Rio Novo Gold Intersects 4.28 g/t Au Over 19.30m at Vira-Saia Target, Almas Gold Project

Scout Drilling Extends Mineralization 1000m to the NW

TORONTO, Oct. 24, 2011 - Rio Novo Gold Inc. (TSX: RN) (TSX: RN.WT) (“Rio Novo“ or the “Company“) is pleased to report assay results from its ongoing diamond core drilling program at its 100% owned Almas Gold Project, located in the State of Tocantins, Brazil.

Rio Novo has received results from an additional 9 development holes at Vira-Saia and 10 exploration scout holes drilled on the trend northwest of Vira-Saia. To date 12,087 metres in 93 holes have been drilled at this target, which was optioned by Rio Novo in April 2011 and it is located approximately 5km from the planned milling facilities at Paiol.


Significant intercepts include:

- FVSD-0047 – 19.3m @ 4.28 g/t Au (from 124.2 to 143.5m); including 1.0m @ 57.57 g/t Au
- FVSD-0048 – 19.9m @ 0.73 g/t Au (from 137.0m to 156.9m)
- FVSD-0054 – 7.4m @ 1.97 g/t Au (from 78.1m to 85.5m)
- FVSD-0058 – 19.5m @ 0.87 g/t Au (from 16.0m to 35.5m)
- FVSD-0062 – 8.5m @ 1.61 g/t Au (from 9.2m to 11.7m)
- FVSD-0071 – 5.2m @ 1.65 g/t Au (from 61.15m to 66.35m)


Vira-Saia Main Zone

Gold mineralization at Vira-Saia occurs within sheared granodiorite along a major NW fault zone. The zone dips at an angle of 75 to 90 degrees towards the SW and has now been traced over a 3 km strike length. The main shear zone is 10 to 30m wide with gold contained in quartz-sericite-carbonate alteration zone. Numerous secondary structures parallel the main shear zone and often contain gold.

Drilling continued on the development of a 50x50m grid over the Main Zone to a vertical depth of about 120m. The deepest drilling to date intersected the structure at a vertical depth of 117 to 130m (previously reported FVSD-0044 with 15.5m at 2.37 g/t Au).

Recent results show the zone continues to maintain continuity at depth and along strike. FVSD-0047 drilled 19.3m averaging 4.28 g/t Au (124.2 to 143.5m) and FVSD-0048 intercepted 19.85m averaging 0.73 g/t Au (137.0 to 156.85m). Higher grade intervals were intersected in several of the Main Zone holes including 1.0m @ 57.57 g/t Au in FVSD-0047.

Drilling continues to define the NW part of Vira-Saia Main with recent intercepts including 8.5m at 1.61 g/t Au in FVSD-0062 (9.2 to 17.7m) and 4.75m at 1.11 g/t Au in FVSD-0063 (34.25 to 39.00m). The total strike length for Vira-Saia Main is now 600m.


Exploration to the Northwest

Initial results of scout drilling of the NW Trend have been received. The scout drilling targeted the Vira-Saia structure and soil anomalies with drill holes spaced at about 100m along strike. These results were encouraging with all eight holes hitting mineralization. The thickest zone intercepted was in FVSD-0058 with 19.5m averaging 0.87 g/t Au. Other holes hit numerous mineralized intervals from 1.0 up to 7.0m in downhole thickness. This drilling has extended the potential target zone nearly 1000m to the NW. Please refer to the map in the following link: http://media3.marketwire.com/docs/vira-saia1.pdf

“We are encouraged by these results as they confirm the continuation of mineralization to the northwest, significantly increasing the potential to add further resources. Rio Novo intends to operate four drills on the Vira-Saia target, continuing to infill the Vira-Saia Main zone and further test exploration potential to the northwest and south,“ said Brian Arkell, SVP Exploration & Corporate Development.

The results received from the Vira-Saia target is provided in the table below.

