Rio2 Updates Condestable Mine Resources & Reserves

VANCOUVER, British Columbia, June 23, 2026 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2” or “the Company”) (TSX: RIO; OTCQX: RIOFF; BVL: RIO) announces that it has finalized an updated National Instrument 43-101 Technical Report (the “Report”) for its recently acquired Condestable copper mine (“Condestable”), located in the Department of Lima, Peru. The updated technical report, prepared by leading global mining consulting firm SLR Consulting (Canada) Ltd. (“SLR”), confirms an increase in the operational mine life, expanded Mineral Resources and Mineral Reserves, and robust economics for the underground operation. The Report will be filed within 45 days on SEDAR+ under the Company’s profile at www.sedarplus.ca and will be available on the Company’s website at www.rio2.com.

Rio2 completed the acquisition of a 99.1% interest in Condestable from Southern Peaks Mining L.P. on January 30, 2026. Since closing the acquisition, Condestable has delivered strong operating performance, in line with expectations, and has provided immediate free cash flows from copper, gold and silver production.

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.”

KEY OPERATIONAL & FINANCIAL HIGHLIGHTS:

• Confirms Strong Future Production Profile: Forecasted average annual production of approximately 18,000 tonnes of contained copper in concentrate, including an average of 12,900 oz of gold and 304,800 oz of silver per year at the current throughput rate of 8,400 tonnes per day. Average mill feed per year is projected to be 2.9 million tonnes (Mt), grading on average 0.73% copper, 0.15 g/t gold¹, and 4.28 g/t silver through LOM.
• Low-Cost Structure: Industry-competitive life-of-mine copper C1 cash costs² are estimated at US$1.00/lb Cu after by-product credits. Life-of-mine All-In Sustaining Costs (AISC) are projected at US$1.46/lb Cu.³
• Extended Life of Mine (LOM): 14-year life of mine confirmed through 2039, highlighting continued resource and reserve replacement at Condestable.
• Robust Economics: After tax net present value at an 8% discount rate is US$710 million. Total LOM undiscounted after-tax free cash flow⁴ is projected at US$1,147 million, based on an average realized copper price⁵ of US$4.99 per pound (lb), a realized gold price⁶ of US$3,884 per ounce (oz), and a realized silver price⁷ of US$55.19/oz.

Updated Mineral Resource Statement

The updated global Mineral Resource Estimate (inclusive of Mineral Reserves) has been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) 2014 Definition Standards with an effective date of May 31, 2026.

• Total Measured & Indicated (M+I): 82.1 million tonnes grading 0.69% Cu, 0.13 g/t Au¹, and 4.12 g/t Ag. Containing 565,000 tonnes of copper, 355,000 ounces of gold, and 10.87 million ounces of silver (+2.2%, +2.6% and +9.7% compared to the previous figures published in the 2022 Technical Report).
• Total Inferred Resources: 22.2 million tonnes grading 0.76% Cu, 0.09 g/t Au¹, and 2.78 g/t Ag. Containing 169,000 tonnes Cu, 66,000 ounces of gold, and 1.99 million ounces of silver (+41.8%, +51.9% and +52.4% compared to the previous figures published in the 2022 Technical Report).

Table 1: Mineral Resource Estimate: Raúl and Condestable Mining Areas – May 31, 2026

Category	Tonnes	Grade			Contained Metal
	(Mt)	(% Cu)	(g/t Au)	(g/t Ag)	(kt Cu)	(koz Au)	(koz Ag)
Measured (M)	39.2	0.67	0.15	4.68	264	188	5,895
Indicated (I)	42.9	0.70	0.12	3.61	302	167	4,975
M+I	82.1	0.69	0.13	4.12	565	355	10,870
Inferred	22.2	0.76	0.09	2.78	169	66	1,989
Notes: CIM (2014) definitions were followed for Mineral Resources. Mineral Resources for the Condestable mine are constrained within DSO panels above an NSR cut-off value of $39.00/t. Mineral Resources for the Raúl mine are constrained within DSO panels above a cut-off grade of 0.4% Cu. Mineral Resources are estimated using long-term metal prices of $4.80/lb for copper, $2,500/oz for gold, and $33.50/oz for silver. Mineral Resources are depleted using mined-out volumes, and include mining depletion using production numbers up to May 31, 2026. Metallurgical recoveries of 91.3%, 75.0%, and 82.3% were used for copper, gold, and silver, respectively. Bulk density was interpolated into blocks. The mean density is 2.85 t/m3 for the Condestable mine and 2.83 t/m3for the Raúl mine. A minimum mining width of 1.5 m was used for DSO panels. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Numbers may not add due to rounding.

