Rio Grande Enters Into Letter of Intent to Acquire Colombian Gold Property

Rio Grande Mining Corp. (TSX VENTURE:RGV) ("Rio Grande" or the "Company") is
pleased to provide the following corporate update. The Company has signed a
non-binding letter of intent (the "LOI") with Tru Vision Corp. ("Tru Vision"), a
private British Columbian company, which contemplates the acquisition of all of
the shares of Tru Vision by the Company. Tru Vision holds rights to a high-grade
gold prospect known as the 'La Maria Gold Project' (the "La Maria Property")
which is situated 18 kilometres south-southwest of the town of Segovia, in
Antioquia, Colombia, South America.


The LOI

Pursuant to the LOI, Rio Grande and Tru Vision have agreed to negotiate a
definitive agreement (the "Definitive Agreement"), whereby it is contemplated
that Rio Grande will acquire all of the issued and outstanding common shares in
the capital of Tru Vision (of which there are 13,450,000) from the shareholders
thereof in exchange for Rio Grande issuing 8,406,250 common shares in the
capital of Rio Grande or 1.6 Tru Vision shares for every 1 Rio Grande share.
Upon the closing of the Definitive Agreement, the parties have agreed that Chris
Verrico, president of Tru Vision, will join the Company as a new director.
Unless extended by the parties, Rio Grande has an exclusive right to acquire Tru
Vision until March 31, 2011.


Closing will be subject to certain conditions including: (i) satisfactory due
diligence as between the parties; (ii) receipt of all regulatory approvals,
including that of the TSX Venture Exchange (the "TSXV"); (iii) entry into the
Definitive Agreement; (iv) issuance of a technical report on the La Maria
Property in compliance with National Instrument 43-101 of the Canadian
Securities Administrators ("NI 43-101"); (v) completion of a part and parcel
financing as described below; and (vi) closing of various internal restructuring
transactions by Tru Vision.


Tru Vision has rights to acquire a 100% interest in the La Maria Property in
consideration for payments of US$6,500,000, issuances of 5,000,000 shares and
property expenditures of US$6,500,000 to the vendors staggered over the next 3
year period. Upon earning its interest, Tru Vision will grant a 2% net smelter
royalty to the vendors.


In conjunction with the completion of the transaction, a finder's fee will be
payable in accordance with the policies of the TSX-V.


Financing

Pursuant to the LOI, the closing is subject to a part and parcel equity
financing of at least $3,000,000 which constitutes an integral part of the
transaction. The Company anticipates that all proceeds from the financing will
be used in connection with the exploration and development of the La Maria
Property following closing of the transaction. The Company intends to raise at
least $3,000,000 by way of a non brokered private placement issuing at least
7,500,000 units of the Company (each, a "Unit") at $0.40 per Unit. Each Unit
will consist of one (1) common share in the capital of the Company and one (1)
share purchase warrant of the Company. Each warrant will have an exercise price
of $0.70 for a period of two years from the closing date. Securities to be
issued pursuant to the financing will be subject to a four month hold period in
accordance with applicable securities laws and the policies of the Exchange.


La Maria Property

The La Maria property, which has limited mine production permitting, is located
along the same regional structural trend as several high-grade vein deposits in
the Segovia-Remedios district, including the famous Frontino Gold Mines where
Medoro Resources Ltd. and Gran Columbia Gold Corp. have completed the
acquisition of Frontino Gold Mines Ltd for $200 million USD and maintain a joint
venture on the project. (Medoro Resources' News Release March 31, 2010 on
SEDAR). According to the technical report titled "43-101 Technical Report,
Frontino Gold Mines, Antioquia, Columbia" dated June 9, 2010 by Scott E. Wilson,
C.P.G. and Stewart D. Redwood, Ph. D., and prepared for Medoro Resources Ltd.,
Gran Columbia Gold, S.A. and Tapestry Resource Corp., the 43-101 compliant
resources at Frontino Gold Mines include "an Indicated Mineral Resource
(including Probable Mineral Reserves) estimated to contain 315,000 tonnes
grading 13.1 g/t Au and containing 132,000 ounces of gold at a cut-off grade of
7.1 g/t Au" and "an Inferred Mineral Resource estimated to contain 914,000
tonnes grading 15.4 g/t Au and containing 453,000 ounces of gold at a cut-off
grade of 6.5 g/t Au." The total recorded production from that operation during
the period of 1869 to 2010 has been estimated at 4.6 million ounces of gold plus
silver, credits (Wilson and Redwood, 2010). These estimated mineral resources
are on an adjacent property and not necessarily indicative of the mineralization
on the La Maria property.


