Rio2 Limited Reports $105.3 Million in Q2 2026 Revenue as Fenix Gold Advances Toward Commercial Production

• Consolidated Q2 2026 revenue reached $105.3 million, with adjusted EBITDA of $46.5 million and net income of $46.8 million
• Fenix Gold produced 9,088 ounces of gold in the quarter, with ore mining rates rising from 13,600 to 16,100 tonnes per day
• Condestable produced 9.3 million pounds of copper along with gold and silver by-products during the quarter
• 2026 gold production guidance at Fenix Gold has been deferred following extreme cold and snowfall linked to a severe El Niño weather pattern
• Condestable's ore sorting pilot plant contract was signed in mid-July, supporting plans to expand throughput to 10,000 tonnes per day

Rio2 Limited (TSX: RIO; OTCQX: RIOFF; BVL: RIO) is a Canada-based mining company that produces precious metals and copper. The company operates the Fenix Gold heap leach mine in Chile and the Condestable underground copper, gold and silver mine in Peru, which it acquired earlier in 2026. Rio2's management has a background in technical mining operations and capital markets, and the company states that both sites operate under environmental and social standards aligned with responsible development practices.

Q2 2026 Consolidated Revenue of $105.3 Million With Adjusted EBITDA of $46.5 Million Supported by Condestable Steady Cash Flows

Rio2 reported consolidated revenue of $105.3 million for the three months ended June 30, 2026, compared with a prior year quarter in which Fenix Gold had not yet commenced commercial production. Copper sales contributed $52.2 million, gold sales added $47.0 million, and silver sales brought in $4.3 million. Adjusted EBITDA came in at $46.5 million, while net income attributable to shareholders reached $46.8 million, or $0.08 per diluted share. Adjusted net income, which excludes items such as a fair value gain on a stream obligation, was $17.1 million.

Condestable processed more than 700,000 tonnes of ore during the quarter at average grades of 0.66% copper, 0.24 grams per tonne gold and 3.88 grams per tonne silver. Cash costs at Condestable were $2.34 per pound of copper produced, with all-in sustaining costs of $3.10 per pound. Rio2 closed the quarter with $49.7 million in cash and equivalents, up from $46.4 million at the end of 2025.

Condestable's production and cash flow were reported separately from Fenix Gold's ramp-up costs for the quarter. Kathryn Johnson serves as Executive Vice President, CFO and Corporate Secretary of Rio2.

Fenix Gold Ramp-Up Progressing Toward Q4 2026 Commercial Production Despite Extreme Weather Impacts Deferring Gold Production Guidance

Fenix Gold produced 9,088 ounces of gold during the second quarter, contributing to consolidated output of 13,539 ounces across both mines. Daily ore mining rates climbed from 13,600 tonnes in April to 16,100 tonnes in June, and the mine is expected to reach 20,000 tonnes per day during the third quarter. Truck driver retention improved during the quarter, and the transition to larger, contractor-owned haul trucks was completed in June.

The quarter was affected by an El Niño weather pattern across Chile and Peru that brought heavy snow and extreme cold to the Fenix Gold site. Approximately 265,000 tonnes of planned ore mining was deferred due to halted operations during storm events, which in turn deferred an estimated 5,000 ounces of gold production. Rio2 has deferred its previous full year guidance of 60,000 to 65,000 ounces at Fenix Gold rather than issue a revised figure while the ramp-up and weather impacts are still being assessed. Leaching and plant processing continued throughout the disruptions.

Andrew Cox, President and Chief Executive Officer of Rio2, said:

"Q2 2026 was the second quarter of ramp-up for Rio2 at Fenix Gold, supported by steady production and cash flows from Condestable. At Fenix Gold, operational performance continued to improve during the quarter with more work areas opened, more people employed and the arrival of the principal mining contractor's mining equipment, all of which we anticipate will make a meaningful impact to productivities and costs during Q3." 

Rio2 stated it remains on track to reach commercial production at Fenix Gold in the fourth quarter of 2026.

Condestable Ore Sorting Pilot Plant and 10ktpd Expansion Studies Advancing Toward Q3 EIA Modification Approval

During the second quarter, Rio2 signed a contract for a pilot ore sorting plant, a system that separates higher grade ore from waste rock before processing to improve recovered grades. The pilot plant is expected to arrive on site before November 2026 following upgrades to its electrical systems, with preliminary site infrastructure work already underway. The company's project team is also advancing engineering and cost studies for expanding Condestable's processing throughput to 10,000 tonnes per day.

Both initiatives are subject to regulatory approval. Rio2 expects a decision during the third quarter of 2026 on a modification to Condestable's environmental impact assessment, which would cover the increased processing capacity alongside the ore sorting project. The company also completed an updated mineral resource and reserve estimate for Condestable in June, showing increases in measured, indicated and inferred resources compared with the previous 2022 estimate, along with updated reserves supporting an estimated 14 year mine life.

Alex Black, Executive Chairman of Rio2, said:

"Condestable, on the other hand, is not experiencing the same weather impacts due to its close proximity to the coast and its low-altitude location." Condestable's integration process, following its January 2026 acquisition, is expected to be complete in early Q4 2026.

Milestones and Next Steps

Rio2 expects to reach commercial production at Fenix Gold in the fourth quarter of 2026, alongside completion of its integration process for Condestable in early Q4. A decision on the Condestable EIA modification, covering both ore sorting and the throughput expansion to 10,000 tonnes per day, is expected during the third quarter. The ore sorting pilot plant is scheduled to arrive on site before November, while Fenix Gold's exploration drilling programme, the mine's first since 2014, is on track for completion by late August, with an updated resource and reserve estimate expected by year end. Rio2 will host a webinar on August 17, 2026, to discuss these results with shareholders and investors.

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