RIO2 Updates Condestable MINE Resources & Reserves
RIO2 UPDATES CONDESTABLE MINE RESOURCES & RESERVES
For Immediate Release June 23, 2026
VANCOUVER, BC - Rio2 Limited (“Rio2” or “the Company”) (TSX: RIO; OTCQX: RIOFF; BVL: RIO) announces that
it has finalized an updated National Instrument 43-101 Technical Report (the “Report”) for its recently acquired
Condestable copper mine (“ Condestable”), located in the Department of Lima, Peru. The updated technical
report, prepared by leading global mining consulting firm SLR Consulting (Canada) Ltd. (" SLR"), confirms an
increase in the operational mine life, expanded Mineral Resources and Mineral Reserves, and robust economics
for the underground operation. The Report will be filed within 45 days on SEDAR+ under the Company’s profile
at www.sedarplus.ca and will be available on the Company’s website at www.rio2.com.
Rio2 completed the acquisition of a 99.1% interest in Condestable from Southern Peaks Mining L.P. on January
30, 2026. Since closing the acquisition, Condestable has delivered strong operating performance, in line with
expectations, and has provided immediate free cash flows from copper, gold and silver production.
Andrew Cox, President and Chief Executive Officer of Rio2, stated: “To complement Rio2’s growth strategy, the
Company will be conducting studies to expand production at Condestable. The Company expects to receive
approval for the modification of the mine EIA during Q3, 2026, which will permit an increase in production from
8,400 tonnes per day to 10,000 tonnes per day, and will continue to assess opportunities to expand production
further. Condestable has shown great promise to remain as a long- life component of Rio2’s operating platform
in Latin America.”
KEY OPERATIONAL & FINANCIAL HIGHLIGHTS:
• Confirms Strong Future Production Profile: Forecasted average annual production of approximately
18,000 tonnes of contained copper in concentrate, including an average of 12,900 oz of gold and 304,800
oz of silver per year at the current throughput rate of 8,400 tonnes per day. Average mill feed per year
is projected to be 2.9 million tonnes (Mt), grading on average 0.73% copper, 0.15 g/t gold1, and 4.28 g/t
silver through LOM.
• Low-Cost Structure: Industry-competitive life- of-mine copper C1 cash costs 2 are estimated at
US$1.00/lb Cu after by -product credits. Life -of-mine All- In Sustaining Costs (AISC) are projected at
US$1.46/lb Cu. 3
• Extended Life of Mine (LOM): 14-year life of mine confirmed through 2039, highlighting continued
resource and reserve replacement at Condestable.
• Robust Economics: After tax net present value at an 8% discount rate is US$710 million. Total LOM
undiscounted after-tax free cash flow 4 is projected at US$1, 147 million, based on an average realized
1 Gold grades exclude a 29% gold credit applied to the Mine cash flows to account for gold in historical un-assayed areas.
2 See Non-IFRS Measures section of this press release for definitions and discussion.
3 See Non-IFRS Measures section of this press release for definitions and discussion.
4 See Non-IFRS Measures section of this press release for definitions and discussion.
copper price5 of US$4.99 per pound (lb), a realized gold price6 of US$3,884 per ounce (oz), and a realized
silver price7 of US$55.19/oz.
Updated Mineral Resource Statement
The updated global Mineral Resource Estimate (inclusive of Mineral Reserves) has been prepared in accordance
with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) 2014 Definition Standards with an
effective date of May 31, 2026.
• Total Measured & Indicated (M+I): 82.1 million tonnes grading 0.69% Cu, 0.13 g/t Au1, and 4.12 g/t Ag.
Containing 565,000 tonnes of copper, 355,000 ounces of gold, and 10.87 million ounces of silver (+2.2%,
+2.6% and +9.7% compared to the previous figures published in the 2022 Technical Report).
• Total Inferred Resources: 22.2 million tonnes grading 0.76% Cu, 0.09 g/t Au1, and 2.78 g/t Ag. Containing
169,000 tonnes Cu, 66,000 ounces of gold, and 1.99 million ounces of silver (+41.8%, +51.9% and +52.4%
compared to the previous figures published in the 2022 Technical Report).
