RIO Rio2 Limited New

Rio Alto Mining Limited ("Rio Alto" or the "Company") (TSX
VENTURE:RIO)(OTCQX:RIOAF)(BVLAC:RIO)(DBFrankfurt:MS2) is pleased to announce
that it has completed definitive documentation for a US$25 million increase in
its existing gold prepayment facility (the "Prepayment Facility") with Red Kite
EXP 1 ("RKE") and concurrently drew down the full amount available under the
Prepayment Facility. The funds will principally be used to increase daily mine
production at the La Arena Gold Oxide Mine during 2012 from the initially
planned 24,000 tonnes of ore to pad per day to 36,000 tonnes of ore per day.


Settlement of the US$25 million increase in the Prepayment Facility will be by
delivery of 24,512 ounces of gold commencing in April 2012 at a notional rate of
791 ounces per month for 31 months. The actual monthly delivery of gold ounces
will vary by 5% from the amount stated above for every $100 dollar change in the
gold price (up or down) from a base price of $1,150, subject to limits at $1,450
or $950 per ounce.


Rio Alto may prepay gold ounces remaining to be delivered under the Prepayment
Facility, in whole or in part, at any time without penalty in either ounces of
gold or the equivalent in cash at the then prevailing gold price. As security,
Rio Alto has granted RKE a charge over substantially all of the Company's
assets.


The Company paid cash fees for arranging the financing of US$750,000, for
deferral of deliveries of US$312,500 and a US$100,000 fee for the waiver of
certain conditions in the Prepayment Facility.


Anthony Hawkshaw, CFO and Director stated, "We've enjoyed a good relationship
with RKE and are pleased to be able to call on their support to increase gold
oxide production without diluting our shareholders' interest in the much more
significant copper/gold sulphide project." 


Rio Alto will provide a revised gold oxide resource and reserve statement and
provide an update on the copper/gold sulphide project feasibility study before
the end of 2011.


The increase in the Prepayment Facility remains subject to the final acceptance
of the TSX Venture Exchange.


About Red Kite:

The Red Kite group is one of the largest commodity investment firms focused
exclusively on the metals sector and operates from offices in Denver, Hamilton,
Hong Kong, London, New York, Shanghai and Sydney. Red Kite's RK Mine Finance
Fund provides mining companies with project financing and metal offtake
agreements for the initiation or expansion of mine production. Investors in Red
Kite funds include college endowments, foundations, family offices, pensions and
other institutional investors.


This news release contains certain forward-looking information including
statements concerning the expected increase in gold oxide ore production and the
provision of a revised gold oxide resource and reserve statement and copper/gold
sulphide feasibility study update. 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

Anthony Hawkshaw, Chief Financial Officer

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