Orvana Reports Third Quarter Financial Results and Provides El Valle and Don Mario Exploration Update

• Gold production of 20,696 ounces and 1.1 million pounds of copper. FY2019 to date gold production of 75,274 and 3.9 million pounds of copper.
• AuEq Gold production of 23,481 ounces. FY2019 to date gold equivalent production of 85,560 ounces.
• COC of $1,213 and AISC of $1,432. FY2019 to date COC of $1,063 and AISC of $1,224.
• On track to achieve year-end consolidated production
• Revenue of $31 million. FY2019 to date $103 million.
• EBITDA of $0.5 million. FY2019 to date $13.3 million.
• Net Loss of $3.9 million. FY2019 to date $1.6 million.
• Cash balance of $11.7 million as of June 30, 2019

TORONTO, Aug. 8, 2019 -  Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") announced today financial and operational results for the third quarter of fiscal 2019 ("Q3 2019"). The Company is also providing financial and operational updates for its El Valle and Carlés Mines (collectively, "El Valle") operations in northern Spain, and for its Don Mario Mine operations in Bolivia.

The unaudited condensed interim consolidated financial statements for Q3 2019 and Management's Discussion and Analysis related thereto are available on SEDAR and on the Company's website at www.orvana.com.

The Company reports Q3 2019 operational and financial results:

• Consolidated gold production of 20,696 ounces compared to 27,306 ounces in Q2 2019 and 26,761 ounces compared to the same quarter in 2018.
• • FY2019 to date gold production of 75,274 ounces and 3.9 million pounds of copper.
• Consolidated cash costs:
• • COC of $1,213 - 25% higher compared to $971 in Q2 2019 and 18% higher compared to $1,027 for the same quarter in 2018.
  • AISC of $1,432 - 29% higher compared to $1,107 in Q2 2019 and 11% higher compared to $1,291 for the same quarter in 2018.
• COC and AISC increased due to a production decrease in the third quarter, according to operational plans for the quarter. On track to meet fiscal 2019 cost guidance.
• EBITDA of $0.5 million and $13.3 million for the fiscal 2019 to date compared to $3.9 million in the same quarter in fiscal 2018 and $12.6 million for the first three quarters of fiscal 2018.
• Net loss of $3.9 million and $1.6 million for the fiscal 2019 to date compared to a loss of $3 million in the same quarter in 2018 and $9.9M million for the first three quarters of fiscal 2018. 
• El Valle delivers 22% lower gold production of 13,854 ounces in the third quarter of fiscal 2019 compared to 17,742 ounces the second quarter, due to 7% grade decrease and 17% lower mill throughput.
• • Gold production decrease was according to operational planning, with Carlés not providing skarn in the third quarter.
• Don Mario produces 6,842 ounces of gold in the third quarter of fiscal 2019 compared to 9,564 gold ounces the second quarter. A 28% decrease, which was consistent with planned lower ore grade while working on the last benches of Cerro Felix open pit.
• • Based on the positive results yielded by the exploration activities, production from Las Tojas is expected to start in the fourth quarter of fiscal 2019, and continue along fiscal 2020. Preliminary Las Tojas production plan has been developed using a cut-off grade of 1.3 grams per ton of gold, resulting in 6 small pits optimizing available resources. Based on the additional information provided by the exploration in progress, the production plan will be reviewed and optimized.
  • The development and engineering of a Sulphidization-Acidification-Recycling-Thickening ("SART") circuit, and ancillary facilities, continues to advance. This undertaking is designed to add an additional three years of mine life to the Don Mario operations, commencing in FY 2021, subject to completion of technical, economic and funding reviews.
    

On track to maintain fiscal 2019 consolidated guidance: Based on operating results generated from the first nine months of fiscal 2019, the Company is confident that it will achieve its stated fiscal 2019 consolidated production of 100,000 - 110,000 ounces of gold and deliver on COC guidance of $950 - $1,050 and AISC of $1,150.

Juan Gavidia, CEO of Orvana Minerals stated: "We are very pleased with our results to date. The reduced production in Q3 was expected under our operational planning, and was due to anticipated lower grades at El Valle, Carlés not providing skarn in the quarter, and completion of the last benches of the Cerro Felix open pit. The operational plan for FY2019 also includes the implementation of plans to lay the foundation for the extension of life of mines at both El Valle and Don Mario.  As we proceed towards year-end of FY2019, our primary objective at El Valle and Don Mario will be to deliver on our consolidated production guidance while developing our FY2020 operational plans, which will continue to be based on safe and stable production; reduced unitary costs; and intensive regional exploration programs to extend the life of our operations."

