Rio Cristal Resources Corporation
TSX VENTURE : RCZ
BVLAC : RCZ

Rio Cristal Resources Corporation

January 28, 2011 14:24 ET

Rio Cristal Resources Completes Financing

VANCOUVER, BRITISH COLUMBIA and LIMA, PERU--(Marketwire - Jan. 28, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVLAC:RCZ) ("RCR" or the "Company") announces that it has completed its previously reported, non-brokered private placement of 3,893,000 units (the "Units") of the Company in London. The price of each unit was C$0.16 per Unit, each Unit consisting of one common share (a "Share") and one-half warrant (each whole such warrant, a "Warrant") for total proceeds of C$622,880. The Company intends to use the proceeds from the placement for general corporate purposes.

Each Warrant entitles the holder thereof to purchase one additional Share (a "Warrant Share") at an exercise price of C$0.22 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 volume weighted average trading price of the Company's common shares on the TSX Venture Exchange (the "Exchange") is at a price greater than C$0.32 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 securities are subject to a hold period and may not be traded until May 21, 2011, except as permitted by Canadian securities legislation and the TSX Venture Exchange.

The Company paid a C$43,602 finder's fee and granted 272,510 Warrants in connection with the private placement. The Warrants are exercisable under the same conditions as the Warrants included in the private placement Units.

No directors and officers of the Company acquired securities under the private placement.

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 18,000 hectare Bongará 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 expects to begin a second drill campaign in early 2011 when permits are received.

The Company is also completing the first phase of drilling at its Condor gold project near Nazca, Peru. Initial results have been promising and laboratory analysis of final drill holes is currently in process.

The Company recently acquired a highly prospective copper oxide project, La Cumbre, near Chala in southern Peru and is currently in the process of obtaining drilling permits. The Company believes there is evidence of potential zones of bulk-mineable copper oxide mineralization grading in excess of 2% copper at La Cumbre. Additionally there is potential for copper sulfide mineralization in a belt hosting iron oxide copper-gold deposits. Extensive recent underground workings indicate a possible resource which could be rapidly quantified with potential for mineralization extensions.

Information about Rio Cristal Resources Corporation can be found on the Company's website, www.riocristalresources.com.

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.

Contact Information

  • Rio Cristal Resources Corporation
    Lucia Ferrero
    (778) 588-6880 or Toll Free: (866) 609-9644
    or
    Rio Cristal Resources Corporation
    Thomas Findley
    (778) 588-6880 or Toll Free: (866) 609-9644
    (604) 609-9946 (FAX)
    www.riocristalresources.com