Don Mario Delivers 16% Higher Gold Production

TORONTO - Orvana Minerals Corp. reported that the Don Mario in Bolivia delivered 16% higher gold production: Open pit mining transitioned from LMZ to Cerro Felix. Mine tonnage increased by 19% to 856K compared to 719K the year before, supported by investment in heavy equipment throughout the year. CIL circuit recovery results exceeded expectations due to better ore quality and process fine tuning by plant's personnel. Better mining tonnage and metallurgical recovery allowed gold production increase to 45K oz, compared to 39K in fiscal 2017. Throughout the year, the Company has been evaluating alternatives to treat its oxides stockpiles. Underway tests show optimal oxides stockpile metallurgy by combining a Sulphidization Acidification Thickening Recycling process ("SART"), with heap leaching, and a Carbon-in-Column (CIC) circuit.

Juan Gavidia, CEO of Orvana Minerals stated: "We have achieved a number of key operational successes that ensure the sustainability of Orvana as a 100,000 oz plus gold producer. At Don Mario, plant recoveries continued to exceed expectations, being at 92% by Fiscal 2018 year-end.  With the transition to Cerro Felix pit now completed, Don Mario unitary costs have stabilized to former lower levels.”

The Company continues to pursue its objectives of optimizing production, lowering unitary costs, maximizing free cash flow, and extending life-of-mine of operations while increasing output.  Don Mario, ore will continue to be sourced from Cerro Felix pit and processed at the higher recovery rate achieved the previous year. Next focus is the processing of the oxides stockpile, which will potentially provide a three-year life of mine extension. The metallurgical solution goes through the development of a SART circuit which is in the process of review for engineering and project financing purposes.