Rio2 Limited to Complete Updated Pre-Feasibility Study for the Fenix Gold Project

VANCOUVER, April 16, 2019 - Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) today provides a project update for its Fenix Gold Project located in the Maricunga region, Chile.

Rio2 continues to advance the Fenix Gold Project to production and has completed a number of activities as planned. Rio2 has now decided to complete an update to the Pre-feasibility Study, (“PFS”) which was undertaken by previous owners, Atacama Pacific Gold Corp.. This will illustrate how Rio2 intends to develop the Project. We are deferring the completion of the Feasibility Study for the project until market conditions are more constructive to support the remaining activities to complete the Feasibility Study work program.

The existing Pre-Feasibility Study, titled “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, is available on SEDAR under Rio2’s SEDAR profile at www.sedar.com. The Cerro Maricunga Project was renamed the Fenix Gold Project by Rio2 in 2018.

The updated PFS will be completed by a highly skilled group of engineering consultants that are based in Lima, Peru, in close cooperation with Rio2’s technical team. The engineering consultants include HLC Ingeniería y Construcción (metallurgical review, process design and site layout), Anddes (civil design and geotechnical review), each of whom were involved in the engineering design and construction of both the La Arena and Shahuindo gold projects located in Peru. Input to the contract mining and civil construction aspects of the updated PFS will be provided by STRACON who were the mining alliance partners of Rio Alto Mining Ltd. at both La Arena and Shahuindo. Mining Plus will undertake pit optimization, mine design and mine scheduling activities and assist with the compilation of the technical report related to the updated PFS.

The updated resource estimation has been completed and as was expected, there are no material changes in overall grade and contained metal compared to the resource model outlined in the 2014 PFS. The recent 7,000m drilling focused on the USD$728 pit shell has confirmed the higher-grade nature of material at surface, constrained by the pit shell. This higher-grade mineralization will form the focus of the updated PFS and is expected to provide for a staged approach to the development of the Fenix Gold Project. The updated PFS will be centered on a smaller starter project which will facilitate a lower initial capex, higher grades initially being mined, and a lower initial strip ratio as compared with the 2014 PFS.

Concurrently with the completion of the updated PFS, the Company is completing a water options study which is focused on identifying and locating water rights close to the Fenix Gold Project for use during the proposed starter phase of the project. Locating water rights near to the project will allow Rio2 to accelerate its development plan and enable the Company to develop the larger water project from Copiapo for the longer term, larger project planned for Fenix which will follow the starter phase.

Completion of the updated PFS is anticipated before the end of July 2019.

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 timing for the completion of the updated PFS; the suitability of the Fenix Gold Project for staged development, including a smaller starter project; the potential for the characteristics of the smaller starter project to include lower initial capex, initial mining of higher grade ore and a lower strip ratio, all as compared to the 2014 PFS; and the potential locate water rights near to the Fenix Gold Project and the benefits of holding such rights. 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 Ltd.

Alex Black
President, CEO & Director
+1 604-260-2696
info@rio2.com

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