The Primary Zinc Producer

Transcription

1 The Primary Zinc Producer Corporate Presentation Trevali Mining Corporation TSX: TV BVL: TV January

2 Disclaimer 1 Certain statements contained in this document, including, without limitation, those concerning the economic outlook for the mining industry, expectations regarding metal prices and production, the completion and commencement of commercial operations of certain of Trevali Mining Corporation s ( TV ) projects, and its liquidity and capital resources and expenditure, contain certain forward-looking statements regarding TV s economic performance and financial condition. Although TV believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business initiatives, changes in the regulatory environment and other government actions, fluctuations in metal prices and exchange rates, and business and operational risk management. TV undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of the annual report. All subsequent written or oral forward-looking statements attributable to TV or any person acting on its behalf are qualified by the cautionary statements herein. Trevali's production plan at the Caribou Mine is based only on measured, indicated and inferred resources, and not mineral reserves, and does not have demonstrated economic viability. Trevali s production plan at the Santander Mine is based only on indicated and inferred mineral resources, and not mineral reserves, and does not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is therefore no certainty that the conclusions of the production plans and Preliminary Economic Assessment (PEA) will be realized. Additionally, where Trevali discusses exploration/expansion potential, any potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. 1 Please refer to Appendix: Disclosures for important items relating to the resource estimates and production plans. 2

3 Zinc: Demand and Supply Global zinc demand growing - driven by GDP growth (Asia, India, Europe and North America), urbanization/infrastructure development, and as a mid-cycle commodity with expanding markets for consumer goods (automobiles, appliances, etc.) Primary zinc supply lagging demand/consumption Deficit further intensified following the recent closure to two global marquee mines (Century and Lisheen) in addition to the major mine production cuts announced by Glencore Consensus forecasts point to significantly tightening zinc market over the next several years with prices reacting accordingly Benchmark zinc smelter treatment charges ( TCs ) decreased significantly in 2016 and it is anticipated 2017 charges could drop additional 15-20% -- strongly indicative of a tightening zinc concentrate market Spot TCs are at historic lows of <US$50/tonne Wood Mackenzie is forecasting US$1.23/lb zinc long-term price Global zinc production, demand and price forecasts (Source: Wood Mackenzie, MMG) 3

4 Why Trevali? The Primary Zinc Producer on the TSX Strong leverage to zinc with approximately 70% of revenue derived from zinc production Successfully brought two zinc mines into commercial production Zinc production now to take advantage of forecast zinc deficits Strong organic growth path both in Peru and New Brunswick, Canada Proven management and technical teams Production in Peru and Canada Santander Zinc Mine in Peru in fourth year of commercial production and has delivered consistent, strong operational performance Caribou Zinc Mine in Canada successfully achieved commercial production in 2016 Strong liquidity 2016 trading volume of over 660 million shares (average of approx. 2.5 million/day) Robust Project Pipeline Study underway on potential development of Halfmile Mine and Stratmat Deposit in NB Potential to expand Santander operations All deposits remain open for expansion Please refer to Appendix: Disclosures for important items relating to the resource estimates, PEA and production plans. 4

5 Trevali s Accomplishments and Milestones 2007 Trevali established to identify, acquire and develop zinc assets Acquired Santander Zinc project in Peru 2008 Discovered significant new Zn-mineralized zones at Santander 2009 Initial Santander resource estimate MOU agreement with Glencore to develop Santander 2010 Finalized agreement with Glencore for mine development at Santander Acquire Halfmile and Stratmat zinc deposits in New Brunswick Permitted and commenced development at both Santander and Halfmile mines Trial mining commenced at Halfmile Mine in New Brunswick Commence construction at Santander Mine in Peru Acquired Caribou Mine and Mill in New Brunswick 2013 Commenced operations and commissioning at Santander Mine Declared Commercial Production at Santander Mine Positive Preliminary Economic Assessment (PEA) study on Caribou Mine Santander Mine production exceeds 2014 guidance Commenced operations and commissioning at Caribou Mine Discovered multiple new zones of high-grade Zn-Pb-Ag mineralization at Santander Mine Santander Zinc Mine production exceeds 2015 guidance Declared Commercial Production at Caribou Zinc Mine Expanded new zones of high-grade Zn-Pb-Ag mineralization at Santander Mine Record annual zinc production from Santander Mine in

