Dr. Mark Cruise reports

TREVALI REPORTS Q2-2016 FINANCIAL RESULTS

Trevali Mining Corp. has released financial results for the three months and six months ended June 30, 2016. Second quarter EBITDA (earnings before interest, taxes, depreciation and amortization) rose from the preceding quarter to $8.2-million and a net loss of $335,000 (nil per share) was posted for the quarter. Santander zinc mine operations income for the second quarter increased from the prior quarter to $5.2-million on strong concentrate sales revenue of $28.9-million. Santander site cash costs in the second quarter were 32 U.S. cents per pound of payable zinc equivalent produced, or $35.64 (U.S.) per tonne milled.

This release should be read in conjunction with Trevali's unaudited condensed consolidated financial statements and management discussion and analysis for the three months and six months ended June 30, 2016, which is available on Trevali's website and on SEDAR. All financial figures are in Canadian dollars unless otherwise stated.

2016 second quarter results highlights:

• Santander concentrate sales revenue of $28.9-million, up 7 per cent from the first quarter of 2016;
• EBITDA of $8.2-million;
• Income from Santander mine operations was $5.2-million, up 25 per cent from the first quarter of 2016;
• Net loss of $335,000, or nil per share;
• Total cash position of $14.5-million;
• Second quarter Santander site cash costs of 32 U.S. cents per pound of payable zinc equivalent produced, or $35.64 (U.S.) per tonne milled, in line with recently revised 2016 cost guidance of $35 (U.S.) to $38 (U.S.) per tonne milled;
• Record Santander mill throughput of 219,086 tonnes resulting in quarterly production of 15.2 million payable pounds of zinc, 5.6 million payable pounds of lead and 222,121 payable ounces of silver;
• Provisional realized commodity selling prices for Santander 2016 second quarter production was 89 U.S. cents per pound zinc, 79 U.S. cents per pound lead and $17.09 (U.S.) per ounce silver at international benchmark terms under the company's offtake agreement with Glencore;
• Santander mill recoveries remain higher than design at 89 per cent for zinc, 87 per cent for lead and 73 per cent for silver.

"Santander delivered yet another strong quarter with record mill throughput and site cash costs remaining in line with the recent recently reduced 2016 cost guidance. Santander remains one of the lowest-cost, most-efficient operating mines in the Central Mineral belt of Peru. Additionally, stronger zinc prices in Q2 versus Q1 benefited the company's operations, and we're also seeing a significantly stronger metal price environment so far in Q3 with zinc prices touching 15-month highs," stated Dr. Mark Cruise, Trevali's president and chief executive officer. "Trevali also recently announced commercial production at its Caribou zinc mine in New Brunswick, where similar optimization initiatives are being applied to boost the efficiencies at the operation. As zinc fundamentals continue to look increasingly bullish, Trevali remains well positioned as the only primary zinc producer on the Toronto Stock Exchange and one of only a few globally."

2016 second quarter financial results conference call

The company will host a conference call and audio webcast at 10:30 a.m. Eastern Time (7:30 a.m. Pacific Time) on Friday, Aug. 12, 2016, to review the second quarter financial results. Participants are advised to dial in five minutes prior to the scheduled start time of the call.

Conference call dial-in details

Toll-free (North America):  1-877-291-4570

Toronto and international:  1-647-788-4919

                         SUMMARY FINANCIAL RESULTS 
            (in millions of dollars, except per-share amounts)
 
                                                      Q2 2016        Q2 2015

Revenues                                                $28.9          $30.5
Income from Santander mining operations                  $5.2           $5.4
Net income (loss)                                       ($0.3)          $0.2
Basic income per share                                 ($0.00)         $0.00

                     SANTANDER PRODUCTION STATISTICS

                                                       Q2 2016       Q2 2015 
 
Tonnes mined                                           177,415       191,259 
Tonnes milled                                          219,086       190,498 
Average head grades                                                       
Zinc (%)                                                 4.16%         4.27%
Lead (%)                                                 1.39%         2.47%
Silver (ounces per ton)                                   1.32          1.85 
Average recoveries                                                         
Zinc (%)                                                   89%           90%
Lead (%)                                                   87%           88%
Silver (%)                                                 73%           78%
Concentrate produced (dry metric tonnes)                                    
Zinc                                                    16,601        14,708 
Lead                                                     4,865         7,081 
Concentrate grades                                                         
Zinc (%)                                                   49%           50%
Lead (%)                                                   55%           59%
Silver (ounces per ton)                                   43.7          39.5 
Payable production                                                         
Zinc (pounds)                                       15,157,944    13,684,987 
Lead (pounds)                                        5,575,792     8,706,534 
Silver (ounces)                                        222,121       291,177 

                         SANTANDER SALES SUMMARY
                                                       Q2 2016       Q2 2015

Zinc concentrate (DMT)                                  17,112        14,511
Lead concentrate (DMT)                                   4,964         7,048
Payable zinc pounds                                 15,229,650    13,229,078
Payable lead pounds                                  5,711,542     8,681,007
Payable silver ounces                                  222,166       290,879
Revenues (USD$)                                     22,395,044    24,824,966
Average realized metal price                                               
Zinc                                                    $ 0.89        $ 0.95
Lead                                                    $ 0.78        $ 0.82
Silver                                                 $ 17.09       $ 16.33
Zinc-equivalent pounds sold                         24,433,262    25,685,704
Zinc-equivalent pounds payable produced             24,244,311    26,171,782
Site cash cost per equivalent 
payable zinc pound produced (USD$)                      $ 0.32        $ 0.33
Cash cost per tonne milled (USD$)                      $ 35.64       $ 44.95

Santander zinc mine, Peru

Production

Santander operations delivered another excellent quarter with production of 15.2 million payable pounds of zinc, 5.6 million payable pounds of lead and 222,121 payable ounces of silver. Approximately 219,086 tonnes of mineralized material were processed through the mill with underground mine production of approximately 177,415 tonnes.