Table 1: Mineral Resource Estimate: Raúl and Condestable Mining Areas – May 31, 2026
Category
Tonnes Grade Contained Metal
(Mt) (% Cu) (g/t Au) (g/t Ag) (kt Cu) (koz Au) (koz Ag)
Measured (M) 39.2 0.67 0.15 4.68 264 188 5,895
Indicated (I) 42.9 0.70 0.12 3.61 302 167 4,975
M+I 82.1 0.69 0.13 4.12 565 355 10,870
Inferred 22.2 0.76 0.09 2.78 169 66 1,989
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources for the Condestable mine are constrained within DSO panels above an NSR
cut-off value of $39.00/t.
3. Mineral Resources for the Raúl mine are constrained within DSO panels above a cut-off grade of
0.4% Cu.
4. Mineral Resources are estimated using long-term metal prices of $4.80/lb for copper, $2,500/oz
for gold, and $33.50/oz for silver.
5. Mineral Resources are depleted using mined-out volumes, and include mining depletion using
production numbers up to May 31, 2026.
6. Metallurgical recoveries of 91.3%, 75.0%, and 82.3% were used for copper, gold, and silver,
respectively.
7. Bulk density was interpolated into blocks. The mean density is 2.85
t/m3 for the Condestable mine and 2.83 t/m3 for the Raúl mine.
8. A minimum mining width of 1.5 m was used for DSO panels.
9. Mineral Resources are reported inclusive of Mineral Reserves.
10. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
11. Numbers may not add due to rounding.
Cautionary Note Regarding Mineral Resources
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral
Resources are considered too speculative geologically to have economic considerations applied to them that
would enable them to be categorized as Mineral Reserves. There is no certainty that all or any part of the
Inferred Mineral Resources will be convert ed into Measured or Indicated Mineral Resources or Mineral
Reserves.
Updated Mineral Reserve Statement
The updated Proven and Probable Mineral Reserves for the combined underground complex have an effective
date of May 31, 2026.
• Total Proven & Probable Reserves: 36.5 million tonnes grading 0.73% Cu, 0.15 g/t Au4, and 4.28 g/t
Ag. Total contained metal within the reserve plan stands at 267,450 tonnes of copper, 176,890 ounces
of gold, and 5.02 million ounces of silver.
Table 2: Mineral Reserves for Raúl and Condestable Mining Areas – May 31, 2026
Mine Category Tonnes Grade Contained Metal
(Mt) (% Cu) (g/t Au) (g/t Ag) (kt Cu) (koz Au) (koz Ag)
Condestable Proven 3.4 0.57 0.26 3.62 19 29 396
Probable 3.0 0.60 0.25 3.72 18 24 358
Sub-total 6.4 0.58 0.26 3.67 37 52 754
Raúl Proven 14.9 0.75 0.15 5.21 112 69 2,492
Probable 15.2 0.78 0.11 3.63 119 55 1,777
Sub-total 30.1 0.77 0.13 4.41 230 124 4,270
Total Proven 18.3 0.72 0.17 4.92 131 98 2,888
Probable 18.2 0.75 0.13 3.64 136 79 2,136
P+P 36.5 0.73 0.15 4.28 267.5 176.9 5,024
Notes:
1. CIM (2014) definitions were followed for the classification of Mineral Reserves.
2. Mineral Reserves are estimated at a marginal NSR value of $30.00/t for Condestable, and at a
marginal cut-off grade of 0.45% Cu for Raúl.
3. Mineral Reserves are estimated using long-term metal prices of $4.25/lb, $2,050/oz, $28.50/oz for
copper, gold, and silver, respectively.
4. Metallurgical recoveries of 91.3%, 75.0%, and 82.3% were used for copper, gold, and
silver, respectively.
5. Bulk density was interpolated into blocks. The mean density is 2.83
t/m3 for Condestable and Raúl, respectively.