Hole #  From (m)  To (m)  Interval (m)  Grade (g/t Au)  Zone
FVSD-0047 	108.85 	110.00 	1.15 	6.45 	Main
	114.00 	115.00 	1.00 	1.16 	Main
	124.20 	143.50 	19.30 	4.28 	Main
FVSD-0048 	103.70 	107.70 	4.00 	0.39 	Main
	125.60 	126.65 	1.05 	0.43 	Main
	137.00 	156.85 	19.85 	0.73 	Main
FVSD-0049 	52.25 	53.80 	1.55 	0.42 	NW Trend
FVSD-0050 	54.20 	55.30 	1.10 	2.51 	NW Trend
	61.00 	62.00 	1.00 	0.41 	NW Trend
	93.00 	94.00 	1.00 	0.35 	NW Trend
FVSD-0051 	30.35 	31.05 	0.70 	0.38 	NW Trend
FVSD-0052 			No significant values 	East
FVSD-0053 	1.00 	2.00 	1.00 	1.78 	NW Trend
	26.00 	28.00 	2.00 	0.46 	NW Trend
	99.00 	100.00 	1.00 	0.43 	NW Trend
	116.00 	117.00 	1.00 	1.46 	NW Trend
FVSD-0054 	78.10 	85.50 	7.40 	1.97 	East
	107.00 	115.00 	8.00 	0.64 	East
FVSD-0055 	22.00 	23.00 	1.00 	0.39 	NW Trend
	28.00 	29.00 	1.00 	0.47 	NW Trend
	37.00 	42.00 	5.00 	0.49 	NW Trend
	48.00 	49.25 	1.25 	1.25 	NW Trend
	53.55 	54.50 	0.95 	0.34 	NW Trend
FVSD-0056 	46.00 	46.75 	0.75 	0.31 	NW Trend
	52.35 	53.00 	0.65 	1.43 	NW Trend
	58.00 	58.90 	0.90 	0.52 	NW Trend
	78.70 	79.35 	0.65 	1.93 	NW Trend
	94.50 	95.05 	0.55 	0.56 	NW Trend
FVSD-0057 	30.50 	32.10 	1.60 	0.87 	NW Trend
	37.00 	38.00 	1.00 	1.24 	NW Trend
	44.00 	45.00 	1.00 	2.05 	NW Trend
	52.00 	54.50 	2.50 	1.55 	NW Trend
	59.00 	60.75 	1.75 	0.35 	NW Trend
	72.00 	75.00 	3.00 	0.40 	NW Trend
	83.70 	87.85 	4.15 	0.96 	NW Trend
	121.00 	123.00 	2.00 	2.77 	NW Trend
FVSD-0058 	4.15 	5.15 	1.00 	0.30 	NW Trend
	16.00 	35.50 	19.50 	0.87 	NW Trend
	39.70 	40.85 	1.15 	0.47 	NW Trend
	48.20 	49.00 	0.80 	0.43 	NW Trend
	65.00 	66.00 	1.00 	0.33 	NW Trend
FVSD-0059 	1.40 	2.80 	1.40 	0.40 	NW Trend
	19.50 	21.30 	1.80 	1.15 	NW Trend
	49.00 	56.00 	7.00 	0.51 	NW Trend
	88.00 	90.00 	2.00 	1.25 	NW Trend
FVSD-0060 	8.00 	11.80 	3.80 	1.72 	NW Trend
	16.50 	17.40 	0.90 	0.64 	NW Trend
	26.80 	27.70 	0.90 	0.53 	NW Trend
	45.00 	46.00 	1.00 	0.49 	NW Trend
FVSD-0061 	7.00 	8.00 	1.00 	0.98 	NW Trend
	54.00 	55.00 	1.00 	11.91 	NW Trend
	61.00 	65.00 	4.00 	0.44 	NW Trend
	68.00 	69.00 	1.00 	0.32 	NW Trend
	75.00 	76.00 	1.00 	0.36 	NW Trend
FVSD-0062 	9.20 	17.70 	8.50 	1.61 	Main
	30.70 	31.60 	0.90 	33.31 	Main
	62.00 	63.00 	1.00 	0.60 	Main
	67.00 	68.00 	1.00 	0.70 	Main
FVSD-0063 	5.25 	6.35 	1.10 	3.52 	Main
	34.25 	39.00 	4.75 	1.11 	Main
	43.40 	44.00 	0.60 	0.36 	Main
	47.00 	48.00 	1.00 	0.53 	Main
	58.00 	59.00 	1.00 	1.53 	Main
	65.65 	67.00 	1.35 	0.77 	Main
	72.40 	73.00 	0.60 	0.47 	Main
	90.30 	96.30 	6.00 	0.73 	Main
	102.50 	103.30 	0.80 	0.32 	Main
FVSD-0064 	51.00 	52.00 	1.00 	0.37 	Main
FVSD-0071 	1.50 	4.00 	2.50 	0.36 	Main
	39.70 	40.30 	0.60 	0.49 	Main
	49.40 	56.30 	6.90 	0.54 	Main
	61.15 	66.35 	5.20 	1.65 	Main

