Rio2 Provides Fenix Gold Q3 Operations Update

Rio2 Limited (RIO) issued a non-earnings operational update regarding weather-related disruptions at its Fenix Gold Mine in Chile during the third quarter of 2026. The disclosure details the impact of a "super El Niño" event, which brought severe winter storms that interrupted mining operations.

Disruptions occurred during two primary windows: July 17–24 and August 10–22. Following the second major storm, three additional significant single-day snowfall events took place. Mining operations were safely suspended and personnel were evacuated. The leach pad, process plant, and power generation facilities remained intact, though they operated at reduced capacity.

The company states that production performance data exists through September 21, 2026, but presents this information only via graphics without providing specific ounces, tonnes, grade, or throughput figures in the text. Ramp-up efforts remain on track to achieve commercial production in the fourth quarter, with site management implementing initiatives to recover production losses.

Long-range forecasts suggest unseasonal snowfall may continue through December. Formal guidance for the remainder of the year continues to be withheld. The projected-production graph included in the release is drawn assuming minimal weather disruptions for the rest of the year, representing a best-case scenario rather than a commitment. Aerial imagery dated September 24, 2026, is also included, with the Qualified Person identified as Enrique Garay, who is not independent of the company.

This release is specific to the Fenix operation. The Condestable asset in Peru, which generates the bulk of the company's cash flow, is not addressed. Management explicitly noted that Condestable is not experiencing the same weather impacts.

Rio2 Limited (RIO) released information regarding its Fenix project that extends known weather-related disruptions rather than introducing new material data. The market was already aware that snowstorms in Q2, specifically during July and August, deferred approximately 265,000 tonnes of ore and 5,000 ounces of gold, leading to the withdrawal of annual guidance in the Q2 2026 earnings release on August 13, 2026. Today’s disclosure adds three additional single-day snow events occurring after August 22 and, for the first time, states that unseasonal snowfall may continue through December, placing the Q4 commercial-production target at risk.

The release contains no quantified new information, including ounces lost, revised throughput, cost impacts, or reinstated guidance. Instead, management communicated the shortfall through a graphic. The company asserts it will reach commercial production in Q4 despite the overlap with the period of expected snowfall, providing no evidence to support this claim. This disclosure represents a continuation of a known problem with a worsening tail rather than a new issue.

Rio2 Limited (TSX: RIO; OTCQX: RIOFF; BVL: RIO) is a diversified precious metals and copper producer headquartered in Vancouver, with operations in Chile and Peru. The company’s management team consists of former Rio Alto executives, including Executive Chairman Alex Black, President and CEO Andrew Cox, and CFO Kathryn Johnson.

The company’s Fenix Gold project in Chile is a 100%-owned oxide heap-leach mine located in the Maricunga region across 37,291 hectares. Construction was completed in 14 months, with the first gold pour occurring on January 23, 2026. Phase 1 is designed for 20,000 tonnes per day (tpd) and an average production of approximately 100,000 ounces of gold per year (koz Au/yr) from 2027 to 2030. A Phase 2 pre-feasibility study contemplates expanding capacity to 80,000 tpd and approximately 300 koz Au/yr. The operation utilizes run-of-mine leaching, requiring no crushing or tailings storage. The site is currently in ramp-up and has not yet been declared commercial.

In Peru, Rio2 owns 99.1% of the Condestable underground copper mine, which also produces gold and silver credits. Located 90 km south of Lima on 46,653 hectares, the mine has operated for over 60 years at a rate of 8,400 tpd. Following MEIA approval on August 21, 2026, the site has a permitted path to increase production to 10,000 tpd and beyond. Rio2 acquired the asset from Southern Peaks Mining for a total consideration of US$217 million, with the transaction closing on January 30, 2026.

The Kalzas project in the Yukon, Canada, is a 100%-owned early-stage tungsten property spanning 155 hectares, with a filed NI 43-101 report. Historical intercepts include 101.36 meters at 0.224% WO₃ and 24.4 meters at 0.304% WO₃. The company plans $1.5 million in scout drilling for 2027, and a spin-out is under consideration.

Additionally, Rio2 holds a 54,021,667-share stake in Royal Road Minerals, representing 16.33% on a non-diluted basis. The shares were accumulated at prices between C$0.115 and C$0.20 per share for a total cost of roughly C$7.3 million. This is classified as an investment stake rather than an operating asset.