba project. Peruvian is now able to finance it's 100% consolidated ownership of the Palta Dorada property enabling a fast-track development plan which could augment Rio Silver's, highly valuable, 3% royalty stream. This non-dilutive cash source (royalty stream) will aid the Company's exploration and development of its flagship Niñobamba Au-Ag and Jorimina properties located in the highly productive and under explored Ayacucho Silver - Gold belt in south-central Peru and continue on where Newmont had left off. Newmont had discovered Jorimina, and in an internal preliminary feasibility study concluded, in a 2012 report, that Jorimina has significant potential, significant enough to support a robust mid-sized mining enterprise with the further potential of becoming something much larger, due to the proximity of a mineralizing porphyry source. Our 100% ownership of the Niñobamba/Jorimina properties will propel Rio Silver's advancement amongst Peru's most notable precious metal developers."

Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation, or approved the scientific and technical disclosure contained in this news release.

About Rio Silver Inc.

Rio Silver is a Canadian Exploration and Development company with an oversized percent of insider, friends and family ownership, focused on Peru. The Company holds a 100% interest in the very prospective Ag-Au Ninobamba where more than $10 million US has been spent on exploration by the Company and previous operators. The Company continues to review precious and base metal properties in Peru while maintaining its interest in its Ontario Gerow Lake, critical metals project.

For further information on Rio Silver Inc. please visit www.riosilverinc.com

For Investor Inquiries:

Christopher Verrico, President, CEO

Tel: (604) 762-4448

Email: chris.verrico@riosilverinc.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This news release includes certain statements that may be deemed "forward-looking statements". All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.