To view the maps and selected cross sections associated with this press release, please visit the following link:
http://media3.marketwire.com/docs/vira-saia2.pdf

David Beatty, CEO, states: “Our clear objective is to drill off sufficient resource ounces at the Vira-Saia deposit to progress to a Fall re-start of the Almas Definitive Feasibility Study (“DFS“) and we are pleased to be well on our way with the widths, continuity and depth of the Main Zone. The Exploration team is to be complimented for their persistence in pursuing this target.“


Sample Preparation, Analyses and Security

The assay and sample information, as well as geological descriptions, are taken from drill logs prepared by the project geologists for the drilling program. Drilling data is first validated, and then sent to the GIS-database management department at the Rio de Janeiro office.

The drill core is split on site, and one half of the core is sent to SGS-Geosol's preparation facility in the city of Goiania, in Goiás State. Prepared pulps are analyzed at SGS-Geosol's analytical facilities at Vespasiano, near Belo Horizonte in the state of Minas Gerais. High grade samples (> 10 grams/tonne Au) are routinely analyzed by metallic screen fire assay, and the resulting number is used as the accepted value. SGS-Geosol warrants the “chain of custody“ of the samples in accordance with the standards required by Canadian NI 43-101.


Qualified Person

Mr. Brian Arkell, Senior Vice President of Exploration at Rio Novo Gold Inc., is a Qualified Person as set out in the Canadian National Instrument 43-101, and has reviewed and verified the technical content of the information contained in this release.


About Rio Novo

Rio Novo, which has cash reserves of about US$42 million, is focused on the acquisition, exploration and development of gold properties in Brazil and Colombia. The Company has Measured & Indicated resources of 961,711 oz and 1,178,016 Inferred oz of gold in Brazil and Colombia.

The Company's goal is to become a producer of gold in the short term by bringing into production its two Brazilian properties, the Almas Gold Project, located in the State of Tocantins, and the Guarantã Gold Project, located in the State of Mato Grosso. Both projects enjoy established infrastructure and main grid hydropower in mining friendly jurisdictions.

In June 2011, the Company completed the 100% acquisition of the Toldafria property in Caldas State, in the central Cordillera. The Toldafria property has an Inferred resource of 952,000 oz gold at a grade of 2.38 g/t as set out in a NI43-101 compliant resource estimate. At Toldafria, the Company plans to execute a systematic fall program of trenching, mapping, additional underground channel sampling, and once permitted, drilling to determine the extent of the Toldafria deposit.


This press release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as “anticipate“, “believe“, “plan“, may“, “could“, “would“, “might“ or “will“, “estimates“, “expect“, “intend“, “budget“, “scheduled“, “forecasts“ and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of gold and other risks identified in the Company's most recent annual information form filed with the Canadian securities regulatory authorities on SEDAR.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.



Contact Information

Rio Novo Gold Inc.
David Beatty, Chief Executive Officer
+1 (416) 368-8288
david.beatty@Rnovogold.com

Rio Novo Gold Inc.
Alex Penha, General Manager, Corporate Development
+1 (416) 509-0583
alex.penha@Rnovogold.com
www.rnovogold.com