Altan Rio Closes $1 Million Private Placement

TSX.V: AMO

VANCOUVER, Oct. 17, 2012 /CNW/ - Altan Rio Minerals Limited, TSX.V: AMO ("Altan Rio" or the "Company") has closed the previously announced private placement financing of 4,000,000 common share units (the "units") at a price of CA$0.25 per unit for gross proceeds of CA$1,000,000 (the "offering"). Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share of Altan Rio for a period of two years from the closing date, October 17^th, 2012, at a price of CA$0.50 per share. The warrants are issued subject to an accelerated exercise provision that can be triggered at Altan Rio's option if the closing price of the Company's common shares on the TSX.V is CA$1.10 or higher for 30 consecutive trading days. All securities issued under the offering are subject to a four-month hold period which expires on February 18^th, 2013. The financing remains subject to regulatory approval.

The proceeds of the offering will be used for targeted drilling at the Company's Chandman-Yol project, other exploration in Mongolia, and general working capital.

About Altan Rio
Altan Rio, founded in 2007, is based in Vancouver BC, Canada. Using innovative exploration targeting techniques and leveraging long-term in-country experience, the company explores large-scale gold and copper projects in Mongolia, one of the world's most prospective mineral regions. The Company's license holdings in Mongolia, which total more than 153,310 hectares (378,873 acres), contain significant zones of newly identified primary gold and copper mineralization across a large area of unexplored ground.

On behalf of Altan Rio Minerals Limited,

"Evan Jones"

Evan Jones, President & CEO

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This press release may contain forward looking statements including those describing Altan Rio's future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Altan Rio and its management.

Neither the 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.

SOURCE: Altan Rio Minerals Limited

Kelly Earle, Corporate Communications Manager
Altan Rio Minerals Limited
Tel: [phone] ext. 220
Email: [email protected]
Web: www.altanrio.com