Rio Silver's Rio Plata acquires Santa Rita property

Executive Summary

• Rio Silver Inc. (via its Peruvian subsidiary Rio Plata SAC) has acquired the Santa Rita Pb-Zn-Ag property in central Peru for $130,000 USD through a closed-bid auction.
• The acquisition grants Rio Silver 100% ownership of the 570-hectare project with no underlying royalties or option obligations, pending a standard title confirmation process expected to take 2-3 months.
• The Santa Rita project is located in a premier silver-lead-zinc mineral belt, approximately 55 km from Rio Silver's flagship Maria Norte project and 14 km from Kuya Silver’s Bethania mine, positioning it as a key component of the company's strategy to become a pure-play silver developer.

Key Details

• Transaction Structure: Closed-bid auction purchase for $130,000.00 (U.S.).
• Ownership: 100% ownership with clear and unencumbered title (pending final confirmation).
• Property Size: 570 hectares.
• Location: Central Peru, approximately 200 km east-southeast of Lima.
  • 55 km northwest of Rio Silver’s Maria Norte Au-Ag-Pb-Zn project.
  • 14 km southwest of Kuya Silver’s producing Bethania mine.
• Geology: Identified as a carbonate replacement deposit (CRD) system featuring:
  • 20-plus steeply dipping east-west veins.
  • Intersecting shallow-dipping mantos.
  • Two priority zones: Humaspunco East and Humaspunco South.
• Historical Context: Previously explored by Inca Minerals (2016-2020); relinquished due to rising payments, not geological issues. Reverted to the state in 2024 due to non-payment of taxes.
• Current Status:
  • Representative sample submitted for metallurgical testing (underway).
  • Title confirmation process expected to take 2-3 months.
  • Preparations underway for initial fieldwork, including camp installation, portal access upgrades, and explosives permitting.
• Strategic Rationale:
  • Expands footprint in an emerging silver district.
  • Proximity to regional processing facilities allows for lower capital intensity and quicker advancement.
  • Synergies with Maria Norte project to create a district-scale platform.

Notable Quotes

• "Santa Rita sits in the same mineralized corridor as our principal Maria Norte project, and its acquisition meaningfully expands our footprint within what we see as an emerging silver district in central Peru," said Chris Verrico, president and chief executive officer of Rio Silver. "Securing this project through a clean, closed-bid process gives us 100-per-cent ownership with no underlying royalties or option obligations, which aligns perfectly with the disciplined approach we are taking across our portfolio."