Cautionary Note Regarding Mineral Resources

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that all or any part of the Inferred Mineral Resources will be converted into Measured or Indicated Mineral Resources or Mineral Reserves.

Updated Mineral Reserve Statement

The updated Proven and Probable Mineral Reserves for the combined underground complex have an effective date of May 31, 2026.

• Total Proven & Probable Reserves: 36.5 million tonnes grading 0.73% Cu, 0.15 g/t Au⁴, and 4.28 g/t Ag. Total contained metal within the reserve plan stands at 267,450 tonnes of copper, 176,890 ounces of gold, and 5.02 million ounces of silver.
  

Table 2: Mineral Reserves for Raúl and Condestable Mining Areas – May 31, 2026

Mine	Category	Tonnes	Grade			Contained Metal
		(Mt)	(% Cu)	(g/t Au)	(g/t Ag)	(kt Cu)	(koz Au)	(koz Ag)
Condestable	Proven	3.4	0.57	0.26	3.62	19	29	396
	Probable	3.0	0.60	0.25	3.72	18	24	358
	Sub-total	6.4	0.58	0.26	3.67	37	52	754
Raúl	Proven	14.9	0.75	0.15	5.21	112	69	2,492
	Probable	15.2	0.78	0.11	3.63	119	55	1,777
	Sub-total	30.1	0.77	0.13	4.41	230	124	4,270
Total	Proven	18.3	0.72	0.17	4.92	131	98	2,888
	Probable	18.2	0.75	0.13	3.64	136	79	2,136
	P+P	36.5	0.73	0.15	4.28	267.5	176.9	5,024
Notes: CIM (2014) definitions were followed for the classification of Mineral Reserves. Mineral Reserves are estimated at a marginal NSR value of $30.00/t for Condestable, and at a marginal cut-off grade of 0.45% Cu for Raúl. Mineral Reserves are estimated using long-term metal prices of $4.25/lb, $2,050/oz, $28.50/oz for copper, gold, and silver, respectively. Metallurgical recoveries of 91.3%, 75.0%, and 82.3% were used for copper, gold, and silver, respectively. Bulk density was interpolated into blocks. The mean density is 2.83 t/m3 for Condestable and Raúl, respectively. A minimum mining width of 1.5 m was used for stopes. A dilution Equivalent Linear Overbreak/Slough (ELOS) is based on a curve and was applied to all stopes. A mining recovery factor of 90% and 100% was applied to stopes and development in ore, respectively. An additional mining recovery factor of 80% was applied to stopes with sill pillars for Raúl. Mineral Reserves were depleted with actual mined out wireframes to December 31, 2025 and actual production numbers to May 31, 2026. Numbers may not add due to rounding.

Operating & Capital Costs and Economics

The economic analysis is assessed at a LOM average realized copper price⁵ of US$4.99 per pound (lb), a realized gold price⁶ of US$3,884 per ounce (oz), and a realized silver price⁷ of US$55.19/oz. Total LOM sustaining capital costs are estimated at US$154 million. The pre-tax net present value (NPV) ⁸ at an 8% discount rate is approximately US$1,158 million, and the after-tax NPV⁹ at an 8% discount rate is approximately US$710 million.

Table 3: After-Tax Cash Flow Summary

Description	Units	Value
LOM	Years	14.0
Production
Mill Feed	'000 tonnes	37,696
Au Grade	g/t	0.15
Ag Grade	g/t	4.28
Cu Grade	g/t	0.73%
Contained Cu	Mlb	608
Contained Au	koz	186
Contained Au - gold credit	koz	54
Contained Ag	koz	5,184
Cu Concentrate	'000 dmt	1,081
Cu grade in concentrate	%	23.30%
Realized Market Prices
Cu ($/lb)	US$/lb	4.99
Au ($/oz)	US$/oz	3,884
Ag ($/oz)	US$/oz	55.19
Total Gross Revenue	US$ million	3,512
Total Operating Costs	US$ million	(1,478)
Operating Margin (EBITDA)	US$ million	2,034
Total Capital	US$ million	(181)
Project Economics
After-tax Free Cash Flow	US$ million	1,147
After-tax NPV @ 8%	US$ million	710

