Rio2 Receives US$50 Million Third Deposit from Wheaton Precious Metals

• Third deposit payment follows previous instalments under agreement initially announced in November 2021
• Funds allocated to continue construction activities at Fenix Gold Project in Chile's Atacama Region
• Project contains 4.8 million ounces of gold in measured and indicated mineral resources
• Run-of-mine heap leach operation eliminates requirement for crushing facilities or tailings storage
• Feasibility study indicates 17-year operational life with total capital requirement of US$235 million

Rio2 Limited (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) is a mining company with its primary focus on the Fenix Gold Project in Chile. The company's business model centres on advancing the Fenix Gold Project through to production, utilising what it describes as a staged development approach. Rio2 conducts operations through Fenix Gold Limitada, its wholly owned Chilean subsidiary, which holds the mining rights and permits for the project.

Rio2's current phase involves construction activities at the Fenix site, funded through various financing arrangements including the precious metals purchase agreement with Wheaton Precious Metals. The company has completed feasibility studies and obtained necessary regulatory approvals to advance the project toward operational status.

Receipt of US$50 Million Deposit

Rio2 announced receipt of a US$50 million third deposit from Wheaton Precious Metals International Ltd under the amended and restated precious metals purchase agreement relating to the Fenix Gold Project. The agreement was initially announced in November 2021, with subsequent updates in March 2022, October 2024, and March 2025. The funds will be used to continue construction activities at the Fenix Gold site.

The payment represents part of a flexible pre-pay arrangement between Rio2 and Wheaton Precious Metals International Ltd. This follows previous deposits received under the same agreement structure. The company states that the deposit will support ongoing construction work at the project.

Wheaton Precious Metals operates as a precious metals streaming company. The structured payment arrangement provides Rio2 with capital during the construction phase of the Fenix Gold Project. The agreement terms were established through the amended and restated precious metals purchase agreement announced in the company's previous releases.

Fenix Gold Project Overview

The Fenix Gold Project is located in Chile's Atacama Region and contains measured and indicated mineral resources of 4.8 million ounces of gold. The company describes it as one of the largest undeveloped gold oxide heap leach projects in the Americas. The project is designed as a run-of-mine heap leach operation.

The mine design eliminates the need for crushing facilities or tailings storage facilities, which the company states minimises the overall impact and footprint of the project. The operational approach involves heap leach processing of the gold oxide ore. A feasibility study for the project was completed in October 2023.

According to the feasibility study, the project has an estimated operational life of 17 years. The study indicates total initial and sustaining capital requirements of approximately US$235 million. The project is expected to employ 1,200 people during construction and 550 people during operations.

The company describes the project as incorporating technical, environmental, and social considerations in its design. Rio2 states that the project represents an investment in Chile's gold mining sector and will contribute to employment in the Atacama Region.Use of Proceeds

The US$50 million deposit will be applied to continuing construction activities at the Fenix Gold Project. Rio2 has stated its objective of bringing the project to production using a staged development strategy. The funding supports the company's construction timeline and development activities.

The total estimated capital requirement for the project is US$235 million for initial and sustaining capital, according to the feasibility study. This represents the total investment needed to develop and operate the mine over its planned lifespan. The capital will fund construction, equipment, and operational setup.

During the construction phase, the project will employ approximately 1,200 workers. Once operational, the mine will provide employment for 550 people throughout its 17-year operating period. These employment figures are based on the project's current design and operational plans.

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