Rio2 Limited (TSX-V: RIO) (OTCQX: RIOFF) (BVL: RIO) is pleased to announce that it has entered into a definitive precious metals purchase agreement with Wheaton Precious Metals International Ltd. a wholly-owned subsidiary of Wheaton Precious Metals Corp., in relation to the Company’s Fenix Gold Project in Chile.

The Gold Stream is one of the components of the mine construction financing totaling approximately US$125 to US$135 million to finance the construction of a mine at the Company’s 100%-owned Fenix Gold Project in Chile. The signing of the Gold Stream agreement follows the successful completion in August 2021 of the Company’s C$35.1 million equity offering and positions the Company to finalize the previously announced US$50 to US$60 million senior debt project finance facility with BNP Paribas mandated as sole lead arranger.

Jose Luis Martinez, EVP, Chief Strategy Officer stated: “Entering into this definitive agreement with Wheaton International represents a significant milestone for Rio2 and secures the foundation of the Mine Financing Package setting the Company on a solid path for development and a fast track to production.”

Under the Gold Stream, Wheaton International will purchase 6.0% of the gold production from the Fenix Gold Project until 90,000 ounces of gold have been delivered and 4.0% of the gold production until 140,000 ounces of gold have been delivered, after which the stream will reduce to 3.5% of the gold production for the life of mine. Wheaton International will make an upfront deposit in cash of US$50 million with US$25 million available following closing of the Gold Stream agreement, and the remaining US$25 million payable after the receipt of the EIA approval for the Mine with both payments subject to completion of customary conditions.

In addition, Wheaton International will make ongoing payments for gold ounces delivered equal to 18% of the spot gold price until the value of gold delivered less the production payment is equal to the upfront consideration of US$50 million, at which point the production payment will increase to 22% of the spot gold price.

ADVISORS

Scotiabank acted as financial advisor and McMillan LLP acted as legal advisor to Rio2 in connection with the Gold Stream.

ABOUT RIO2 LIMITED

Rio2 is a mining company with a focus on development and mining operations with a team that has proven technical skills as well as a successful capital markets track record. Rio2 is focused on taking its Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged development strategy. In addition to the Fenix Gold Project in development in Chile, Rio2 Limited continues to pursue additional strategic acquisitions where it can deploy its operational excellence and responsible mining practices to build a multi-asset, multi-jurisdiction, precious metals company.