6. A minimum mining width of 1.5 m was used for stopes.
7. A dilution Equivalent Linear Overbreak/Slough (ELOS) is based on a curve and was applied to all
stopes.
8. A mining recovery factor of 90% and 100% was applied to stopes and development in
ore, respectively. An additional mining recovery factor of 80% was applied to stopes with sill pillars
for Raúl.
9. Mineral Reserves were depleted with actual mined out wireframes to December 31, 2025 and
actual production numbers to May 31, 2026.
4 Gold grades exclude a 29% gold credit applied to the Mine cash flows to account for gold in historical un-assayed areas.
10. Numbers may not add due to rounding.
Operating & Capital Costs and Economics
The economic analysis is assessed at a LOM average realized copper price5 of US$4.99 per pound (lb), a realized
gold price6 of US$3,884 per ounce (oz), and a realized silver price7 of US$55.19/oz. Total LOM sustaining capital
costs are estimated at US$ 154 million. The pre -tax net present value (NPV) 8 at an 8% discount rate is
approximately US$1,158 million, and the after-tax NPV9 at an 8% discount rate is approximately US$710 million.
Table 3: After-Tax Cash Flow Summary
Description Units Value
LOM Years 14.0
Production
Mill Feed '000 tonnes 37,696
Au Grade g/t 0.15
Ag Grade g/t 4.28
Cu Grade g/t 0.73%
Contained Cu Mlb 608
Contained Au koz 186
Contained Au - gold credit koz 54
Contained Ag koz 5,184
Cu Concentrate '000 dmt 1,081
Cu grade in concentrate % 23.30%
Realized Market Prices
Cu ($/lb) US$/lb 4.99
Au ($/oz) US$/oz 3,884
Ag ($/oz) US$/oz 55.19
Total Gross Revenue US$ million 3,512
Total Operating Costs US$ million (1,478)
Operating Margin (EBITDA) US$ million 2,034
Total Capital US$ million (181)
Project Economics
After-tax Free Cash Flow US$ million 1,147
After-tax NPV @ 8% US$ million 710
5 See Non-IFRS Measures section of this press release for definitions and discussion.
6 See Non-IFRS Measures section of this press release for definitions and discussion.
7 See Non-IFRS Measures section of this press release for definitions and discussion.
8 See Non-IFRS Measures section of this press release for definitions and discussion.
9 See Non-IFRS Measures section of this press release for definitions and discussion.
SLR applied a production -based gold credit to the LOM average gold gross revenue in the after- tax cash flow
model. The credit increases gold production by 29% and total gross revenue by approximately 4%. In the QP’s
opinion, this is a reasonable approach to assigning credit to CMC’s precious metal by-products given that certain
areas of the mine lack assay support (and are therefore penalized in Mineral Resource and Mineral Reserve
estimation), but are known to contain gold, as demonstrated by production.
These cash flow results include a full year of production for 2026, for consistency with an annual model , while
Mineral Resources and Mineral Reserves have been depleted to May 31, 2026.
As an indication of sensitivity to current spot metal prices, at a LOM average realized copper price of US$ 6.00
per lb, a realized gold price of US$4,200 per oz, and a realized silver price of US$65 /oz, the pre-tax net present
value (NPV) 10 at an 8% discount rate is approximately US$1, 496 million, and the after- tax NPV 11 at an 8%
discount rate is approximately US$904 million.
Exploration and Recent Drilling
The exploration program at Condestable is centred around three complementary objectives.
I. Near-mine resource growth and reserve definition
Condestable has a planned 46,480 m diamond drilling program for 2026 (approved at the end of 2025),
designed to both replace and expand mineral resources, as well as to complete the infill drilling required
for short‑term reserve modeling. This program is classified as near‑mine exploration.
As of May 30, 2026, a total of 17,200 m of diamond drilling had been completed, representing 37%
progress toward the annual drilling target. Based on current execution rates, we remain confident that
the program will be fully achieved within this calendar year.
