Rio Novo Gold Intersects 2.10 g/t Au Over 51.0m Infill at Paiol and 2.75 g/t Au Over 4.25m Extension at Arroz Target, Almas Project

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2011) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") is pleased to report additional drill results from its ongoing drilling program at its 100%-owned Almas Gold Project, located in the State of Tocantins, Brazil.

The 2010 diamond drilling program at Almas has been completed with 39,745 metres of which 29,416 have been assayed. At the Paiol target 21,662 metres have been completed, comprising 14,567 metres of infill drilling, 5,753 metres of extension drilling and 1,342 metres of metallurgical drill holes. At the Arroz target 14,202 metres have been completed; split between 3,864 metres of infill drilling, 10,036 metres in extensions to the original discovery and 302 metres in metallurgical drill holes. A total of 9,929 metres remain to be assayed, which is equivalent to 25% of the total 2010 drilling program.

Newly assayed results from the Paiol infill program include 45 infill holes totalling 7,089 metres. In addition, at Paiol, 5 initial RC holes from the Waste Dump area have been received, along with 136 holes from the former Leach Pad, including 59 RC holes and 77 auger holes. From the Arroz target, 18 drill holes have been assayed, comprised of 1 infill and 17 extensions, for a total of 2,343 metres.

Highlights Include:

• Significant intercepts from the Paiol infill drilling program include:

  • FPD-0080 – 51.0m @ 1.79 g/t Au (from 154.0m to 205.0m); including 2.00m @ 8.37 g/t Au
  • FPD-0093 – 28.7m @ 2.31 g/t Au (from 148.9m to 177.6m); including 0.90m @ 22.08 g/t Au
  • FPD-0096 – 60.0m @ 1.67 g/t Au (from 99.0m to 159m); including 2.0m @ 20.16 g/t Au
  • FPD-0097 – 21.2m @ 2.07 g/t Au (from 108.55m to 129.75); including 1.9m @ 13.19 g/t Au
  • FPD-0100 – 20.00m @ 2.06 g/t Au (from 100.0m to 120.0m); including 1.0m @ 14.26 g/t Au
  • FPD-0102 – 51.0m @ 2.10 g/t Au (from 155.0 to 206.0m); including 1.0m @ 37.45 g/t Au
  • FPD-0109 – 4.1m @ 4.51 g/t Au (from 156.0m to 160.1m)
  • FPD-0111 – 20.35m @ 3.74 g/t Au (from 182.65m to 203.0m); including 1.0m @ 27.93 g/t Au
  • FPD-0113 – 5.55m @ 4.41 g/t Au (from 181.55m to 187.1m); including 1.0m @ 16.29 g/t Au
  • FPD-0113 – 8.6m @ 3.32 g/t Au (from 240.65m to 249.25m); including 1.4m @ 17.56 g/t Au
  • FPD-0114 – 49.3m @ 1.66 g/t Au (from 208.0m to 257.3m); including 2.1m @ 11.45 g/t Au
  • FPD-0121 – 8.0m @ 4.0 g/t (from 27.0m to 35.0m); including 3.8m @ 6.69 g/t Au

• Significant intercepts from the Arroz program include:

  • FAD-0085 (Infill) – 9.3m @ 2.28 g/t Au (from 36.90m to 46.20m)
  • FAD-0041 (Extension) – 7.0m @ 1.16 g/t Au (from 0.0m to 7.0m)
  • FAD-0092 (Extension) - 5.0m @ 1.37 g/t Au (from 8.0m to 13.0m)
  • FAD-0099 (Extension) - 4.25m @ 2.75 g/t Au (from 61.0m to 65.25m) 

Paiol Area

The results received from the infill program at Paiol continue to confirm continuity of mineralization in areas with current indicated and inferred resources, which will contribute significantly to the conversion of the inferred resources into the measured and indicated categories ahead of the feasibility study stage.

A summary of the new results received is given in the table below.

