Rio2 Reports Q3 2026 Financial and Operating Results and Webinar

Rio2 Limited (TSX: RIO) (OTCQX: RIOFF) (BVL: RIO) ("Rio2" or "the Company") reports financial results for the three months ended September 30, 2026, including operational updates for the Fenix Gold Mine ("Fenix Gold") and the Condestable Copper Mine ("Condestable"). Rio2's consolidated production for the quarter totalled 12,307 ounces of gold, 95,257 ounces of silver, and 9,603,325 pounds of copper. All financial information in this press release is reported in U.S. dollars unless otherwise indicated.

Andrew Cox, President and Chief Executive Officer of Rio2, stated: "Q3 was a challenging quarter at Fenix Gold. Two major storm events associated with the El Niño weather pattern in July and August significantly disrupted operations, while continued snowfall and high winds affected production into September. Unfortunately, as a result, we were unable to build on the ramp-up progress achieved in Q2. Despite these severe conditions, the site team did an excellent job keeping the leach pad and ADR plant operating. The experience gained through these events will benefit the operation in future years. We continue to expect Fenix Gold to ramp up to 20,000 tonnes per day and achieve commercial production during Q4. We do not currently anticipate any further restrictions on achieving this milestone. Condestable delivered steady production during the quarter, providing important stability to the Company, and the Condestable team deserves credit for that performance. The integration of the businesses is also progressing well, with the transition to the new Lima office expected early in Q4."

Alex Black, Executive Chairman of Rio2, stated: "The operations team at Fenix Gold continues to demonstrate its resilience and capability, successfully navigating challenging weather conditions while sustaining pad leaching and processing plant operations and systematically addressing ramp-up constraints. Operating at approximately 5,000 meters above sea level presents unique challenges, and the learning curve has been significant. The experience gained and lessons learned are strengthening the operation and will serve the mine well as it advances. The team continues to closely monitor mine performance and optimize site activities to manage operating challenges and support a safe, efficient and sustainable production ramp-up."

Operational and financial results for Condestable in this press release are presented for the period of January 30, 2026 (acquisition date) to September 30, 2026.

THIRD QUARTER 2026 HIGHLIGHTS

• Earnings before interest, tax, depreciation and amortization ("EBITDA")1 loss of $1.8 million for the three months ended September 30, 2026. Adjusted EBITDA1 of $50.0 million for the three months ended September 30, 2026. EBITDA includes a non-cash fair value loss of $41.1 million on stream obligation, reflecting updated Condestable production forecasts incorporating the planned expansion to 10,000 tonnes per day and an extension of production to 2041, together with higher forecast gold and silver prices.

• Income from mine operations of $43.8 million and adjusted net income1 of $22.4 million, compared to income from mine operations of $0 and adjusted net loss1 of $2.8 million for the three months ended September 30, 2025.

• Continued to manage liquidity while funding capital expenditures and debt repayments, ending September 30, 2026 with cash and cash equivalents of $26.8 million, compared to cash and cash equivalents of $46.4 million as at December 31, 2025.

• Cash provided by operating activities in the quarter was $22.5 million, cash used in investing activities was $21.3 million, and net cash used in financing activities was $23.5 million, compared to cash flow provided by operating activities in the comparative quarter ended September 30, 2025 of $42.5 million, cash used in investing activities of $23.8 million, and net cash provided from financing activities of $0.6 million.

⁽¹⁾ These are non-IFRS Measures. See the "Non-IFRS Measures" section of this press release.

Selected Financial Information and Operational Highlights

 
⁽¹⁾ These are non-IFRS Measures. See the "Non-IFRS Measures" section of this press release.
⁽²⁾ This information was not available ("N/A") for the three and nine months ended September 30, 2025 or not applicable as the Company's only mine was Fenix Gold during the three and nine months ended September 30, 2025 and it did not have any production or sales.
⁽³⁾ Net income refers to net income attributable to the shareholders of Rio2 Limited. The portion attributable to non-controlling interests arising from the Company's interest in Compañía Minera Condestable S.A. has been excluded.
⁽⁴⁾ Average realized prices are revenue from sales contracts with customers (before final settlements and pricing adjustments) divided by the payable metal in those sales. Gold and silver combine Fenix Gold and Condestable; copper is Condestable only.

OPERATIONS

During the three months ended September 30, 2026, Rio2's consolidated gold production was 12,307 ounces ("oz"). During the three months ended September 30, 2026, Rio2's consolidated copper production was 9,603,325 pounds. (The copper was produced entirely at Condestable.)