II. Near-surface resource expansion for potential open-pit development
The second program focuses on increasing near-surface mineral resources in the Condestable and Raúl
areas, with the objective of defining near -surface Cu -Au-Ag mineralization potentially amenable to
open-pit mining. Before initiating drilling, a detailed 1:2,000 -scale geological mapping campaign has
begun, as well as a reinterpretation of the TITAN24 electromagnetic geophysical survey completed in
2012. Based on these datasets, a near -surface drilling program will be defined during the first half of
2026, with execution planned for the second half of the year.
Figure 1: Longitudinal Section Raúl and Condestable Mining Areas
10 See Non-IFRS Measures section of this press release for definitions and discussion.
11 See Non-IFRS Measures section of this press release for definitions and discussion.
III. District-scale geological understanding and generation of brownfield targets
The third exploration initiative consists of conducting 1:25,000-scale geological and structural mapping
across the 46,000 hectares of mining concessions. In parallel, a drone-based magnetometry survey will
be completed over the entire property. The new information generated in 2026 will be integrated with
the existing multi -element surface geochemistry database to identify and prioritize new brownfield
exploration opportunities.
Given the availability of geological, structural, geochemical, and geophysical datasets, the plan is to
integrate all existing mine -scale information using artificial intelligence and machine -learning
technologies to generate exploration targets.
With the aim of implementing a systematic exploration program, a team of four geologists with
extensive experience in mineral exploration has been recruited . This team is responsible for executing
surface exploration and drilling programs, as well as generating new exploration targets in the vicinity
of the Condestable mine.
Qualified Persons and Technical Information
The scientific and technical content of this press release has been reviewed, approved and verified by Enrique
Garay, MSc P.Geo/FAIG, who is a QP under NI 43 -101. Enrique Garay is SVP Geology at Rio2 Limited and not
independent of the Company. The Report was prepared by SLR Consulting (Canada) Ltd., with contributions from
a team of QPs as defined under NI 43-101.
The Mineral Resource estimate summarized in this news release was prepared by Rio2 and reviewed by SLR.
Rosmery J. Cárdenas Barzola, P.Eng., Principal Resource Geologist with SLR, is the independent Qualified Person
responsible for the Mineral Resource es timate for the purposes of NI 43 -101 and has reviewed and approved
the information relating to the Mineral Resource estimate contained in this news release.
The Mineral Reserve estimate summarized in this news release was prepared by Rio2 and reviewed by SLR. Jeff
Sepp, P.Eng., Consultant Mining Engineer with SLR, is the independent Qualified Person responsible for the
Mineral Reserve estimate for the purposes of NI 43-101 and has reviewed and approved the information relating
to the Mineral Reserve estimate contained in this news release.
All other scientific and technical information contained in this news release has been reviewed and approved by
the appropriate independent Qualified Person responsible for the relevant portions of the Technical Report,
including Jason J. Cox, P.Eng., Glo bal Technical Director, Varun Bhundhoo, Ing., Consultant Mining Engineer,
Logan Behuniak, P.Geo., Consultant Resource Geologist, Brenna J.Y. Scholey, P.Eng., Principal Metallurgist, and
Luis Vasquez, P. Eng., Principal Environmental Consultant with SLR, e ach of whom is independent of the
Company. The Report will be filed under Rio2's profile on SEDAR+ within 45 days and will be available on the
Company’s website at www.rio2.com. For readers to fully understand the information in this news release, they
should read the Report in its entirety when it is available, including all qualifications, assumptions, exclusions,
and risks that relate to the operation. The Report is intended to be read as a whole and sections should not be
read or relied upon out of context.
Non-IFRS Measures
This news release refers to certain financial measures and ratios, including C1 cash costs, AISC, EBITDA, after-tax
free cash flow and realized metal prices, that are not recognized measures under IFRS and do not have
standardized meanings prescribed by IFRS. These measures may differ from those made by other companies
and, accordingly, may not be comparable to such measures as reported by other companies. The Company
believes that they are of assistance in understanding the results of operations and its f inancial position. Certain
additional disclosures for these specified financial measures have been incorporated by reference and can be
found in the Company's MD&A for Q1 2026, available on SEDAR+ at www.sedarplus.ca.
