ORVANA REPORTS FIRST QUARTER FINANCIAL RESULTS; OPERATIONS POSITIONED TO DELIVER INCREASED GOLD PRODUCTION

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1 Fr Immediate Release TSX:ORV Date: February 7, 2017 # ORVANA REPORTS FIRST QUARTER FINANCIAL RESULTS; OPERATIONS POSITIONED TO DELIVER INCREASED GOLD PRODUCTION First Quarter 2017 achievements: Gld prductin increase f 6% frm Q t 15,699 unces, cpper prductin f 3.6 millin punds and silver prductin f 108,280 unces Gld equivalent prductin f apprximately 24,341 unces Prductivity imprvement cntinues at El Valle and Dn Mari Mines and psitins Orvana t deliver higher prductin ging frward Dn Mari carbn-in-leach circuit re-cmmissining nearing cmpletin, first cmmercial delivery planned February 2017 TORONTO, ONTARIO, February 7, 2017 Orvana Minerals Crp. (TSX:ORV) (the Cmpany r Orvana ) annunced tday financial and peratinal results fr the first quarter f fiscal 2017 ( Q ). The Cmpany is als prviding financial and peratinal results fr its OrValle (El Valle and Carlés Mines) peratins in nrther Spain and fr its EMIPA (Dn Mari Mine) peratins in Blivia. The unaudited cndensed interim cnslidated financial statements fr Q and Management s Discussin and Analysis related theret are available n SEDAR and n the Cmpany s website at Q Highlights The Cmpany s strategic bjectives t increase prductin at its peratins include prductivity enhancements t allw fr expected delivery f greater thrughput, increased gld recvery and lwer unitary csts. The Cmpany is pleased t reprt the fllwing psitive develpments in the first quarter as fllws: El Valle Prductivity imprvements: In December 2016, El Valle reached nameplate plant capacity f 2,000 tnnes per day. This achievement represents an imprtant milestne fr El Valle n the path t increases in gld prductin and planned lwer unitary csts by end f fiscal Develpment and backfill rates cntinued t imprve during the first quarter by 7% and 27%, respectively, cmpared with the furth quarter f fiscal 2016, allwing fr increased flexibility in the mine plan. Dn Mari CIL re-cmmissining: The re-cmmissining prcess is nearing its cmpletin with successful prductin f initial gld-silver dré bars. The fcus is n adjustments t reagent mix and residence time in rder t achieve targeted gld recvery f 80%. First cmmercial delivery is expected later in February. Ttal capital csts are expected t be within the Cmpany s capital cst estimate f $6.4 millin +/-15%. Dn Mari has stckpiled higher gld grade material frm the Lwer Mineralized Zne fr prcessing in the fully re-cmmissined CIL circuit in rder t capitalize n frecasted higher gld recvery. 1

2 Repayment f the assciated prject financing with Banc BISA S.A. (the BISA Lan ) began in December We are pleased with the prgress made at bth El Valle and Dn Mari in Q1 in achieving sme f ur planned bjectives fr this year, said Jim Gilbert, Chairman and CEO f Orvana. At El Valle Mine we still have a lt f wrk t d with ur primary fcus n imprving re grade delivered t the prcessing plant, thrugh imprved xide re prductin, while maintaining thrughput f 2,000 tnnes per day. These are the critical actins required that will allw El Valle Mine t turn arund its disappinting financial perfrmance in Q1 and deliver the unitary cst imprvements that we are aiming fr by the end f fiscal At Dn Mari Mine, we have substantially cmpleted the re-cmmissining f the CIL plant and expect t meet ur bjective f achieving higher gld recvery and reduced unitary csts in the secnd half f the current fiscal year. Strategy and Outlk The Cmpany s mst imprtant bjectives thrugh fiscal 2017 and beynd are t safely increase prductivity rates at bth its peratins and t extend the mine life f Dn Mari Mine beynd fiscal El Valle: At El Valle, the Cmpany s current bjective is t increase mined grades while sustaining current re vlumes thrugh the plant. The Cmpany plans t execute n the fllwing: Onging develpment t increase access t higher grade xide znes in El Valle Mine, targeting imprved xide prductin in the secnd half f fiscal Increasing prductin frm the Carlés Mine, targeting a significant ramp-up beginning in the third quarter f fiscal The Cmpany extended its Carlés prject timeframe t the end f fiscal 2017 due t a permitting delay. Increasing access t re frnts will allw El Valle Mine greater flexibility in its mining activities and therefre greater ability t deliver planned re vlumes t sustain its bjective f 2,000 tnnes per day ging frward. Cntinuing imprvement and maintenance f targeted backfill and develpment rates. De-risking the mine plan, mving away frm transitin znes in which pr grund cnditins were experienced thrugh fiscal Dn Mari: At Dn Mari, the Cmpany is nearing cmpletin f the re-cmmissining f the CIL circuit. Once peratinal, average gld recveries are expected t increase t 80% cmpared t an average f apprximately 55% using the current fltatin prcess. Once re-cmmissined, the CIL circuit will prduce a gld-silver dré prduct in lieu f current gld gravity cncentrate prductin, lwering deductin csts at Dn Mari. Effrts are underway t finalize a dré sales agreement, targeting first cmmercial delivery later in February. The CIL circuit will supprt the Cmpany s bjective f extending mine life at Dn Mari, as the enhanced prcessing capabilities f the CIL circuit facilitate ther knwn pprtunities, including mining frm the Cerr Felix and Las Tjas areas clse t the existing mine, as well as tailings reprcessing. The Cmpany is als expecting t increase mine life at Dn Mari thrugh the prcessing f 2.2 millin tnnes f xide stckpiles with an average estimated gld grade f 1.84 g/t. Oxide stckpile studies are underway and are expected t return results during the secnd quarter f fiscal While maintaining its fcus n ptimizing current peratins, the Cmpany will als evaluate strategic alternatives that culd accelerate the grwth f the Cmpany. 2

