Rio Novo Gold Announces First Quarter 2013 Results and Provides Corporate Update

TORONTO, ONTARIO--(Marketwired - May 13, 2013) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") has filed its operational and financial results for the first quarter ended March 31, 2013. The Company's unaudited interim consolidated Financial Statements and the accompanying Management's Discussion and Analysis can be found on SEDAR (www.sedar.com). The Company is pleased to provide a general overview of its activities to date.

During the period ended March 31, 2013, Rio Novo incurred a net loss of US$ 1,801,952 (US$ 0.02 per share) compared to a net loss of US$ 735,864 (US$ 0.01 per share) in the same period of 2012. The net loss is mostly comprised of general and administrative expenses, which totaled US$ 1,353,298 in Q1 2013 compared to US$ 2,704,746 for the same period in 2012.

The Company's aggregate operating, investing and financing activities during the period resulted in a net cash position of $2,586,866 ($6,136,842 at December 31, 2012) and working capital of $1,144,806 ($5,212,721 at December 31, 2012).

Almas Gold Project Update

Development at the Almas Gold Project ("Almas" or the "Project") continued, albeit at an extremely reduced rate. At the time of this press release, the Company had not approved a budget for construction of the Almas mine/plant. The approval of the budget is dependent upon successful arrangement of project financing for this construction. Until such financing is arranged, the Company has minimized costs by dismissing the exploration team in Brazil, decreasing costs in Colombia, as well as substantially reducing corporate administrative costs. The budget for the remainder of 2013 will be determined once project financing for the Project is completed. The Company continues to evaluate further staff reduction and additional cost savings measures and expects to fund its corporate costs throughout 2013 with its existing cash balance and the possible sale of certain assets.

Management continues to procure sources of financing to build the Almas mine. Despite the recent decline in gold prices, debt financiers have recently reconfirmed their interest in financing the Almas project, subject to credit approvals, and the Company is moving forward in discussions with senior lenders. However, securing the equity portion of the financing requirement is proving challenging given the current market environment. Management has intensified contacts with potential investors in an effort to obtain the required equity financing for this project.

Lastly, Rio Novo's Chief Operating Officer, Mr. Malcolm Lake, retired from his role on May 10^th, 2013. Rio Novo thanks Mr. Lake for his numerous contributions and invaluable support while with the Company. The COO position at Rio Novo will remain vacant until project financing is arranged.

About Rio Novo

Rio Novo is focused on the acquisition, exploration and development of gold properties in Brazil and Colombia. The Company has Measured & Indicated resources of 1,191,252 oz and 1,464,831 Inferred oz of gold at two projects in Brazil (Almas and Guarantã Gold Projects) and one in Colombia (Tolda Fria Gold Project).

The Company's short-term goal is to become a producer of gold by bringing the Almas Gold Project, located in the State of Tocantins, into production in 2014. The Almas Project enjoys both established infrastructure, main grid hydropower in a proven and mining friendly jurisdiction and is permitted for construction.

This press release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as "anticipate", "believe", "plan", may", "could", "would", "might" or "will", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of which differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of gold and other risks identified in the Company's most recent annual information form filed with the Canadian securities regulatory authorities on SEDAR.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statements.