RIO2 Company-Wide Exploration Update
RIO2 COMPANY-WIDE EXPLORATION UPDATE
For Immediate Release September 22, 2026
VANCOUVER, BC - Rio2 Limited (“Rio2” or “the Company”) (TSX: RIO; OTCQX: RIOFF; BVL: RIO)
provides a company-wide exploration update for its Condestable Copper Mine, located in Peru,
its Fenix Gold Mine, located in Chile and its Kalzas Tungsten Project, located in Canada.
Condestable Mine - Peru
The Company announces the initiation of a first-phase surface drilling program and district-scale
exploration activities at the Condestable Mine. These programs follow the completion of a
comprehensive geological mapping campaign covering a 3 -km by 1.2-km NE-trending corridor
between Condestable, Raúl, and Vinchos. The geological mapping has strengthened the
correlation between surface geology and underground mine geology and has refined the
understanding of the principal controls on Cu-Au-Ag sulphide mineralization.
Mineralization at Condestable occurs within brecciated mantos ranging from 1 to 10 met res in
thickness, exhibiting strong lithological control s associated with volcanic breccias parallel to
stratification. Vein-hosted mineralization is also present, with widths from centimetres to more
than 3 metres. The dominant vein orientation is NW, with a secondary NE-trending set, defining
a clear structural control. Drill holes have been designed to intercept both mineralization styles
at high angles to maximize geological information and resource conversion potential.
Based on this updated geological model, the Company has established initial 80-metre spacings
for drill sections and structured the drilling program into two phases (see Map 1 and Section 1):
• Phase 1: Drill holes with existing access and prepared platforms, all within the Company’s
permitted environmental footprint and surface land position. This phase includes 69
platforms and 85 drill holes, totalling 16,750 metres. Drilling is scheduled to commence
during the week commencing September 21.
• Phase 2: Drill holes requiring new access, platform construction, and additional
environmental authorization. This phase comprises 62 platforms and 72 drill holes,
totalling 17,120 metres. Construction requirements include 8,622 metres of access roads
and 62 drill platforms. The Company anticipates a permitting timeline of approximately
six months prior to commencement of the Phase 2 drilling program.
Map 1: Drill holes location
Section 1
Condestable - Geophysical Survey
As part of its broader district -scale exploration strategy, the Company completed a 57,740-
hectare GeoMagDrone survey. The survey covered 40,694 hectares of mining properties within
the 46,290 hectares of mineral rights controlled by Condestable S.A. Survey lines were spaced
200 metres apart, generating 3,522 line-kilometres of magnetic data.
The analytical signal defines two principal magnetometric domains within the project area. The
western sector is characterized by a high magnetic response associated with intrusive rocks of
the Coastal Batholith, whereas the eastern sector exhibits a low m agnetic response
corresponding to sedimentary rock sequences. The eastern domain is dominated by
N345‑trending structural features and their intersection with trans ‑Andean N35 ‑trending
structures, including the regional Calicantro Fault.
The intersection of these structural trends hosts an isolated, high‑ intensity magnetic anomaly
corresponding to the Condestable -Raul system, which displays a pronounced N –S orientation
across the mine area. This anomaly represents a key geophysical feature of interest due to its
structural position and magnetic signature.
From an exploration perspective, the intersections of NW– SE and NE –SW structural trends
constitute favo urable target zones for potential mineralization. These structures exhibit a
fractal‑type spatial distribution, with approximate spacings of 5 km for NW‑ trending features
and 3 km for NE ‑trending features. The geometry and periodicity of these structures suggest a
recurrent structural framework conducive to fluid flow, deformation, and potential mineral
deposition.
Condestable - Exploration Targeting and Follow-Up Work
Preliminary integration of the geophysical results with geological and geochemical datasets
identified six priority exploration targets : Cerro Pacay, Cerro Perico, Loma de Vinchos, San
Marcos, Condestable 10, and Punta Colorada. Each target will undergo follow -up prospecting
and detailed geological assessment (see Map 2).
Map 2: Mag anomaly map and the brownfield exploration targets around Raul-Condestable.
For additional information regarding the Condestable Mine, see the i ndependent technical
report dated July 22, 2026, entitled “NI 43-101 Technical Report Condestable Mine, Lima Department,
Peru” prepared by SLR Consulting (Canada) Ltd pursuant to National Instrument 43 -101
Standards of Disclosure for Mineral Projects. The Technical Report has an effective date of May 31,
2026. The Technical Report is available on the Company’s website at www.rio2.com and on
SEDAR+ at www.sedarplus.ca.
Fenix Gold Mine - Chile
The Company advises that drilling at the Fenix Gold Mine has been suspended due to adverse
weather conditions, worker safety considerations, and contractor standby costs. The Company
plans to resume the remaining drill program in January 2027 to take advantage of Chile’s
summer season.
