Revised Resource And Reserve Estimates For Upper Mineralized Zone In Bolivia

TORONTO - Orvana Minerals Corp. through its wholly-owned subsidiary, Empresa Minera Paititi reported updated National Instrument ("NI") 43-101-compliant resource and reserve estimates for its Don Mario UMZ copper-gold-silver mine operations in Bolivia. During 2012, EMIPA made significant changes to the mining and processing aspects of the operation thus warranting an update.

The reserve estimate contains approximately 177,000 ounces of gold, 5.6 million ounces of silver, and 120 million pounds of copper, which is a decrease of about 5%, 2%, and 11%, respectively, after considerations for production through September 30, 2012 as well as the exclusion of certain oxide mineralization whose metals cannot be extracted economically; testing of these ores will continue in order to seek a viable extraction method. The most significant change in the mine plan is the processing of Transition ore by a Flotation-Only process instead of the Leach-Precipitation-Flotation ("LPF") process.

The mine plan now consists of 720,000 tonnes per year of Flotation-Only processing of Transition and Sulphide ores and 100,800 tonnes per year of LPF processing of oxide ores through 2017; the LPF processing of 224,300 tonnes of certain stockpiled oxide ores will continue in 2018.

Certain oxide resources are not included in the mine plan, whether in situ or in stockpile, since treatment by Flotation-Only or LPF processes is not practical and/or not economically viable because of the input price deck or other parameters, but will be processed opportunistically during the life of mine. Likewise, some Transition and Sulphide resources not included in the mine plan will also be mined and processed opportunistically if extraction of the metals is economically viable.

Products made from the LPF process include a copper cement and a talc-rich precious-metal concentrate, and from the Flotation-Only process a copper concentrate with levels of lead from 8% to as high as 20% as well as a lead concentrate. All products are under contract.

"This mine plan outlines a path forward that optimizes the UMZ operation," said Bill Williams, President and Chief Executive Officer, "We will continue to pursue opportunities to improve recoveries as well as seek alternatives to extend production beyond 2018, including exploration in proximal concessions," he added.

During October, production was about 973,000 pounds of copper, 1,440 ounces of gold, and 76,000 ounces of silver. Total cash costs, on a co-product basis including all royalties and based on sales, were approximately $1.80 per pound copper, $910 per ounce gold and $16 per ounce silver. During November, production was about 1,060,000 pounds of copper, 1,290 ounces of gold, and 62,000 ounces of silver at total cash costs of <$2.00 per pound, <$980 per ounce, and <$22.00 per ounce, respectively. Whereas the Flotation-Only process was operable during October and November, the LPF process is currently active and processing will switch over to Flotation-Only.