Mr. Juan Gavida reports

ORVANA REPORTS Q2 2018 FINANCIAL RESULTS; EL VALLE ACHIEVES HIGHEST GOLD PRODUCTION SINCE 2014

Orvana Minerals Corp. has released its financial and operational results for the second quarter. The company has also provided financial and operational updates for its El Valle and Carles mine (collectively, El Valle) operations in northern Spain and its Don Mario mine complex in Bolivia.

Second quarter of fiscal 2018 highlights:

• Consolidated quarterly gold production of 24,788 ounces, copper production of 2.6 million pounds;
• El Valle oxide production sustained at 34 per cent of mill ore feed, achieving highest gold-ounce production since 2014;
• Consolidated COC (cash operating costs) and AISC (all-in sustaining costs) of $1,055 and $1,309, respectively;
• EBITDA (earnings before interest, taxes, depreciation and amortization) of $4.5-million;
• El Valle transition to higher-gold-grade oxide mining continues, targeting a 50-per-cent oxide-skarn plant-throughput ratio;
• Don Mario transitioned mining activities successfully to Cerro Felix gold deposit.

The unaudited condensed interim consolidated financial statements for the second quarter of 2018 and management's discussion and analysis related thereto are available on SEDAR and on the company's website.

Q2 2018 highlights:

• El Valle -- Delivery of higher gold production due to 25-per-cent gold-grade improvement:
  • The progress made to increase the proportion of oxide production delivered to the mill was sustained, averaging 34 per cent over the second quarter of fiscal 2018. This allowed for a 25-per-cent gold-grade improvement during the same period to 3.36 grams per tonne and quarterly production of 15,139 gold ounces, the highest level since 2014.
  • A number of geological and geotechnical process changes in the mine, metallurgical process changes to improve recovery of in-process gold, and maintenance investments are expected to allow El Valle to progress toward a targeted 50-per-cent oxides processing blend.
• Don Mario -- Production from Cerro Felix gold deposit commences:
  • Production at Don Mario successfully transitioned from the depleted LMZ to the open-pit Cerro Felix gold deposit during the second quarter of fiscal 2018. Gold recoveries from the Don Mario CIL circuit rose to 91.3 per cent, positively impacted by the absence of copper in the ore processed from Cerro Felix.
  • Gold production results were impacted by lower grades due to ore dilution caused by stripping activities during the ramp-up of Cerro Felix. Gold grades are expected to recover in the second half of fiscal 2018.

Juan Gavidia, interim chief executive officer, stated: "At El Valle, we are proud of the results of our ramp-up of higher-gold-grade oxide production, as we have reached our highest gold quarterly production levels since 2014. Similarly, at Don Mario, we achieved a smooth transition to production from our Cerro Felix gold deposit. We have reviewed our production and cost guidance based on our first half results, and believe we will achieve guidance on both fronts."

Strategy and outlook

The company continues to pursue its objectives of optimizing production, lowering unitary cash costs, maximizing free 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.

Don Mario

At Don Mario, the company continues to produce consistent results from its recommissioned CIL (carbon-in-leach) circuit, with a recovery rate averaging above 90 per cent during the second quarter of fiscal 2018. Don Mario continues to pursue realization of a number of known opportunities for mine-life extension, including processing existing mineral stockpiles, pursuing mining of the company's Las Tojas deposit and reprocessing gold-bearing tailings. With regard to exploration activities on the Las Tojas property, the company expects to release full exploration results by the end of fiscal 2018.

                           FY 2018 PRODUCTION AND COST GUIDANCE

                                                      YTD 2018 actual     FY 2018 guidance

El Valle production                                                                       
Gold (oz)                                                      25,923     65,000 to 72,000
Copper (million lb)                                               2.3           4.1 to 4.5
Don Mario production                                                                        
Gold (oz)                                                      22,037     45,000 to 48,000
Copper (million lb)                                               3.1           2.0 to 2.3
Total production                                                                            
Gold (oz)                                                      47,960   110,000 to 120,000
Copper (million lb)                                               5.4           6.1 to 6.8
Total capital expenditures                                    $11,669   $24,000 to $27,000
Cash operating costs (byproduct)  (per oz) gold (1)            $1,029       $950 to $1,050
All-in sustaining costs (byproduct) (per oz) gold (1)          $1,283     $1,150 to $1,250

(1) Fiscal year 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 
  
                                   Q2 2018    Q1 2018    Q2 2017   YTD 2018    YTD 2017
Operating performance                                                                              
Gold                                                                                               
Production (oz)                     24,788     23,172     20,513     47,960      36,212
Sales (oz)                          25,489     21,995     20,773     47,484      34,710
Average realized price/oz           $1,304     $1,280     $1,238     $1,293      $1,247
Copper                                                                                             
Production (000 lb)                  2,609      2,759      2,867      5,368       6,455
Sales (000 lb)                       2,531      2,700      3,032      5,231       6,592
Average realized price/lb            $2.80      $2.82      $2.50      $2.81       $2.40
Financial performance (in 000s)                                        
Revenue                            $36,930    $34,170    $31,714    $71,100     $55,172
Mining costs                       $30,525    $28,060    $26,272    $58,585     $50,628
Gross margin                         ($394)      $458         $8        $64     ($6,845)
Net (loss)                         ($3,505)   ($3,379)   ($2,233)   ($6,884)   ($10,387)
EBITDA (1)                          $4,473     $4,182     $4,774     $8,655      $1,440
Operating cash flows               ($5,486)    $2,147       $928    ($3,339)       $629
Ending cash and cash equivalents   $12,482    $20,617    $14,210    $12,482     $14,210
Capital expenditures (2)            $5,462     $6,207     $4,501    $11,669     $12,220
Cash operating costs 
(byproduct) ($/oz) gold (1)         $1,055       $999       $993     $1,029      $1,099
All-in sustaining costs 
(byproduct) ($/oz) gold (1) (2)     $1,309     $1,253     $1,214     $1,283      $1,422

(1) Earnings before interest, taxes, depreciation and amortization, 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 capital 
expenditures incurred (paid and unpaid) during the period.
  

Operational restructuring

The company also announced a restructuring of operations to optimize operational efficiency, improve performance and build shareholder value. In connection with the operational restructuring, the company has consolidated management into its operations in Spain by appointing Nuria Menendez as its new chief financial officer. Ms. Menendez has been an employee of OroValle Minerals SL, a wholly owned subsidiary of the company, since September, 2014. In September, 2016, Ms. Menendez was appointed general manager of OroValle to manage and lead the operations at El Valle. Since joining OroValle, Ms. Menendez has taken the lead in managing OroValle's strategy in optimizing operations and increasing production. Ms. Menendez will replace Jeffrey Hillis, who is leaving the company to pursue other opportunities.

Prior to joining OroValle, Ms. Menendez was a manager at Deloitte Spain for more than 12 years with both public and private company clients in various industries. She received her bachelor of business and administration from the University of Oviedo in 2000. Ms. Menendez subsequently received her master in business administration in finance and certified chief financial officer program designation.

"I would like to welcome Ms. Menendez to the executive management team of Orvana," stated Gordon Pridham, the chairman of the board of directors. "Already familiar with the company's operations during her tenure as OroValle's general manager, Ms. Menendez also brings with her the professional experience necessary to manage the company's strategy of optimizing operations at both of our mining operations. On behalf of the board of directors I would like to thank Mr. Hillis for his contributions over the last three years. The board and management team wish him well in his future endeavours."

About Orvana Minerals Corp.

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

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