SLR applied a production-based gold credit to the LOM average gold gross revenue in the after-tax cash flow model. The credit increases gold production by 29% and total gross revenue by approximately 4%. In the QP’s opinion, this is a reasonable approach to assigning credit to CMC’s precious metal by-products given that certain areas of the mine lack assay support (and are therefore penalized in Mineral Resource and Mineral Reserve estimation), but are known to contain gold, as demonstrated by production.

These cash flow results include a full year of production for 2026, for consistency with an annual model, while Mineral Resources and Mineral Reserves have been depleted to May 31, 2026.

As an indication of sensitivity to current spot metal prices, at a LOM average realized copper price of US$6.00 per lb, a realized gold price of US$4,200 per oz, and a realized silver price of US$65 /oz, the pre-tax net present value (NPV) ¹⁰ at an 8% discount rate is approximately US$1,496 million, and the after-tax NPV¹¹ at an 8% discount rate is approximately US$904 million.

Exploration and Recent Drilling

The exploration program at Condestable is centred around three complementary objectives.

I. Near-mine resource growth and reserve definition
Condestable has a planned 46,480 m diamond drilling program for 2026 (approved at the end of 2025), designed to both replace and expand mineral resources, as well as to complete the infill drilling required for short‑term reserve modeling. This program is classified as near‑mine exploration.
As of May 30, 2026, a total of 17,200 m of diamond drilling had been completed, representing 37% progress toward the annual drilling target. Based on current execution rates, we remain confident that the program will be fully achieved within this calendar year.

II. Near-surface resource expansion for potential open-pit development
The second program focuses on increasing near-surface mineral resources in the Condestable and Raúl areas, with the objective of defining near-surface Cu-Au-Ag mineralization potentially amenable to open-pit mining. Before initiating drilling, a detailed 1:2,000-scale geological mapping campaign has begun, as well as a reinterpretation of the TITAN24 electromagnetic geophysical survey completed in 2012. Based on these datasets, a near-surface drilling program will be defined during the first half of 2026, with execution planned for the second half of the year.

Figure 1: Longitudinal Section Raúl and Condestable Mining Areas

III. District-scale geological understanding and generation of brownfield targets
The third exploration initiative consists of conducting 1:25,000-scale geological and structural mapping across the 46,000 hectares of mining concessions. In parallel, a drone-based magnetometry survey will be completed over the entire property. The new information generated in 2026 will be integrated with the existing multi-element surface geochemistry database to identify and prioritize new brownfield exploration opportunities.
Given the availability of geological, structural, geochemical, and geophysical datasets, the plan is to integrate all existing mine-scale information using artificial intelligence and machine-learning technologies to generate exploration targets.
With the aim of implementing a systematic exploration program, a team of four geologists with extensive experience in mineral exploration has been recruited. This team is responsible for executing surface exploration and drilling programs, as well as generating new exploration targets in the vicinity of the Condestable mine.

Qualified Persons and Technical Information

The scientific and technical content of this press release has been reviewed, approved and verified ‎by Enrique Garay, MSc P.Geo/FAIG, who is a QP under NI 43-101. Enrique Garay is SVP Geology at Rio2 Limited and not independent of the Company. The Report was prepared by SLR Consulting (Canada) Ltd., with contributions from a team of QPs as defined under NI 43-101.

The Mineral Resource estimate summarized in this news release was prepared by Rio2 and reviewed by SLR. Rosmery J. Cárdenas Barzola, P.Eng., Principal Resource Geologist with SLR, is the independent Qualified Person responsible for the Mineral Resource estimate for the purposes of NI 43-101 and has reviewed and approved the information relating to the Mineral Resource estimate contained in this news release.

The Mineral Reserve estimate summarized in this news release was prepared by Rio2 and reviewed by SLR. Jeff Sepp, P.Eng., Consultant Mining Engineer with SLR, is the independent Qualified Person responsible for the Mineral Reserve estimate for the purposes of NI 43-101 and has reviewed and approved the information relating to the Mineral Reserve estimate contained in this news release.