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4 FY 2017 Prductin and Cst Guidance Q Actual FY 2017 Guidance El Valle Mine Prductin Gld (z) 10,723 50,000 55,000 Cpper (millin lbs) Silver (z) 29, , ,000 Dn Mari Mine Prductin Gld (z) 4,976 35,000 40,000 Cpper (millin lbs) Silver (z) 78, , ,000 Ttal Prductin Gld (z) 15,699 85,000 95,000 Cpper (millin lbs) Silver (z) 108, , ,000 Ttal capital expenditures $7,719 $27,000 $30,000 Cash perating csts (by-prduct) ($/z) gld (1) $1,258 $1,050 $1,150 All-in sustaining csts (by-prduct) ($/z) gld (1) $1,732 $1,300 $1,400 (1) FY2017 guidance assumptins fr COC and AISC include by-prduct cmmdity prices f $2.00 per pund f cpper and $18.00 per unce f silver and an average Eur t US Dllar exchange f Selected Operatinal and Financial Infrmatin Q Q Q FY 2016 Operating Perfrmance Gld Prductin (z) 15,699 14,842 17,789 65,785 Sales (z) 14,060 14,705 15,955 61,816 Cpper Prductin ( 000 lbs) 3,588 3,630 3,951 14,735 Sales ( 000 lbs) 3,598 3,296 3,814 13,367 Silver Prductin (z) 108, , , ,934 Sales (z) 128,217 96, , ,847 Financial Perfrmance (in 000 s, except per share amunts) Revenue $23,458 $24,044 $22,497 $93,850 Mining csts $24,356 $22,884 $20,806 $84,544 Grss margin ($6,853) ($3,599) ($3,869) ($7,883) Net lss ($8,154) ($1,528) ($3,076) ($8,455) Net lss per share (basic/diluted) ($0.06) ($0.01) ($0.02) ($0.06) Ending cash and cash equivalents $9,521 $18,939 $17,535 $18,939 Capital expenditures (2) $7,719 $5,394 $3,716 $14,977 Cash perating csts (by-prduct) ($/z) gld (1) $1,258 $1,206 $1,004 $1,082 All-in sustaining csts (by-prduct) ($/z) gld (1)(2) $1,732 $1,699 $1,316 $1,428 (1) Cash perating csts ( COC ) and all-in sustaining csts ( AISC ) are nn-ifrs perfrmance measures. (2) These amunts are presented in the cnslidated cash flws in the 2016 Financials n a cash basis. Each reprted perid excludes capital expenditures incurred in the perid which will be paid in subsequent perids and includes capital expenditures incurred in prir perids and paid fr in the applicable reprting perid. The calculatin f AISC includes capex incurred (paid and unpaid) during the perid. Abut Orvana Orvana is a multi-mine gld and cpper prducer. Orvana s perating assets cnsist f the prducing gldcpper-silver El Valle and Carlés mines in nrthern Spain and the prducing gld-cpper-silver Dn Mari mine in Blivia. Additinal infrmatin is available at Orvana s website ( 4

