Rio Novo Gold Drills 46.65 Metres of 1.54 g/t Au at X1 Extension Program in the Guarantã Gold Project

TORONTO, ONTARIO--(Marketwire - May 9, 2011) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") is pleased to announce assay results from its drilling program at the X1 Target at its 100%-owned Guarantã Gold Project, located near the city of Guarantã do Norte, Mato Grosso State, Brazil.

The X1 Target is defined by a prominent hill associated with intense hydrothermal alteration of a granitic body with abundant silica, muscovite and pyrite (phyllic alteration). This target, previously thought to be bounded to the east and west by faults, displayed a VTEM geophysical anomaly extending 500 to the west of original limits of the deposit. Field mapping of outcrop data has indicated that there is a NE trending fault displacing part of the mineralized zone to the north; however, it has been observed that the displacement of the blocks is not significant and X1 mineralization may be continuous.

To test this hypothesis the newly received FX1D-0021 extension hole was drilled 40 metres west of DDH SEX1-01 (109m @ 3.1 g/t Au). FX1D-0021 intercepted significant intervals, 1.54g/t Au over 46.65m (55.35m-102.00m), 7.36 g/t Au over 8.00m (107-115m) and 1.92 g/t Au over 13m, lending weight to the hypothesis that the main mineralized zone continues to the west beyond the NE trending fault. Further weight has been added by the log of Hole FX1D-0023, drilled on the same section and 40 meters to the south of Hole FX1D-0021, which shows the same lithological characteristics of phyllic alteration rich in sulfides. Assay results of this hole are still pending.

Within Hole FXD1-0021, highlights of continuously mineralized intervals also include 3.56 g/t Au over 14.65m (from 55.35 to 69.00m), 11.63 g/t Au over 5.0m (from 107.0 to 112.0m) and 3.03g/t Au over 9.70m (from 134.0 to 143.7m).

As a result of these new important findings, a follow on program has been planned to drill test the WNW trend, which according to interpreted VTEM geophysical data, extends about 500m to WNW the geophysical anomaly beyond the 370m strike of the original X1 deposit.

The following continuously mineralized intervals were encountered:

Note: Although no visible gold was observed in the core, the high grade results (over 10 g/t) are subject to confirmation by the metallic screen fire assay technique. SGS is currently undertaking this work as part of Rio Novo's standard QA/QC procedures.

To view the drilling location over geological map and cross section associated with this press release, please visit the following link: http://media3.marketwire.com/docs/GeologicalMap.pdf.

Sample Preparation, Analyses and Security

The assay and sample information as well as geological descriptions are taken from drill logs as prepared by the project geologists for the drilling program. Drilling data is validated and consolidated in a GIS-database managed by the Rio de Janeiro office.

Drill core is split on site with one half of the core being sent to SGS-Geosol's sample preparation facility in the city of Cuiabá, Mato Grosso. Prepared pulps are analyzed at SGS-Geosol's analytical facilities at Vespasiano near Belo Horizonte, in Minas Gerais State, Brazil. High grade gold samples are routinely analyzed by metallic screen fire assay and that number is used as the accepted value. SGS-Geosol warrants the "chain of custody" of the samples in accordance with the standards required by Canadian NI 43-101.

Qualified Person

Mr Ronald Simpson, P.Geo, who is a Qualified Person as set out in Canadian National Instrument 43-101, has reviewed and verified the technical content of the information contained in this release.

About Rio Novo

Rio Novo is currently focused on the acquisition, exploration and development of gold mineral resource properties in Brazil and is initiating similar efforts in Colombia. 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.