Fenix Gold Mine

The production ramp-up momentum achieved at Fenix Gold during Q2 was disrupted in Q3 by two major snowstorms in July and August, followed by additional snowfall and high winds in September. With snowfall reaching as much as 5 metres during the quarter, access to the broader project area was significantly affected, including Fenix South, the leach pad and other site infrastructure. These severe weather conditions negatively impacted both mining and processing activities during the quarter. Despite these challenges, the Company continues to expect Fenix Gold to ramp up to 20,000 tonnes per day and achieve commercial production in Q4 2026.

In Q3 2026, total cash costs at Fenix Gold were $2,370 per ounce of gold sold¹. Fenix Gold produced 8,500 ounces of gold during the quarter.

Key performance data for Fenix Gold is summarized as follows:

  
⁽¹⁾ These are non-IFRS measures or ratios. See the "Non-IFRS Measures" section of this press release..
⁽²⁾ Shown as "N/A" because Fenix Gold had no production or sales during the three and nine months ended September 30, 2025.

Exploration

Drilling activities at Fenix Gold were suspended during Q3 due to adverse weather conditions, worker safety considerations, and the costs associated with contractor downtime. The Company plans to resume the remaining drilling program in January 2027.

The 2026 surface drilling completed 43 drill holes totalling 14,669 metres, including 3,905 metres of diamond drilling and 10,764 metres of reverse circulation (RC) drilling.

During 2027, the Company plans to expand the scope of drilling to further validate the continuity of mineralization both in depth and laterally relative to the current mineral resource. Rio2 anticipates delivering an updated Mineral Resource Estimate for Fenix Gold in December 2027, incorporating all drilling results together with a revised geological model of the deposit.

Condestable Mine

Condestable delivered stable operating performance in Q3 2026, mining over 700,000 tonnes of ore at average grades of 0.72% copper ("Cu"), 0.23 g/t gold ("Au) and 5.27 g/t silver ("Ag"). Copper equivalent grades at Condestable were marginally above expectations for the quarter.

Q3 2026 total cash costs of $2.62 per pound of copper produced1 and AISC1 of $3.40 per pound of copper produced at Condestable. 9,603,325 pounds of copper was produced at Condestable. Condestable also produced 3,807 ounces of gold and 93,854 ounces of silver.

Condestable processed over 686,000 tonnes during Q3. Copper recoveries continued marginally below expectations due to the mining of oxide material at shallower depths near the base of oxidation, while gold recoveries were materially better than budgeted. Mining operations will migrate to deeper levels as the expanded high-volume haulage fleet is activated in the mine. Condestable produced 9,603,325 pounds of copper, 3,807 ounces of gold and 93,854 ounces of silver during Q3 2026, contained in concentrate.

Key performance data for Condestable is summarized as follows:

 
⁽¹⁾ These are non-IFRS measures or ratios. See the "Non-IFRS Measures" section of this press release.
⁽²⁾ Shown as "N/A" because the Company had not completed its acquisition of the Condestable Mine during the three and nine months ended September 30, 2025.

Exploration

Q3 saw the commencement of Phase 1 of a surface drilling program after district-scale exploration activities at Condestable during the year. The mapping program has strengthened the correlation between surface geology and underground mine geology, providing a more robust understanding of the principal controls on copper-gold-silver (Cu-Au-Ag) sulfide mineralization. Drill holes have been designed to intersect mineralization at high angles, maximizing geological information and enhancing the potential for future resource conversion.

Phase 2 will target areas requiring new access roads, drill pad construction, and additional environmental approvals. This phase includes 62 drill platforms and 72 drill holes totalling 17,120 metres. The Company anticipates that the permitting process will require approximately six months before Phase 2 drilling can commence.

As part of its district-scale exploration strategy, the Company also completed a drone-based magnetic geophysical survey covering a total area of 57,740 hectares. The survey encompassed 40,694 hectares of mining concessions within the 46,290 hectares of mineral rights controlled by Condestable S.A. Survey lines were flown at 200-metre spacing, generating a total of 3,522 lineal-kilometres of magnetic data.

Kalzas Tungsten Project

During 2026, Rio2 advanced the Kalzas Tungsten Project through a combination of technical studies, fieldwork, permitting activities, land reclamation planning, and community engagement initiatives.

Rio2 plans to undertake an initial 2,000 metre diamond reconnaissance drilling program at the commencement of the 2027 summer field season. The total estimated budget for this program is approximately US$1.5 million. Subject to the results of this initial drilling campaign, additional drilling may be planned prior to the end of the 2027 field season.

Following a review of the results from the planned 2027 drilling program, the Company will determine whether the Kalzas Tungsten Project will remain within Rio2's core project portfolio or be advanced through a separate standalone company structure to secure dedicated funding for future exploration activities independent of Rio2.