5 Fr further infrmatin please cntact: Jeff Hillis Chief Financial Officer T (416) E jhillis@rvana.cm Cautinary Statements - Frward-Lking Infrmatin Certain statements in this infrmatin cnstitute frward-lking statements r frward-lking infrmatin within the meaning f applicable securities laws ( frward-lking statements ). Any statements that express r invlve discussins with respect t predictins, expectatins, beliefs, plans, prjectins, bjectives, assumptins, ptentials, future events r perfrmance (ften, but nt always, using wrds r phrases such as believes, expects, plans, estimates r intends r stating that certain actins, events r results may, culd, wuld, might, will r are prjected t be taken r achieved) are nt statements f histrical fact, but are frward-lking statements. The frward-lking statements herein relate t, amng ther things, Orvana s ability t achieve imprvement in free cash flw; the ptential t extend the mine life f El Valle and Dn Mari beynd their current life-f-mine estimates; Orvana s ability t ptimize its assets t deliver sharehlder value; the Cmpany s ability t ptimize prductivity at Dn Mari and El Valle; estimates f future prductin, perating csts and capital expenditures; mineral resurce and reserve estimates; statements and infrmatin regarding future feasibility studies and their results; future transactins; future metal prices; the ability t achieve additinal grwth and gegraphic diversificatin; future financial perfrmance, including the ability t increase cash flw and prfits; future financing requirements; and mine develpment plans. Frward-lking statements are necessarily based upn a number f estimates and assumptins that, while cnsidered reasnable by the Cmpany as f the date f such statements, are inherently subject t significant business, ecnmic and cmpetitive uncertainties and cntingencies. The estimates and assumptins f the Cmpany cntained r incrprated by reference in this infrmatin, which may prve t be incrrect, include, but are nt limited t, the varius assumptins set frth herein and in Orvana s mst recently filed Management s Discussin & Analysis and Annual Infrmatin Frm in respect f the Cmpany s mst recently cmpleted fiscal year (the Cmpany Disclsures ) r as therwise expressly incrprated herein by reference as well as: there being n significant disruptins affecting peratins, whether due t labur disruptins, supply disruptins, pwer disruptins, damage t equipment r therwise; permitting, develpment, peratins, expansin and acquisitins at El Valle and Dn Mari being cnsistent with the Cmpany s current expectatins; plitical develpments in any jurisdictin in which the Cmpany perates being cnsistent with its current expectatins; certain price assumptins fr gld, cpper and silver; prices fr key supplies being apprximately cnsistent with current levels; prductin and cst f sales frecasts meeting expectatins; the accuracy f the Cmpany s current mineral reserve and mineral resurce estimates; and labur and materials csts increasing n a basis cnsistent with Orvana s current expectatins. A variety f inherent risks, uncertainties and factrs, many f which are beynd the Cmpany s cntrl, affect the peratins, perfrmance and results f the Cmpany and its business, and culd cause actual events r results t differ materially frm estimated r anticipated events r results expressed r implied by frward lking statements. Sme f these risks, uncertainties and factrs include fluctuatins in the price f gld, silver and cpper; the need t recalculate estimates f resurces based n actual prductin experience; the failure t achieve prductin estimates; variatins in the grade f re mined; variatins in the cst f peratins; the availability f qualified persnnel; the Cmpany s ability t btain and maintain all necessary regulatry apprvals and licenses; the Cmpany s ability t use cyanide in its mining peratins; risks generally assciated with mineral explratin and develpment, including the Cmpany s ability t cntinue t perate the El Valle and/r Dn Mari and/r ability t resume lng-term peratins at Carlés Mine; the Cmpany s ability t acquire and develp mineral prperties and t successfully integrate such acquisitins; the Cmpany s ability t execute n its strategy; the Cmpany s ability t btain financing when required n terms that are acceptable t the Cmpany; challenges t the Cmpany s interests in its prperty and mineral rights; current, pending and prpsed legislative r regulatry develpments r changes in plitical, scial r ecnmic cnditins in the cuntries in which the Cmpany perates; general ecnmic cnditins wrldwide; and the risks identified in the Cmpany s Disclsures under the heading Risks and Uncertainties. This list is nt exhaustive f the factrs that may affect any f the Cmpany s frward-lking statements and reference shuld als be made t the Cmpany s Disclsures fr a descriptin f additinal risk factrs. Any frward-lking statements made in this infrmatin with respect t the anticipated develpment and explratin f the Cmpany s mineral prjects are intended t prvide an verview f management s expectatins with respect t certain future activities f the Cmpany and may nt be apprpriate fr ther purpses. Frward-lking statements are based n management s current plans, estimates, prjectins, beliefs and pinins and, except as required by law, the Cmpany des nt undertake any bligatin t update frward-lking statements shuld 5

6 assumptins related t these plans, estimates, prjectins, beliefs and pinins change. Readers are cautined nt t put undue reliance n frward-lking statements. The frward-lking statements made in this infrmatin are intended t prvide an verview f management s expectatins with respect t certain future perating activities f the Cmpany and may nt be apprpriate fr ther purpses. Cautinary Ntes t Investrs Reserve and Resurce Estimates In accrdance with applicable Canadian securities regulatry requirements, all mineral reserve and mineral resurce estimates f the Cmpany disclsed in this AIF have been prepared in accrdance with NI (as defined belw), classified in accrdance with Canadian Institute f Mining Metallurgy and Petrleum's "CIM Standards n Mineral Resurces and Reserves Definitins and Guidelines" (the "CIM Guidelines"). Pursuant t the CIM Guidelines, mineral resurces have a higher degree f uncertainty than mineral reserves as t their existence as well as their ecnmic and legal feasibility. Inferred mineral resurces, when cmpared with measured r indicated mineral resurces, have the least certainty as t their existence, and it cannt be assumed that all r any part f an inferred mineral resurce will be upgraded t an indicated r measured mineral resurce as a result f cntinued explratin. Pursuant t NI , inferred mineral resurces may nt frm the basis f any ecnmic analysis, including any feasibility study. Accrdingly, readers are cautined nt t assume that all r any part f a mineral resurce exists, will ever be cnverted int a mineral reserve, r is r will ever be ecnmically r legally mineable r recvered. 6