Drill Hole	Type	From (metres)	To (metres)	Interval (metres)	grams Au/tonne
FPD-0073	Infill	134.00	141.00	7.00	1.81
FPD-0080	Infill	154.00	205.00	51.00	1.79
	Includes	177.00	179.00	2.00	8.37
FPD-0083	Infill	40.00	68.00	28.00	0.68
FPD-0084	Infill	0.00	2.00	2.00	3.59
FPD-0085	Infill	69.00	79.00	10.00	0.95
FPD-0087	Infill	59.00	84.00	25.00	0.87
	Includes	71.00	73.00	3.00	3.12
FPD-0092	Infill	99.00	114.50	15.50	0.99
FPD-0093	Infill	148.90	177.60	28.70	2.31
	Includes	167.00	167.90	0.90	22.08
FPD-0094	Infill	178.00	217.00	39.00	1.14
FPD-0095	Infill	163.00	205.00	42.00	1.14
	Includes	177.00	183.00	6.00	3.17
FPD-0096	Infill	99.00	159.00	60.00	1.67
	Includes	134.00	136.00	2.00	20.16
FPD-0097	Infill	108.55	129.75	21.20	2.07
	Includes	113.30	115.20	1.90	13.19
FPD-0098	Infill	100.00	111.40	11.40	0.94
FPD-0100	Infill	100.00	120.00	20.00	2.06
	Includes	105.00	106.00	1.00	14.26
FPD-0101	Infill	163.00	188.50	25.50	0.88
FPD-0102	Infill	155.00	206.00	51.00	2.10
	Includes	176.00	177.00	1.00	37.45
FPD-0104	Infill	98.20	113.25	15.05	1.05
FPD-0107	Infill	114.90	130.00	15.10	0.82
FPD-0109	Infill	156.00	160.10	4.10	4.51
FPD-0110	Infill	58.00	69.00	11.00	0.88
FPD-0111	Infill	182.65	203.00	20.35	3.74
	Includes	199.00	200.00	1.00	27.93
FPD-0112	Infill	36.00	47.00	11.00	1.34
FPD-0113	Infill	181.55	187.10	5.55	4.41
	Includes	182.55	183.55	1.00	16.29
FPD-0113	Infill	240.65	249.25	8.60	3.32
	Includes	240.65	242.05	1.40	17.56
FPD-0114	Infill	208.00	257.30	49.30	1.66
	Includes	216.15	218.25	2.10	11.45
FPD-0117	Infill	72.00	84.40	12.40	1.11
FPD-0119	Infill	192.00	220.00	28.00	1.00
FPD-0121	Infill	27.00	35.00	8.00	4.00
	Includes	28.85	32.65	3.8	6.69
FPD-0122	Infill	76.00	88.75	12.75	1.20
FPD-0124	Infill	42.50	58.00	15.50	0.94
FPD-0125	Infill	51.00	74.75	23.75	0.82

Paiol Extension Drilling Program

In 2010, Rio Novo initiated a generative program in the Paiol area with the objective to investigate the continuity of mineralization north and south of the existing Paiol pit. Results received to date warrant the continuation of the exploration campaign in these areas as they have been successfully outlining new zones of near-surface mineralization at both ends of the Paiol Pit.

The northern extension beyond the Paiol pit is open in two directions, one N30°E and the other north north-west (NNW). The N30°E trend extends to over 200 metres to the north-east. Initial drilling has returned both shallow and deeper intercepts such as:

• FPD-024 – 8.0m @ 0.55 g/t Au (from 4.0m to 12.0m)

• FPD-084 – 18.0m @ 0.77 g/t Au (from 0.0m to 18.0m)

• FPD-086 – 8.0m @ 0.57 g/t Au (from 29.0m to 37.0m)

• FPD-109 – 4.10m @ 4.51 g/t Au (from 156.0m to 160.1m)

• FPD-109 – 14.75m @ 0.62 g/t Au (from 68.25m to 83.0m)

• FPD-121 – 10.0m @ 3.25 g/t Au (from 27.0m to 37.0m)

The NNW trend extends 130 metres and remains open further to the north. This area has also returned 4 intercepts near-surface and one deeper, such as: 

• FPD-025 – 21.7m @ 0.45 g/t Au (from 31.3m to 53.0m)

• FPD-057 – 8.55m @ 0.93 g/t Au (from 34.45m to 43.0m)

• FPD-090 – 14.45m @ 0.45 g/t Au (from 20.0m to 34.5m)

• FPD-113 – 8.0m @ 0.70 g/t Au (from 23.0m to 31.0m)

• FPD-113 – 5.5m @ 4.41 g/t Au (from 181.55m to 187.1m)

There is also a 300 metre southern extension beyond the Paiol pit boundary with shallow intercepts such as:

• FPD-0112 – 11.0m @ 1.34 g/t Au (from 36.0m to 47.0m)

• FPD-0117 – 12.4m @ 1.11 g/t Au (from 72.0m to 84.4m)

• FPD-0122 – 12.75m @ 1.2 g/t Au (from 76.0m to 88.75m)

• FPD-0124 – 15.5m @ 0.94 g/t Au (from 42.5m to 58.0m)

• FPD-0125 – 23.75m @ 0.82 g/t Au (from 51.0m to 74.75m)

To view a map of the Paiol Target Areas and selected cross sections, please visit the following link: http://media3.marketwire.com/docs/Paiol-Pit-1.pdf.

