Rio2 Updates Condestable Mine Life, Resources and Reserves

• Updated technical report confirms a 14-year life of mine at Condestable through 2039
• After-tax net present value estimated at US$710 million, with total after-tax free cash flow of US$1.15 billion over the life of mine
• Measured and Indicated resources total 82.1 million tonnes; Inferred resources increased more than 40 percent in tonnage compared with the 2022 report
• Proven and Probable reserves total 36.5 million tonnes, containing 267,450 tonnes of copper, 176,890 ounces of gold and 5.02 million ounces of silver
• Three-part exploration program under way covering near-mine drilling, near-surface open-pit potential and district-scale mapping across the property

Rio2 Limited (TSX: RIO; OTCQX: RIOFF; BVL: RIO) is a Canada-based precious metals and copper producer. The company operates the Fenix Gold heap leach mine in Chile and, following its January 2026 acquisition of a 99.1 percent interest in Condestable, also produces copper, gold and silver from the underground mine in Peru. Rio2 and its subsidiaries, Fenix Gold Limitada and Compañía Minera Condestable S.A., state that their operations are managed under environmental standards intended to exceed regulatory requirements.

Updated Technical Report Confirming Extended 14-Year Mine Life and Expanded Resources

Rio2 has completed an updated technical report for Condestable, prepared by SLR Consulting (Canada) Ltd. and effective May 31, 2026. The report sets a mine life of 14 years, extending production through 2039. It will be filed on SEDAR+ within 45 days and made available on the company's website.

Measured and Indicated resources total 82.1 million tonnes grading 0.69 percent copper, containing 565,000 tonnes of copper, 355,000 ounces of gold and 10.87 million ounces of silver, increases of between 2 and 10 percent across the three metals compared with the 2022 technical report. Inferred resources rose 42 percent in tonnage to 22.2 million tonnes, with copper, gold and silver up between 42 and 52 percent.

Proven and Probable reserves stand at 36.5 million tonnes grading 0.73 percent copper, 0.15 grams per tonne gold and 4.28 grams per tonne silver, containing 267,450 tonnes of copper, 176,890 ounces of gold and 5.02 million ounces of silver. Reserves represent the portion of the resource base that has been demonstrated to be economically mineable under current assumptions, and are the figures that typically underpin mine planning.

Robust Project Economics With US$710 Million After-Tax NPV at Current Production Rate

The updated economic analysis values Condestable at an after-tax net present value of US$710 million using an 8 percent discount rate, based on the current throughput rate of 8,400 tonnes of ore per day. Pre-tax NPV is estimated at US$1.16 billion, and after-tax free cash flow over the 14-year mine life is projected at US$1.15 billion.

Life-of-mine C1 cash costs are estimated at US$1.00 per pound of copper after by-product credits, with all-in sustaining costs at US$1.46 per pound. Forecast average annual production is approximately 18,000 tonnes of contained copper, along with 12,900 ounces of gold and 304,800 ounces of silver, from average mill feed of 2.9 million tonnes per year. The base case uses a long-term realized copper price of US$4.99 per pound; at a higher price scenario of US$6.00 per pound copper, US$4,200 per ounce gold and US$65 per ounce silver, after-tax NPV increases to approximately US$904 million.

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

"To complement Rio2's growth strategy, the Company will be conducting studies to expand production at Condestable. The Company expects to receive approval for the modification of the mine EIA during Q3, 2026, which will permit an increase in production from 8,400 tonnes per day to 10,000 tonnes per day, and will continue to assess opportunities to expand production further. Condestable has shown great promise to remain as a long-life component of Rio2's operating platform in Latin America."

Three-Pronged Exploration Strategy Targeting Near-Mine, Open-Pit and District-Scale Growth

Rio2's 2026 exploration program at Condestable covers three objectives. The first is near-mine resource growth and reserve definition, supported by a planned 46,480 metre diamond drilling program for the year. As of May 30, 2026, 17,200 metres had been completed, representing 37 percent of the annual target.

The second objective focuses on identifying near-surface mineralization at Condestable and the adjacent Raúl area that could support future open-pit development. This phase has begun with detailed geological mapping and a reinterpretation of a 2012 electromagnetic geophysical survey, ahead of a dedicated drilling program planned for the second half of 2026.

The third component covers district-scale geological and structural mapping across the full 46,000-hectare land package, paired with a drone-based magnetometry survey. Rio2 plans to integrate this data with its existing surface geochemistry database, applying machine-learning tools to help identify new exploration targets. A four-person geology team has been added to carry out surface and drilling programs around the mine.

Milestones and Next Steps

Rio2 expects to file the updated technical report on SEDAR+ within 45 days. The environmental permit modification allowing throughput to increase to 10,000 tonnes per day is expected in the third quarter of 2026. Through the remainder of the year, the company plans to complete its 46,480 metre drilling program, advance near-surface drilling at Condestable and Raúl, and finish district-scale mapping and geophysical surveys across the property.

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