All other scientific and technical information contained in this news release has been reviewed and approved by the appropriate independent Qualified Person responsible for the relevant portions of the Technical Report, including Jason J. Cox, P.Eng., Global Technical Director, Varun Bhundhoo, Ing., Consultant Mining Engineer, Logan Behuniak, P.Geo., Consultant Resource Geologist, Brenna J.Y. Scholey, P.Eng., Principal Metallurgist, and Luis Vasquez, P. Eng., Principal Environmental Consultant with SLR, each of whom is independent of the Company. The Report will be filed under Rio2's profile on SEDAR+ within 45 days and will be available on the Company’s website at www.rio2.com. For readers to fully understand the information in this news release, they should read the Report in its entirety when it is available, including all qualifications, assumptions, exclusions, and risks that relate to the operation. The Report is intended to be read as a whole and sections should not be read or relied upon out of context.

Non-IFRS Measures

This news release refers to certain financial measures and ratios, including C1 cash costs, AISC, EBITDA, after-tax free cash flow and realized metal prices, that are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS. These measures may differ from those made by other companies and, accordingly, may not be comparable to such measures as reported by other companies. The Company believes that they are of assistance in understanding the results of operations and its financial position. Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the Company's MD&A for Q1 2026, available on SEDAR+ at www.sedarplus.ca.

Cash cost per gold ounce sold

Cash cost is a common financial performance measure in the gold mining industry; however, it has no standard meaning under IFRS. For the Fenix Gold Mine, the Company reports cash costs on a per gold ounce sold basis. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate operating income and cash flow from mining operations. Cash costs are calculated as mine site operating costs, net of non-recurring items that are not reflective of the underlying operating performance of the Company and are net of silver revenue. Cash costs are divided by ounces sold to arrive at cash costs per oz sold. In calculating cash costs, the Company deducts silver revenue as it considers the cost to produce the gold is reduced as a result of the by-product sales incidental to the gold production process, thereby allowing management and other stakeholders to assess the net costs of gold production. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.

Cash cost per payable copper pound produced

Cash cost is a common financial performance measure in the mining industry; however, it has no standard meaning under IFRS. For Condestable, the Company reports copper cash costs on a per payable copper pound produced basis. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate operating income and cash flow from mining operations. Cash costs are calculated as mine site operating costs, net of non-recurring items that are not reflective of the underlying operating performance of the Company and are net of gold and silver revenue. Cash costs are divided by payable copper pounds produced to arrive at cash costs per pound. In calculating cash costs, the Company deducts gold and silver revenue as it considers the cost to produce the copper is reduced as a result of the by-product sales incidental to the copper production process, thereby allowing management and other stakeholders to assess the net costs of payable copper production. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.

AISC

AISC is a non‐IFRS measure and was calculated based on guidance provided by the World Gold Council (WGC). Other mining companies may calculate differently as a result of differences in underlying accounting principles and policies applied, as well as differences in definitions of sustaining versus development capital expenditures.

Includes cash cost (as defined above), sustaining capital expenditures, reclamation and other closure cost accretion and amortization and lease payments (cash basis). As this measure seeks to reflect the full cost of production from current operations, expansionary capital and certain exploration costs are excluded as these are costs typically incurred to extend mine life or materially increase the productive capacity of existing assets, or for new operations. Corporate general and administrative expenses of Rio2 Limited have also been excluded as any attribution of these costs to an operating site would not necessarily be reflective of costs directly attributable to the administration of the site. However, site level administration costs allocable to Condestable operations are included as they directly support the operating Condestable copper mine. Certain other cash expenditures, including tax payments, financing charges (including capitalized interest) and costs related to business combinations, asset acquisitions and asset disposals are also excluded.

Earnings before interest, taxes, depreciation and amortization ("EBITDA")

EBITDA is a non-IFRS measure that represents an indication of the Company’s continuing capacity to generate cash from operations before taking into account management’s financing decisions and costs of consuming capital assets, which vary according to their equipment technology and management’s estimate of their useful life.

After-tax free cash flow

After-tax free cash flow is the actual cash generated by a mining project or company after accounting for all operating costs, capital expenditures, and government royalties/taxes.

