Nevsun Meets Zinc and Gold Production Guidance and Delivers on Corporate Objectives in 2016

VANCOUVER, Jan. 12, 2017

2016 PERFORMANCE HIGHLIGHTS

• Achieved top quartile safety performance at Bisha with no lost time injuries
• Completed the acquisition of the high grade Timok copper-gold project in Serbia
• Successfully integrated, ramped-up and are now rapidly advancing the Timok project to production
• Completed the Bisha zinc project on-time and under budget, declaring commercial production October 1
• Bisha production:
  • Exceeded supergene copper guidance producing 55.8 million pounds at a C1 cash cost of $1.03 per payable pound sold
  • Achieved zinc guidance, producing 90 million pounds from primary ore
  • Achieved gold guidance, monetizing 90,000 gold equivalent ounces from stockpiles
• Secured Bisha District through significantly expanded exploration rights
• Continued to pay peer leading dividends

Cliff Davis, Nevsun's CEO, commented, "Nevsun had a strong 2016 delivering on our primary objectives as set out in February of last year.  First and foremost, we maintained an incredible safety record in our operations, solidly in the top quartile in the sector.  Second, we executed on our disciplined M&A strategy by acquiring the Timok copper-gold project. Finally, we had a solid year at Bisha, beating guidance on supergene copper production and delivering the Bisha zinc expansion on-time and under budget."

Mr. Davis continued, "We enter 2017 with a strong balance sheet and the leading growth profile in the sector.  The clear priority remains continuing resolution of the challenges related to the copper flotation circuit at Bisha and ensuring the high-grade Timok Project remains on track to deliver a pre-feasibility by September 2017."  Mr. Davis emphasized, "We have a strong team focused on delivering value to our shareholders through rapidly advancing the high-grade Timok project to production."

A summary of Bisha's quarterly and full year operating results follow.