TORONTO, ONTARIO -- (Marketwire) -- 03/01/12 -- Rio Verde Minerals Development Corp. (TSX:RVD) ("Rio Verde" or the "Company") is pleased to announce the completion of a Preliminary Economic Assessment ("PEA") for its Fosfatar Phosphate Project ("Fosfatar" or "the Project"), located in Para State, Brazil. The PEA refers specifically to the Sapucaia Target, one of three phosphate targets located within the Project's land package. The PEA was prepared by Coffey Mining Pty Ltd ("Coffey"), an international consultant with offices in Brazil.

Commenting on the release of the PEA, Rio Verde President & CEO Stephen Keith said, "We are encouraged by the results of the Fosfatar PEA, which confirm the economic potential of the project. This study represents a significant milestone in the development of the project and the Company. It brings us one step closer to making the leap from explorer to producer, growing into a self-funded exploration and development company."

Highlights of the Fosfatar PEA:

--  After-tax Net Present Value ("NPV") of C$62.9 million, at a 10% discount
    rate 
--  After-tax Internal Rate of Return ("IRR") of 113% 
--  Annual production of 150,000 tonnes of Thermophosphate, with an average
    grade of 25% P2O5 
--  Payback period of 1 year 
--  Life of Mine ("LOM") of 8 years 
--  Production start-up expected Q4 2012 

Fosfatar Project Base Case Metrics

Resource (tonnes)                       1.63 million                        
% P2O5 Grade                            20.3%                               
Throughput ('000 tonnes)                206k tpa                            
Strip Ratio                             0.36                                
Life of Mine                            8 years                             
Total Capital Expenditures              C$10.0 million                      
Annual Production (full capacity)       150,000 tpa Thermophosphate, 25%    
                                        P2O5                                
Product Price                           C$300/tonne                         
Total Operating Expenditures            C$131.8/tonne                       
Foreign Exchange Rate Assumption        BRL$1.75 : US$1.00                  
After-tax Net Present Value (NPV10%)    C$62.9 million                      
After-tax Internal Rate of Return                                           
 (IRR)                                  113%                                
Payback Period                          1 year                              

Resource Estimate

The Sapucaia Target is an aluminous phosphate body measuring 690m N-S by 390m E-W, with ore layer true thickness ranging from 0.60m to 10.15m, averaging 5.42m, and P2O5 grades ranging from 8.22% to 25.48%. In total, the Sapucaia deposit has an NI 43-101 compliant measured and indicated resource of 1.63Mt at 20.3% P2O5.

The Sapucaia Resource Estimate is based on 1,263m of diamond drilling, distributed over 102 holes (46 historical holes) with an average depth of 12m, spaced over a 50m by 50m grid. Historical drill holes were validated by twinning a number of these holes, followed by re-logging, re-sampling and re-assaying.

For additional details, please refer to the October 11, 2011, Independent NI 43-101 Technical Report, "Fosfatar Phosphate Project, Para, Brazil," filed on www.sedar.com.

Mineral resources that are not minerals reserves do not have demonstrated economic viability.

The resources of the satellite Boa Vista Target, located 2.1km away from the Sapucaia Target and with similar mineralization, were not considered in the PEA.

                                                                            
Grade Tonnage Report - Sapucaia and Boa Vista Phosphate Targets             
Block Model: 25m E X 25m N X 1m RL (no cut-off grade applied)               
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Targets         Resource Category              Tonnes Mt               P2O5%
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Sapucaia                                                                    
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                Measured                            1.31               21.81
                Indicated                           0.32               14.12
                TOTAL                               1.63               20.30
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Boa Vista                                                                   
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                Measured                            0.24               12.21
                Indicated                           0.06                9.65
                TOTAL                               0.29               11.71
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Mining Sequence

The PEA considered the mining of the Sapucaia deposit at a throughput of 206k tpa ROM (run-of-mine). The mining sequence was generated using the GEMCOM Surpac and GEMCOM MineSched software as a basis for the open-pit designs. Operational benches were foreseen at a height of 1.0m to 5.0m to perform selective mining of thin mineralized seams. The final pit is to have benches at a height of 5.0m, with a 45 degree overall slope angle. The target ore is relatively soft, which facilitates both the loading and crushing process. The average strip ratio for the 8-year life of mine was modeled at 0.36.

