RIO2 PAYS DOWN CONDESTABLE DEBT AND MAKES MANAGEMENT APPOINTMENTS

Rio2 Limited has taken a significant step in strengthening its financial position by making a voluntary US$20 million payment, plus accrued interest, on vendor debt associated with its acquisition of the Condestable Copper Mine. The payment was made on March 27, 2026, to Southern Peaks Mining L.P., the vendor in the original acquisition transaction. This debt reduction demonstrates the company's commitment to improving its balance sheet and reducing financial obligations.

The Condestable Copper Mine represents a key asset in Rio2's portfolio, and the voluntary nature of this substantial debt payment signals strong cash flow generation from operations. By proactively reducing its debt burden, Rio2 is positioning itself for greater financial flexibility and potentially improved access to capital markets for future growth initiatives.

Alongside the debt payment, Rio2 announced management appointments, though specific details were not provided in the available information. These leadership changes, combined with the debt reduction, suggest the company is taking strategic steps to optimize both its financial structure and operational management as it continues to develop its copper assets.

For the copper sector, this announcement reflects the ongoing strength in copper markets and the ability of well-positioned producers to generate sufficient cash flows for debt service and capital allocation. Rio2's proactive debt management approach should be viewed favorably by investors and creditors alike, potentially improving the company's cost of capital and strategic positioning in the competitive copper mining landscape.