Rio Novo Gold Intersects 6.05 g/t Au Over 8.0m Extension at Arroz Target, Almas Gold Project

TORONTO, ONTARIO--(Marketwire - March 24, 2011) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") is pleased to report the first drill results of its 2011 campaign at its 100%-owned Almas Gold Project, located in the State of Tocantins, Brazil. The Company is also pleased to unveil its 2011 exploration program for the project, which will include 35,000 meters of drilling as detailed below.

Newly assayed results of 35 holes totalling 4,500 metres from the north extension of Cata Funda target (Arroz north) have been received. The results have confirmed the presence of numerous narrow mineralized zones extending over 500 metres NNW from the Cata Funda known deposit, with all but 3 holes intercepting gold along the trend. Gold mineralization mostly begins at shallow depth and remains open in all directions.

Highlights Include:

• Significant intercepts from the Arroz Extension drilling program include:

• FAD-0080 – 8.0m @ 1.78 g/t Au (from 26.95m to 35.2m); including 0.90m @ 13.55 g/t Au
• FAD-0084 – 3.0m @ 1.84 g/t Au (from 0.0m to 3.0m)
• FAD-0090 – 8.0m @ 6.05 g/t Au (from 23.0m to 31.0m); including 3.0m @ 15.76 g/t Au
• FAD-0102 – 3.0m @ 1.02 g/t Au (from 84.0m to 87.0m)
• FAD-0103 – 12.00m @ 0.90 g/t Au (from 2.0m to 14.0m); including 2.0m @ 4.23 g/t Au
• FAD-0112 – 10.05m @ 1.32 g/t Au (from 106.95m to 117.0m); including 1.0m @ 7.20 g/t Au

 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
FAD-0049	Extension	117.00	118.00	1.00	2.88
FAD-0049	Extension	131.00	132.00	1.00	2.35
FAD-0057	Extension	3.00	17.00	14.00	0.61
	Includes	16.00	17.00	1.00	3.12
FAD-0064	Extension	0.00	7.20	7.20	0.82
FAD-0080	Extension	26.95	35.20	8.25	1.78
	Includes	34.30	35.20	0.90	13.55
FAD-0084	Extension	0.00	3.00	3.00	1.84
FAD-0090	Extension	23.00	31.00	8.00	6.05
	Includes	23.00	26.00	3.00	15.76
FAD-0093	Extension	31.00	32.30	1.30	1.48
FAD-0093	Extension	61.30	62.45	1.15	2.02
FAD-0102	Extension	84.00	87.00	3.00	1.02
FAD-0102	Extension	105.00	113.00	8.00	0.50
	Includes	107.00	107.80	0.80	2.33
FAD-0103	Extension	2.00	14.00	12.00	0.90
	Includes	10.00	12.00	2.00	4.23
FAD-0103	Extension	62.00	64.00	2.00	4.67
FAD-0106	Extension	94.00	95.00	1.00	24.44
FAD-0108	Extension	109.00	111.00	2.00	0.82
FAD-0109	Extension	51.00	59.00	8.00	0.72
	Includes	51.00	52.00	1.00	3.43
FAD-0110	Extension	11.00	12.00	1.00	2.84
FAD-0111	Extension	0.00	6.00	6.00	0.49
FAD-0112	Extension	106.95	117.00	10.05	1.32
	Includes	113.00	114.00	1.00	7.20

To view maps and selected cross sections associated with this press release, please visit the following link: http://media3.marketwire.com/docs/rn_0324_2011_maps.pdf

Exploration Plans 2011

Following the results of the 2010 exploration program, which was oriented towards infill drilling of known deposits for the purposes of project development, Rio Novo has embarked on a generative exploration program prioritizing known targets within the Almas Greenstone Belt. This program, which comprises approximately 35,000 metres of diamond drilling, validation of the soil geochemistry work performed by Vale and IP ground geophysics, was approved by the Board of Directors and has been in progress since mid January 2011.

The initial stage of the program involves completion of the extensional drilling programs at North Paiol (6,000m on a 25 x 50m grid) and North Cata Funda in Arroz (7,000m on a 25 x 50m grid). Drilling is progressing in these areas with one diamond rig in North Cata Funda and 3 rigs in North Paiol since mid January.

During the time when Vale was exploring in Almas they performed a comprehensive soil geochemistry program over the whole 18km greenstone belt. Rio Novo has been in the process of validating this database by resampling selected areas. This work was recently successfully completed making this database a valid tool for ongoing exploration in the Almas Gold Project.

Ground based IP Resistivity surveys of several primary targets is in progress, including the Veira, Fofoca, Ijui (VFI) targets (11.6km planned), open anomalies in eastern and western margins of Arroz (7km) and Refresco (3.6km). Soil anomalies, north and south of the Paiol Pit are also included in the program. Field work began on this program in late January with surveys in the area of the VFI target and Paiol areas which have been completed. The aim of the program is to identify additional drill targets for the upcoming dry season drilling season, which begins in April/May.

Following the successful mapping program at the Morro de Carneiro in 2010, a 5,000m drill program has been planned for this target. This will allow the execution of several fence lines of drill holes and infilling of the most prospective areas on a 25 x 50m grid. An environmental license is required to remove small trees where drill pads are required and this license is expected to be in hand by the end of the first quarter 2011.

The Refresco target in the Arroz area is a southwesterly extension of the Cata Funda deposit. A 4,000m diamond drill program has been planned for this target area which will include infill drilling of the most prospective areas resulting from initial scout drilling.

Approximately 10,000 metres has been allowed for more detailed drilling of targets expected to be identified in the VFI area as a result of exploratory drilling carried out earlier and the ongoing IP geophysical survey.

The Jacobina target in the extreme south of the Paiol Exploration License is the site of old garimpeiros workings. Plans for 2011 include soil and rock geochemistry surveys followed by a soil geochemistry grid. The most interesting soil anomalies will be included in an IP ground geophysics program, which will follow. An allowance has been made for 600m of diamond drilling to sample anomalies at depth. In addition, about 2,000m of drilling will be allocated to test newly identified targets within Rio Novo's tenements in the Almas gold district.

Since the planning of mineral exploration work is dependent on the results obtained and a developing understanding of the targets being explored, the above planned program will be under continuous review and can be expected to change during the course of the year.

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.