Rio2 Limited Drills 192m @ 0.81 g/t Au and 124m @ 0.77 g/t Au at the Fenix Gold Project, Chile

TORONTO, Jan. 22, 2019 - Rio2 Ltd. (“Rio2” or the “Company”) (TSXV: RIO; BVL: RIO) is pleased to announce drilling results from the first 11 reverse circulation (“RC”) drill holes and 4 surface trenches at its Fenix Gold Project located in the Maricunga region, Chile.

The drilling represents 2,236 meters drilled to date of an approximate 7,000-meter drilling program that commenced in late November 2018. The objective of this drilling is to intersect and define east-west structural feeders that the geologists believe are controlling the near surface higher grade mineralization. The drilling will also serve as a check for previous drilling within the US$728 pit shell and assist in better defining the near surface higher grade mineralized component of the new resource estimate which is currently planned for completion at the end of Q1, 2019. The US$ 728 pit shell was defined in the “NI 43-101 Technical Report on the Cerro Maricunga Project Pre-Feasibility Study Atacama Region, Chile” dated October 6, 2014 with an effective date of August 19, 2014, a copy of which document is available on SEDAR under Rio’s SEDAR profile at www.sedar.com. The Cerro Maricunga Project was renamed the Fenix Gold Project by Rio2 in 2018.

The total mineral proven and probable reserve estimate as outlined in the 2014 Technical Report is 294.4 million tonnes at an average grade of 0.40 g/t gold for a total of 3,743,000 gold ounces.

The Company’s geologists believe that there is a high-grade component to the resource related to structures and breccias, which are prevalent in the deposit but have not been defined in the current resource estimate that has been simply constrained by a 0.15 g/t grade shell without considering geological domaining. The Company’s geologists are also resampling surface exposures of the mineralized resource to include this information in the revised resource estimate. Previous surface sampling was not included in the current resource estimate despite a high proportion of samples being above the average mineralized resource grade and the resource outcropping at surface.

Surface sampling results from the initial work conducted to date are:

Drilling results from the initial work conducted to date are:

Previous drilling conducted on the project occurred over several campaigns from 2010 to 2013. During these drilling campaigns, a total of 108,482 meters were drilled with 28% of the holes being diamond drill holes and 72% of the holes being reverse circulation. Results obtained from these past drilling campaigns are archived in the News section of the Company’s website.

Alex Black, President and Chief Executive Officer of Rio2 Ltd., stated, “The initial results from our work program at the Fenix Gold Project are very encouraging. Given that, the 2014 reserve estimate has an average grade of 0.40 g/t Au, the new drilling and trenching results are exhibiting outcropping grades well in excess of the average reserve grade. As we have stated before, we see a number of similarities between the Fenix Gold Project and the La Arena gold mine located in Peru that the Rio2 management team was responsible for developing, building and operating between 2009 to 2015. As was the case with La Arena, we believe we can build a starter project at the Fenix Gold Project focused on higher‐grade, near surface mineralization that will help minimize startup capex and allow us to expand production using cashflow.”

Rio2 plans to provide context to the results of the 7,000m drilling and surface sampling program when it completes an updated resource estimate for the Fenix Gold Project which is scheduled to be completed by the end of Q1, 2019.

Sampling of the reverse circulation drilling, surface sampling and sample preparation were performed by Rio2 personnel. In the case of the drilling, samples were taken every 2m and split in half to yield seven to ten kilogram samples. Drill sample recovery was generally in excess of 90%. In the case of the surface sampling, the trench-channel samples are taken on the side slope of the drill access roads. Each sample is taken in channels of 10 cm wide by 10 cm deep by 2 meters long. The channels are continuous and sub-horizontal. The beginning and the end of each channel is surveyed. A 15 to 20 kilogram sample is taken from each channel, which is then split in half. One of the sample halves, being approximately 7 to 10 kilograms, is then sent to the lab for testing. Rio2 has a rigorous QA/QC program over the chain-of-custody of samples and the insertion of 4% blanks, 5% duplicates, and 5% certified reference standards in each batch of samples. Samples are shipped to ALS preparation laboratory located in Copiapo where they are dried, crushed, and pulverized; then ALS ships the pulp to its lab in Lima in order to be assayed. All gold assays were obtained by standard 50g fire assaying with AA finish. ALS is an ISO 9001:2000 certified laboratory.

Mr. Enrique Garay, MSc. P.Geo (AIG Member), Senior Vice President Geology of Rio2, is the Qualified Person (as defined by NI 43-101) responsible for managing the Company's exploration programs and disclosure of drilling results. Mr. Garay has read and approved the scientific and technical information in this news release.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements, most particularly the potential to increase the resource estimate of the gold oxide mineralization at the Fenix Gold Project, the timing for the completion of an updated resource estimate for the gold oxide mineralization at the Fenix Gold Project. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. 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 differ materially from forward-looking information can be found in Rio2's disclosure documents on the SEDAR website at www.sedar.com. Forward-looking statements included in this news release are made as of the date of this news release and 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 securities legislation.

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: info@rio2.com

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