Rio2 Quarterly Update - September 30 2025

• Construction at the Fenix Gold Project has reached 63% completion by the end of Q3 2025, with first gold production on track for January 2026
• Total project spending of $86.7 million aligns closely with the $86.6 million budget, demonstrating strong cost control during the eleven-month construction period
• Approximately 87,000 tonnes of ore with an average grade of 0.45 grams per tonne gold have been placed on the leach pad, representing 1,260 ounces ready for processing
• The workforce comprises 1,521 personnel with 94% being Chilean nationals, including 44% from the local Atacama Region
• All long lead time equipment has been secured and delivered to site, eliminating potential supply chain delays

Rio2 Limited (TSX: RIO; OTCQX: RIOFF; BVL: RIO) is a development-stage mining company advancing its flagship Fenix Gold Project towards production in Chile's Atacama Region. The company combines technical expertise with capital markets experience to develop mining projects that meet high environmental and social responsibility standards. Rio2 is executing a staged development strategy to bring Fenix Gold, one of the largest undeveloped gold oxide heap leach projects in the Americas, into production. The project hosts 4.8 million ounces of measured and indicated gold resources and represents an initial investment of approximately $235 million.

Construction at the Fenix Gold Project reached 63% completion by the end of September 2025. The company has installed 12.7 hectares of geosynthetic materials on the leach pad, providing six months of initial production capacity. Leach pad construction resumed in October 2025, with plans to deliver an additional 10 hectares by year end. The company is developing the leach pad in phases, with the initial 12.7 hectares providing six months of production capacity whilst additional sections are constructed.

Mining operations began in August, with crews extracting ore from haul road excavation work at both Fenix Central and Fenix South starter pit areas. During Q3, approximately 87,000 tonnes of ore averaging 0.45 grams per tonne gold were placed onto the leach pad, representing 1,260 ounces of gold ready for processing during the December and January commissioning period.

Infrastructure development has progressed, with Haul Road 1 now complete and Haul Road 4 largely finished, requiring only minor finishing work. The completed road network connects the Fenix South orebody directly to the leach pad. The Pregnant Leach Solution (PLS) pond is complete and undergoing hydrostatic testing. Water trucking commenced in late September with the objective of filling the PLS pond by mid-November to support leaching circuit commissioning activities.

Budget and Schedule Performance with Key Milestone Completion Details

Total expenditure through September 2025 reached $86.7 million against a budget of $86.6 million, representing a variance of 0.1%. The spending figures exclude corporate overheads and pre-construction costs incurred in 2022, focusing purely on construction-related expenditures. The project represents a total initial investment of approximately $235 million.

The project has recorded 1,865,791 person-hours worked to date with three Lost Time Incidents during the construction period: a finger injury in Q1, and both a dislocated ankle and back strain in Q3. This results in a Lost Time Incident Frequency Rate of 1.61. The Total Incident Frequency Rate for the project as of September 30, 2025, was 8.58.

Schedule adherence has been maintained throughout the construction period, with all long lead time procurement items now in hand.

Alex Black, Executive Chairman, noted:

"The Project is an example of modern gold mining where a full complement of technical, environmental, and social considerations has been consulted and designed from the outset."

Leach Pad Development and ADR Plant Installation Activities

The Adsorption, Desorption, Recovery (ADR) plant installation has advanced during Q3 2025. The ADR plant processes gold-bearing solution from the leach pad to produce doré bars. Diesel generators and all three electrical switchgear rooms have been installed, along with chemical reactors for acid wash and desorption processes. Current work centres on installing the adsorption circuit piping and electrical systems, along with the barren pump station that recycles solution back to the leach pad.

Supporting infrastructure for the ADR plant continues with reagent handling and chemical storage facilities under construction. These facilities will house the cyanide solution and other processing chemicals required for gold extraction. The gold room is progressing with the implementation of electrowinning cells, retorts, and furnace equipment. Electrowinning uses electrical current to extract gold from solution, whilst retorts and furnaces transform the precipitated gold into marketable doré bars.

The overliner material placement on the leach pad has reached approximately 22,000 cubic metres, covering about 8.5 hectares of geosynthetic liner. This protective layer sits above the impermeable liner and below the ore, providing drainage for the leach solution. The area already prepared allows the operation to begin leaching upon commissioning, with ore in place ready to receive cyanide solution and begin the gold extraction process.

Path to First Gold

Construction at the Fenix Gold Project has reached 63% completion, with expenditure tracking closely to budget at $86.7 million versus $86.6 million planned. The project maintains its target for first gold production in January 2026, with 1,260 ounces of ore already placed on the leach pad and all long lead equipment delivered to site.

The upcoming months focus on commissioning activities, beginning with filling the PLS pond through mid-November, followed by leach process commissioning in November and plant commissioning spanning December and January. The company also expects to complete its Mine Expansion Pre-feasibility Study in Q1 2026, which will evaluate opportunities to increase production beyond the initial mining rate.

‍