Vancouver, Canada and Lima, Peru - (September 2, 2009) Rio Cristal Resources Corporation (TSXV:RCZ) ("Rio Cristal” or the "Company") announced today that it has signed a binding Letter of Intent (“LOI”) to enter into an Option Agreement (“Agreement”) to acquire the 2,400 hectare Condor early stage gold project (“Condor” “the Project”) in southern Peru.  The LOI was entered into with a group of five individuals who hold the rights to the Condor concessions.

The Condor project consists of concessions totaling approximately 2,400 hectares located in the Nasca region of Peru.  The Project is approximately 420 kilometers south of Lima and just 40 kilometers from the Pan-American highway.  The Project’s altitude varies from an estimated 800 meters to 3,000 meters.

Thomas Findley, President and CEO of Rio Cristal, said “adding an early stage exploration project like Condor is an important step as we implement our project diversification strategy of acquiring gold and copper properties.”  Under the LOI, the Company will pay US$5,000 for the exclusive right to conduct technical and legal due diligence over a 60 day period.

The terms of the LOI call for the Company to acquire a 100% interest in the Condor project through a series of cash and share payments over a four year period totaling US$880,000 (US$20,000 upon signing the Option Agreement) and 1,700,000 Rio Cristal common shares (200,000 shares upon signing the option agreement).  The agreement also grants the owners a 2% net profits interest which may be bought out for US$3,000,000.  In addition the Company must spend US$900,000 in exploration activities on the property over the same four year period ($150,000 in the first year).  The Agreement is subject to approval by the TSX-Venture Exchange.

Condor represents a quartzite-hosted, epithermal gold system where detailed channel sampling reportedly contains up to 16 meters averaging greater than 6.0 grams per tonne gold and 100 meters averaging greater than 1.0 grams per tonne gold within intensively fractured and oxidized quartzite beds.  Mineralization appears to be controlled by broad structural corridors which represent potential for low-cost open pit mining and heap leach extraction.  Due diligence will confirm these results prior to entering into a formal agreement.

About Rio Cristal Resources Corporation

 

Rio Cristal Resources is a Canadian corporation focused on the discovery and further development of gold, copper and zinc deposits in Peru. The principal asset of RCR is the Charlotte Bongará claim block located in northern Peru within an emerging Mississippi Valley-type zinc district. Additional information can be found on the Company’s website, www.riocristalzinc.com.

 

For further information please contact Ross Knutson at:
Telephone: (778) 588-6880
Toll Free: (866) 609-9644
Fax: (604) 609-9946

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential exploration results, future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future results, events and objectives could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Rio Cristal’s expectations include exploration and other risks detailed from time to time in the filings made by the Company with securities regulators.

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.

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.