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                                                         Ore to     %P2O5 of
Year           Total (t)    Waste (t)      Ore (t)  Waste Ratio          ROM
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1                223,531       83,531      139,999         0.60        22.78
2                299,348       93,656      205,692         0.46        19.92
3                256,317       51,187      205,130         0.25        20.26
4                270,380       65,250      205,130         0.32        19.49
5                288,942       83,812      205,130         0.41        20.01
6                262,541       56,849      205,692         0.28        21.10
7                275,687       70,557      205,130         0.34        20.42
8                255,851       61,312      194,539         0.32        20.58
Total          2,132,599      566,156    1,566,442         0.36        20.48
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Capital and Operating Costs

The capital cost for mining, process and infrastructure is estimated at C$10 million. The capital estimate includes construction capex, sustaining capex, mine equipment, site office, exploration studies, mine closure, elements of a final engineering design and optimization, capital adjustments, and contingencies of 25%.

Cash operating costs average $131.8/t milled over the LOM period, including $15.3/t mining, $96.0/t processing and $20.5/t regarding G&A costs, selling costs, marketing expenses, commissions and other costs.

Fosfatar Process and Product

Rio Verde plans to produce a Thermophosphate fertilizer at its Fosfatar Project. Recently announced agronomic test results showed that the Fosfatar Thermophosphate performs favorably in comparison to selected commercially available phosphate fertilizers. Please refer to the February 15, 2012 Press Release, "Rio Verde Minerals Announces Positive Agronomic Tests on Thermophosphate Produced from its Sapucaia Target, Fosfatar Phosphate Project" (http://media3.marketwire.com/r/rioverdefeb15).

The Fosfatar PEA assumes the use of a calcination-based system of processing, whereby the Project's aluminum phosphate ore is treated in a rotary kiln at temperatures of approximately 800 degrees C. This process changes the crystal structure of the ore, whereby increasing the solubility of its contained phosphate. Through a systematic evaluation, specialized consultants determined that phosphate solubility is maximized at 800 degrees C.

Price

The average selling price of C$300/tonne of Thermophosphate (TMP) through 2020 was based on the analysis of an independent consultant, and took into account that the TMP produced by the Fosfatar project will have an average P2O5 grade of 25%, with 70% solubility in neutral ammonium citrate (NAC). Phosphates are priced per point of contained P2O5, and the targeted markets are the North, Northeast and Central regions of Brazil. The current prices per point of P2O5 for the products Monoammonium Phosphate (MAP) and Natural Reactive Phosphate (NRP) were used to determine an estimated price for the TMP. A declining reduction factor-from 30% for the first year to 15% for the last year-was applied to the estimated market price, to recognize the fact that, as a new product, the TMP may take time to reach the full price of its phosphate content. Average logistics costs were included as a reduction in the price.

Financial Analysis and Sensitivities

The financial analysis for the Base Case, which evaluates an owner's operation, indicates an after-tax NPV at a 10% discount rate of $62.9 million with an IRR of 113% and a payback period of 1 year.

