Rio Novo Gold Announces Filing of Preliminary Economic Assessment Technical Report for its Almas Gold Project

TORONTO, ONTARIO--(Marketwire - April 18, 2012) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") announces that a National Instrument 43-101 compliant technical report in support of the Preliminary Economic Assessment ("PEA") of its Almas Gold Project ("Almas Project") has been filed on SEDAR (www.sedar.com). The PEA was completed by Pincock Allen & Holt Brasil ("Pincock"), Rio Novo's independent engineering consultant, and its results were previously reported in the Company's April 3, 2012 press release.

The filing of the technical report rectifies any non-compliance by Rio Novo of its obligation to file a technical report within 45 days in support of disclosure the Company made earlier this year on its website regarding certain potential economic parameters of the Almas Project.

Rio Novo plans to complete and release the results of a DFS for the Almas Project in the third quarter of 2012. The Company has contracted Conestoga-Rovers & Associates as its lead engineering consultant for the DFS.

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 1,143,427 oz and Inferred resources of 1,105,201 oz of gold at two projects in Brazil (Almas and Guarantã) and one in Colombia (Toldafria).

The Company's goal is to become a producer of gold in the short term by bringing into production the Almas Gold Project, located in the State of Tocantins in mid-2013. The Almas Project enjoys both established infrastructure, main grid hydropower in a proven and mining friendly jurisdiction and is permitted for construction.

The Almas Preliminary Economic Assessment ("PEA") by Pincock, Allen & Holt released recently indicates an M&I resource of 796,000 oz at 1.06 g/t with a planned 10 year mine life producing about 60-75,000 oz per annum at $729 cash operating cost per oz before royalties and refining costs. The initial capital is estimated at $94.4 million with $34 million of sustaining capital. The Almas Project has a $107 million NPV5% at $1,350 per oz gold price and an estimated IRR of 24%. It is planned to treat 2.0 million tonnes of run of mine material per year. The treatment plant (mill) will utilize a 3 stage crushing circuit followed by ball milling and carbon in leach (CIL) to extract the gold. A new Metso ball mill, capable of treating the planned production has already been purchased and is currently being shipped to the site at Almas.

At the Guarantã Gold Project, the company is exploring at its 100,000 ha land package to delineate resources in addition to the existing 347,400 oz at 1.35 g/t Au Measured & Indicated resources of the X1 target. The primary 2012 target in the region is the Matupá target, located about 19km south of X1, which represents a large area of porphyry mineralization, similar to X1, where Rio Novo believes it holds significant exploration potential.

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.