6 Trevali Capital Structure TSX:TV BVL(Lima):TV US-OTCQX: TREVF Share Capital (as of January 16, 2017, C$1.25/share) Shares Issued/Outstanding: Shares Fully Diluted: Market Capitalization: Stock Options 1 : Warrants 1 : 402 million 419 million C$503 million 9.6 million 7.9 million Major Institutional Shareholders: Colonial First State Investments J.P. Morgan Asset Mgmt CQS Asset Mgmt OFI Global Asset Mgmt Total Funds/Institutions approx. 50% Financial Details (as of September 30, 2016) Trevali one-year share price performance (green), spot zinc price (red) Cash Position: Debt: Finance Leases: Q3 EBITDA 2 : C$17 million C$81 million C$30 million C$15 million 1 Details of all of the outstanding options and warrants can be found in the Appendix 2 EBITDA (earnings before interest, taxes, depreciation and amortization) is calculated by considering Company's earnings before interest payments, tax, depreciation and amortization are subtracted for any final accounting of its income and expenses. The EBITDA of a business gives an indication of its current operational profitability and is a NON-IFRS measure. 6

7 Trevali Management & Directors DR. MARK CRUISE PRESIDENT & CEO Base metal deposit specialist with over 20-years project experience from grass-roots exploration through resource definition to permitting and production in Europe and the America s on behalf of Pasminco Exploration, Anglo American and TSX-listed companies. Geology Ph.D. on the Irish zinc-lead orefield and was a member of Anglo American s Lisheen Zinc-Lead Mine feasibility/technical team in Ireland. Co-founded Trevali in 2007 to position the Company for anticipated global Zn deficits. PAUL KELLER, P.ENG. CHIEF OPERATING OFFICER 28 years of mine operations experience in Canada, most recently as Manager of Technical Services for a major Canadian mining contractor where he led a team of engineers and designers on various mining contracts for major mining companies. Paul began his career with Rio Algom and has also worked in various management roles with Barrick Gold's Hemlo mine in operations, engineering and maintenance. DR. MARK CRUISE, PRESIDENT, CEO & DIRECTOR DAVID HUBERMAN, CHAIRMAN & DIRECTOR Experienced lawyer specializing in corporate, commercial, banking, securities, regulatory and mining law. Director of Ivanhoe Mines Ltd. (renamed Turquoise Hill Resources) from and its Chairman from CHRIS ESKDALE, DIRECTOR Global Head Industrial Zinc for Glencore Plc. Directors ANTON DRESCHER, DIRECTOR Certified Management Accountant with extensive public company board and officer experience. ANNA LADD, CMA CHIEF FINANCIAL OFFICER Over 15 years experience in the finance and mining industry. Served as VP Finance and CFO of Sulliden Gold, Crowflight Minerals, Kria Resources and other privately held exploration companies, in addition to senior positions with mining companies including Kinross Gold Corporation and has also worked in Thompson and Sudbury operations for Vale Inco. Ms. Ladd is a Certified Public Accountant and received her Masters of Arts in Economics from Queen's University, and a Bachelor of Commerce degree in Finance from the University of British Columbia. DANIEL MARINOV VP OF EXPLORATION Over 24 years of international experience in exploration and underground mining, and has held senior management roles with Rio Tinto and Anglo American (including project manager at Anglo's Michiquillay porphyry Cu-Au-Mo deposit in Peru). STEVE STAKIW VP CORPORATE COMMUNICATIONS Over 25 years of geology/mining industry and research/finance market experience. Steve has held a senior management role with a leading mining research and investment publication and has consulted to resource-focused investment funds. MIKE HOFFMAN, DIRECTOR - OPERATIONS Over 25 years global mine development experience including Vice President Operations at Yamana Gold, Desert Sun and Goldcorp. CATHERINE GIGNAC, DIRECTOR Geologist and mining analyst with over 25 years experience at mining companies and several global brokerage firms (UBS, RBC and Merrill Lynch Canada) as well as independent firms (Wellington West, Loewen Ondaatje McCutcheon and Dundee). DAVID KORBIN, DIRECTOR Chartered Accountant and former Director of Callinan Royalties Corporation, Turquoise Hill Resources Ltd. (formerly Ivanhoe Mines) and Ivanhoe Mines Australia. Previous managing partner of Deloitte Touche LLC and also was a Director of Seaspan Corporation and Chairman of it s Audit Committee. 7

