Mr. Carlos Ballon reports

XIANA REPORTS FULL YEAR 2019 OPERATIONAL RESULTS

Xiana Mining Inc. has released its operating results for the full year ended Dec. 31, 2019. The results cover the fiscal 2019 operational results for Minera Altos de Punitaqui (MAP). Xiana completed the acquisition of MAP in November, 2018, and the fiscal 2019 results present the first full year of ownership by Xiana.

Production for fiscal 2019 totalled 13.12 million pounds of copper in concentrate (copper equivalent terms). Average C1 cash costs for fiscal 2019 were $2.67 (U.S.) per pound (down 41.4 per cent from $4.56 (U.S.) per pound in fiscal 2018). Average unit cost per tonne milled for fiscal 2019 was $46.9 (U.S.) per tonne (versus $53.6 (U.S.) per tonne milled in fiscal 2018).

Carlos Ballon, chairman and chief executive officer, commented: "Two thousand nineteen has represented the first full year of Xiana's ownership of MAP. Our first priority was to establish a sustainable cost base, which we have successfully achieved in 2019. As we now focus on increase in own ore production and achieving full plant utilization, we expect to see significant cost improvements as a result of the volume effect. The newly opened San Andres mine is under development and forms the next strategic source of own ore for MAP, resulting in targeted one-million-tonne-per-annum own ore extraction in 2020. The Dalmacia UG provides potential further longer-term inventory for MAP. Whilst the commodity price environment continues to be challenging, we progress towards positioning MAP as a low-cost, mid-tier, sustainable producer in the medium term. We are confident of the team's ability to deliver on outlined milestones and create stakeholder value. We also continue to progress on other high-quality inorganic growth opportunities and continue building upon the hub-and-spoke approach for MAP in Region IV, Chile."

Fiscal 2019 operational highlights:

• Production -- fiscal 2019 total production of 13.12 million pounds (an increase of 20.7 per cent versus fiscal 2018 total production of 10.9 million pounds) (including silver production of 39,200 ounces and gold production of 7,800 ounces for fiscal 2019);
• Total ore mined -- 556,327 tonnes for fiscal 2019 (a decrease of 1.8 per cent versus fiscal 2018 of 566,405 tonnes) and average mined grade of 1.18 per cent CuEq for fiscal 2019 (an increase of 1.9 per cent versus fiscal 2018 of 1.16 per cent CuEq);
• Total tonnes processed -- 808,498 tonnes (a decrease of 3.4 per cent versus fiscal 2018 of 836,655 tonnes). Average monthly tonnes processed of 67,375 tonnes (67.3 per cent nameplate capacity utilization);
• Plant recoveries -- 75.7 per cent for copper, 79.3 per cent for gold and 64.1 per cent for silver. Significant improvement made in gold recovery (an increase of 11.5 per cent versus fiscal 2018 of 71.1 per cent) as a result of improved plant performance and better-quality ore purchased and extracted;
• Concentrate grade -- fiscal 2019 concentrate grade of 21.2 per cent (an increase of 6.5 per cent versus fiscal 2018 of 19.9 per cent);
• Unit cost per tonne milled -- average unit cost per tonne milled of $46.9 (U.S.) for fiscal 2019 (a 37.4-per-cent reduction in mining costs versus fiscal 2018, a 19.8-per-cent reduction in processing costs versus fiscal 2018, an increase in ore purchasing as a result of high-quality (precious metals inclusive) ore available and an increase in indirect costs for non-recurring acquisition-related payments);
• Revenue and operating costs -- total revenue of $37.2-million (U.S.) for fiscal 2019 and total operating costs of $37.9-million (U.S.). Significant impact of commodity pricing affecting overall profitability for the first year following acquisition.

Qualified person

The technical information contained in this news release has been reviewed and approved by Robert Baxter, FAusIMM, a director of Xiana Mining, a qualified person as defined by National Instrument 43-101. Mr. Baxter is not independent of the company.

About Xiana Mining Inc.

Xiana Mining is a mining company that is focused on its producing operations and development properties in Region IV, Chile.

Since the closing of the acquisition, Xiana has advanced an optimization plan that is aimed at reducing costs, extending mine life and improving profitability.

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