Mr. Juan Gavidia reports

ORVANA REPORTS Q1 2018 FINANCIAL RESULTS; EL VALLE TRANSITION TO HIGHER GOLD GRADE OXIDES UNDERWAY

Orvana Minerals Corp. has released its financial and operational results for the first quarter (Q1 2018). The company is also providing financial and operational updates for its El Valle and Carles mines (collectively, El Valle) operations in northern Spain and its Don Mario mine in Bolivia.

The unaudited condensed interim consolidated financial statements for Q1 2018 and management's discussion and analysis (MD&A) related thereto are available on SEDAR and on the company's website.

First quarter of fiscal 2018 highlights:

• Quarterly gold production of 23,172 ounces and copper production of 2.8 million pounds;
• El Valle oxide production increased to 37 per cent of mill ore feed;
• Consolidated COC (cash operating costs) and AISC (all-in sustaining costs) of $999 and $1,253, respectively;
• EBITDA (earnings before interest, taxes, depreciation and amortization) of $4.2-million;
• Cash balance of $20.6-million at Dec. 31, 2017.

Fiscal 2018 outlook:

• El Valle transition to higher-gold-grade oxide mining continues, targeting an oxide-skarn plant throughput ratio of 50 per cent;
• Don Mario consistently delivering planned performance from CIL circuit;
• Consolidated production and cost guidance maintained;
• Orvana seeking strategic and transformative transactions to enhance profile.

Q1 2018 highlights

The company's strategy to increase production at its El Valle operation targets productivity enhancements to allow for delivery of higher gold ore grades to the mill that are expected to result in higher gold ounces to be produced and reduced unitary costs, while, at Don Mario, the company is focusing on nearby gold deposits to extend its mine life. The company reports the following positive developments in the first quarter of fiscal 2018.

El Valle -- ramp-up of oxides production continues

The proportion of higher-gold-grade oxide production delivered to the mill from the El Valle mine increased to 37 per cent, up from 24 per cent in the second half of fiscal 2017. The company continues to target a ratio of 50 per cent oxides to skarns delivered to the mill by mid-2018.

Production shortfalls were experienced in the first quarter due to fleet availability and the failure in the mine's ventilation system, as well as an unexpected buildup of in-process gold in the plant circuit. A number of process changes in the mine and plant, in addition to maintenance investments, are expected to allow El Valle to attain its stated production guidance for the remainder of the fiscal year.

Don Mario -- consistent performance

Don Mario continued to generate consistent results from its carbon-in-leach circuit, producing 12,388 ounces of gold with recovery rates averaging 85.8 per cent in the quarter.

Prestripping activities at the company's nearby Cerro Felix gold deposit commenced during the first quarter. The company is aiming to begin production from the Cerro Felix deposit starting in the third quarter of fiscal 2018.

Juan Gavidia, interim chief executive officer, stated: "Our Don Mario operation continues to deliver consistently strong results from LMZ ore processed through its carbon-in-leach circuit, and we look forward to maintaining this trend with ore from our nearby Cerro Felix gold deposit shortly. At El Valle, our ramp-up of higher-gold-grade oxide production continues, though on a longer time frame than initially planned. The challenges that we experienced at El Valle in Q1 are in the process of being resolved. Our updated planning for the balance of fiscal 2018 indicates that a portion of our first quarter shortfall will be recovered over the remainder of the fiscal year, bringing annual production and costs in line with our guidance."

Strategy and outlook

The company continues to pursue its objectives of optimizing production, lowering unitary cash costs, maximizing fee cash flow, extending the life-of-mine of its operations and growing its operations to deliver shareholder value.

El Valle

At El Valle, the primary objective in fiscal 2018 continues to be replacing mined skarn tonnes with higher-gold-grade oxides in order to bring the proportion of oxide ore processed in the plant up to a target of 50 per cent, thereby substantially increasing ore grades delivered to the mill and increasing gold ounce production. Through additional geological and geotechnical work, the company also expects to significantly increase the reliability of the mine plan by minimizing the proportion of inferred material in its mine planning and taking additional measures to address grade variability. Infrastructure and fleet maintenance investments to improve productivity and efficiency will continue to be made through fiscal 2018 as planned. It is anticipated that these actions will also positively impact El Valle's unitary costs in fiscal 2018.