Arroz Area

At Arroz (Cata Funda target), one further infill drill hole (FAD-0085 with 9.3m @ 2.28 g/t Au) was received. This result is consistent with previously reported infill results. The results of the infill program to date indicate that the Cata Funda deposit will add to the existing resource base of the Almas Gold Project.

Arroz Extension Drilling Program

Drilling assay results from the north extension of the Cata Funda target (Arroz north) indicates the continuity of a mineralized zone with a potential NNW trend of at least 500 metres showing encouraging gold intercepts. Further infill diamond drilling has been planned to follow up the positive results received to date.

A summary of the latest results received is presented in the table below.

Drill Hole	Type	From (metres)	To (metres)	Interval (metres)	grams Au/tonne
FAD-0027	Extension	86.45	91.50	5.05	0.76
	includes	100.00	101.00	1.00	11.58
FAD-0041	Extension	0.00	7.00	7.00	1.16
FAD-0041	Extension	16.00	18.80	2.80	1.14
FAD-0075	Extension	0.00	9.00	9.00	0.50
FAD-0092	Extension	8.00	13.00	5.00	1.37
FAD-0099	Extension	61.00	65.25	4.25	2.75

To view maps of the Arroz Target Areas and selected cross sections, please visit the following link: http://media3.marketwire.com/docs/Arroz-Maps-and-Sections-2.pdf.

Paiol Leach Pad and Waste Dump

Paiol Leach Pad

As part of the assessment of the potential gold content of the Paiol spent heap leach pad left by Vale, Rio Novo has undertook a 25 metre grid drilling program with 166 auger holes (1,216 metres) and 59 Reverse Circulation (RC) holes (728 metres). The drilling program on the leach pad has been completed and Rio Novo expects the results to be included in the next resource update being prepared for the PEA, scheduled to be published at the end of the first quarter of 2011.

Assay results have confirmed the remaining ore grade material left in this "stockpile", showing good distribution of gold intercepts throughout the grid, including some significant Au intervals and grades, such as:

• TRP-0108 – 11.0m @ 1.38 g/t Au (0.0m to 11.0m)

• TRP-0162 – 14.0m @ 0.96 g/t Au (0.0m to 14.0m)

• FPRC-0020 – 10.0m @ 1.02 g/t Au (0.0m to 10.0m)

• FPRC-0025 – 12.0m @ 1.45 g/t Au (0,0m to 12.0m)

• FPRC-0027 – 11.0m @ 1.07 g/t Au (0,0m to 11.0m)

• FPRC-0028 – 10.0m @ 2.09 g/t Au (0,0m to 10.0m)

Paiol Waste Dump

At the Paiol Waste Dump, which remains from the previous operation, 5 five RC holes have been drilled from surface covering about 400 meters of the length of the dump in a north-south direction. Assay results have shown gold intercepts in all 5 holes, indicating the potential to add part of the dump to the resource base of the Almas Project. Additional RC drilling has been planned for 2011 in order to further delineate this potential resource. 

• FPRC-0060 – 31.0m @ 0.38 g/t Au; including 1.0m @ 2.07g/t Au

• FPRC-0061 – 21.0m @ 0,40 g/t Au; including 1.0m @ 1.84 g/t Au

• FPRC-0062 – 21.0m @ 0.57 g/t Au; including 1.0m @ 1.45g/t Au

• FPRC-0063 – 19.0m @ 0.30 g/t Au; including 1.0m @ 1.04 g/t Au

• FPRC-0064 – 18.0m @ 0.61 g/t Au; including 8.0m @ 0.81g/t Au

To view maps of the leach pad and waste dump areas and selected cross sections, please visit the following links:

http://media3.marketwire.com/docs/Leach-Pad-3.pdf.

http://media3.marketwire.com/docs/Waste-Dump-Leach-4.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 sent to GIS-database management at 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 Goiania in Goiás Prepared pulps are analyzed at SGS-Geosol's analytical facilities at Vespasiano near Belo Horizonte, in Minas Gerais State, Brazil. High grade 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. 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.