Rio Grande Closes Financing

Rio Grande Mining Corp.

Suite 1128, 789 West Pender Street Vancouver, BC, V6C 1H5 Tel: (604) 669-9330 Fax: (604) 669-9335

FOR IMMEDIATE RELEASE August 2, 2012

RIO GRANDE CLOSES FINANCING

Vancouver, BC, August 2, 2012: Rio Grande Mining Corp. (RGV - TSX-V) (the “Company”) is pleased to announce that it has closed its private placement of 9,677,000 units at $0.10 per unit for total gross proceeds of $967,700. Each unit consists of one common share and one transferable share purchase warrant, each warrant exercisable into one additional common share for a period of three years at a price of $0.20 per share.

For its efforts in introducing certain placees to the Company, the Company paid and issued to finders the following:

• $76,540 in cash;
• 229,620 shares; and
• 765,400 non-transferable share purchase warrants, each warrant exercisable into one common share of the Company for a period of three years at a price of $0.15 per share.

All securities issued under the placement are subject to hold periods expiring on November 28, 2012.

Proceeds of the placement will be used to pay certain existing debts and for general working capital.

On behalf of the Board of Directors,

John Bevilacqua President & CEO Rio Grande Mining Corp.

(604) 669-9330

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.