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RIO2 Files Final Financing Prospectus

Corporate Updates

**NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES**

RIO2 FILES FINAL FINANCING PROSPECTUS

For Immediate Release August 5, 2021

VANCOUVER, B.C., August 5, 2021 - Rio2 Limited (“Rio2” or “the Company”) (TSXV: RIO; OTCQX: RIOFF;

BVL: RIO) has obtained a receipt for its final short form prospectus dated August 4, 2021 (the

“Prospectus”) filed in connection with previously announced underwritten public offering (the

“Offering”) of common shares of the Company (“Common Shares”).

Scotiabank, CIBC Capital Markets and Raymond James (collectively, the “Joint Bookrunners”), as joint

bookrunners and co -lead underwriters, along with Cantor Fitzgerald Canada Corporation, Sprott

Capital Partners LP, and Cormark Securities Inc. (collectively with the Joint Bookrunners, the

“Underwriters”) are the underwriters for the Offering. The Underwriters have agreed to purchase

38,500,000 Common Shares from the Company for total gross proceeds of approximately $25 million.

The Company has granted the Underwriters an over-allotment option to purchase up to an additional

15% of the Common Shares issued pursuant to the Of fering (the “Over- Allotment Option”) on the

same terms exercisable in whole or in part, at any time and from time to time, up to 30 days from and

including the closing date of the Offering.

The Offering is scheduled to close on or about August 10, 2021 and is subject to customary closing

conditions. The TSX Venture Exchange (the “TSXV”) has conditionally approved the listing of the

Common Shares, subject to the Company fulfilling all of the listing requirements of the TSXV within 15

days of the closing of the Offering.

Rio2 also filed an amended and restated independent technical report, entitled "Amended and

Restated Pre-feasibility Study for the Fenix Gold Project" (the "Technical Report") pursuant to National

Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) on August 4, 2021.

There were no changes to the mineral resources or mineral reserves estimates of the Fenix Gold

Project in the Technical Report and the changes made to the report were mainly to enhance disclosure

in the data verification section of the Technical Report. The Technical Report is dated August 3, 2021

with an effective date of August 15, 2019 and amends and restates the “Updated Pre-feasibility Study

for the Fenix Gold Project" dated October 15, 2019 with an effective date of August 15, 2019. The

Technical Report supports the disclosure in the AIF (as defined below) and the Prospectus.

The Technical Report was compiled by Mining Plus Peru S.A.C. ("Mining Plus") with contributions from

a team of Qualified Persons as defined by NI 43-101 as follows:

• Raul Espinoza, (MAusIMM (CP)) of Mining Plus.

• Anthony Maycock, (P.Eng.) of MM Consultores Limitada.

• Greg Corbett, (FMAIG, RPGeo) of Corbett Geological Services.

• Denys Parra, (Member SME) of Anddes Asociados S.A.C.

• Andres Beluzan (ChCM Registered Member) of ABelco Consulting SpA.

Rio2 also filed an amended and restated annual information form in respect of the year ended

December 31, 2020 (the “AIF”) on August 4, 2021. The Technical Report and AIF are available on the

Company's website at www.rio2.com as well as under the Company's profile on SEDAR at

www.sedar.com.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the

Common Shares in the United States-, nor will there be any sale of these securities in any jurisdiction

in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and

will not be registered under the 1933 Act or any state securities laws and may not be offered or sold

directly or indirectly in the United States absent registration or an applicable exemption from the

registration requirements of the 1933 Act and all applicable state securities laws.

The scientific and technical content of this news release has been reviewed, approved and verified by

Enrique Garay, MSc. P.Geo./FAIG, Senior Vice President Geology of Rio2 Limited, who is a QP under

NI 43 -101. For additional information regarding the Fenix Gold Project, including key parameters,

assumptions and risks associated with its development, see the Technical Report.

ABOUT RIO2 LIMITED

Rio2 is a mining company with a focus on development and mining o perations with a team that has

proven technical skills as well as a successful capital markets track record. Rio2 is focused on taking its

Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged

development strategy. In addition to the Fenix Gold Project in development in Chile, Rio2 Limited

continues to pursue additional strategic acquisitions where it can deploy its operational excellence

and responsible mining practices to build a multi-asset, multi-jurisdiction, precious metals company.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information (collectively

“forward-looking information”) within the meaning of applicable securities laws relating to Rio2’s

planned development of its Fenix Gold Project and other aspects of Rio2’s anticipated future operations

and plans. In addition, without limiting the generality of the foregoing, this news release contains

forward-looking information pertaining to the following: the Offering, the timing and completion of

the Offering, the fulfillment of conditions of the Offering and the TSXV conditional approval and other

matters ancillary or incidental to the foregoing.

All statements included herein, other than statements of historical fact, may be forward- looking

information and such information involves various risks and uncertainties. Forward- looking

information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”,

“continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”,

“could”, “might”, “should”, “believe”, and similar expressions. The forward- looking information is

based on certain key expectations and assumptions made by Rio2’s management which may prove to

be incorrect, including but not limited to: expectations concerning prevailing commodity prices,

general market conditions, exchange rates, interest rates, applicable royalty rates and tax laws; capital

efficiencies; legislative and regulatory environment of Chile; future production rates and estimates of

capital and operating costs; estimates of reserves and resources; anticipated timing and results of

capital expenditures; the sufficiency of capital expenditures in carrying out planned activities;

performance; the availability and cost of financing, labor and services; and Rio2’s ability to access

capital on satisfactory terms.

Rio2 believes the expectations reflected in these forward- looking statements are reasonable, but no

assurance can be given that these expectations will prove to be correct and such forward- looking

statements in this news release should not be unduly relied upon. A description of assumptions used

to develop such forward- looking information and a description of risk factors that may cause actual

results to d iffer materially from forward -looking information can be found in Rio2’s disclosure

documents on the SEDAR website at www.sedar.com. These risks and uncertainties include, but are

not limited to: risks and uncertainties relating to the completion of the financings as described herein,

and management’s ability to anticipate and manage the factors and risks referred to herein. Forward-

looking statements included in this news release are made as of the date of this news release and such

information should not be relied upon as representing its views as of any date subsequent to the date

of this news release. Rio2 has attempted to identify important factors that could cause actual results,

performance or achievements to vary from those current expectations or es timates expressed or

implied by the forward-looking information. However, there may be other factors that cause results,

performance or achievements not to be as expected or estimated and that could cause actual results,

performance or achievements to diff er materially from current expectations. Rio2 disclaims any

intention or obligation to update or revise any forward-looking statements, whether as a result of new

information, future events or otherwise, except as expressly required by applicable securitie s

legislation.

Notes:

To learn more about Rio2 Limited, please visit: www.rio2.com or Rio2’s SEDAR profile at

www.sedar.com.

ON BEHALF OF THE BOARD OF RIO2 LIMITED

Alex Black

President, CEO & Director

Email: [email protected]

Tel: 1 (604) 260-2696

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this

release.