The 2026 surface drilling program, originally planned for 21,880 metres, was suspended with 43
drill holes totall ing 14,669 metres, comprising 3,90 5 metres of diamond drilling and 10,764
metres of reverse‑ circulation (RC) drilling , completed to date . As the objectives of the 2026
campaign focus on testing deeper mineralized zones, drill platforms were strategically
positioned along the periphery of known mineralization. To optimize drilling efficiency and
reduce overall costs, the first 200–250 metres of each hole will be drilled using RC, with diamond
drilling employed for the remainder of the hole.
The program is designed to increase geological confidence in mineral resources located beneath
the reserve pit, within the current resource pit shell, and up to 100 metres below the resource
shell. Drill‑hole design parameters were established using a multivariable probabilistic model
generated through artificial intelligence (AI), supporting improved targeting of high ‑potential
zones.
All drill samples will be submitted to COTECNA Laboratory in Coquimbo, Chile. As of the date of
this release, 60% of samples have been assayed, and the Company expects to receive 100% of
analytical results within the next two months . Systematic sampling was conducted at 2 ‑metre
intervals for both RC and diamond drill holes. Assay protocols include Au ‑AAS FA 50 g and
ICP‑OES analysis for 36 elements. In line with Fenix Gold’s QA/QC procedures, every 100 samples
include four standards, four duplicates, and three blanks.
Once all the assay results have been received for the drilling completed to date, the Company
will release the results.
During 2027, the Company plans to expand the scope of drilling to further validate the continuity
of mineralization at depth and laterally of the existing resource. The Company expects to deliver
an updated mineral resource estimate for the Fenix Gold Mine in December 2027, incorporating
all drilling results together with a revised geological model of the deposit.
Map3: Fenix Gold 2026 drill hole locations.
For additional information regarding the Fenix Gold Project, including key parameters,
assumptions and risks associated with its development, see the independent technical report
entitled “NI 43-101 Technical Report on the Feasibility Study for the Fenix Gold Project” (the
“Feasibility Study”) pursuant to National Instrument 43-101 Standards of Disclosure for
Mineral Projects (“NI 43-101”). The Feasibility Study is dated October 16, 2023, with an
effective date of October 16, 2023, a copy of which document is available under Rio2’s SEDAR+
profile at www.sedarplus.ca.
Kalzas Tungsten Project - Canada
Rio2 Limited controls 100% of the Kalzas Tungsten Project , which is located on the Kalzas
Plateau in central Yukon Territory, approximately 70 km southeast of the town of Mayo and
290 km north of the city of Whitehorse.
Kalzas - 2026 Work Program
During 2026, Rio2 advanced the Kalzas Tungsten Project through technical studies, fieldwork,
permitting, reclamation planning, and community engagement.
Field Work
• Rio2 geologists completed a field visit in May 2026.
• An independent NI 43-101 technical report has been completed using available historical
data.
• Detailed geological mapping at a 1:5,000 scale was completed, which confirms that the
Kalzas Project represents an intrusion ‑related tungsten system developed within a
structurally prepared corridor. The mineralization is likely spatially associated with a
granitic intrusive body that generated a broad thermal aureole and promoted the
formation of quartz‑ rich vein and stockwork zones. Within these zones, wolframite
((Fe,Mn)WO₄) and scheelite (CaWO₄) have been identified as the principal tungsten
minerals, occurring as disseminations and vein ‑hosted aggregates within quartz
stockworks emplaced in quartzite (Pictures 1 and 2).
• The distribution, mineralogical assemblage, and structural controls observed to date are
consistent with intrusion‑related tungsten deposits elsewhere in the Yukon, supporting
the current exploration model and guiding next year’s scout drilling program.
• An airborne magnetic survey has been completed, with results pending.
Permitting, Reclamation, and Engagement
• Rio2 obtained a Class 1 permit from the Government of Yukon authorizing exploration
activities at the project.
• Consultants, Archer Cathro were engaged to carry out a site reclamation program and
an initial mapping program which has been successfully completed.
• Rio2 continues building a positive relationship with the Selkirk First Nation.
Next Steps
• Rio2 plans to carry out an initial 2,000‑metre scout core drilling program at the
commencement of the summer field season in 2027. The estimated all‑inclusive budget
for the drill program is US$1.5 million.
• Pending results of this initial drilling, additional drilling may be planned before the end
of the 2027 field season.
• Upon review of the initial drilling results planned for 2027, a decision will be made about
the future of the project with regard to whether it remains within Rio2 as a core project
or whether it should be potentially spun out into a separate company and source future
exploration funding independently of Rio2.