Mr. Fernando Ganoza reports

ATICO REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2015

Atico Mining Corp. has released its financial results for the three months ended Sept. 30, 2015, posting income from operations of $1,002,930 and a net loss of $509,440. (All amounts are expressed in U.S. dollars, unless otherwise stated.)

Fernando E. Ganoza, chief executive officer, commented: "In the third quarter, despite a challenging metal price environment, Atico saw its strongest operating performance to date. These results, along with two concentrate shipments in the quarter, generated improvements in the company's cash and working capital positions while reducing the long-term debt." Mr. Ganoza continued, "With the operation performing as expected going into the fourth quarter, we anticipate exiting the year with strong production results as well as robust free cash flow for fiscal 2015."

Third quarter financial highlights

• Net loss for the three months ended Sept. 30, 2015, amounted to $510,000, compared with net income of $360,000 for the same period last year. Net loss was affected by higher deferred income tax expense as a result of the devaluation of the Colombian peso. The third quarter 2015 income from mining operations of $2.43-million was affected by a significant increase in concentrate shipped and provisionally invoiced, partially offset by lower realized prices and lower metal content in the concentrate as compared with the third quarter of 2014.
• Sales for the quarter increased 45 per cent to $10.84-million when compared with the same period last year. The increase is due to a significant increase in concentrate shipped, partially offset by lower realized prices and lower metal content in the concentrate. Copper accounted for 83.5 per cent of the total, and gold and silver for 16.3 per cent and 0.2 per cent respectively. The average realized price per metal on provisional invoicing was $2.38 per pound of copper, $1,134.12 per ounce of gold and $15.04 per ounce of silver.
• Cash costs (a non-GAAP (generally accepted accounting principles) measure) were $94.70 per tonne of processed ore and 98 cents per pound of payable copper produced, a 36-per-cent increase over the cash cost per pound of payable copper in the same period last year.
• Income from operations was $1-million, while cash flow from operations, before changes in working capital, was $3.84-million. Capital expenditures amounted to $2.45-million.
• At quarter-end, 1,204 wet metric tonnes of non-invoiced concentrate remained at the company's warehouses.

           THIRD QUARTER SUMMARY OF FINANCIAL RESULTS

                                            Q3 2015       Q3 2014

Revenue                                $ 10,838,631  $  7,486,882
Cost of sales                          $ (8,409,915) $ (4,728,022)
Income from mining operations          $  2,428,716  $  2,758,860
As a % of revenue                                22%           37%
Selling, general and administrative
expenses                               $  1,363,746  $  1,220,717
Income from operations                 $  1,002,930  $  1,272,900
As a % of revenue                                 9%           17%
Income before income taxes             $    455,919  $    828,405
Net income (loss)                      $   (509,440) $    363,504
As a % of revenue                                -5%            5%
Operating cash flow before changes in
non-cash operating working capital
items(1)                               $  3,844,012  $  2,229,883

(1) Non-GAAP measures.

Third quarter operations review

In the quarter, the company produced 3.3 million pounds of copper, 2,969 ounces of gold, and 12,137 ounces of silver. When compared with the same period last year, production increased by 20 per cent, 1 per cent and 47 per cent for copper, gold and silver, respectively. The significant increase in copper produced is mainly explained by a 31-per-cent increase in processed ore, partially offset by a 10-per-cent reduction in copper head grade. In the case of gold, the increase in processed tonnes was largely offset by a 22-per-cent decrease in the gold head grade.

Cash costs for the period were $94.70 per tonne of processed ore and 98 cents per pound of payable copper produced, a 15-per-cent decrease in the cost per tonne and a 36-per-cent increase in the cash cost per pound of payable copper over the same period last year. The increase in the cash cost per pound of payable copper, net of byproducts, is mainly explained by a reduced contribution of gold and silver credits due to lower prices. This effect was partially offset by the lower cash cost per processed tonne.

                  THIRD QUARTER OPERATIONAL DETAILS
                                                      Q3 2015   Q3 2014
Production (contained in concentrates)(i)
Copper (000s lb)                                        3,255     2,702
Gold (ounces)                                           2,969     2,932
Silver (ounces)                                        12,137     8,257
Mine
Tonnes of ore mined                                    48,319    40,088
Mill
Tonnes processed                                       48,015    36,505
Tonnes processed per day                                  641       493
Copper grade (%)                                         3.26      3.63
Gold grade (g/t)                                         2.81      3.60
Silver grade (g/t)                                      12.27     13.48
Recoveries
Copper (%)                                               94.4      92.4
Gold (%)                                                 68.5      69.5
Silver (%)                                               64.1      52.2
Concentrates
Copper concentrates (dmt)                               7,830     5,768
Copper (%)                                               18.9      21.2
Gold (g/t)                                               11.8      15.8
Silver (g/t)                                             48.2      44.5
Payable copper produced (000s lb)                       3,092     2,567
Cash cost per pound of payable copper(1)(2) ($/lb)       0.98      0.72

(i) Subject to adjustments due to final settlement.
(1) Non-GAAP measure.
(2) Net of byproduct credits 

The financial statements and MD&A (management's discussion and analysis) are available on SEDAR and have also been posted on the company's website.

El Roble mine

The El Roble mine is a high-grade underground copper and gold mine with nominal processing plant capacity of 650 tonnes per day, located in the department of Choco in Colombia. Its commercial product is a copper-gold concentrate.

Since obtaining control of the mine on Nov. 22, 2013, Atico has upgraded the operation from a nominal capacity of 400 tonnes per day. The mine has a continuous operating history of 22 years, with recorded production of 1.5 million tonnes of ore at an average head grade of 2.6 per cent copper and an estimated gold grade of 2.5 grams per tonne. Copper and gold mineralization at the El Roble property occurs in volcanogenic massive sulphide (VMS) lenses.

Since entering into the option agreement in January, 2011, to acquire 90 per cent of El Roble, Atico has aggressively explored the mine and surrounding claims. The company has completed 11,740 metres of diamond drilling and identified numerous prospective targets for VMS deposits on the 6,679-hectare property. This exploration led to the discovery of high-grade copper and gold mineralization below the 2,000 level, the lowest production level of the El Roble mine. Atico has developed a new adit access from the 1,880 elevation to develop these new resources.

El Roble has an inferred mineral resource of 1.58 million tonnes grading 4.45 per cent copper and 3.17 g/t gold, at a cut-off grade of 0.72 per cent copper equivalent (see Atico's technical report dated Aug. 27, 2013). Mineralization is open at depth and along strike, and the company plans to further test the limits of the resource.

On the larger land package, the company has identified a prospective stratigraphic contact between volcanic rocks and black and grey cherts that has been traced by Atico geologists for 10 kilometres. This contact has been determined to be an important control on VMS mineralization on which Atico has identified 15 prospective target areas for VMS-type mineralization occurrence, which is the focus of the surface drill program at El Roble.

Qualified person

Thomas Kelly (SME registered member 1696580), chief operating officer of the company and a qualified person under National Instrument 43-101 standards, is responsible for ensuring that the technical information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico.

We seek Safe Harbor.