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Riverside Resources (TSX-V: RRI) CEO John-Mark Staude Begins Exploration Program at the Cecilia Gold Project

May 9, 2017

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President and CEO of Riverside Resources (TSX-V: RRI)(OTC: RVSDF), Mr. John-Mark Staude. John-Mark, thank you for joining me today.

John-Mark Staude: Great to be on the show, Gerardo.

Gerardo Del Real: Well, you've had a lot of news flow lately. You have drilling at Glor and just this morning you announced that you have commenced a 100% self-funded exploration program at the Cecilia Gold Project in Sonora, Mexico. That's interesting to me, because of course, you're a project generator that has done a phenomenal job of keeping a very tight share structure, but this initial program anyway is 100% self-funded. Can you talk to us about that and share the details of the program?

John-Mark Staude: Yeah. It is rare for us to do it, but we're very excited by the historic work, having historic results of 30 meters of a gram, a gram and a half, having 20 meters of two grams, having historic drill holes and having surface sampling, 100 meters of a gram are great results that we'd like to replicate. Secondly, it's just such a good, easy area to get to. We're just excited to do it ourselves and add the value for the shareholders of Riverside.

Gerardo Del Real: Excellent. Now, the target, the way that I understand it, you're targeting an epithermal gold-silver system. Is that correct?

John-Mark Staude: Exactly. Mexico is a world leader in epithermal gold production. In fact, Mexico has been the world's largest producer of silver and a major producer of gold for over 500 years. So with such a long history of epithermal gold, we're delighted to be in a dome gold system, similar to the Peñasquito, similar to a lot of other major deposits. Particularly, next to Pitarrilla, where there's over half a billion ounces of silver. Like Pitarrilla, we're very excited to have a big epithermal system at Cecilia.

Gerardo Del Real: Excellent. Can you tell me a bit about the infrastructure? You're 40 kilometers east of Cananea, which of course has been producing for about a century now if I'm not mistaken. I imagine the infrastructure's got to be pretty favorable there.

John-Mark Staude: It is. Cananea has been a world leader and has produced over 100 years as the large copper operation of the country, of Mexico. What we like is paved roads near the site, to the site, good area to work and with such work and historic drilling with historic drill roads, it makes the testing and work program of Riverside not expensive and able to add value. We love the good infrastructure, great address for Riverside to be doing exploration.

Gerardo Del Real: Now Cecilia is a very, very prospective target. You have good infrastructure. You're well cashed up. You have a great share structure. Is this a property that you plan on drilling on your own, John-Mark, or will you continue to execute on the project generator model that you have up until now? I know there's a lot of companies in Mexico that have been very successful optioning projects out, such as Almadex right, making a discovery on 100% owned projects that have been very shareholder friendly. Both approaches work and the hybrid recently that Almadex has been able to execute on, has worked well. Is that something that Riverside is looking at doing possibly?

John-Mark Staude: Well, Riverside's followed the hybrid model for the last decade. We have drilled in the Yukon as well as in Mexico and in Arizona. Right now, we're going to do the first stage of replicating the work and seeing how big and putting together the targets on that. Then, we'll decide if we're going to drill or we'll bring a partner in. Riverside has drilled and on the projects that Riverside has drilled in the past, all of those 100% have turned out to eventually develop resources.

One of the projects we drilled, the Peñoles project, now has over 100 holes and over half a million ounces of gold equivalent. We're delighted to own that 100%. At Cecilia, yeah, we'll see what we do. We're very excited to be moving it ahead ourselves and if the drill targets are favorable, we have the scope and, with such great infrastructure, can do it cheaply, it makes sense to add the values. We'll see what happens next. We're very excited.

Gerardo Del Real: Great. Now, you have a lot of irons in the fire and I would be doing my listeners a disservice if I didn't ask about how things are going at Glor with your partner Centerra Gold? The Glor project is a project that you're drilling right now. I believe you're approximately two or three weeks into it, if I'm not mistaken?

John-Mark Staude: Yeah. We've been drilling well and I think we'll be able to finish up in the next week. We'll have a 2,000 meter drill program, all core drilling. It's adjacent to the Chanate mining operation of Alamos Gold, just to the west of the operation. For us, we're so excited to have a good gold project 100% funded by Centerra, where we're drilling and we'll have drill results in June and that will be great. We're really excited about having another gold project, multiple irons in the fire as you say.

Gerardo Del Real: Fantastic. Can you remind everybody what your cash position is and where the market cap is because I know that the history of Riverside with the project generator model, you've been able to generate $2.50 in partner expenditures for every dollar that you've spent. I think that's just fantastic and it speaks to how well the company is managed. Can you tell us what the cash position is and just where the market cap is right now?

John-Mark Staude: The cash position in Canadian dollars is over $6 million dollars cash with no debt. We've never had debt. Secondly, the shares out is 44 million shares. We're trading at 40 to 45 cents, so basically a market cap of under $20 million dollars Canadian with an enterprise value of $14 million dollars.

Yeah. We've gone a decade having only 44 million shares out is quite significant and it really gives our shareholders the upside on success.

Gerardo Del Real: Well, I think that's a testament to the quality of the group. John-Mark, I want to thank you for coming on today. I encourage everybody to get familiar with the projects in the Riverside portfolio. You can do that by going to rivres.com. That's rivres.com. John-Mark, anything else that you'd like to add today?

John-Mark Staude: Appreciate being on the show and we're definitely excited about the coming news.

Gerardo Del Real: Well, hopefully I can have you back on soon as we start getting assays from Glor.

John-Mark Staude: You betcha, looking forward to those as well.

Gerardo Del Real: Thank you, John-Mark.

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