8 Operating in Geopolitically Stable Countries Sovereign Credit Ratings: Canada: Aaa / AAA / AAA Peru: A3 / BBB+ / BBB+ *Ratings from Moody s, S&P, and Fitch Peru: Santander Mine In Commercial Production 2,000 tpd operation producing Zn and Pb/Ag concentrates Indicated Resource: 500 million lbs Zn, 180 million lbs Pb and 8.7 million oz Ag contained Inferred Resource: 1.41 billion lbs Zn, 121 million lbs Pb and 9.4 million oz Ag contained Source: Company data, resources are NI compliant Please refer to Appendix: Disclosures for important items relating to the production plans. New Brunswick, Canada: Caribou Mine In Commercial Production 3,000 tpd operation producing Zn and Pb/Ag concentrates Measured & Indicated Resource: 1.1 billion lbs. Zn, 468 million lbs. Pb and 19.6 million oz Ag contained Inferred Resource: 560 million lbs. Zn, 227 million lbs. Pb and 9.2 million oz Ag contained Halfmile Mine Indicated Resource: 1.12 billion lbs. Zn, 356 million lbs. Pb and 6.2 million oz Ag contained Inferred Resource: 896 million lbs. Zn. 245 million lbs. Pb and 4 million oz Ag contained Trial underground mining conducted in 2012 Stratmat Deposit Indicated Resource: 550 million lbs. Zn, 214 million lbs. Pb and 7.3 million oz Ag contained Inferred Resource: 252 million lbs. Zn, 110 million lbs. Pb and 3 million oz Ag contained 8

9 Peru 9

10 Santander Mine, Peru Resource Tonnes Zn (%) Pb (%) Ag (oz/ton) Indicated 6,264, Inferred 13,845, ,000 tonne-per-day Zinc-Lead-Silver mine and mill complex in the Central Peruvian Polymetallic Belt 2016 production statistics: 89% Zinc recovery producing 61.3 million payable lbs 86% Lead recovery producing 19.3 million payable lbs 71% Silver recovery producing 813,807 payable ozs Q site cash costs of US$0.33/lb ZnEq 1 (payable produced) or US$36.33/tonne (includes mining, milling and site G&A). Total (all in) cash cost of US$0.78/lb ZnEq 1 (payable produced) includes site costs plus smelting, refining, freight, royalty and sustaining capex metal production guidance: Zinc million payable pounds Lead million payable pounds Silver 700, ,000 payable ounces Total site cash costs of US$35-40/tonne milled Significant exploration potential to expand current resource; all the deposits remaining open; successful, ongoing drill program Location Ownership Type of deposit Primary metals Processing End product Infrastructure Peru 100% controlled Carbonate Replacement Deposit Zn, Pb, Ag Standard milling with flotation recovery Zn and Pb-Ag concentrates Underground mining operation, 2,000 tonne-perday processing mill, tailings facility and camp Please refer to Appendix: Disclosures for important items relating to the resource estimates and production plans. 1 ZnEq Payable Pounds Produced = ((Zn Payable lbs Produced x Zn Price)+(Pb Payable lbs Produced x Pb Price)+(Cu Payable lbs Produced x Cu Price)+(Au oz Payable Produced x Au Price)+(Ag oz Payable Produced x Ag Price))/Zn Price. Santander mine, mill, and infrastructure, Peru 10

