Rio Verde Minerals Announces Non-Brokered Private Placement of Up to C$15 Million

TORONTO, ONTARIO -- (Marketwire) -- 05/25/12 -- Rio Verde Minerals Development Corp. (TSX: RVD) ("Rio Verde" or the "Company") is pleased to announce a non-brokered private placement of up to 35,714,285 shares at a price of C$0.42 per share, for aggregate gross proceeds of up to C$15 million, of which C$11 million has been committed. The offering price represents an 87% premium to yesterday's closing price.

The Company plans to use the proceeds from the financing to fund exploration and pre-feasibility studies at its Sergipe Potash Project, to continue exploration of its portfolio of phosphate prospects, for development of the Fosfatar Phosphate Project, and for working capital purposes. Stephen Keith, CEO of Rio Verde, commented, "With this financing in place, we will be able to comfortably execute an expanded exploration and development program at our potash and phosphate projects, greatly increasing our ability to return value to our shareholders. In these volatile markets, the ability to strengthen our balance sheet and execute our exploration and development plan gives us a strong advantage in the market."

Closing of the transaction is subject to the receipt of all required regulatory approvals, including the conditional approval of the Toronto Stock Exchange. Closing is expected to occur on or about June 15, 2012 following the satisfaction of all closing conditions.


About Rio Verde

Rio Verde Minerals Development Corp. (TSX: RVD) is a publicly traded company focused on the exploration and development of fertilizer projects in Brazil. The Company's goal is to become the leading Brazilian fertilizer mining and development company by selecting prime assets that are near infrastructure, with known mineralization, in regions without significant social or environmental issues. The Company plans to fast-track the best projects to development to create stakeholder value.

Rio Verde holds one potash project and a portfolio of phosphate projects in Brazil. Potash and phosphate fertilizers have favourable supply and demand dynamics, and Rio Verde has a significant cost advantage by being based in Brazil, a country that imports about 90% of its potash and 50% of its phosphate needs. Rio Verde's near-term primary objective is to focus its potash exploration on establishing a Canadian National Instrument 43-101 resource.


Forward-Looking Statements

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 which 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 potash and phosphate, changes to regulations affecting the Company's activities, including tax and trade laws and policies; delays in obtaining or failures to obtain required regulatory permits and approvals from government authorities; delays in commencing the Company's proposed drilling program, exploration costs varying significantly from estimates; uncertainties relating to the availability and costs of financing needed to complete exploration activities and demonstrate the feasibility of the Company's projects; the success of future exploration and development initiatives; and other risks involved in the mineral exploration and development industry. 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.



Contacts:

Rio Verde Minerals Development Corp.
Stephen Keith, President & CEO
+1 (416) 368-8288
info@Rvminerals.com

Rio Verde Minerals Development Corp.
Alex Penha, VP Corporate Development
+1 (416) 509-0583
apenha@Rvminerals.com