Rio Novo Gold Announces Ball Mill Acquisition for its Almas Gold Project

TORONTO, ONTARIO--(Marketwire - March 1, 2011) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") is pleased to announce that it has signed a purchase agreement with Anagold Madencilik A.Ş. ("Anagold", or the "Vendor") to acquire a ball mill and several other processing equipment items for installation at its 100%-owned Almas Gold Project in Tocantins, Brazil.

The purchased equipment, which is now surplus the Vendor's own requirements, previously formed part of a gold processing plant, designed for the Vendor by SNC Lavalin Inc. The ball mill has a design throughput capacity of 2 million tonnes of ore per year, and was designed and manufactured by Metso Corporation. All of the equipment is new, unused, packed and crated, and is available for immediate delivery. Total consideration for the acquisition is US$3.8 million and includes technical information and a supplier/vendor documentation package. Closing of the acquisition is expected to take place on or about April 14, 2011.

The acquisition marks a major step for Rio Novo as the company continues to develop its Brazilian gold properties with the goal of being an active producer in 2012, while continuing to explore its two gold districts. The Plant represents the capital equipment item with the largest associated expenditure and longest lead time, and its procurement will both achieve significant cost savings and maintain the Almas Project's accelerated timeline.

CEO, David Beatty, states "We are delighted that our Rio Novo team was able to source this important, long lead time, equipment package. It comes at substantial Capex savings and keeps the Almas Gold Project on its accelerated timeline to initial production and cash flow in Q2 2012."

About Rio Novo

Rio Novo is currently focused on the acquisition, exploration and development of gold mineral resource properties in Brazil. The Company's goal is to become a producer of gold in the short term by bringing into production its two Brazilian properties, the Almas Gold Project, located in the State of Tocantins State, and the Guarantã Gold Project, located in the State of Mato Grosso. Both projects enjoy established infrastructure in mining friendly jurisdictions. In addition to exploring and developing the Almas and the Guarantã Gold Projects, the Company intends to identify, explore and develop or acquire additional precious metals properties in Brazil and other established mineral jurisdictions in South America.

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 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 statement.