Rio Novo Gold Receives the Construction License for the Almas Gold Project

TORONTO, ONTARIO--(Marketwire - Dec. 2, 2011) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") is pleased to announce that the "Licenca de Instalacao", (the "LI" or "Construction License") has been issued for its Almas Gold Project by the Tocantins State Natural Resources and Environment Authority (NATURATINS).

The authorization to proceed with the overall construction of the Almas Gold Project has been granted to Rio Novo subject to the fulfillment of typical technical and environmental preconditions, which will be derived from the Definitive Feasibility Study ("DFS") currently underway. The issued Construction License allows for the recommencement of a temporarily suspended operation (in this case, the Paiol Mine); therefore, NATURATINS provided the Company with a simplified licensing process.

Permitting conditions for construction are comprised of final DFS elements, which include detailing of key engineering design documents, archaeological inspection, fauna and flora rescue plans, and other typical pre-construction environmental and social communication actions drawn from the recommendations of the Project's Environmental Assessment Report.

The Construction License issued by NATURATINS also provides the legal security required under the Regulatory Norms for Mining (Normas Reguladoras de Mineracao - Suspensao, Fechamento e Retomada das Operacoes Mineiras) to put forward a request to DNPM (Departamento Nacional de Producao Mineral) for reinstatement of its mining concession for the Paiol Mine. It is expected that the review of the Economic Use Plan (PAE) required to support the Mining Project Restart Application will be completed by February 2012.

The final outstanding license required is the Operating License ("LO"), which is expected to be issued following construction of the mine and associated facilities in accordance with the protocols established by NATURATINS in ordinary course.

David Beatty, CEO, says: "Along with the acquisition of a new 5,800 tpd Metso ball mill earlier in the year, the drilling success at Vira-Saia, and the substantial progress on the DFS, the reinstatement of the Construction License is another key milestone towards the construction of the Almas Project. I am pleased that this key permitting and licensing milestone has been achieved ahead of schedule, and I would like to sincerely thank everyone involved, including our team and the dedicated people of NATURATINS and the Government of Tocantins."

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 961,711 oz and Inferred resources of 1,178,016 oz of gold in Brazil and 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, and the Guarantã Gold Project, located in the State of Mato Grosso. Both projects enjoy established infrastructure and main grid hydropower in mining friendly jurisdictions.

In June 2011, the Company completed the 100% acquisition of the Toldafria property in Caldas State, in the central Cordillera. The Toldafria property has an Inferred resource of 952,000 ozs gold at a grade of 2.38 g/t as set out in a NI 43-101 compliant resource estimate. At Toldafria, the Company plans to execute a systematic fall program of trenching, mapping, additional underground channel sampling, and once permitted, drilling to determine the extent of the Toldafria deposit.

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.