Dr. Mark Cruise reports

TREVALI REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS

Trevali Mining Corp. has released financial results for the three months and six months ended June 30, 2015, posting second quarter net income of $207,000 (nil per share). Santander mine operations income for the quarter was $5.4-million on concentrate sales revenue of $30.5-million.

This release should be read in conjunction with Trevali's unaudited condensed consolidated financial statements and management discussion and analysis for the three months and six months ended June 30, 2015, which is available on Trevali's website and on SEDAR. All financial figures are in Canadian dollars unless otherwise stated.

Second quarter 2015 highlights:

• Concentrate sales revenue of $30.5-million;
• EBITDA (earnings before interest, taxes, depreciation and amortization) of $7.2-million;
• Income from Santander mine operations of $5.4-million;
• Net income of $200,000, or nil per share;
• Second quarter site cash costs of 33 U.S. cents per pound of payable zinc equivalent produced or $44.95 (U.S.) per tonne milled, in line with company's 2015 cost guidance;
• Second quarter production of 13.7 million payable pounds of zinc, 8.7 million payable pounds of lead and 290,225 payable ounces of silver;
• Second quarter sales of 13.2 million pounds of zinc, 8.7 million pounds of lead and 290,879 ounces of silver;
• Realized selling prices for zinc, lead and silver of 95 U.S. cents per pound, 82 U.S. cents per pound and $16.33 (U.S.) per ounce, respectively;
• Mill recoveries remained strong at 90 per cent for zinc, 88 per cent for lead and 78 per cent for silver in the second quarter of 2015.

"The Santander mine continued to deliver very solid performance through the second quarter with concentrate sales revenue of over $30-million despite some weakening in base metal and silver prices over the quarter," stated Dr. Mark Cruise, Trevali's president and chief executive officer. "With Santander solidly running at solid state, we remain focused on commissioning and ramping up our Caribou mine this year, bringing our second zinc mine on line."

Second quarter 2015 financial results conference call

The company will host a conference call and audio webcast at 10:30 a.m. Eastern Time (7:30 a.m. Pacific Time) on Monday, Aug. 17, 2015, to review the financial results. Participants are advised to dial in five to 10 minutes prior to the scheduled start time of the call.

Conference call dial-in details

Toll-free (North America):  1-866-223-7781

Toronto and international:  1-416-340-2216

            SUMMARY FINANCIAL RESULTS
  (in millions of dollars, except per-share amounts) 

                                    Q2 2015   Q2 2014 

Revenues                           $   30.5  $   19.9 
Income from Santander 
mining operations                  $    5.4  $    1.9 
Net income (loss)                  $    0.2  $   (4.5)
Basic income per share             $   0.00  $  (0.01)

            SANTANDER PRODUCTION STATISTICS 

                                    Q2 2015     Q2 2014 

Tonnes mined                        191,259     152,733
Tonnes milled                       190,497     175,384
Average head grades
Zinc (%)                              4.27%       4.20%
Lead (%)                              2.47%       1.42%
Silver (oz/ton)                        1.85        1.44
Average recoveries
Zinc (%)                                90%         88%
Lead (%)                                88%         84%
Silver (%)                              78%         70%
Concentrate produced
(dry metric tonnes)
Zinc                                 14,706      13,048
Lead                                  7,080       3,680
Concentrate grades 
Zinc (%)                                50%         49%
Lead (%)                                59%         57%
Ag (oz/ton)                            39.2        48.8
Payable production
Zinc (lb)                        13,684,058  12,044,583
Lead (lb)                         8,705,988   4,420,428
Silver (oz)                         290,225     186,824

