Rio Cristal Resources Corporation

Rio Cristal Resources Corporation

August 20, 2010 12:35 ET

Rio Cristal Resources Announces $2,800,000 Financing

VANCOUVER, BRITISH COLUMBIA and LIMA, PERU--(Marketwire - Aug. 20, 2010) - Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVLAC:RCZ) ("RCR" or the "Company") is pleased to announce a non-brokered private placement of 32,941,176 units (the "Units") of the Company at the price of US$0.085 per Unit, each Unit consisting of one common share (a "Share") and one-half non-transferable warrant (a "Warrant") for total proceeds of US$2,800,000. The proceeds from placement will be used to advance drilling and other exploration at the Company's Bongara zinc and Condor gold projects, and for general corporate purposes. The placement was done in Lima, Peru.

Thomas Findley, President and CEO, said, "The raising of additional capital will allow us to resume drilling at our flagship Bongara zinc project and to initiate drilling at our Condor gold project. We will also continue our technical review of the La Cumbre copper property. The past two years of world financial crisis have been very difficult for the Company and we are very pleased to be able to get back to doing exploration drilling and advancing our projects."

Each Warrant shall entitle the holder thereof to purchase one additional Share (a "Warrant Share") at an exercise price of US$0.115 per Warrant Share for a period of two years, and is subject to acceleration. Commencing on the date that is four months and one day after the closing of the private placement, if the closing price of the Company's common shares on the TSX Venture Exchange (the "Exchange"), is at a price equal to or greater than US$0.25 for a period of ten (10) consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants by giving written notice to the holders of the Warrants which will then expire on the date that is not less than thirty (30) days from the date of the notice.

The Company may pay a US$196,000 finder's fee in connection with the private placement.

Certain directors and officers of the Company may acquire securities under the private placement. Any such participation would be considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to or the consideration paid by such persons will exceed 25% of the Company's market capitalization.

This financing is subject to the approval of the TSX Venture Exchange. The Company anticipates closing of the Offering as soon as practicable subject to receipt of all necessary regulatory approvals.

About Rio Cristal Resources Corporation

Rio Cristal Resources is a Canadian corporation focused on the discovery and further development of gold, copper and zinc deposits in Peru. The Company's most advanced exploration project is the Bongara zinc claim block located in northern Peru. Outstanding initial drilling results confirm that the project is within an important emerging Mississippi Valley-type zinc district.

The Company is also exploring its Condor gold project near Nazca, Peru where recent assays of bulk surface samples have been encouraging (see news release dated March 15, 2010). Drilling is expected to begin in September pending receipt of necessary permits. In addition, the Company is evaluating the acquisition of a copper oxide property with significant potential for low-cost, leachable copper resources.

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential exploration results, future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future results, events and objectives could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Rio Cristal's expectations include exploration and other risks detailed from time to time in the filings made by the Company with securities regulators.

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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