Rio2 Limited Boosts Stake in Royal Road Minerals with Strategic Investment

Rio2 Limited, a prominent player in the precious metals and copper production sector, has announced its participation in the Royal Road Minerals Limited Brokered LIFE Offering, further solidifying its presence in the industry. The move, which involves the purchase of 10,000,000 ordinary shares of Royal Road at $0.20 per share, totaling $2,000,000, underscores Rio2's strategic approach to expanding its portfolio and reinforcing its partnership with Royal Road.

The investment is pursuant to the Investor Rights Agreement announced on September 29, 2025, which grants Rio2 the right to participate in equity financings by Royal Road. This agreement ensures that Rio2 can maintain its pro rata ownership in Royal Road or acquire up to a 15% ownership interest, provided Rio2 holds at least a 9.5% stake in Royal Road. This strategic maneuver not only demonstrates Rio2's commitment to its partnership with Royal Road but also highlights its proactive stance in navigating the complex landscape of mining investments.

Following the completion of the Royal Road Brokered LIFE Offering on July 28, 2026, Rio2 has significantly bolstered its holdings in Royal Road, now possessing beneficial ownership, control, and direction over an aggregate of 54,021,667 shares. This represents approximately 16.33% of the issued and outstanding shares of Royal Road on a non-diluted basis, marking a notable increase from the 44,021,667 shares, or approximately 15% of Royal Road's issued and outstanding shares, it held prior to this placement.

Rio2's decision to acquire these shares is driven by investment purposes, indicating the company's confidence in Royal Road's potential for growth and its strategic alignment with Rio2's own objectives. The move also reflects Rio2's adaptability and readiness to seize opportunities that can enhance its position in the market. As outlined in the Investor Rights Agreement, Rio2 may, from time to time, acquire additional shares or other securities of Royal Road or dispose of some or all of the shares or other securities of Royal Road it owns, subject to the terms of the agreement.

This development is being reported in conjunction with the filing of an early warning report, as required by National Instrument 62-103, The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. The early warning report will be accessible on SEDAR+ under the profiles of both Royal Road and Rio2, offering transparency and compliance with regulatory requirements. Furthermore, a copy of the report can be obtained by contacting Rio2's Executive Vice President, CFO & Corporate Secretary directly.

Rio2 Limited is distinguished by its diversified portfolio in precious metals and copper production, with a management team renowned for its technical expertise and successful track record in capital markets. The company is currently engaged in gold production at its Fenix Gold heap leach mine in Chile and in the production of copper, gold, and silver at its recently acquired Condestable underground mine in Peru. Rio2 and its subsidiaries operate under stringent environmental standards, reflecting a deep commitment to responsible development that respects social, environmental, and economic pillars.

The announcement contains forward-looking information, as defined by applicable Canadian securities legislation, concerning Rio2's future plans and intentions, including potential acquisitions or dispositions of Royal Road securities. While forward-looking information is based on several factors and assumptions, it is subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated. Readers are advised not to place undue reliance on forward-looking information, as it involves known and unknown risks and uncertainties.