Metal production remains in line with the recently increased 2016 annual guidance of 57 million to 60 million pounds of payable zinc in concentrate grading approximately 50 per cent zinc, 22 million to 25 million pounds of payable lead in concentrate grading approximately 56 per cent to 58 per cent lead and 800,000 to one million ounces of payable silver.

The mill also continues to perform at above-design recoveries with 2016 second quarter recoveries averaging 89 per cent for zinc, 87 per cent for lead and 73 per cent for silver. Average head grades were 4.16 per cent zinc, 1.39 per cent lead and 1.32 ounces per ton silver with production of 16,601 tonnes of zinc concentrate averaging 49 per cent and 4,865 tonnes of lead-silver concentrate averaging 55 per cent lead and 43.7 ounces per ton silver.

During the quarter, the company sold approximately 15.2 million pounds of zinc, 5.7 million pounds lead and 222,166 ounces of silver. Revenues for the first quarter were approximately $22.4-million (U.S.), with average realized metal prices for the quarter of 89 U.S. cents per pound of zinc, 78 U.S. cents per pound of lead and $17.09 (U.S.) per ounce of silver.

Second quarter cash costs were approximately $35.64 (U.S.) per tonne, on track with the recently reduced 2016 preliminary annual cost guidance of $35 (U.S.) to $38 (U.S.) per tonne milled (down from the previous guidance of $40 (U.S.) to $43 (U.S.) per tonne milled). The cost savings are primarily attributed to the increased production and implementation of site-wide business initiatives, thus a larger impact on fixed costs, as well as the efficiencies and cost-cutting measures achieved to date. (Please refer to non-IFRS (international financial reporting standards) measures in the June 30, 2016, management discussion and analysis.)

The company also received the additional geochemical assay results from its 2016 resource conversion and exploration program, which is testing the deeper levels below the currently defined resources of the Magistral North and Central deposits. As previously noted the majority of drill holes continue to return thick intervals of multiple stacked massive sulphide replacement mineralization whose zinc, lead and silver grades are materially higher (typically ranging from approximately 25 per cent to over 100 per cent) than those currently being actively mined and processed. All zones, including the newly discovered, emergent Oyon zone, remain open for expansion, and the company believes that there is very significant resource potential remaining in all three zones where limited downdip drilling has occurred. During the third quarter, diamond drilling will test the depth extents of the Magistral Central and Fatima zones. Please see the company's news releases dated April 7, 2016, and June 2, 2016, for additional details.

Outlook

Santander operations continue in steady-state 2,000-tonne-per-day nameplate production, with daily production commonly exceeding this by approximately 15 per cent to 25 per cent. The company continues to work with partner Glencore's local subsidiary, Empresa Minera Los Quenuales SA, to maximize and further improve operational efficiencies.

An approximate 3,000-metre underground drill program is in progress in order to convert inferred tonnes to a higher-confidence category and to follow up on 2015 exploration successes that tested the deeper levels below the currently defined resources of the Magistral zones. Contingent on results, additional drilling may occur. The program will continue to define and potentially expand the newly discovered Rosa, Fatima and emergent Oyon lead-silver-zinc zones, in addition to the Magistral zones, which all remain open for expansion at depth.

Caribou zinc mine, Canada

The company continued to successfully advance Caribou commissioning activities during the second quarter, culminating with the declaration of entering commercial production as of July 1, 2016.

Focus continues to reach design mill throughput, including associated recoveries and concentrate quality. Scheduled mill optimization initiatives during the third quarter include: completion of the SAG (semi-autogenous grinding) mill modifications -- primarily installation of the newly designed lifters and shell liners; mineralogical and size-by-size analysis to track progress; continuing mill water chemistry trials; zinc and lead cleaner density trials; completion of recommended pumping infrastructure upgrades; and implementation/upgrading of site-wide preventative maintenance program.

Mine optimization initiatives include, but are not limited to, the continuing 10,000-metre definition drilling and resource conversion program, modification of drill-blast designs, targeted fleet efficiency, roadway upgrades, and enhanced fleet maintenance.

              CARIBOU ZINC MINE -- KEY COMMISSIONING AND 
        PRELIMINARY PRODUCTION STATISTICS (FIGURES ROUNDED)

                                                  Q1 2016      Q2 2016

Tonnes mined                                      191,005      188,353
Tonnes milled                                     200,670      186,246
Average head grades 
Zinc (%)                                             6.0%         5.9%
Lead (%)                                             2.6%         2.7%
Silver (ounces per ton)                               2.0          2.5
Average recoveries (%)
Zinc                                                  71%          77%
Lead                                                  58%          57%
Silver (in lead concentrate)                          38%          31%
Concentrate produced (dry metric tonnes)
Zinc                                               17,732       18,155
Lead                                                7,586        7,048
Concentrate grades  
Zinc (%)                                            47.8%        46.8%
Silver (ounces per ton)                               4.0          5.0
Lead (%)                                            39.3%        40.9%
Silver (ounces per ton)                              20.3         20.3

Qualified person and quality control/quality assurance

Dr. Mark D. Cruise, EurGeol, Trevali's president and chief executive officer, and Paul Keller, PEng, Trevali's chief operating officer, who are qualified persons as defined by National Instrument 43-101, have supervised the preparation of the scientific and technical information that forms the basis for this news release. Dr. Cruise is not independent of the company as he is an officer, director and shareholder. Mr. Keller is not independent of the company as he is an officer and shareholder.

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