Cash cost per gold ounce sold
Cash cost is a common financial performance measure in the gold mining industry; however, it has no standard
meaning under IFRS. For the Fenix Gold Mine, the Company reports cash costs on a per gold ounce sold basis.
The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company’s performance and ability to generate operating income
and cash flow from mining operations. Cash costs are calculated as mine site operating costs, net of non-
recurring items that are not reflective of the underlying operating performance of the Company and are net of
silver revenue. Cash costs are divided by ounces sold to arrive at cash costs per oz sold. In calculating cash costs,
the Company deducts silver revenue as it considers the cost to produce the gold is reduced as a result of the by-
product sales incidental to the gold production process, thereby allowing management and other stakeholders
to assess the net costs of gold production. The measure is not necessarily indicative of cash flow from operations
under IFRS or operating costs presented under IFRS.
Cash cost per payable copper pound produced
Cash cost is a common financial performance measure in the mining industry; however, it has no standard
meaning under IFRS. For Condestable, the Company reports copper cash costs on a per payable copper pound
produced basis. The Company believes that, in addition to conventional measures prepared in accordance with
IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate
operating income and cash flow from mining operations. Cash costs are calculated as mine site operating costs,
net of non-recurring items that are not reflective of the underlying operating performance of the Company and
are net of gold and silver revenue. Cash costs are divided by payable copper pounds produced to arrive at cash
costs per pound. In calculating cash costs, the Company deducts gold and silver revenue as it considers the cost
to produce the copper is reduced as a result of the by-product sales incidental to the copper production process,
thereby allowing management and other stakeholders to assess the net costs of payable copper production. The
measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under
IFRS.
AISC
AISC is a non- IFRS measure and was calculated based on guidance provided by the World Gold Council (WGC).
Other mining companies may calculate differently as a result of differences in underlying accounting principles
and policies applied, as well as differences in definitions of sustaining versus development capital expenditures.
Includes cash cost (as defined above), sustaining capital expenditures, reclamation and other closure cost
accretion and amortization and lease payments (cash basis). As this measure seeks to reflect the full cost of
production from current operations, expansionary capital and certain exploration costs are excluded as these are
costs typically incurred to extend mine life or materially increase the productive capacity of existing assets, or for
new operations. Corporate general and administrative expenses of Rio2 Limited have also been excluded as any
attribution of these costs to an operating site would not necessarily be reflective of costs directly attributable to
the administration of the site. However, site level administration costs allocable to Condestable operations are
included as they directly support the operating Condestable copper mine. Certain other cash expenditures,
including tax payments, financing charges (including capitalized interest) and costs related to business
combinations, asset acquisitions and asset disposals are also excluded.
Earnings before interest, taxes, depreciation and amortization ("EBITDA")
EBITDA is a non- IFRS measure that represents an indication of the Company’s continuing capacity to generate
cash from operations before taking into account management’s financing decisions and costs of consuming
capital assets, which vary according to thei r equipment technology and management’s estimate of their useful
life.
After-tax free cash flow
After-tax free cash flow is the actual cash generated by a mining project or company after accounting for all
operating costs, capital expenditures, and government royalties/taxes.
Realized price per pound and realized price per ounce
Defined as revenue from metal sales (copper and gold) adding back treatment and refining charges, cash effects
of gold streams, recognition of deferred revenue from the allocation of upfront streaming proceeds, divided by
the volume of metal sold in the period.
Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively “forward-
looking information”) within the meaning of applicable securities laws relating to Rio2’s development and
operation of Condestable and other aspects of Rio2’s future operations and plans. In addition, without limiting
the generality of the foregoing, this press release contains forward- looking information pertaining to the
following: the timing of the filing of the Report; Condestable’s anticipated future production profile and life of
mine; the forecasted economics of Condestable including the cost structure, NPV and estimated mineral
resources and reserves; estimated capital and operating costs, metal prices, mining and processing rates, metal