Don Mario

At Don Mario, the company continues to produce consistent results from its recommissioned CIL circuit, producing an average of over 12,000 ounces of gold per quarter from the lower mineralized zone. Don Mario continues to pursue realization of a number of known opportunities for mine life extension. In the near term, the company expects to commence prestripping activities at Cerro Felix in the first quarter of fiscal 2018 and intends to transition its mine production to this satellite deposit following the depletion of the LMZ, expected in mid-fiscal 2018. The company has also been evaluating opportunities to further extend the life of Don Mario, including processing existing mineral stockpiles, potential mining of the company's Las Tojas deposit, potential mining of the UMZ bottom pit and reprocessing gold-bearing tailings.

While maintaining its focus on optimizing current operations, the company will also evaluate strategic alternatives that could serve to transform the profile of the company.

               FISCAL YEAR (FY) 2018 PRODUCTION AND COST GUIDANCE

                                   Q1 2018 actual    FY 2018 guidance
El Valle production     
Gold (oz)                                  10,784    65,000 to 72,000
Copper (million lb)                           0.9          4.1 to 4.5
Don Mario production   
Gold (oz)                                  12,388    45,000 to 48,000
Copper (million lb)                           1.9          2.0 to 2.3
Total production        
Gold (oz)                                  23,172  110,000 to 120,000
Copper (million lb)                           2.8          6.1 to 6.8
Total capital expenditures                 $6,207  $24,000 to $27,000
Cash operating costs (byproduct) 
($/oz) gold (1)                              $999      $950 to $1,050
All-in sustaining costs (byproduct) 
($/oz) gold (1)                            $1,253    $1,150 to $1,250

(1) FY 2018 guidance assumptions for COC and AISC include byproduct 
commodity prices of $2.75 per pound of copper and an average euro-to-
U.S.-dollar exchange rate of 1.20.

               SELECTED OPERATIONAL AND FINANCIAL INFORMATION

                                            Q1 2018   Q4 2017   Q1 2017   FY 2017
Operating performance
Gold  
Production (oz)                              23,172    27,666    15,699     90,292
Sales (oz)                                   21,995    29,639    14,060     88,636
Average realized price ($/oz)                $1,269    $1,268    $1,260     $1,258
Copper
Production (000 lb)                           2,759     3,601     3,588     13,893
Sales (000 lb)                                2,700     3,850     3,598     14,686
Average realized price ($/lb)                 $2.82     $2.74     $2.32      $2.50
Financial performance  (in thousands of
dollars, except per-share amounts)                                 
Revenue                                     $34,170   $46,156   $23,458   $137,999
Mining costs                                $28,060   $34,562   $24,356   $116,370
Gross margin                                   $458    $3,274   $(6,853)   $(5,480)
Net (loss)                                  $(3,379)  $(1,722)  $(8,154)  $(15,555)
Net (loss) per share (basic/diluted)         $(0.02)   $(0.01)   $(0.06)    $(0.11)
EBITDA (1)                                   $4,182   $10,313   $(3,334)   $16,535
Operating cash flows                         $2,147   $12,328     $(299)   $20,726
Ending cash and cash equivalents            $20,617   $23,811    $9,521    $23,811
Capital expenditures (2)                     $6,207    $5,818    $7,719    $21,332
Cash operating costs (byproduct) 
($/oz) gold (1)                                $999      $902    $1,258     $1,015
All-in sustaining costs (byproduct) 
($/oz) gold (1) (2)                          $1,253    $1,145    $1,732     $1,269

(1) EBITDA, cash operating costs and all-in sustaining costs are non-IFRS 
(international financial reporting standards) performance measures. 

(2) Each reported period excludes capital expenditures incurred in the period 
which will be paid in subsequent periods and includes capital expenditures 
incurred in prior periods and paid for in the applicable reporting period. The 
calculation of AISC includes capex incurred (paid and unpaid) during the period.

About Orvana Minerals Corp.

Orvana is a multimine gold and copper producer. Orvana's operating assets consist of the producing gold-copper-silver El Valle and Carles mines in northern Spain and the producing gold-copper-silver Don Mario mine in Bolivia.

We seek Safe Harbor.