Mr. Ignacio Salazar reports

OROSUR MINING INC: 2017 YEAR END OPERATIONS UPDATE

Orosur Mining Inc. has provided an operations and exploration update for its year ending May 31, 2017.

Highlights

Operations:

• Successfully built and developed the San Gregorio West underground mine in Uruguay (SGW UG) from internal funds;
• Fiscal 2017 production of 35,371 ounces (within stated guidance of 35,000 to 40,000 ounces) following a significant increase in production in the fourth quarter (10,748 ounces);
• Operating cash cost guidance of $800 (U.S.) to $900 (U.S.) per ounce expected to be confirmed when full-year 2017 results are announced in mid-August;
• Cash balance at the end of May, 2017, was $3.3-million (U.S.) (third quarter -- $2.4-million (U.S.) and fiscal 2016 -- $4.3-million (U.S.)) with debt of just $400,000 (U.S.).

Exploration:

• In Uruguay, the company is extending its mine life with a particular focus into the central and east areas of SG UG. SRK Consulting has been engaged to prepare a scoping study covering an expanded SG UG project which will include not only the extensions to central, east and deeps, but also the neighbouring deposits of Veta Sur, Ombu and Veta A.
• The deadline for Asset Chile (AC) to make its decision to finance phase 2 in Anillo (which is strategically located between Yamana's El Penon and Pampa Augusta Victoria) has been extended to December, 2017.
  • AC is expected to cover Anillo SpA corporate and continuing costs until then, which are estimated at approximately $150,000 (U.S.);
  • The first $85,000 (U.S.) was received from AC on June 14, 2017;
  • Under the extension agreement. Orosur is now able to have open discussions with alternative partners to progress Anillo in the event AC does not elect to finance phase 2
• The company plans to commence a 15,000-to-30,000-metre drilling campaign in 2017 in Colombia, culminating in the preparation and publishing of a maiden National Instrument 43-101-compliant resource report for the APTA project. The company will update the market once the exploration program has been designed and validated, and a drilling contractor engaged. Timing and scope of the drilling program will be driven by a combination of exploration results, financing requirements of the company, and prevailing equity and gold market conditions.

Ignacio Salazar, chief executive officer of Orosur, commented: "We are delighted to have delivered in line with production targets for the fourth consecutive year. Exploration and development work has been running in parallel with production at SGW UG this year allowing us not only to open a new underground mine but also to expand it solely with internal funding from operations. While emphasis on cost management, operational excellence and delivery remains an overriding priority for us, we expect our focus on growth to deliver further results this next fiscal year initially centred on resource definition in Colombia, tapping the potential of the 100 km greenstone belt controlled by OMI in Uruguay and advancing Anillo in Chile."

About Orosur Mining Inc.

Orosur Mining is a fully integrated gold producer, developer and exploration company focused on identifying and advancing gold projects in South America. The company operates the only producing gold mine in Uruguay (San Gregorio) and has assembled an exploration portfolio of high-quality assets in Uruguay, Chile and Colombia.

We seek Safe Harbor.