11 Santander Production Statistics Tonnes mined 664, , ,893 Tonnes milled 709, , ,307 Average head grades: Zinc Lead Silver 4.24% 1.89% 1.64 oz/ton 4.14% 2.09% 1.66 oz/ton 4.27% 1.23% 1.27 oz/ton Average recoveries: Zinc Lead Silver 88% 85% 75% 90% 89% 77% 89% 86% 71% Concentrate produced: Zinc (dry metric tonnes) Grade (Zn %) 54,204 50% 58,232 50% 67,397 49% Lead-Silver (dmt) Grade (Pb %) Grade (Ag oz/ton) 19,375 57% 46.7 oz/ton 24,962 58% 40.5 oz/ton 17,189 53% 45.2 oz/ton Payable metal production: Zinc (pounds) Lead (pounds) Silver (ounces) 50,449,145 23,326, ,637 54,148,660 30,237,351 1,055,965 61,255,238 19,256, ,807 11

12 Santander Mine Development Workings

13 New Brunswick, Canada * Please refer to Appendix: Disclosures for important items relating to the resource estimates and production plans. Resources of Caribou, Halfmile and Stratmat Deposits* Tonnes Zn% Cu% Pb% Ag (g/t) 13 Au (g/t) CARIBOU Measured & 7,230, Indicated Inferred 3,660, HALFMILE Indicated 6,262, n/a Inferred 6,078, n/a STRATMAT Indicated 4,700, Inferred 2,400,

14 Caribou Mine - Bathurst Mining Camp, New Brunswick Resource Tonnes Zn% Cu% Pb% Ag (g/t) Au (g/t) Measured & 7,230, Indicated Inferred 3,660, ,000 tonne-per-day Zinc-Lead-Silver mine and mill complex in the Bathurst Mining Camp of New Brunswick, Canada 2016 production statistics*: 77% Zinc recovery producing 36.7 million payable lbs 58% Lead recovery producing 13.8 million payable lbs 36% Silver recovery producing 402,067 payable ozs Q site cash costs of US$0.46/lb ZnEq 1 (payable produced) or US$58.88/tonne (includes mining, milling and site G&A). Total (all in) cash cost of US$0.91/lb ZnEq 1 (payable produced) includes site costs plus smelting, refining, freight, royalty and sustaining capex 2017 production guidance: Zinc million payable pounds Lead million payable pounds Silver 800, ,000 payable ounces Total site cash costs of US$55-60/tonne milled Deposit remains open to depth * Declared commercial production July 1/2016 Location Ownership Type of deposit Primary metals Processing End product Infrastructure Bathurst Mining Camp, New Brunswick 100% controlled VMS polymetallic Zn, Pb, Ag, Cu, Au Standard milling with flotation recovery Zn, Pb-Ag and planned Cu-Au concentrates 3,000 tonne-per-day underground mining operation and processing mill Please refer to Appendix: Disclosures for important items relating to the resource estimates and production plans. 1 ZnEq Payable Pounds Produced = ((Zn Payable lbs Produced x Zn Price)+(Pb Payable lbs Produced x Pb Price)+(Cu Payable lbs Produced x Cu Price)+(Au oz Payable Produced x Au Price)+(Ag oz Payable Produced x Ag Price))/Zn Price. Caribou mining and milling complex site, Bathurst, New Brunswick 14

15 Caribou Production Statistics Q1-2016* Q2-2016* Q Q ** Tonnes mined 191, , , , ,488 Tonnes milled 200, , , , ,730 Average head grades: Zinc Lead Silver Average recoveries: Zinc Lead Silver (in lead concentrate) Concentrate produced DMT (dry metric tonnes): Zinc concentrate (DMT) Grade (Zn %) Grade (Ag oz/ton) 5.95% 2.55% 2.03 oz/ton 71% 58% 38% 17,732 48% 4.0 oz/ton 5.92% 2.74% 2.48 oz/ton 77% 56% 31% 18,155 47% 5.0 oz/ton 5.91% 2.62% 2.26 oz/ton 78% 56% 36% 17,908 48% 4.5 oz/ton 6.01% 2.68% 2.32 oz/ton 76% 60% 36% 24,722 46% 4.0 oz/ton 5.97% 2.66% 2.29 oz/ton 77% 58% 36% 42,630 47% 4.2 oz/ton Lead-Silver concentrate (DMT) Grade (Pb %) Grade (Ag oz/ton) Payable metal production: Zinc (pounds) Lead (pounds) Silver (ounces) 7,585 39% 20.3 oz/ton 15,560,655 6,070, ,337 7,048 41% 20.3 oz/ton 15,535,817 5,891, ,971 6,973 39% 21.4 oz/ton 15,776,638 5,577, ,345 10,173 40% 20.8 oz/ton 20,931,015 8,214, ,722 17,146 39% 21.1 oz/ton 36,707,653 13,791, ,067 *Pre-Commercial Production **2016 production figures only include commercial production that commenced July 1, 2016 (Q3 and Q4) 15