The following table sets out Orvana's fiscal 2019 guidance as well as its fiscal 2018 production and results:

Selected Consolidated Operational and Financial Information

EXPLORATION UPDATE

• El Valle:
• • A total of 6,981 meters of diamond drilling were completed in the Valle Mine in the third quarter of fiscal 2019. The drilling program, which commenced in September 2018, was focused on infill definition in the oxides areas.
  • Two drill holes totaling 1,202 meters of Greenfield Exploration were completed in the "Quintana Investigation Permit" in the third quarter of fiscal 2019. Gold presence has been encountered within the main regional structure two kilometers away from Boinás mine. The next steps in this area will require a detailed study of the new information available, in order to find new targets.
  • Ms. Guadalupe Collar (European Geologist), who supervised the explorations programs, is responsible for all aspects of the work, including the quality control/quality assurance program. Ms. Collar, Chief of Geology at OROVALLE, is a qualified person as defined in NI 43-101 and has approved all of the geological scientific and technical information relating to El Valle disclosed in this news release.
• Don Mario:
• • A drill program consisting of 5,226 meters has been completed for Las Tojas Deposit. Updated measured and indicated resources for this deposit have been estimated at 1,386,000 tonnes with an average gold grade of 1.52 g/t tonne as at June 30, 2019. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
  • Mr. Luis Isla (Geologist certified by the "Comisión Calificadora de Competencias en Recursos y Reservas Mineras", Chile), who supervised the estimate of Las Tojas' mineral resources as at June 30, 2019, is responsible for all aspects of the work, including the quality control/quality assurance program. Mr. Isla, the Chief of Geology at EMIPA, is a qualified person as defined in NI 43-101 and has approved all of the geological scientific and technical information relating to Las Tojas disclosed in this news release.

Detailed additional information of the Quintana Investigation Permit and Las Tojas Deposit has been included in the MD&A for the third quarter of fiscal 2019.

TAGUAS GOLD PROPERTY ACQUISITION
On May 14, 2019, the Company entered into a purchase agreement with Compañía Minera Taguas S.A. pursuant to which Orvana agreed to acquire the Taguas property ("Taguas") located in the Province of San Juan, Argentina. Taguas consists of 15 mining concessions over an area of 3,273.87 ha. It is located in the Province of San Juan, Argentina, on the eastern flank of the Andes, between 3,500 m to 4,300 m above sea level. On July 9, the Company filed a Preliminary Economic Assessment Report for the Taguas property. Closing of the transaction is subject to the final acceptance of the Toronto Stock Exchange and a number of closing conditions including, without limitation, completion of satisfactory due diligence by Orvana and applicable local mining rights registration.

About Orvana Minerals Orvana is a multi-mine gold-copper-silver company. Orvana's operating assets consist of the producing El Valle and Carlés gold-copper-silver mines in northern Spain and the producing Don Mario gold-silver operations in Bolivia. Additional information is available at Orvana's website (www.orvana.com).

Cautionary Statements - Forward-Looking Information
Certain statements in this information 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 the mine life of El Valle and Don Mario beyond their current life-of-mine estimates including specifically, but not limited to in the case of Don Mario, the mining of the Cerro Felix deposit, the processing of the mineral stockpiles (including the implementation of the SART circuit) and the reprocessing of the tailings material; Orvana's ability to optimize its assets to deliver shareholder value; the Company's ability to optimize productivity at Don Mario and El Valle; 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, including without limitation, the ability to complete the acquisition of Taguas; 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 the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of the Company contained or incorporated by reference in this information, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in Orvana'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 El Valle and Don Mario 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; 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 El Valle and/or Don Mario and/or ability to resume long-term operations at the Carlés Mine; the Company's ability to successfully implement the SART circuit to process the current oxides stockpiles at Don Mario; the Company's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; the Company's ability to execute on its strategy; the Company's ability to obtain financing when required on terms that are acceptable to the Company; 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's disclosures. 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's Disclosures for a description of additional risk factors.

Any forward-looking statements made in this information with respect to the anticipated development and exploration of the Company's mineral projects are intended to provide an overview of management's expectations with respect to certain future activities of the Company and may not be appropriate for other purposes.

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.

The forward-looking statements made in this information are intended to provide an overview of management's expectations with respect to certain future operating activities of the Company and may not be appropriate for other purposes.

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 in accordance with NI 43-101 (as defined below), 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.

All Amounts in US Dollars Unless Otherwise Stated

SOURCE Orvana Minerals Corp.



Contact
Nuria Menéndez, Chief Financial Officer, E: nmenendez@orvana.com; Joanne Jobin, Investor Relations Officer, E: jjobin@orvana.com, T: 647 964 0292