Orvana Reports Operating Performance for 2014 and Production Guidance for 2015

- Gold production of 84,084 ounces and copper production of 21,056,110 pounds in 2014, surpassing 2013 production

- Gold equivalent production of approximately 150,000 ounces

- Net debt of $0.7 million at September 30, 2014, down $40.4 million from $41.1 million at September 30, 2013

TORONTO, ONTARIO--(Marketwired - Oct 27, 2014) - Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") is pleased to provide a report on production for the fourth quarter 2014 and the fiscal year ended September 30, 2014, production guidance for fiscal 2015, estimated cash operating costs ("COC") and all-in-sustaining costs ("AISC") for fiscal 2014 and an update on its long-term debt final payment.

The following table sets out 2014 operating performance data for the El Valle-Boinás/Carlés mines ("EVBC") located in the north of Spain and the Don Mario Mine located in Bolivia.

The following table sets out fourth quarter 2014 operating performance data for EVBC and the Don Mario Mine:

Orvana 2014 Costs

Orvana's COC and AISC on a by-product basis (net of copper, silver and lead by-product revenue from EVBC and the Don Mario Mine) per ounce of gold sold in fiscal 2014 are expected to be approximately $770 and $1,000, respectively, compared to COC and AISC (by-product) of $631 and $932, respectively in fiscal 2013.⁽¹⁾ Net revenue from copper, silver and lead by-products represented approximately 43% of Orvana's total net revenue in fiscal 2014.

Orvana's COC and AISC on a co-product basis (with silver and lead as a by-product of gold) are expected to be approximately $930 and $1,100, respectively, per ounce of gold sold in fiscal 2014 compared to $848 and $1,064 for fiscal 2013 and approximately $2.40 or $2.70, respectively, per pound of copper sold in fiscal 2014 compared to $2.34 and $2.66, respectively, for fiscal 2013.

EVBC 2014 Production and Costs

At EVBC, during the first half of 2014, the Boinás hoist was re-commissioned and work was completed to recover a failed zone in the San Martin skarns area in the Boinás mine. During the second half of 2014, management focused on optimizing the grade of the mineralization sent to the process plant, which resulted in higher-grade ore and fewer tonnes processed. After December 2014, the Company plans to place the Carlés Mine on care and maintenance and ramp up production at Boinás by the equivalent amount. It is anticipated that the Carlés Mine would stay on care and maintenance until the price of gold becomes sustainable.

COC and AISC (net of copper and silver by-products) per ounce of gold sold in fiscal 2014 are expected to be approximately $950 and $1,160, respectively, compared to COC and AISC (by-product) of $803 and $1,086, respectively, reported for fiscal 2013. The slight increase in cash costs is attributed to lower by-product revenue, increased costs associated with the recovery of the San Martin failed zone, costs associated with catching up on backfill and an increase in the Euro foreign exchange rate against the US dollar with most of the EVBC costs incurred in Euros. The Company continues to investigate optimization opportunities at its operations in order to further reduce planned cash costs for fiscal 2015.

COC and AISC (by-product) per ounce of gold sold for Q4 2014 are expected to be approximately $860 and $1,020, respectively, compared to COC and AISC (by-product) of $759 and $1,035, respectively, reported for the fourth quarter of fiscal 2013.

Don Mario 2014 Production and Costs

New gravity gold concentrators were commissioned towards the end of March 2014 at the Don Mario Mine. This together with higher gold grades and more throughput resulted in 45% higher gold production in 2014. Copper production also increased by 45% due to increased grades and recoveries as more sulphides were processed with mining progressing to depth within the Don Mario Mine pit.

At the Don Mario Mine, COC and AISC (on a co-product basis in respect of gold, copper and silver with lead as a by-product) per ounce of gold sold in fiscal 2014 are expected to be approximately $860 and $960, respectively, compared to COC and AISC (co-product) of $1,050 and $1,159, respectively, reported for fiscal 2013. Costs were lower in 2014 compared to 2013 due to the suspension of the LPF process in 2013 and cost containments. COC and AISC (co-product) per ounce of gold sold in Q4 2014 at Don Mario Mine are expected to be approximately $840 and $900, respectively, compared to COC and AISC (co-product) of $803 and $893, respectively, reported for the fourth quarter of fiscal 2013.