16 Caribou Mine Plan NW 1 3D Mine Model Isometric View of the Caribou Mine Plan Looking Southwest (Yellow represents Planned Stopes; Pink represents Sill Pillar; Gray represents Previously Mines Stopes and Fill) Please refer to Appendix: Disclosures for important items relating to the resource estimates and production plans. 16

17 Caribou Exploration Upside Seven zones in the deposit and remains open Copper feeder zones never previously targeted Recent deep drilling encountered massive sulphides approx. 450 metres below current defined resource Historic deep holes encountered significant mineralized intervals (including DDH076 with 5.8 metres of 8.4% Zn, 3.9% Pb, 0.3% Cu, 147 g/t Ag and 1.2 g/t Au) Resources of Caribou Deposit Tonnes Zn% Cu% Pb% Ag (g/t) Au (g/t) Measured & Indicated 7,230, Inferred 3,660, Please refer to Appendix: Disclosures for important items relating to the resource estimates and production plans. 17

18 Halfmile Mine - Bathurst Mining Camp, New Brunswick Resource Tonnes Zn% Pb% Cu% Ag (g/t) Au (g/t) Indicated 6,262, n/a Inferred 6,078, n/a Fully permitted underground mine with production levels in place Halfmile Mine developed in 2011 with trial underground mining/production in 2012 of over 100,000 tonnes of material processed on a toll-basis through the Brunswick 12 Mill - providing metallurgical/recovery data Produced quality, saleable concentrates (Zn, Pb-Ag and Cu- Au) averaging: 53.7% Zn concentrate 45.8% Pb concentrate (with 680 g/t Ag) 27% Cu concentrate (with 325 g/t Ag and 2.7 g/t Au) Significant exploration upside beyond Upper and Lower Zones that host current resource Remains open for expansion -- 3D seismic survey indicates a large, deep reflector (Deep Zone) that returned multiple, mineralized drill intercepts including: 5.7 m of 9.88% Zn, 2.33% Pb and 3.9 m of 9.42% Zn, 1% Pb 4.5 m of 10.61% Zn, 1.41% Pb and 0.22% Cu 6 m of 9.61% Zn, 1.93% Pb 5 m of 9.77% Zn, 3.46% Pb and 4.8 m of 7% Zn, 2.27% Pb PEA study underway on potential combined Halfmile-Stratmat development plan Location Ownership Type of deposit Primary metals Processing End product Infrastructure Bathurst Mining Camp, New Brunswick 100% controlled VMS polymetallic Zn, Pb, Ag, Cu, Au Standard milling with flotation recovery Zn, Pb-Ag and Cu-Au concentrates Fully permitted and developed underground mining operation Source: Company data, resource is NI compliant. Please refer to Appendix: Disclosures for important items relating to the resource estimates and production plans. 18

