Rio Grande Acquires Fluorspar Property in Arizona

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 January 28, 2013

RIO GRANDE ACQUIRES FLUORSPAR PROPERTY IN ARIZONA

Vancouver, BC, January 28, 2013: Rio Grande Mining Corp. (RGV - TSX-V) (the “Company”) is pleased to announce that it has entered into an option agreement (the "Option Agreement") dated January 14, 2013, with GeoXplor Corp. ("GeoXplor") pursuant to which GeoXplor has granted the Company an option (the "Option") to acquire an undivided 75% interest in 50 mineral claims consisting of 1,000 acres, in Gila County, Arizona, on which the Bluebird mine is situated (the “Property”). The Option Agreement is subject to the acceptance of the TSX Venture Exchange (the "Exchange").

The Property is located 20 miles south of the town of Payson, in Gila County, Arizona.

Fluorspar mineralization was discovered on the Property in 1938 and limited production commenced in 1958. In 1972, the Property was purchased by Tonto Basin Mining and Milling Company. The Bluebird mine provided feed to an offsite mill complex to produce an acid grade (97.37%) fluorspar concentrate. The Bluebird mine was shut down in the 1980’s due to low fluorspar prices caused by inexpensive supply from China (less than $90 per ton).

The fluorspar veins have been traced 1,500 feet along surface outcrops. The underground mine was developed on two levels. There has been no exploration drilling below the second level so mineralization is open to depth.

Fluorspar or fluorite are names for the calcium fluoride or CaF2, a mineral primarily used in the production of hydrofluoric acid and aluminum fluoride. World production in 2011 was about 6mt/yr. dominated by China (52%) and Mexico (17%). Fluorspar is also used as flux in steelmaking, aluminum production, glass manufacture, enamels, and cement production. Current pricing for acid grade (+97% CaF2) fluorspar concentrate is in excess of $300 per ton.

In order to exercise the Option, the Company must:

• issue GeoXplor 3,000,000 common shares of the Company upon acceptance of the Option Agreement by the Exchange;
• pay GeoXplor $100,000 on the first anniversary of the Option Agreement;
• pay GeoXplor $150,000 on the second anniversary of the Option Agreement;
• pay GeoXplor $250,000 on the third anniversary of the Option Agreement;
• incur $150,000 in exploration expenditures on the Property on or before the second anniversary of the Option Agreement; and
• incur $300,000 in exploration expenditures on or before the third anniversary of the Option Agreement.

The Property will be subject to a 3% NSR royalty in favour of GeoXplor, which the Company can purchase up to 2/3rds of (being 2%) in consideration of $1,000,000.

A finder’s fee will be payable on the transaction pursuant to the policies of the Exchange.

Mr. William Feyerabend, CPG, a Qualified Person as defined by NI 43-101 and an independent consultant to the Company, has reviewed this news release and approves all scientific and technical disclosure contained herein.

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.

Certain of the statements made and information contained in this press release may constitute forward-looking information within the meaning of applicable securities legislation. All information and statements which are not historical fact constitute forward-looking information and, in many cases, can be identified by words such as "may", "will", "expect", "plan", "anticipate", "believe", "estimate", "potential", or other similar terminology. The forward-looking information contained in this press release is based on the reasonable expectations and beliefs of management as at the date of this press release and involves numerous assumptions, known and unknown risks and uncertainties, both general and specific to the Company and the industry in which the Company operates. Such assumptions, risks and uncertainties include, but are not limited to future prices of fluorspar, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated as well as those factors disclosed in the Company’s documents filed from time to time with the securities regulators in the provinces of British Columbia and Alberta. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Company, or industry results, may vary materially from those described in this press release. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as otherwise required by law, the Company does not intend to and assumes no obligation to update or revise forward-looking information, whether as a result of new information, plans, events or otherwise.