Southern Rio Resources Ltd.
TSX VENTURE : SNZ

Southern Rio Resources Ltd.

June 29, 2005 18:53 ET

Southern Rio Resources Ltd.: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 29, 2005) - Southern Rio Resources Ltd. (the "Company") (TSX VENTURE:SNZ) is pleased to provide an update of its corporate activities and plans for the upcoming season.

The Company's Annual and Special Meeting was held on June 28th, 2005. A Board of Directors consisting of Lindsay Bottomer, Randy Turner, John McDonald and Robert Watts was elected for the ensuing year. All motions presented at the meeting were passed. Mr. Wayne Beach did not stand for re-election as a director; the Company wishes to thank Mr. Beach for his guidance and advice during his years as a director.

During the preceding twelve months, the Company's main focus continued to be exploration for gold, silver and copper deposits in the Cordillera of British Columbia. With the continuing improvement in the economic and political climate in BC, combined with improved base metal prices and stable precious metal prices, the Company plans to continue with this focus. Field programs, including drilling, were carried out on five of the Company's properties, with exploration expenditures totaling approximately $1,020,000 during the financial year ending February 28th, 2005.

The main focus of activity during the year was on the 3Ts epithermal gold-silver project in central BC where an additional 3,845 metres of diamond drilling was completed. Most of this work was done on the Tsacha property, under option from Teck Cominco Limited. The Company has now met the expenditure requirement of $1.2 million to earn a 100% interest in the Tsacha property, which contains an inferred resource of 470,700 tonnes grading 7.40 grams/tonne gold and 65.2 grams/tonne silver. Combined with the adjacent 100% owned Tam property, and contiguous Taken property where the Company has an option to earn a 100% interest, the Company controls approximately 34 square kilometres with demonstrated high potential for epithermal gold-silver mineralization. This style of mineralization supports some of the highest grade and most profitable precious metal mines in the world (e.g. El Penon Mine of Meridian Minerals in Chile, Midas Mine of Newmont Gold in Nevada). The Company is evaluating its options to further advance the 3Ts project; these may include additional drilling of the Lower Ted and Ringer targets, or possible participation of an outside group with expertise in mining and/or exploration of epithermal precious metal deposits.

The Company recently announced the acquisition of a 100% interest in the Davidson property, located approximately 20 kilometres northeast of the 3Ts project. The property was the subject of several major exploration programs from the early eighties through to the mid-nineties for epithermal silver and gold mineralization. The Company is in the process of acquiring and compiling previous exploration data from the property which will allow it to prioritize targets for future work, including drilling. The drilling component is anticipated to commence in September 2005.

In southern BC, the Company has an interest in three copper (+/- molybdenum) properties, the Ebb, Duke and Rey Lake properties. Initial field programs involving line-cutting and test geophysical surveys are planned for the Ebb and Rey Lake properties during summer. The Duke property is under option to Freegold Ventures Limited. With copper prices currently near 16 year highs, the Company believes that these holdings provide significant leverage to add to shareholder value.

The Company wishes to thank all its shareholders, employees and consultants for their continued efforts, support and interest over the past year and anticipates another active and successful year.

The technical content of this news release has been reviewed by Lindsay Bottomer, P.Geo., who is a qualified person as defined in NI 43-101.

SOUTHERN RIO RESOURCES LTD

Lindsay Bottomer, President

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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