The tables below outline after-tax NPV sensitivity analysis to sales price and operating costs per tonne:

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Sensitivities - Sales Price / Tonne                                         
After-Tax NPV in C$ '000; Base Case: $300/tonne                             
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Change %             -30%    -20%    -10%  Base Case    +10%    +20%    +30%
NPV at 5.00%       34,941  50,978  66,892     82,887  98,914 114,797 130,866
NPV at 8.00%       28,661  42,510  56,260     70,073  83,915  97,635 111,514
NPV at 10.00%      25,158  37,773  50,301     62,882  75,491  87,990 100,634
NPV at 12.00%      22,105  33,633  45,086     56,583  68,109  79,534  91,090
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Sensitivities - Operating cost / Tonne (excluding Marketing/Commissions)    
After-Tax NPV in C$ '000; Base Case: $119.75/tonne                          
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Change %             +30%    +20%    +10%  Base Case    -10%    -20%    -30%
NPV at 5.00%       62,163  69,070  75,982     82,887  89,799  96,705 103,614
NPV at 8.00%       52,006  58,027  64,053     70,073  76,099  82,119  88,142
NPV at 10.00%      46,323  51,841  57,365     62,882  68,405  73,922  79,442
NPV at 12.00%      41,357  46,431  51,510     56,583  61,662  66,735  71,811
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Next Steps

Rio Verde plans to continue advancing the Fosfatar Project towards a final mine design and optimization, which will include detailed engineering design for plant construction. Completion of this final design is expected in Q2 2012. Conditional upon a positive result from this final design, and approval from the Company's board of directors, project construction is expected to begin in the second half of this year, with production commencing in Q4 2012 or Q1 2013.

Technical Report

An NI 43-101-compliant Technical Report in support of the PEA will be filed on SEDAR at www.sedar.com within 45 days of this news release.

Qualified Person

The "Qualified Person," as such term is defined in National Instrument 43-101, who has reviewed and approved the technical information in this new release, is Mr. Joao Augusto Hilario of Coffey Mining Pty Ltd of Belo Horizonte, Brazil, an independent consultant.

About the Fosfatar Phosphate Project

The Fosfatar Phosphate Project possesses multiple phosphate assets in the North and Northeastern regions of Brazil, and is situated in close proximity to numerous fertilizer consumers and the port city of Belem, in the State of Para. The three primary targets are the Sapucaia Phosphate Target, the Boa Vista Phosphate Target and the Trauira Phosphate Target. Fosfatar is comprised of 15 exploration licences, in 10 separate land holdings, over a total area of 47,604.51 hectares, plus 136,608.36 hectares in 16 areas under application for exploration licenses, totaling 184,284.87 hectares of potential area for phosphate deposits in the Para and Maranhao States.

About Rio Verde

Rio Verde Minerals Development Corp. (TSX:RVD) is a publicly traded company focused on the exploration and development of fertilizer projects in Brazil. The Company's goal is to become the leading Brazilian fertilizer mining and development company by selecting prime assets that are near infrastructure, with known mineralization, in regions without significant social or environmental issues. The Company plans to fast-track the best projects to development to create stakeholder value.

Rio Verde holds one potash project and a portfolio of phosphate projects in Brazil. Potash and phosphate fertilizers have favourable supply and demand dynamics, and Rio Verde has a significant cost advantage by being based in Brazil, a country that imports about 90% of its potash and 50% of its phosphate needs. Rio Verde's near-term primary objective is to focus its potash exploration on establishing a Canadian National Instrument 43-101 resource.

For additional information about Rio Verde, please visit the Company's website at www.Rvminerals.com or review the Company's documents filed at www.sedar.com.

Forward-Looking Statements

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 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 potash and phosphate, changes to regulations affecting the Company's activities, including tax and trade laws and policies; delays in obtaining or failures to obtain required regulatory permits and approvals from government authorities; delays in commencing the Company's proposed drilling program, exploration costs varying significantly from estimates; uncertainties relating to the availability and costs of financing needed to complete exploration activities and demonstrate the feasibility of the Company's projects; the success of future exploration and development initiatives; and other risks involved in the mineral exploration and development industry. 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 statement.

Contacts:
Rio Verde Minerals Development Corp.
Stephen Keith
President & CEO
+1 (416) 368-8288
[email protected]

Rio Verde Minerals Development Corp.
Alex Penha
VP Corporate Development
+1 (416) 368-1573
[email protected]
www.Rvminerals.com