Rio Verde Minerals Corp.

Rio Verde Minerals Corp.

February 18, 2011 08:00 ET

Rio Verde Minerals Announces Commencement of Drilling at Sergipe Potash Project

TORONTO, ONTARIO--(Marketwire - Feb. 18, 2011) - Rio Verde Minerals Corp. ("Rio Verde," or the "Company", unlisted), a privately held company, is pleased to announce the commencement of drilling at its Sergipe Potash Project, in Sergipe state, north-eastern Brazil.

The Sergipe Potash Project is located in the Sergipe Basin, an area with approximately 30 years of potash exploration and development history (the properties were discovered by Petromisa, a subsidiary of Petrobras, during early oil and gas exploration in the area). This basin is home to Brazil's only producing potash mine, Taquari-Vassouras, which has been in operation since the 1970's, and is operated today by Vale S.A. With this drill program, Rio Verde is targeting similar sylvinite horizons as at Taquari-Vassouras (also identified by Petromisa), as well as significant potential caranallite horizons.

With the assistance of Ercosplan, an international geological consulting group with expertise in potash, Rio Verde has identified 7 potash drill-ready targets in the Sergipe Potash Project. These targets were selected following an extensive remodelling of the geology of the Sergipe basin, based on approximately 234 line kilometres of 2D seismic data, and the acquisition of geological data from 286 historical oil wells in the area. The first target to be tested is the Sergi Prospect located south of Taquari-Vassouras mine, with an initial program of 4,050 metres split in 3 holes of 1,350 metres each. Each hole should take approximately 90 days to be completed and analysed. In addition, 2 seismic lines totalling 15.5 km have been planned to start in the second quarter of 2011.

Rio Verde is also pleased to announce that it has now completed the previously announced private placement totalling 20,000,000 common shares at a price of $0.50 per common share for total proceeds of $10,000,000. Subsequently, Rio Verde will have in total 57,816,177 common shares issued and outstanding. The proceeds of this financing will be used by Rio Verde to execute the exploration program at the Sergipe Potash Project, including drilling and geophysics, as well as exploration on the priority phosphate targets, while actively assessing partnerships and acquisition opportunities to advance and add to its portfolio of projects. Rio Verde intends to list its common shares in a recognized stock exchange through a going-public transaction aimed to be completed in the spring of 2011.

About Rio Verde

Rio Verde Minerals Corp. is a privately held company focused on becoming the leading exploration and development fertilizer company in Brazil. Through the selection of assets that are near infrastructure, with known mineralization, in regions without significant social or environmental issues, Rio Verde plans to fast-track the best projects to development to create stakeholder value. Rio Verde intends to complete a "going public" transaction through the listing of its shares on a recognized exchange in Canada.

Rio Verde holds one potash project and a portfolio of phosphate projects in Brazil. Potash and phosphate fertilizers have favourable supply and demand dynamics, and Rio Verde has a significant cost advantage by being based in Brazil, which imports about 90% to 50% of its potash and phosphate needs respectively. Rio Verde intends to fast-track potash exploration to establish a Canadian National Instrument 43-101 resource estimate in 2011.

Forward-Looking Statements

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 potash and phosphate, changes to regulations affecting the Company's activities, including tax and trade laws and policies; delays in obtaining or failures to obtain required regulatory permits and approvals from government authorities; delays in commencing the Company's proposed drilling program, exploration costs varying significantly from estimates; uncertainties relating to the availability and costs of financing needed to complete exploration activities and demonstrate the feasibility of the Company's projects; the success of future exploration and development initiatives; and other risks involved in the mineral exploration and development industry. 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.

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