Orvana Reports Improved Third Quarter Financial Results on Record Quarterly Gold Production

TORONTO, Aug. 10, 2017

Third Quarter 2017 achievements:

• Record quarterly gold production of 26,414 ounces, increase of 65% from Q2 2016;
• Gold equivalent production of approximately 35,292 ounces during Q3 2017;
• Revenue increased by $10.7 million to $36.7 million, up 41% compared to Q3 2016;
• EBITDA up by $2.3 million compared to Q3 2016;
• Cash balance of $18.5 million at June 30, 2017, up from $14.2 million at March 31, 2017;
• COC and AISC of $1,032 and $1,199, respectively, in Q3 2016;
• On track to meet fiscal 2017 cost and production guidance, including COC and AISC.

TORONTO, Aug. 10, 2017 /PRNewswire/ - Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") announced today financial and operational results for the third quarter of fiscal 2017 ("Q2 2017"). The Company is also providing financial and operational results for its El Valle and Carlés Mines (collectively, "El Valle") operations in northern Spain and for its Don Mario Mine in Bolivia.

The unaudited condensed interim consolidated financial statements for Q2 2017 and Management's Discussion and Analysis related thereto are available on SEDAR and on the Company's website at www.orvana.com.

Q3 2017 Highlights

The Company's strategy to increase production at its operations targets productivity enhancements to allow for delivery of greater throughput, increased gold recovery and reduced unitary costs. The Company is pleased to report the following positive developments in the third quarter, as follows:

• El Valle – Further productivity improvements delivered higher gold and copper production:
• Production from higher gold grade oxide areas of El Valle in Q3 2017 increased to 42,243 tonnes in Q3 2017, or 44%, compared with Q2 2017. Production from the Carlés Mine improved to 39,115 tonnes in Q3 2017, or 35%, compared with Q2 2017.
• As a result of the improvement in mining productivity and increase in mill throughput rates, gold and copper production increased by 15% and 24%, respectively, compared to Q2 2017.
  
• Don Mario – CIL production surpassed targets:
• During the first full quarter of commercial production from the CIL circuit, gold production at Don Mario increased to 12,709 ounces, up 48% compared with the second quarter of fiscal 2017. Gold recoveries averaged 89.3% over Q3 2017, exceeding the Company's targeted average gold recovery of 80%.
• Copper and silver production increased by 45% and 29%, respectively, compared to Q2 2017, as a result of improved recoveries and mill throughput.
  
• Realized reductions in unitary costs and improved financial performance:
• Enabled by the productivity increases above, consolidated all-in sustaining costs fell to $1,199 per ounce, compared with $1,214 per ounce in the second quarter of fiscal 2017 and $1,311 per ounce in the third quarter of fiscal 2016.
• Revenue increased 16% to $36.7 million in the third quarter, compared with the second quarter of fiscal 2017; EBITDA improved by $2.3 million over the same period of fiscal 2016.
• Consolidated cash balance increased from $14.2 million at March 31, 2017 to $18.5 million at June 30, 2017.

"At El Valle, the recent increases to higher grade oxide production have demonstrated the improving flexibility of the mine and allowed for sustained gold production through the quarter, despite lower than expected grades from skarn production," commented Jim Gilbert, Chairman and CEO. "We look forward to reporting our continued progress on improving our oxide production at El Valle, targeting further decreases in unitary costs. With Don Mario also registering higher recoveries and gold production this year, Orvana is on track to meet the fiscal 2017 guidance laid out at the beginning of the year."