Realized price per pound and realized price per ounce

Defined as revenue from metal sales (copper and gold) adding back treatment and refining charges, cash effects of gold streams, recognition of deferred revenue from the allocation of upfront streaming proceeds, divided by the volume of metal sold in the period.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively “forward-looking information”) within the meaning of applicable securities laws relating to Rio2’s development and operation of Condestable and other aspects of Rio2’s future operations and plans. In addition, without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: the timing of the filing of the Report; Condestable’s anticipated future production profile and life of mine; the forecasted economics of Condestable including the cost structure, NPV and estimated mineral resources and reserves; estimated capital and operating costs, metal prices, mining and processing rates, metal production and resulting financial results for Condestable; anticipated timing of approval for the modification of the Condestable mine EIA and the potential to increase the production rate at Condestable; the objectives of the exploration drilling program being conducted at Condestable; and other matters ancillary or incidental to the foregoing.

All statements included herein, other than statements of historical fact, may be forward-looking information and such information involves various risks and uncertainties. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. The forward-looking information is based on certain key expectations and assumptions made by Rio2’s management, including but not limited to: expectations concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; legislative and regulatory environment of Peru; future mining and production rates and estimates of capital and operating costs; expectations regarding the availability of financing when needed; estimates of reserves and resources; anticipated timing and results of capital expenditures; the sufficiency of capital expenditures in carrying out planned activities; results of operations; performance; the anticipated timing and results of expansion studies and related approvals; the availability and cost of financing, labor and services; and Rio2’s ability to access capital on satisfactory terms.

Rio2 believes the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements in this press release should not be unduly relied upon. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Rio2's most recent annual information form on the SEDAR+ website at www.sedarplus.ca. These risks and uncertainties include but are not limited to: risks and uncertainties relating to market conditions, risks associated with our operations, and management’s ability to anticipate and manage the factors and risks referred to herein.

Forward-looking statements included in this press release are made as of the date of this press release and such information should not be relied upon as representing its views as of any date subsequent to the date of this press release. Rio2 has attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. Rio2 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

ABOUT RIO2 LIMITED

Rio2 is a diversified precious metals and copper producer focused on building and operating mines with a management team that has proven technical skills as well as a successful capital markets track record. The Company is currently producing gold at its Fenix Gold heap leach mine in Chile and copper/gold/silver at its recently acquired Condestable underground mine in Peru. Rio2 and its wholly owned subsidiaries, Fenix Gold Limitada and Compañía Minera Condestable S.A., are companies that operate with the highest environmental standards and responsibility with the firm conviction that it is possible to develop mining projects that respect the three pillars (Social, Environment, Economics) of responsible development. As related companies, we reaffirm our commitment to apply environmental standards beyond those mandated by regulators, seeking to protect and preserve the environment in the territories where we operate.

To learn more about Rio2 Limited, please visit: www.rio2.com or Rio2's SEDAR+ profile at www.sedarplus.ca.

ON BEHALF OF THE BOARD OF RIO2 LIMITED

Alex Black
Executive Chairman of the Board
Email: alex.black@rio2.com
Tel: +51 99279 4655

Kathryn Johnson
Executive Vice President, CFO & Corporate Secretary
Email: Kathryn.johnson@rio2.com
Tel: +1 604 762 4720

_______________________

¹ Gold grades exclude a 29% gold credit applied to the Mine cash flows to account for gold in historical un-assayed areas.   
2 See Non-IFRS Measures section of this press release for definitions and discussion.
3 See Non-IFRS Measures section of this press release for definitions and discussion.
4 See Non-IFRS Measures section of this press release for definitions and discussion.
⁴ Gold grades exclude a 29% gold credit applied to the Mine cash flows to account for gold in historical un-assayed areas.
⁵ See Non-IFRS Measures section of this press release for definitions and discussion.
⁶ See Non-IFRS Measures section of this press release for definitions and discussion.
⁷ See Non-IFRS Measures section of this press release for definitions and discussion.
⁸ See Non-IFRS Measures section of this press release for definitions and discussion.
⁹ See Non-IFRS Measures section of this press release for definitions and discussion.
¹⁰ See Non-IFRS Measures section of this press release for definitions and discussion.
¹¹ See Non-IFRS Measures section of this press release for definitions and discussion.

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