Almas Gold Project Drilling Shows Coherent Gold

TORONTO, ON - Rio Novo Gold Inc. reported assay results from its ongoing drilling program at its 100%-owned Almas Gold Project, located in the State of Tocantins, Brazil.

Rio Novo has completed infill drilling on the Vira-Saia deposit as part of the Definitive Feasibility Study ("DFS") planned for completion in Q3 2012. The DFS will be preceded by the completion of a Preliminary Economic Assessment.

The Vira-Saia target is located approximately 4 km north of the planned process facilities and the Paiol pit. Vira-Saia is an orogenic system with gold hosted in mylonitic shear zones in Archean granodiorite. Gold is present in a parallel series of quartz-sericite-carbonate veins, striking NW and dipping 60 to 80 degrees SW. Drilling to date has outlined mineralization over an area of 650m along strike NW, with a series of parallel veins up to 30m wide. Three distinct mineralized zones have been modeled: Vira-Saia Main, NW, and East zones.

To date, 187 diamond drill holes have been completed for a total of over 25,000m of drilling on the deposit. The infill drilling of the primary zones has been completed to between 25m and 35m spacing. Results of the infill drilling show excellent continuity of the main mineralized zones along strike and in depth.

Brian Arkell, SVP Exploration said, "These new results confirm the grade and continuity established by early drilling and in fact exceed in many places the original grades and thickness. The results show a coherent gold deposit that will enhance our total DFS resource and fit well into our current long-term operational plans. Additionally, we continue to be very encouraged with early step-out exploration results to the NW along the Vira-Saia trend, and are hopeful that we will continue to add ounces to the project."

Rio Novo's drilling efforts have been focused on completing the infill drilling for the DFS of the Almas Gold Project. As the infill drilling is now completed, Rio Novo intends to begin drill testing numerous targets in the Almas District. Presently there are over 30 targets identified on the +100,000 hectare land package. A systematic assessment of the portfolio has been completed, and Rio Novo will begin drilling the higher ranking targets.

Two top priority targets to be tested within the next few months include the NW extension of the Vira-Saia trend and a high grade target below the planned Paiol pit. At the NW extension, soil anomalies continue for at least 500m beyond the main Vira-Saia area and initial scout drilling has intersected significant gold mineralization. At Paiol, drilling is planned to test for deeper high grade shoots and follow up on a previous intercept of 8m averaging 10.4 g/t Au.

Additional first-pass scout drilling is planned to test soil and geophysical anomalies south of the Paiol pit and in the Novo Prata trend to the east. Eight targets have been identified for the initial phase of scout drilling.