RIO Rio2 Limited New

Rio Alto Mining Limited ("Rio Alto") (TSX
VENTURE:RIO)(OTCQX:RIOAF)(BVLAC:RIO)(DBFrankfurt:MS2) is pleased to announce
that it has exercised its option and has acquired 100% of La Arena gold-copper
project ("La Arena Project") located in north-central Peru upon payment of the
exercise price of US$49 million cash.


Rio Alto entered into an option and earn-in agreement with IAMGOLD Quebec
Management Inc. in June 2009 which provided it with an option to acquire 100% of
La Arena S.A., the Peruvian company that owns La Arena Project, upon payment of
payment of US$47.6 million cash, subject to certain adjustments and the
completion of expenditure commitments.


Alex Black, President and COO of Rio Alto, stated, "The completion of the
acquisition of the La Arena Project is another significant milestone for Rio
Alto. This brings to a conclusion a four year relationship with IAMGOLD during
which time our executive management team worked closely with IAMGOLD's senior
management team in negotiating the acquisition terms for La Arena during a very
difficult financial environment particularly in 2008 and advancing the gold
oxide project through feasibility and construction during the past 18 months. We
sincerely thank IAMGOLD for their support and confidence during that time."


Construction activities are nearing completion, mining equipment is arriving on
site, plant commissioning will occur in March and the La Arena gold oxide
project is on schedule to produce first gold in Q2, 2011.


Forward Looking Statements

This news release contains certain forward-looking information including
statements concerning the expected timing for commissioning of a gold recovery
plant and production of gold. All statements included herein, other than
statements of historical fact, are forward-looking information and such
information involves various risks and uncertainties. There can be no assurance
that such information will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such information. A
description of assumptions used to develop such forward-looking information and
a description of risk factors that may cause actual results to differ materially
from forward-looking information can be found in Rio Alto's disclosure documents
on the SEDAR website at www.sedar.com. Rio Alto does not undertake to update any
forward-looking information except in accordance with applicable securities
laws.


To learn more about Rio Alto Mining Limited, please visit: www.rioaltomining.com
or Rio Alto's SEDAR profile at www.sedar.com.


ON BEHALF OF THE BOARD OF RIO ALTO MINING LIMITED

Alex Black, President & COO

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