19 Stratmat Deposit - Bathurst Mining Camp, New Brunswick Resource Tonnes Zn% Pb% Cu% Ag (g/t) Au (g/t) Indicated 4,700, Inferred 2,400, Multi-lens zinc-lead-silver-copper-gold rich volcanogenic massive sulphide Near-surface sulphide body remains open for expansion along strike and at depth Multi-phase 30,000-metre drill program has returned results including: Hole RST-752 intersecting metres grading 7.42% Zn, 1.37% Pb, 1.26% Cu, 94.2 g/t Ag and 2.45 g/t Au (see Feb 26/2014 news release) Discovery of new multi-lens zones of copper-gold mineralization including: Hole ST-793 intersecting 5.7 metres of 15.9% Zn, 7% Pb, 0.54% Cu and 98 g/t Ag plus a higher-grade copper zone of 35 metres of 2.36% Cu, both in the S-5 Lens; Hole ST-769 returned 9.2 metres of 7% Zn and 3.8% Pb in the S-1 Zone (see Jan 19/2015 news release) PEA study underway on potential combined Halfmile- Stratmat development plan Location Ownership Type of deposit Primary metals Processing Potential end product Infrastructure Bathurst Mining Camp, New Brunswick 100% controlled VMS polymetallic Zn, Pb, Ag, Cu, Au Potential standard milling with flotation recovery Potential Zn, Pb-Ag and Cu-Au concentrates In permitting stage, drill delineated deposit Source: Company data, resource is NI compliant. Please refer to Appendix: Disclosures for important items relating to the resource estimates and production plans. 19

20 Trevali Summary Trevali is the primary zinc production company on the TSX and one of only a few globally: Zinc production now from two mines to benefit from forecast, near-term zinc deficits All deposits remain open for expansion Strong technical team Multiple, advanced-stage deposits provide organic growth/expansion potential Strong leverage to forecast zinc deficits Please refer to Appendix: Disclosures for important items relating to the resource estimates and production plans. 20

21 Contact Information CONTACT: Steve Stakiw Vice President, Investor Relations and Corporate Communications Direct phone: TREVALI MINING CORPORATION West Hastings Street Vancouver, BC, Canada, V6E 2K3 Phone: Fax: A member of the 21

22 Appendix: Resources & Contained Metal Indicated Resources 1 Tonnes %Zn %Pb % Cu Ag (g/t) Au (g/t) Zn (Mlbs) Pb (Mlbs) Cu (Mlbs) CONTAINED METAL (INSITU) Santander 6,264, Caribou (Measured & Indicated) 7,230, , Halfmile 6,262, , Stratmat 4,700, Total Indicated 3,287 1, Ag (Moz) Inferred Resources 1 CONTAINED METAL (INSITU) Santander 13,845, , Caribou 3,660, Halfmile 6,078, Stratmat 2,400, Ruttan 19,750, Total Inferred 3, Please refer to Appendix: Disclosures for important items relating to the resource estimates. 22

23 Appendix: Options and Warrants Number of Stock Options Exercise Price Expiry Date 855,000 $0.77 May 1/18 590,001 $0.62 May 31/18 30,000 $0.72 Aug 30/18 1,187,700 $1.01 Jun 24/19 248,500 $1.29 Aug 15/19 2,891,460 $1.03 Jan 30/20 3,796,000 $0.45 June 2/21 Total Stock Options: 9,598,661 Number of Warrants Exercise Price Expiry Date 500,000 $1.04 April ,402,880 $0.368 Dec 31/20 Total Warrants: 7,902,880 23

24 Appendix: Mining Analyst Coverage Firm Analyst Location Dundee Capital Markets Joseph Gallucci, MBA Montreal, Canada GMP Securities L.P. Ian Parkinson Toronto, Canada Kallpa Securities S.A.B Luis Vicente Lima, Peru Paradigm Capital Inc. Jeff Woolley, CFA Toronto, Canada Scotiabank Orest Wowkodaw Toronto, Canada The above investment firms and equity analysts provide research reports on Trevali Mining Corporation. Any opinions, estimates, forecasts or other analyses, including prior or future Trevali performance from any source is the opinion of the writer and is theirs alone and does not represent the opinions, estimates or forecasts of Trevali or its management. Trevali does not, by any reference, imply any endorsement of, or concurrence with, such information, conclusions or recommendations. Trevali does not distribute research reports. 24

