RIO Silver Announces Termination of Niñobamba Property Option Agreement and Extension of Warrants

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RIO SILVER ANNOUNCES TERMINATION OF NIÑOBAMBA PROPERTY OPTION

AGREEMENT AND EXTENSION OF WARRANTS

January 5, 2018, Toronto, Ontario, Canada – Rio Silver Inc. (“Rio Silver” or the "Company") (TSX.V: RYO)

announces that the Company and Magellan Gold Corporation have agreed to mutually terminate the property

option agreement signed on October 24, 2016, and relating to the Company’s 100% owned Niñobamba

Silver/Gold Project in Peru. The additional details of the option agreement were previously announced on

October 24, 2016.

The Company also announces that it intends to apply to the TSX Venture Exchange to amend the terms of a

total of 1,250,000 outstanding share purchase warrants issued pursuant to a private placement that closed on

January 19, 2017. These warrants are exercisable at a price of $0.06 per share and are currently set to expire

on July 19, 2018, as set out in the press release of the Company on January 19, 2017. The proposed amendment

is limited to the extension of the expiry date of the warrants without changes to the exercise price of $0.06 per

warrant share. Subject regulatory approval, t he proposed new date for expiry of the warrants is January 19,

2020.

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 beli eves 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, continued availability of capital and financing, and general

economic, market or busine ss 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 uncertainties. 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