Orvana Reports Q2 2018 Financial Results; El Valle Achieves Highest Gold Production Since 2014

TORONTO, May 9, 2018

Second Quarter of Fiscal 2018 Highlights:

• Consolidated quarterly gold production of 24,788 ounces, copper production of 2.6 million pounds;
• El Valle oxide production sustained at 34% of mill ore feed, achieving highest gold ounce production since 2014;
• Consolidated COC and AISC of $1,055 and $1,309, respectively;
• EBITDA of $4.5 million.
• El Valle transition to higher gold grade oxide mining continues, targeting a 50% oxide-skarn plant throughput ratio;
• Don Mario transitioned mining activities successfully to Cerro Felix gold deposit.

TORONTO, May 9, 2018 /PRNewswire/ -- Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") announced today financial and operational results for the second quarter ("Q2 2018"). The Company is also providing financial and operational updates for its El Valle and Carlés Mines (collectively, "El Valle") operations in northern Spain and its Don Mario Mine Complex ("Don Mario") in Bolivia.

The unaudited condensed interim consolidated financial statements for Q2 2018 and Management's Discussion and Analysis related thereto are available on SEDAR and on the Company's website at www.orvana.com.

Q2 2018 Highlights

• El Valle – Delivery of higher gold production due to 25% gold grade improvement:
• The progress made to increase the proportion of oxides production delivered to the mill was sustained, averaging 34% over the second quarter of fiscal 2018. This allowed for a 25% gold grade improvement during the same period to 3.36 g/t and quarterly production of 15,139 gold ounces, the highest level since 2014.
• A number of geological and geotechnical process changes in the mine, metallurgical process changes to improve recovery of in-process gold and maintenance investments are expected to allow El Valle to progress towards a targeted 50% oxides processing blend.

• Don Mario – Production from Cerro Felix gold deposit commences:
• Production at Don Mario successfully transitioned from the depleted LMZ to the open-pit Cerro Felix gold deposit during the second quarter of fiscal 2018. Gold recoveries from the Don Mario CIL circuit rose to 91.3%, positively impacted by the absence of copper in the ore processed from Cerro Felix.
• Gold production results were impacted by lower grades due to ore dilution caused by stripping activities during the ramp up of Cerro Felix. Gold grades are expected to recover in the second half of fiscal 2018.

Juan Gavidia, Interim CEO stated, "At El Valle, we are proud of the results of our ramp-up of higher gold grade oxide production, as we have reached our highest gold quarterly production levels since 2014. Similarly, at Don Mario, we achieved a smooth transition to production from our Cerro Felix gold deposit. We have reviewed our production and cost guidance based on our first half results, and believe we will achieve guidance on both fronts."

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