Resources Upgraded At Almas Gold Project

TORONTO, ON - Rio Novo Gold Inc. reported new resource estimate for its 100%-owned Almas Gold Project, located in Tocantins State, Brazil. The new estimate, which complies with the requirements of National Instrument 43-101, increases the total number of ounces of gold and the level of confidence in the estimate.

An increase of 39,193 oz Au (5%) in the total M&I categories and 364,630 Oz Au in the Inferred category when compared with the previous announcement of April 3, 2012; Continuing studies indicate a potentially high conversion rate from current M&I resources to reserves, which will be the basis for the Definitive Feasibility Study ("DFS") to be published within the next few weeks; Exploration potential remains strong in the Almas gold district with many prospective targets within the 90,367 ha of Exploration License (including 9,137 ha of Mining Concession). Rio Novo also has 95,431 hectares under application for Exploration License.

"The updated resources are an important milestone in the completion of the DFS of the Almas Gold Project, which is now fast approaching its conclusion" commented Julio Carvalho, President and CEO of Rio Novo Gold. "Total resources have increased along with a higher level of confidence associated with DFS parameters. We are now running the final mine production schedule, which will feed into an updated Capex and Opex."

Total gold resources are distributed between three deposits: Paiol, the project's primary deposit, and two satellite deposits, Vira-Saia and Cata Funda, located 5km and 15km from Paiol, respectively. Gold contained in a spent heap leach pad left by Vale, the previous operator, is also included.

Rio Novo has completed a revised block model and updated mineral resource estimate for the Almas Gold Project incorporating updated geostatistical analysis of the Paiol pit. A stronger economic climate for gold price and mine materials has led to reduced operating costs and lower cut-off grade for the deposit. A cut-off grade of 0.255 Au g/t reported from a Whittle-optimized pit shell for the Paiol pit resulted in a Measured and Indicated mineral resource for the Almas Gold Project of 839,033 Au ounces grading 0.86 Au g/t and the Inferred resource is estimated to be 496,131 Au ounces grading 0.84 Au g/t.

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