25 Appendix: Disclosures EurGeol Dr. Mark D. Cruise, Trevali's President and CEO, and a qualified person as defined by NI , has reviewed the scientific and technical information that forms the basis for this presentation. Dr. Cruise is not independent of the Company as he is an officer, director and shareholder. Trevali's production plan at the Caribou Mine is based only on measured, indicated and inferred resources, and not mineral reserves, and does not have demonstrated economic viability. Trevali s production plan at the Santander Mine is based only on indicated and inferred mineral resources, and not mineral reserves, and does not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is therefore no certainty that the conclusions of the production plans and Preliminary Economic Assessment (PEA) will be realized. Additionally, where Trevali discusses exploration/expansion potential, any potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Santander resource estimate was completed by Golder Associates in July The tabled resource estimate utilizes a 3% zinc equivalent (ZnEQ) cut-off and is based on the Ordinary Kriging interpolation method and Silver, Lead, Zinc and Copper assay values. Minor capping was applied to the assays prior to estimation. The bulk density was also estimated using Ordinary Kriging. The tonnages for the footwall zones are also included, but those for the tailings are not included. The average interpolated bulk density for Magistral North was 2.88 g/cm3, Magistral Central 2.94 g/cm3, Magistral South 2.97 g/cm3, Puajanca South 2.76 g/cm3, and Santander Pipe (fixed) 3.4 g/cm3. The density of the minor footwall zones is similar to the Magistral zones. The contained oz. and lbs. in the table are in situ and have not had mill factors applied to them. Santander ZnEQ = ((Ag Price(g) x Ag Recovery x Ag Grade) + (Pb Price(t) x Pb Recovery x (Pb Grade(%)/100)+(Zn Price(t) x Zn Recovery x (Zn Grade(%)/100)))/Zn Price(t). Golder utilized the US dollar three-year rolling average price for all three metals. Price for silver is ($25.99/oz) and that for Pb ($2,205), Zn ($2,094) and Cu ($7,782) is per tonne. A recovery of 85% was applied to Ag, 90% for Pb, 85% for Zn and 60% for Cu for calculating the ZnEQ formula. The pounds of metal are in-situ and have not had any mining factors applied to them. Caribou resource estimate was completed by SRK Consulting (Canada) Inc. in January The tabled resource estimate utilizes a 5% zinc equivalent (ZnEQ) cut-off grade. ZnEq=((Cu Grade*Cu Price*Cu Recovery)+(Pb Grade*Pb Price*Pb Recovery)+(Zn Grade*Zn Price*Zn Recover)+(Au Grade*Au Price*Au Recovery)+(Ag Grade*Ag Price*Ag Recovery))/Zn Price. In calculating ZnEq, SRK Consulting (Canada) Inc. utilized the long term metal prices provide by Energy & Metals Consensus Forecast. Price for Au is $1470 per ounce, Ag is $26 per ounce, Cu is $3.39 per pound, Pb is $1.18 per pound, and Zn is $1.14 per pound. A recovery of 83% was applied to Zn, 71% was applied to Pb, 57% was applied to Cu, 45% was applied to Ag, and 40% was applied to Au. The pounds of metal are in-situ and have not had any mining factors applied to them. Caribou PEA study was conducted in accordance with the definitions in Canadian National Instrument SRK Consulting (Canada) Inc. was the lead independent consultant, with contributions from other independent consultants commissioned by Trevali Holland & Holland Consulting and Stantec Consulting. The base case Caribou Mine Project PEA uses price assumptions of US$1.00/lb zinc, US$1.00/lb lead, US$3.00/lb copper, US$21.00/oz silver and US$1,200/oz gold. These prices are based on a review of consensus price forecasts from financial institutions and similar studies that recently have been published. The PEA is considered preliminary in nature and includes economic analysis that is based, in part, on inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would allow them to be categorized as mineral reserves, and there is no certainty that the results will be realized. Mineral resources are not mineral reserves because they do not have demonstrated economic viability. Ruttan resource estimate completed by Tetra Tech Wardrop in February The resource estimate utilized a 1% copper equivalent (CuEQ) cut-off. 25

26 Contact Information CONTACT: Steve Stakiw Vice President, Investor Relations and Corporate Communications Direct phone: TREVALI MINING CORPORATION West Hastings Street Vancouver, BC, Canada, V6E 2K3 Phone: Fax: A member of the 26