WEBINAR DETAILS

Rio2 will host a webinar on November 12, 2026, at 11:00 a.m. ET to discuss financial results and the outlook for the Company. Shareholders and investors are encouraged to participate and ask questions using the following link: https://rio2-q3-2026-call.open-exchange.net/

NON-IFRS MEASURES

This news release refers to certain financial measures and ratios which are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures and ratios may differ from those made by other companies and, accordingly, may not be comparable to such measures and ratios as reported by other companies. These measures and ratios have been derived from the Company's financial statements because 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 and ratios, including an explanation of the composition and usefulness of the non-IFRS measures and non-IFRS ratios, is incorporated by reference herein and can be found in the Company's MD&A for Q3 2026, available on SEDAR+ at www.sedarplus.ca under the heading "Non-IFRS Measures and Definitions".

In this press release, the following non-IFRS financial measures and ratios are used by the Company: EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per share, cash cost per gold ounce sold, all-in sustaining cost ("AISC"), AISC per gold ounce sold, AISC per copper pound produced, all-in costs ("AIC") and realized price per pound or ounce. Reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures are provided below.

ADJUSTED NET INCOME

Adjusted net income (loss) is reconciled to Net income (loss) in the following table:

EBITDA AND ADJUSTED EBITDA

EBITDA and Adjusted EBITDA are reconciled to Net income (loss) in the following table:

Cash Costs, AISC Per Gold Ounce Sold and Copper Pound Produced, and AIC

The following reconciliations outline the calculation followed by the Company to calculate cash costs, All-in sustaining costs and All-in costs in absolute dollar terms, and on a per unit basis.

TECHNICAL INFORMATION

The scientific and technical content of this news release has been reviewed, approved and verified ‎by Enrique Garay, MSc P.Geo/FAIG, who is a QP under NI 43-101.

For additional information regarding Fenix Gold, see the independent technical report entitled ‎‎"NI 43-101 Technical Report on the Feasibility Study for the Fenix Gold Project" dated October 16, 2023, with an effective date of October 16, 2023. For additional information regarding Condestable, see the independent technical report entitled "NI 43-101 Technical Report on the Condestable Mine, Lima Department, Peru, dated July 22, 2026, effective date of May 31, 2026". For additional information regarding Kalzas, see the independent technical report entitled "NI 43-101 Technical Report for the Kalzas Tungsten Project, Yukon, Canada" dated July 10, 2026, with an effective date of June 19, 2026. Copies of these Technical Reports are available under ‎Rio2's SEDAR+ profile at ‎www.sedarplus.ca.

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.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to Rio2's future operations and plans. In addition, without limiting the generality of the foregoing, this news release contains forward-looking information pertaining to the following: the anticipated mining and production rates for the remainder of 2026; the anticipated production at Fenix Gold and Condestable; the Company's expectations regarding weather conditions and uninterrupted operations; details of drilling at both the Fenix Gold and Condestable mine, including costs and objectives of the drilling program and timing for commercial production (in respect of Fenix Gold); activities relating to the near-surface drilling program at Condestable, geological/structural mapping activities, and the magnetic geophysical survey at Condestable, and the impacts and outcome of same; timing and anticipated outcome of Phase 2 drilling at Condestable, including timing for related permitting; mine expansion activities and timing; timing for an updated MRE report; planned technical studies, fieldwork, permitting, reclamation and community engagement activities at the Kalzas Tungsten Project; the Company's strategic plans for the Kalzas Tungsten Project, including whether the project will be advanced through a separate standalone company and the ability to secure funding for future exploration activities; Rio2's ability to fund capital expenditures and debt repayments from available liquidity; 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 Chile, Peru and Canada; 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; compliance with debt covenants; extreme or unexpected weather events and the Company's ability to address the consequences of adverse weather conditions; results of operations; the results of the planned drilling program at the Kalzas Tungsten Project and the ability to complete any standalone company structure for, or secure funding for, the Kalzas Tungsten Project on acceptable terms or at all; performance; the anticipated timing and results of expansion studies and related approvals; the timely receipt of required permits and approvals; the availability and cost of financing, labour, equipment 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 news 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: fluctuations in gold, copper, silver and tungsten prices; fluctuations in fuel and other input costs and the effectiveness of hedging; equipment, operator and contractor availability; actual production, recoveries and grades differing from estimates; delays in obtaining permits and approvals; water availability; community relations; liquidity and the availability of financing; changes in laws and regulations in Chile, Peru and Canada; 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 news release are made as of the date of this news release and such information should not be relied upon as representing its views as of any date subsequent to the date of this news 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.

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

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