RIO Silver Announces Private Placement

RIO SILVER ANNOUNCES PRIVATE PLACEMENT

January 13, 2017, Toronto, Ontario, Canada – Rio Silver Inc. (“Rio Silver” or the "Company") (TSX.V:

RYO) is pleased to announce that, further to its previous news release on October 25, 2016, the second of

two financings contemplated in its transaction (“Transaction”) with Magellan Gold Corporation

(“Magellan”) (OTCQB – MAGE) will consist of a non- brokered private placement of 1,25 0,000 units

("Units") at $0.06 per Unit for gross proceeds of $75 ,000 (the " Offering"). Each Unit will consist of one

common share of the Company and one common share purchase warrant (the “ Warrant”) entitling the

holder to acquire one common share of the Company at a price of $0.06 for a period of eighteen months

from the date of issue. Pursuant to the Transaction with Magellan, it is intended that Magellan will subscribe

for the entire Offering.

No finder’s fees are expected in connection with the Offering. The closing of the Offering remains subject to

regulatory approval and is expected to occur as soon as regulatory approval has been obtained. The securities

issued will be subject to a four month statutor y hold period. The proceeds from the Offering will be used for

working capital and general and administrative purposes.

ON BEHALF OF THE BOARD OF DIRECTORS OF RIO SILVER INC.

Jeffrey Reeder

President and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the

adequacy or accuracy of this release.

This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within,

other than statements of historical fact, are to be considered forward looking. Although the Company believes the

expectations expressed in such forward- looking statements are based on reasonable assumptions, such statements are

not guarantees of future performance and actual results or developments may differ materially from those in forward -

looking statements. Factors that could cause actual results to differ materially from those in forward- looking statements

include market prices, exploitation and exploration successes, c ontinued availability of capital and financing, and

general economic, market or business conditions. There can be no assurances that such statements will prove accurate

and, therefore, readers are advised to rely on their own evaluation of such uncertainti es. We do not assume any

obligation to update any forward-looking statements except as required by applicable laws.

For more information contact:

Jeff Reeder, President, CEO Dan Hamilton, Chief Financial Officer

Tel: (647) 302-3290 Tel: (416) 479-9546

Website: www.riosilverinc.com