Mr. Brian Maher reports

PERUVIAN RECEIVES KEY PERMITS TO BEGIN TEST MINING PROGRAM AT IGOR

Together with its mining partner Proyectos La Patagonia SAC, Peruvian Precious Metals Corp. has received approval of the key permit to begin its test mining and underground bulk sampling program at the company's Igor project in the department of La Libertad in northern Peru. The Regional Government Ministry of Energy and Mines in La Libertad (GREMH-LL) has approved the company's plan de minado, a detailed technical study of the test mining and bulk sampling program, land use in the area of the test mining program, transportation of materials and mining rate. In addition, Proyectos La Patagonia has received the permit to immediately begin preparation and predevelopment activities at Igor (permiso de inicio de actividades de preparacion y desarrollo), allowing the company to meet its goal of starting its test mining program during the first quarter of 2016. The company and Proyectos La Patagonia are currently finalizing the work plan and schedule for the project, and Peruvian will announce details and timelines for predevelopment work shortly.

The test mining and bulk sampling program on the Callanquitas structure at Igor is intended to generate real-life mining costs, to evaluate different mining techniques for the Callanquitas mineralization, to support the resource model by extracting bulk samples from specific areas within the block model and to support precious metal recoveries indicated by the company's metallurgical test work. Utilizing the block model from the company's previously published resource estimate and the diamond drill hole database, Peruvian's geologists have created a preliminary mine plan that will selectively mine and extract carefully selected blocks from the resource model. These blocks were selected for the initial phase of test mining based on overall grade, relative content of gold and silver, relevance to the metallurgical testing program, and the degree to which the blocks represent the technical characteristics of the entire resource. Peruvian intends to use the data obtained during the test mining and bulk sampling program to complete a National Instrument 43-101 preliminary economic assessment or prefeasibility study during the later portion of 2016. The preliminary economic assessment/prefeasibility study will evaluate various development options and define project economics for the possible commercial development of an integrated mining and processing operation focused on the Callanquitas structure.

All scientific and technical information in this press release has been reviewed and approved by Quentin J. Browne, PGeo, independent consulting geologist to Peruvian Precious Metals, who is a qualified person under the definitions established by NI 43-101.

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