Mr. Keith Henderson reports

CENTENERA OPTIONS OUT ITS ORGANULLO GOLD PROJECT, SALTA PROVINCE, ARGENTINA

Centenera Mining Corp. has entered into a property option agreement with Yamana Gold Inc., whereby Yamana, through a subsidiary, has been granted an option to acquire an initial 70-per-cent interest in the company's Organullo gold project. Organullo is located in Salta province, northwestern Argentina.

"Organullo is a gold exploration project that is currently 100 per cent owned by Centenera Mining. The project has the potential to host a large, bulk-tonnage gold deposit. However, significant drilling is required in order to fully investigate that potential," commented Keith Henderson, Centenera Mining's president and chief executive officer. "Under the terms of the agreement, the related expenditures will be funded solely by Yamana, potentially shielding Centenera shareholders from future dilution, while allowing them to maintain a minority interest in the project."

Organullo option terms

Under the terms of the agreement, Yamana may exercise the option through: (i) the preparation and delivery of a prefeasibility study prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, that reports an aggregate measured and indicated mineral resource of a minimum of one million gold equivalent ounces by the sixth anniversary of the effective date of the agreement; (ii) the completion of property-related expenditures of at least $5-million (U.S.) in the aggregate; and (iii) cash payments of $1.25-million (U.S.) in the aggregate, as illustrated in the attached table.

                                  (all amounts in U.S. dollars)

Date                              Cash payments    Expenditure commitments        NI 43-101 report 
    
On signing of agreement         $ 100,000 (paid)                         -                       -             
First anniversary                       100,000                          -                       -        
Second anniversary                      150,000                 $1,250,000                       -               
Third anniversary                       200,000                          -                       -        
Fourth anniversary                      200,000                  3,750,000                       -               
Exercise of option                      500,000                          -    Prefeasibility study
Total                                 1,250,000                  5,000,000                       -              

Yamana shall be responsible for financing all exploration expenditures incurred during the option period. Upon the exercise of the option, Yamana and Centenera Mining shall be deemed to have formed a joint venture, with the initial joint venture interests being 70 per cent as to Yamana and 30 per cent as to Centenera Mining; provided that prior to or concurrently with the exercise of the option, Yamana shall have a top-up right to acquire an additional 5-per-cent interest in the project (being 75 per cent in aggregate) by making a cash payment to Centenera Mining equal to $3 (U.S.) per gold equivalent ounce of measured and indicated mineral resources reported in the prefeasibility study.

Yamana and Centenera Mining shall each finance exploration and/or development work programs in proportion to their joint venture ownership percentage, provided that if either party contributes less than its proportionate interest to a work program, that party's interest in the joint venture shall be adjusted in accordance with the party's contribution. If, as a result, such party dilutes its interest to 10 per cent or less, the diluted party's ownership interest shall automatically convert to a 2-per-cent net smelter return royalty. The non-diluting party may repurchase 1 per cent of the net smelter return royalty within 30 days of a production decision being made on the project for $5-million (U.S.).

About Organullo

The Organullo gold project is a relatively advanced exploration project and has been explored in the past by several companies, including Triton Mining Corp., Northern Orion Explorations Ltd., Newmont Mining and Cardero Resource Corp. The project has 43 historical drill holes totalling 8,174 metres of diamond and reverse circulation drilling. A report entitled, "Organullo Exploration Targets & Pit Optimization," dated June 6, 2012, was authored by Robin Rankin of GeoRes, Australia, and the work resulted in potential exploration target tonnages and potential exploration target grades of gold at the Organullo property, which were reported at lower and upper ranges (please see the attached table). This work is described in an NI 43-101 technical report entitled, "2015 Technical Report on the Organullo Project," dated April 17, 2015, and authored by Equity Exploration Consultants Ltd. The project requires additional drilling to fully define mineralization in the area of historical drilling and to fully test the exploration potential of the project.

                            ESTIMATION OF TARGET TONNAGE AND GRADE AT ORGANULLO
  
Target range    Base case gold cut-off (g/t)    Tonnage (thousands)    Gold grade (g/t)    Gold ounces (thousands)

Lower                                   0.5                 19,800                0.94                        600 
Upper                                   0.5                 31,600                0.92                        940

Estimation of target tonnage and grade was determined using two common strike and dip directions, each characteristic of a specific exploration target area. Block models were built for two target areas. Block sizes were defined to emphasize the narrow vein orientation, and gold grades were estimated into each model's blocks using parameters adapted to the common vein direction in each area. Raw drill hole data were composited to 2.0 metres downhole. No limits were applied to either input data or output estimates, and the estimation scan distances of up to 100 metres in the plane of the veins were adequate to fill the blocks between drill holes. Block estimation was done using an inverse-distance-squared algorithm. Following this evidence, increasing the scan distances by simple multiples produced reasonable figures for ranges of exploration targets. Scan distances of 200 metres and 300 metres were used for lower and upper ranges of exploration targets.

It should be noted that these potential exploration target quantities and grades are conceptual in nature, that insufficient exploration and geological modelling have been done to define a mineral resource, and that it is uncertain if further exploration will result in the delineation of a mineral resource.

About Centenera Mining Corp.

Centenera Mining is a mineral resource company focused 100 per cent on mineral resource assets in Argentina, which include gold, silver, copper-gold and lithium assets. Centenera Mining's assets are located in Salta, San Juan and Santa Cruz provinces, which are widely recognized as being favourable jurisdictions for mining and exploration.

About Yamana Gold Inc.

Yamana Gold is a Canadian-based gold producer with significant gold production, gold development-stage properties, exploration properties and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. Yamana Gold plans to continue to build on this base through existing operating mine expansions, throughput increases, development of new mines, the advancement of its exploration properties and, at times, by targeting other gold consolidation opportunities, with a primary focus in the Americas.

Qualified person

Keith Henderson, PGeo, is Centenera Mining's qualified person as defined by NI 43-101 and has reviewed the scientific and technical information that forms the basis for portions of this news release. He has approved the disclosure herein. Mr. Henderson is not independent of the company as he is an employee of the company and holds securities of Centenera Mining.

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