Mogotes Metals Announces US$15 Million Strategic Investment by Rio Tinto and Proposed Formation of Strategic & Technical Alliance

Mogotes Metals Inc. (TSXV: MOG) (FSE: OY4) (OTCQB: MOGMF) (" Mogotes ", or the " Company ") is pleased to announce that it has entered into a binding term sheet with Rio Tinto Exploration Canada Inc. (" Rio Tinto ") under which Rio Tinto or an affiliated company will subscribe for 30,387,857 units of the Company (the " Units ") at a price of C$0.70 per Unit (the " Offering Price ") for gross proceeds of approximately US$15,000,000, equivalent to C$21,271,500, (the " Placement "). Each Unit will consist of one common share of the Company (a " Common Share ") and one-half of one common share purchase warrant (each whole warrant, a " Warrant "); each whole Warrant will entitle the holder to acquire one additional Common Share at an exercise price of C$1.00 for a period of 18 months from closing. On closing of the Placement, Mogotes and Rio Tinto will enter into a strategic and technical alliance focused initially on the Company's Filo Sur project in the Vicuña district of Argentina and Chile (the " Alliance ").

Rio Tinto to take an initial ~5% interest in Mogotes through a C$21,271,500 priced at C$0.70 per Unit. Each Unit includes one-half of a Warrant –15,193,929 Warrants in aggregate - exercisable at C$1.00 for 18 months, representing potential additional proceeds to the Company of up to approximately C$15,193,929. Proceeds of the Placement will be used to advance work programs at the Filo Sur project. Rio Tinto and Mogotes will negotiate definitive long-form agreements, including a subscription agreement, an investor rights agreement and an exclusivity agreement, establishing a Strategic & Technical Alliance covering Filo Sur and the broader Vicuña portfolio. Conditional upon completion of the Placement, Rio Tinto to receive a 15-month period of exclusivity with respect to the Filo Sur project, extendable by mutual agreement for a further 6 (six) months. During the exclusivity perio...