Rio Grande Provides Update

Rio Grande Mining Corp.

Suite 1128, 789 West Pender Street Vancouver, BC, V6C 1H5 Tel: (604) 669-9330 Fax: (604) 669-9335

FOR IMMEDIATE RELEASE December 24, 2012

RIO GRANDE PROVIDES UPDATE

Vancouver, BC, December 24, 2012: Rio Grande Mining Corp. (RGV - TSX-V) (the “Company”) provides the following update to shareholders on its recent activities.

The Company will not be proceeding with the transaction announced on August 21, 2012, with Snowcap Energy Inc. (“Snowcap”) and Segwun Energy Inc. (“Segwun”). The Company entered into a Letter of Intent (“LOI”) with Snowcap and Segwun whereby the Company advanced a total of $100,000 to Snowcap. Under the terms of the LOI, the Company was to be granted an option to acquire a 100% interest, directly or indirectly, in certain resource projects Snowcap and Segwun were in the process of obtaining. Due to the volatility of world markets, the parties were not able to complete certain terms of the LOI. The funds advanced have now become a secured loan payable to the Company by Snowcap.

The Company advises that Read Taylor has resigned as director of the Company.

The Company further advises that it will not be proceeding with the private placement announced in its news release of September 11, 2012.

The Company continues to investigate properties of merit with a view to acquisition and exploration of same.

On behalf of the Board of Directors,

John Bevilacqua President & CEO Rio Grande Mining Corp.

(604) 669-9330

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