Rio2 Advances Fenix Gold Construction with 41% Completion, First Pour Targeted for January 2026

• Construction remains on schedule and under budget with 41% completion achieved by Q2 2025, targeting first gold production in January 2026 
• Strong cost control demonstrated with $56.4 million spent against $57.8 million budget through June 2025, excluding corporate overheads 
• TSX graduation approved conditionally, enhancing institutional access and market profile for the company 
• Significant local workforce engagement with 1,514 personnel employed, 94% Chilean nationals and 41% from the Atacama Region 
• Comprehensive ESG framework published in 2024 report, reinforcing responsible mining practices and community commitment

Rio2 Limited (TSXV: RIO) is a development-stage mining company focused on advancing gold projects with proven technical expertise and successful capital markets experience. The company centres operations around the Fenix Gold Project in Chile's Atacama Region, implementing a staged development strategy to achieve production in the shortest possible timeframe.

Rio2, through wholly owned subsidiary Fenix Gold Limitada, maintains high environmental standards and responsible development practices. The company applies environmental standards beyond regulatory requirements, emphasising protection of operational territories while balancing social, environmental, and economic considerations.

Construction Advancing at the Fenix Gold Project

Construction at the Fenix Gold Project shows substantial progress across multiple operational areas, with systematic advancement towards the January 2026 production target. The project achieved 41% overall completion through Q2 2025, maintaining alignment with schedule and budget parameters established during feasibility.

Infrastructure development shows notable advancement with 12.7 hectares of geosynthetics installed at the leach pad, providing capacity for the first six months of production. Completion of 4 hectares of overliner material positions the facility to receive mineral processing beginning August 2025. This systematic approach ensures operational readiness aligns with construction milestones.

Safety performance remains prioritised, with 1,270,141 person-hours worked resulting in one Lost Time Incident, achieving a 0.79 Lost Time Incident Frequency Rate. The 6.30 Total Incident Frequency Rate demonstrates commitment to industry safety standards while managing substantial workforce during peak construction.

Critical infrastructure advances according to schedule, with Haul Road 1 reaching 90% completion and Haul Road 4 at 40%. These transport corridors connect the Fenix South pit to processing facilities. The ADR Plant shows significant progress with structural assembly complete and building cladding 90% finished, whilst the first of three electrical switch rooms transits from Santiago.

Project Timeline on Track for First Gold in 2026

The Fenix Gold Project maintains trajectory towards first gold production in January 2026, with key milestones scheduled throughout 2025 supporting this objective. Mining operations commence August 2025 with initial mineral extraction and ore stacking on completed leach pad sections, marking transition from construction to operational phases.

Critical facility completions follow a structured timeline supporting the January 2026 target. PLS pond finalisation and electrical switch room installations are scheduled for August 2025, followed by ADR Plant commissioning in November 2025. This sequencing ensures systematic facility readiness supporting seamless operational transition.

Grade control drilling activities near completion across pit areas covering initial three years of production, with the program finishing by July 2025. The associated mineral resource estimate update expects release by September 2025, providing enhanced data for mine planning and production scheduling during critical initial operational years.

Mine Expansion Study is expected to be completed by December 2025 which will represent a strategic milestone for long-term value enhancement, potentially extending project life and increasing resource utilisation efficiency. This timing aligns with operational commencement, providing management expanded development options as the mine transitions into production.

Financing Secured Through Wheaton and Strategic Partners

Rio2's financial position benefits from established strategic partnerships providing funding certainty for project development through to production. The company secured financing arrangements supporting construction phase requirements, with capital deployment proceeding according to budget parameters established during feasibility studies.

The project represents approximately $235 million of initial and sustaining capital investment in Chile's gold mining sector, demonstrating significant commitment to the Atacama Region's economic development. The financing structures are designed to support both construction completion and initial operational phases, with the Fenix Gold Project representing one of the largest undeveloped gold oxide heap leach projects in the Americas.

Cost discipline remains evident through budget performance, with construction spending tracking below allocated amounts through Q2 2025. The $56.4 million expenditure against $57.8 million budget demonstrates effective project management and cost control during construction, providing confidence in financial projections supporting production economics.

Strategic financial planning incorporates sustaining capital requirements throughout the projected 17-year operational life, ensuring long-term financial stability supports consistent production performance. This comprehensive approach to capital allocation enhances investor confidence in the project's ability to generate sustained returns throughout its operational lifespan.

Sustainability and Local Engagement Initiatives

Rio2's commitment to environmental, social, and governance principles demonstrates through comprehensive reporting and community engagement practices. The 2024 ESG Report represents detailed review of sustainability factors related to project development activities, reinforcing dedication to responsible mining practices and operational transparency.

Local workforce development represents a cornerstone of Rio2's community engagement strategy, with 94% of the 1,514-person workforce comprising Chilean nationals. The company's regional employment focus shows through 41% of workers originating from the Atacama Region, contributing directly to local economic development and skills transfer.

Gender diversity initiatives progress with 10% female workforce participation during construction, whilst operational phases target employment for approximately 800 people throughout the 17-year mine life. This sustained employment commitment provides long-term economic benefits for local communities and supports regional development objectives aligned with Chilean government priorities.

Environmental stewardship extends beyond regulatory requirements, with Rio2 implementing standards designed to protect operational territory environments. The run-of-mine heap leach operation eliminates crushing and tailings storage requirements, minimising environmental footprint whilst maintaining production efficiency and economic viability.

Corporate Developments and Strategic Focus

Rio2's conditional approval for TSX graduation represents a significant corporate milestone enhancing institutional investment access and market profile. Graduation from TSX Venture Exchange to the main Toronto Stock Exchange provides improved liquidity prospects and broader analyst coverage, supporting enhanced shareholder value creation through increased market visibility.

Conditional approval requires satisfaction of customary TSX listing conditions, with Rio2 working diligently to meet requirements. Final approval completion will result in common shares commencing trading on TSX with delisting from TSXV, whilst maintaining existing trading symbols and CUSIP numbers, ensuring seamless transition for existing shareholders.

Corporate governance enhancements align with TSX listing requirements, reinforcing Rio2's commitment to transparency and accountability standards expected by institutional investors. These improvements support the company's strategic objective of attracting diversified investor interest whilst maintaining focus on operational excellence and project development priorities.

Strategic positioning within the gold sector benefits from the Fenix Gold Project's scale and development timeline, with 4.8 million ounces of measured and indicated mineral resources. This resource base provides substantial foundation for long-term value creation and positions Rio2 among significant gold development companies approaching production phases.

Conclusion

Rio2 Limited demonstrates consistent progress towards first gold production at the Fenix Gold Project, with construction milestones achieved within budget and schedule parameters whilst maintaining strong safety performance. The combination of disciplined project execution, strategic financing arrangements, and commitment to responsible mining practices positions the company to deliver substantial value creation as operations commence in January 2026. The conditional TSX graduation approval and comprehensive ESG framework further enhance Rio2's investment proposition, reducing execution risk whilst providing investors exposure to one of the Americas' most significant undeveloped gold projects approaching production readiness.

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