There are at least eighteen historical underground workings within the La Maria
Property that have extracted undocumented amounts of gold from mesothermal
quartz-sulphide vein structures, plus there is abundant evidence of many
colluvial and alluvial placer gold deposits along La Maria River drainage within
the property.


During the initial property examination, Mr. James A. McCrea, P. Geo., collected
two rock geochemical samples from the La Maria shaft. One chip sample that was
collected at a depth of 21 metres within the shaft returned 197.7 grams per
tonne gold across a true vein width of 80 cm, and the second one, a grab sample,
that was collected at a depth of 15 metres from the side of the shaft returned
78 grams per tonne gold. Samples are not conclusive evidence of the likelihood
of the occurrence of a mineral deposit. 


The La Maria property is largely underlain by granitic rocks of the Santa Isabel
stock which is closely associated with the nearby Antioquia and Segovia
batholiths, the latter being the host of Frontino Gold Mines' rich gold-bearing
quartz-sulphide vein deposits.


Quartz-sulphide vein structures within the property are commonly controlled by
open-tensional northeasterly and younger east-northeasterly faults and shears
that are related to repeated lateral movement along the Otu fault system, a
major regional fault system transecting Segovia-Remedios gold mining district.
Known veins have been traced by historical workings over strike lengths of a few
hundred metres to over one kilometre with reported widths varying from 0.35 to
over 2 metres.


Gold mineralization occurs as native gold and electrum hosted in quartz-sulphide
veins and their silicified and altered margins. According to recent reports,
historical mining operations recovered approximately half of the gold values by
crushing and gravity separation while the rest of the recoverable gold values
were extracted using mercury amalgamation or cyanidization at local treatment
facilities.


Recent exploration work by Messrs. James McCrea, P. Geo., and Ryan Grywul,
G.I.T., examined and sampled 8 underground workings that were driven on multiple
vein structures within the 791-hectare property. Fifty-two rock geochemical
samples have been collected from various vein structures. The assay results from
this sampling are pending.


Mr. James A. McCrea., P. Geo., a qualified person as defined by NI 43-101, and
independent from the Company has reviewed this news release and approves all
scientific and technical disclosure. All information regarding Tru Vision and
the La Maria Property has been provided by Tru Vision. 


On behalf of the Board of Directors,

Jerry Minni, President & CEO 

Statements in this press release regarding the Company which are not historical
facts are "forward-looking statements" that involve risks and uncertainties.
Such information can generally be identified by the use of forwarding-looking
wording such as "may", "expect", "estimate", "anticipate", "intend", "believe"
and "continue" or the negative thereof or similar variations and includes the
statement that the parties may sign and close the Definitive Agreement. Since
forward-looking statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties such as the risk that the
closing may not occur for any reason. Actual results in each case could differ
materially from those currently anticipated in such statements due to factors
such as: (i) the inability of the parties to consummate the Definitive
Agreement; (ii) the inability of the parties to complete the financing, as
proposed or at all; (iii) fluctuation of mineral prices; (iv) a change in market
conditions; (v) the inability of Chris Verrico to act as a new director of the
Company; (vi) the inability to produce the technical report for any reason
whatsoever; and (vii) the refusal of the TSXV to accept the proposed transaction
for any reason whatsoever. Except as required by law, the Company does not
intend to update any changes to such statements.
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