COC and AISC (co-product) per pound of copper sold in fiscal 2014 are expected to be approximately $2.30 and $2.50, respectively, compared to COC and AISC (co-product) of $2.31 and $2.55, respectively, reported for fiscal 2013. COC and AISC (co-product) per pound of copper sold for the fourth quarter of fiscal 2014 are expected to be approximately $2.20 and $2.25, respectively, compared to COC and AISC (co-product) of $2.05 and $2.26, respectively, reported for the fourth quarter of fiscal 2013.

2015 Guidance

The following is the production guidance range for fiscal 2015:

Term Debt Update

The Company's final outstanding principal payment of $8 million, under its long-term debt arrangement at EVBC, is due on November 30, 2014. The Company expects to meet this obligation with cash on hand and proceeds from future sales of products in October and November 2014.

"We are very pleased to have increased our production and met guidance for fiscal 2014" said Michael Winship, President and CEO. "We continued to make excellent progress in paying down our debt in the 2014 fiscal year and expect to make the final payment of $8 million under our EVBC loan facility in November 2014. We have increased our production guidance range for 2015. Orvana will continue to optimize assets to lower overall cash costs with the objective of generating free operating cash flow in the coming year."

About Orvana

Orvana Minerals is a multi-mine gold and copper producer. Orvana's operating assets consist of the EVBC gold-copper mines in northern Spain and the copper-gold-silver Don Mario Mine in Bolivia. Additional information is available at Orvana's website (www.orvana.com).

Forward Looking Disclaimer

Certain statements in this press release constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance (often, but not always, using words or phrases such as "believes", "expects" "plans", "estimates" or "intends" or stating that certain actions, events or results "may", "could", "would", "might", "will" or "are projected to" be taken or achieved) are not statements of historical fact, but are forward-looking statements.

The forward-looking statements herein relate to, among other things, Orvana's ability to achieve improvement in free cash flow; the potential to extend EVBC's mine life beyond the life of mine estimate set forth herein; Orvana's ability to optimize its assets to deliver shareholder value; Orvana's ability to optimize production at Boinás; the expected costs associated with the suspension of mining activities at Carlés; the Company's ability to emerge stronger from the turnaround work executed at EVBC in 2014; estimates of future production, operating costs and capital expenditures; mineral resource and reserve estimates; statements and information regarding future feasibility studies and their results; future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; future financial performance, including the ability to increase cash flow and profits; future financing requirements; and mine development plans.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Orvana as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Orvana contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in the Company's most recently filed Management's Discussion & Analysis and Annual Information Form in respect of the Company's most recently completed fiscal year (the "Company Disclosures"), or as otherwise expressly incorporated herein by reference as well as: there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; permitting, development, operations, expansion and acquisitions at the EVBC and Don Mario Mines being consistent with the Company's current expectations; political developments in any jurisdiction in which the Company operates being consistent with its current expectations; certain price assumptions for gold, copper and silver; prices for key supplies being approximately consistent with current levels; production and cost of sales forecasts meeting expectations; the accuracy of the Company's current mineral reserve and mineral resource estimates; and labour and materials costs increasing on a basis consistent with Orvana's current expectations.

A variety of inherent risks, uncertainties and factors, many of which are beyond the Company's control, affect the operations, performance and results of the Company and its business, and could cause actual events or results to differ materially from estimated or anticipated events or results expressed or implied by forward looking statements. Some of these risks, uncertainties and factors include fluctuations in the price of gold, silver and copper; the need to recalculate estimates of resources based on actual production experience; the failure to achieve production estimates; variations in the grade of ore mined; variations in the cost of operations; variations in the costs associated with the suspension of mining at Carlés; the availability of qualified personnel; the Company's ability to obtain and maintain all necessary regulatory approvals and licenses; the Company's ability to use cyanide in its mining operations; risks generally associated with mineral exploration and development, including the Company's ability to continue to operate the EVBC Mines and/or the Don Mario Mine; the Company's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; the Company's ability to obtain financing when required on terms that are acceptable to the Company; the Company's ability to execute on its strategy; challenges to the Company's interests in its property and mineral rights; current, pending and proposed legislative or regulatory developments or changes in political, social or economic conditions in the countries in which the Company operates; general economic conditions worldwide; and the risks identified in the Company Disclosures under the heading "Risks and Uncertainties". This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements and reference should also be made to the Company Disclosures for a description of additional risk factors.

Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and, except as required by law, the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Readers are cautioned not to put undue reliance on forward-looking statements.

Cautionary Notes to Investors - Reserve and Resource Estimates

In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed in this news release have been prepared as at September 30, 2014 in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines").

Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral Reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral Reserve, or is or will ever be economically or legally mineable or recovered.