                         SANTANDER SALES SUMMARY
                                                         Q2 2015      Q2 2014

Zinc concentrate (DMT)                                    14,511       13,019
Lead concentrate (DMT)                                     7,048        3,556
Payable zinc pounds                                   13,229,078   11,760,521
Payable lead pounds                                    8,681,007    4,179,783
Payable silver ounces                                    290,879      180,795
Revenues (US$)                                        24,824,966   18,242,806
Average realized metal price
Zinc                                                 $      0.95  $      0.92
Lead                                                 $      0.82  $      0.95
Silver                                               $     16.33  $     19.55
Zinc-equivalent pounds sold                           25,685,704   19,866,662
Zinc-equivalent pounds payable produced               26,171,782   20,528,315
Site cash cost per equivalent
payable zinc pound produced (US$)                    $      0.33  $      0.39
Cash cost per tonne milled (US$)                     $     44.95  $     45.12

Santander operations, Peru

Production

Approximately 190,498 tonnes of mineralized material was processed through the mill in the second quarter of 2015. Underground production was approximately 191,259 tonnes for the quarter and was sourced primarily from the Magistral North/Rosa and Magistral South zones. Magistral Central was in a development cycle, with scheduled production from the zone expected to increase throughout the remainder of the year.

Production results for the second quarter were 13.7 million payable pounds of zinc, 8.7 million payable pounds of lead and 291,177 payable ounces of silver.

The mill continued to perform at above-design recoveries with 2015 second quarter recoveries averaging 90 per cent for zinc, 88 per cent for lead and 78 per cent for silver. Mill throughput for the quarter was 190,498 tonnes. Average head grades were 4.27 per cent zinc, 2.47 per cent lead and 1.85 ounces per ton silver, with production of 14,708 tonnes of zinc concentrate averaging 50 per cent zinc and 7,081 tonnes of lead-silver concentrate averaging 59 per cent lead and 39.46 ounces per ton silver.

During the quarter, the company sold approximately 13.2 million pounds, 8.7 million pounds and 290,879 ounces of zinc, lead and silver, respectively. Revenues for the second quarter was approximately $31-million, with average realized metal prices for the quarter of 95 U.S. cents per pound of zinc, 82 U.S. cents per pound of lead, and $16.33 (U.S.) per ounce of silver. Cash costs were approximately $45 per tonne in line with cost guidance for 2015.

Outlook

The Santander operation is currently in steady-state, 2,000-tonne-per-day nameplate production.

The company continues to work to maximize and improve operational efficiencies. An approximately 6,000-metre, predominantly underground drill program commenced during the second quarter and will continue throughout 2015 in order to convert inferred tonnes to a higher confidence category. This program will also to continue to define and potentially expand the newly discovered Rosa and Fatima lead-silver-zinc zones.

Production guidance for 2015 from the company's Santander mine is remains unchanged at approximately 48 million to 50 million pounds of payable zinc (in concentrate grading approximately 50 per cent zinc), 23 million to 25 million pounds of payable lead (in concentrate grading approximately 55 to 57 per cent lead) and 850,000 to 950,000 ounces of payable silver reporting to the lead concentrates. Site cash costs for 2015 are estimated at $48 (U.S.) to $51 (U.S.) per tonne milled.

Caribou operations, New Brunswick

Commissioning of the 3,000-tonne-per-day Caribou mill commenced during the quarter, with progress to date in line with company expectations. Based on experience garnered from Santander operations, the company adopted a phased commissioning plan, initially using lower-grade feed as the operators familiarize themselves with the various recovery circuits and reagent characteristics.

All critical mill circuits (crushing, grinding, and zinc and lead flotation), concentrate filters, metallurgical and geochemical laboratories, and concentrate handling/load-out have been either fully replaced, refurbished or repaired where necessary and available for utilization. Initial focus will be on the zinc circuit to be followed by lead (silver) in the third quarter and finally by the copper circuit following its installation. External specialists have been mobilized to site in order to provide technical support and training.

Qualified person and quality control/quality assurance

Dr. Mark D. Cruise, EurGeol, Trevali's president and chief executive officer, and Paul Keller, PEng, Trevali's chief operating officer, are qualified persons as defined by National Instrument 43-101, have supervised the preparation of the scientific and technical information that forms the basis for this news release. Dr. Cruise is not independent of the company as he is an officer, director and shareholder. Mr. Keller is not independent of the company as he is an officer and shareholder.

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