Rio Silver Inc. Completes Securities for Debt Transaction

Executive Summary

• Rio Silver Inc. settled $293,250 of indebtedness by issuing 1,396,428 common shares at a deemed price of $0.21 per share and 420,238 common share purchase warrants priced at $0.28 per share.
• The settlement improves the Company’s working‑capital position and reduces its current deficiency.
• All issued securities are subject to a hold period that expires on May 1, 2026.

Key Details

• Debt Amount Settled: $293,250 (aggregate indebtedness).
• Equity Issuance: 1,396,428 common shares at a deemed issuance price of $0.21 per share.
• Share Allocation: 976,190 of the issued shares were allocated to non‑arm’s length creditors; the remainder went to other parties.
• Warrant Issuance: 420,238 common share purchase warrants, each allowing purchase of one common share at $0.28 per share, exercisable through December 31, 2028.
• Warrant Allocation: No warrants were issued to non‑arm’s length creditors.
• Hold Period: All shares and warrants issued in this transaction are subject to a lock‑up that expires on May 1, 2026.
• Purpose of Transaction: To improve Rio Silver’s current working‑capital deficiency position.

Notable Quotes

(No direct quotes were included in the release.)