As at September 30, 2012, the Company had working capital of US$ 9,198,315 and a net cash position of $10,033,642.

Rio Novo Third Quarter Corporate Highlights

Highlights for the quarter ending September 30, 2012 included:

• A new discovery is emerging NW of the Vira Saia deposit at the Almas Gold Project (“Almas”). First pass drilling and modeling indicate a continuous zone of gold mineralization which could add to the overall resource at Almas.

• At the Morro do Carneiro East target, part of the Almas project, a large gold anomaly in banded iron formation (BIF) has been identified NE of the town of Almas.

• Exploration works continue to advance at the Matupá target at the Guarantã Gold Project, including the discovery of a new prospect, MP8, in the SE part of the district.

• Channel sampling at the Matupá MP2 prospect returned up to 12m at 2.5 g/t Au.

• First pass drilling and bulk sampling were completed on the Toldafria Gold Project.

Subsequent Rio Novo Corporate Events

Subsequent to the quarter ending September 30, 2012, the following events took place:

• Rio Novo completed a positive definitive Feasibility Study (“FS”) of its 100%-owned Almas project, located in Tocantins State, Brazil. The NI 43-101 compliant FS confirms a technically feasible and economically robust project, with Proven & Probable Reserves of 763,940 ounces of gold, based on a gold price of US$1,350 per ounce. The Project is expected to yield a base case, after-tax, 5.0% net present value (“NPV”) of $131.2 million and an internal rate of return (“IRR”) of 22.1%, using assumed flat LOM gold price of $1,450.00 per ounce. Using prevailing commodity prices of $1,700/oz gold, the after-tax NPV 5% and IRR increase to $233.0 million and 34.2%, respectively. The results of the FS were presented to Rio Novo’s Board of Directors and unanimously approved. The construction of the Almas project is now subject to the successful arrangement of project financing.

• Rio Novo promoted three new officers to the Company; Vitor Hugo Belo as Senior Vice-President, Construction, Sol Tomich, Vice-President, Corporate Responsibility and José Luiz Rangel, Vice-President, Controller & Treasurer.

Almas Gold Project

During third quarter of 2012, Rio Novo focused efforts on generative and early stage exploration at Almas, as well as final resource modeling on the Almas Gold Project. There was no exploration drilling during the quarter at Almas, but as of the year-to-date 2012, 9,586 meters have been drilled, 586 meters more than originally planned. A total of 4,351 meters of trenching were completed during the quarter and Year-to-date 2012, the Company has completed 7,584 meters of trenching versus the planned 2,500 meters. The increase in trenching versus the plan represents an increased focus in developing the next generation of advanced targets at Almas. As the FS for the Almas Gold Project has been completed and is positive, Rio Novo has shifted its exploration strategy at Almas to focus on discovering new, higher grade resources close to proposed infrastructure.

Guarantã Gold Project

During the quarter, Rio Novo focused all exploration efforts in the Guarantã area at Matupá. The Company continued early stage exploration on the property, consisting of mapping, geochemistry and topographic surveying. A topographic survey was completed over lines of soil geochemistry and proposed future geophysics. Topographic surveying was also completed over the MP2 target for resource modeling purposes. Mapping was completed over the entire Matupá project mainly as confirmation mapping of former Rio Tinto and Western Mining work. Detailed mapping of the main prospect MP2 was initiated. Soil sampling was completed over eight targets on the property. This sampling included validation of former Rio Tinto and Western Mining work. The mapping and soil sampling has now clearly outlined eight targets at Matupá, including a new anomaly discovered on the southeast part of the project, MP8.

During the quarter, Rio Novo initiated channel sampling of exposed areas, including both major outcrops and garimpo artisanal mine workings. Excellent results were received from four channel samples at the MP2 prospect:

• 12m @ 2.49g/t Au
• 11.7m @ 2.66g/t Au
• 2.8m @ 4.61g/t Au
• 6.50m @ 1.45g/t Au

Toldafria Gold Project

During the third quarter of 2012, Rio Novo completed an exploration program at the Toldafria Gold Project (“Toldafria”), consisting of a first-pass drilling program and a complementary bulk sampling program. The drilling program consisted of 16 drill holes totaling 5,145m. The drilling intersected broad zones of low-grade gold mineralization with a core of high-grade veins. These gold zones generally exhibit a wide area (10m to 70m) of lower grade veinlet mineralization running from 0.3 g/t to 0.7 g/t Au, with internal higher grade veins assaying from 5.0 g/t Au to 36 g/t Au in some areas. Although the drilling cut through the structures projected from underground workings, the high-grade nature of much of the tunnel sampling was only intermittently replicated in the drilling program.

Qualified Person

Mr. Brian Arkell, Senior Vice President of Exploration at Rio Novo Gold Inc., is a Qualified Person, as defined by Canadian National Instrument 43-101, and has reviewed and approved the geological and exploration information contained in this release.

About Rio Novo

Rio Novo is focused on the acquisition, exploration and development of gold properties in Brazil and Colombia. The Company has Measured & Indicated resources of 1,191,252 oz and 1,464,831 Inferred oz of gold at two projects in Brazil (Almas and Guarantã Gold Projects) and one in Colombia (Toldafria Gold Project).

The Company’s short-term goal is to become a producer of gold by bringing the Almas Gold Project, located in the State of Tocantins, into production in 2014. The Almas Project enjoys both established infrastructure, main grid hydropower in a proven and mining friendly jurisdiction and is permitted for construction.

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 which 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 statements.