Rio Novo Gold Reports Encouraging Initial Drill Results From Its Almas Gold Project

TORONTO, ONTARIO--(Marketwire - June 28, 2010) - Rio Novo Gold Inc. (TSX:RN)(TSX:RN.WT) ("Rio Novo" or the "Company") is pleased to report initial drill results from its ongoing drilling program at its 100%-owned Almas Gold Project, located in the Tocantins State, Brazil.

The diamond drilling program at Almas commenced on April 13, 2010 with 5 drill rigs mobilized to site. To date 77 diamond drill holes have been completed totalling 10,506 metres. In total, 29,000 metres are planned to be completed by November 2010 in a program designed to increase the measured and indicated resources recoverable by open pit and to advance the project to the feasibility stage.

At the Paiol target, 35 holes, FPD-001 to FPD-036, (except FPD-034) totalling 4,865 metres have been drilled to date, including 3,497 metres of infill drilling and 1,368 metres of step-out drilling to test identified IP geophysical anomalies at the north extension of the Paiol pit. The planned infill and step-out drilling programs at Paiol will require an additional 10,503 metres and 4,632 metres, respectively, for completion.

In addition, the company has completed to date 288 metres of auger drilling at the old Paiol heap leach pad, left by Vale, in order to investigate the potential gold content of this "stockpile" and to retrieve samples for metallurgical testing.

At the Arroz target, located approximately 15 km north of Paiol, 42 holes, FAD-001 to FAD-042, totaling 5,641 metres have been completed split between 2,657 metres of infill drilling and 2,984 metres of step-out drilling designed to test newly identified IP anomalies. The infill drilling at Arroz has been completed, while there are still 1,200 metres to be completed in the planned extension drilling program.

Highlights

Significant intercepts from the Paiol infill drilling program include:

FPD-001 - 21.6m @ 1.52 g/t Au (159 – 180.6m); including 2.00m @ 4.54 g/t Au and 4.00m @ 3.45 g/t Au
FPD-002 - 4.10m @ 5.59 g/t Au (83.2 – 87.3 m)
FPD-003 – 8.65m @ 2.56 g/t Au (184.15 – 192.80m); including 1.90m @ 4.15 g/t Au

The infill drilling at Paiol confirms the continuity of the mineralization zone with moderate to high grade intercepts

The geochemical results for the extension drilling are pending.

Significant intercepts from the Arroz drilling program include:

FAD-005 - 17.3m @ 6.74 g/t Au (83.7m – 101m)
FAD-006 - 10.15m @ 1.15 g/t Au (90.45 – 100.6m); including 1.6 m @ 2.27 g/t Au
FAD-003 - 4.10m @ 1.89 g/t Au (109 – 113.1m); including 1.00m @ 4.79 g/t Au.

The results to date from Arroz show that the mineralization trend is open to the NW as the best result occurred in hole FAD-005 on the NW flank of the drilling grid (17.3m @ 6.74 g/t Au).

The IP resistivity geophysical program has revealed several strong anomalies along the Arroz/Refresco Trend, at Fofoca and Veira garimpos as well as to the immediate north of the Paiol open pit. Many of these anomalies represent new targets for exploration drilling.

Paiol Area

Assay results from 5 infill drill holes have been received for a total of 823.45 metres drilled in the Paiol drill program. A summary of the significant results received to date is given in the table below.

Drill Hole	Type	From (metres)	To (metres)	Interval (metres)	grams Au/tonne
FPD-001	Infill	159.0	180.6	21.6	1.52
	includes	162.0	164.0	2.0	4.54
	includes	176.0	180.0	4.0	3.45
FPD-002	Infill	28.0	29.0	1.0	27.58 (*)
FPD-002	Infill	83.2	87.3	4.1	5.59
	includes	86.0	86.55	0.55	9.97
FPD-003	Infill	177.8	180.55	2.75	1.38
FPD-003	Infill	184.15	192.8	8.65	2.56
	includes	188.5	190.4	1.9	4.15
FPD-005	Infill	88.0	89.15	1.15	1.08
(*) Metallic screen assay FPD-004 did not intersect significant gold mineralization

Results to date confirm the continuity of the mineralization at the Paiol target and will contribute significantly to the re-evaluation of the resources.

To view a map of the Paiol Target Areas and current rigs location and selected cross sections, please visit the following links:
[ http://media3.marketwire.com/docs/RN0628M1.jpg ] and [ http://media3.marketwire.com/docs/PaiolCrossSections628.pdf ].

Arroz Area

Assay results of 7 infill drill holes have been received for a total of 768.2 metres drilled at Arroz.
A summary of the significant results received to date is given in the table below.

Drill Hole	Type	From (metres)	To (metres)	Interval (metres)	grams Au/tonne
FAD-001	Infill	36.65	48.15	11.5	0.85
	includes	37.65	44.45	6.8	1.00
FAD-002	Infill	61.9	64.6	2.7	1.15
FAD-003	Infill	109.0	113.1	4.1	1.89
	includes	111.0	112.0	1.0	4.79
FAD-004	Infill	57.6	59.15	1.4	1.10
FAD-004	Infill	62.8	73.45	10.65	0.74
	includes	66.7	67.9	1.2	2.30
FAD-005	Infill	83.7	101.0	17.3	6.74
	includes	83.9	84.5	0.8	125.88
FAD-006	Infill	90.45	100.6	10.15	1.15
	includes	99.0	100.6	1.6	2.27
FAD-007	Infill	1.0	2.0	1.0	7.89
FAD-007	Infill	127.1	137.7	10.6	0.70
	includes	127.1	128.0	0.9	2.09
FAD-007	Infill	145.0	146.0	1.0	2.71

Results to date confirm the strong potential of the north western extension of this target based on the results from FAD-003 and FAD-005 located on the north western flank of the drill grid. Additional step out drilling to the north west of Arroz on geophysical targets has encountered significant quantities of sulphide mineralization but analytical results have not yet been received.

To view a map of the Arroz Target Areas and current rigs location and selected cross sections, please visit the following links:
[ http://media3.marketwire.com/docs/rio628m2.jpg ] and [ http://media3.marketwire.com/docs/ArrozCrossSections628.pdf ]

The IP-Resistivity results from the recently completed geophysical program have revealed several anomalies with low resistivity and high chargeability coincident with known mineralized zones, including:

A 2.3 Km anomalous trend defined by the old Arroz and Refresco garimpos (artisanal mining) strongly suggestive of a potentially mineralized zone.

Coincident with the Fofoca and Vieira garimpos excavations where the IP-Resistivity results also showed strong anomalies with trends up to 1,100 meters and 400 meters respectively. These are very similar to the Arroz features offering additional targets for drill investigation.

Rio Novo's Chief Executive Officer David Beatty said, "We are very encouraged with the initial drill results at our Almas Gold Project. Our aggressive 2010 exploration program with 5 rigs on site to drill 29,000 metres is on schedule with the view to upgrade and grow our existing resources to be used in the preparation of a Pre-Feasibility Study targeted to end of 2010. We anticipate a considerable news flow over the next 6 months as we are also gearing up our extensive drilling program at our Guaranta Gold Project, aimed to complete 11,000 metres by November 2010".

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. 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 Tocantins State, and the Guarantã Gold Project, located in Mato Grosso State. 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.

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Rio Novo Gold Reports Encouraging Initial Drill Results From Its Almas Gold Project