Minera IRL Limited Reprts Secnd Quarter 2017 Results LIMA, PERU - (Marketwired August 15, 2017): Minera IRL Limited ( Minera IRL r the Cmpany ), (CSE:IRL) (BVL:MIRL), the Latin America gld mining cmpany, is annuncing that it has reprted financial and perating results fr the quarter ended 30 June 2017. Financial HIGHLIGHTS Gld sales f 6,531 unces (Q2 2016: 5,635 unces) at an average realized gld price f $1,253 per unce (Q2 2016: $1,263 per unce). Revenue f $8.2 millin, (Q2 2016: $7.1 millin). Grss prfit f $2.7 millin (Q2 2016: $2.0 millin). Administrative expenses f $0.8 millin (Q2 2016: $1.8 millin). Lss befre tax f $1.2 millin (Q2 2016: 2.1 millin). Cash balance f $4.2 millin at the end f the secnd quarter (31 December 2016: $6.8 millin). Debt f $73.1 millin at the end f the quarter (31 December 2016: $69.2 millin). Operatinal Perfrmance Crihuarmi Increase f 17% in gld prductin frm the Crihuarmi Mine ver the secnd quarter 2016; (Q2 2017: 6,678 unces, Q2 2016: 5,700 unces). Increase f 15% in tnnes f re mined and stacked ver the secnd quarter 2016; (Q2 2017: 803,111 tnnes, Q2 2016: 697,213 tnnes). Waste f 584,949 tnnes (Q2 2016: 366,141 tnnes). The mine renewed its dump truck fleet (10 trucks) thrugh a $1.5 millin lease agreement, reducing perating csts. Ttal cash csts were $812 per unce prduced (2016: $784). Ttal all-in sustaining csts (AISC) were $1,025 per unce prduced (2016: $1,090). Explratin wrk extends the life f mine thrugh mid-2020. Currently updating Crihuarmi s technical reprt NI43-101. Ollachea With assistance frm Mining Plus and Ernst & Yung the mining plans and financial mdels have been updated in rder t ptimize the prject reducing CAPEX and increase the cut-ff grade.
The Cmpany btained a precautinary rder frm the Superir Curt f Justice f Lima t prtect its assets and investments in the Ollachea Prject and initiate an arbitratin prcess t reslve discrepancies regarding the COFIDE Bridge Lan. COFIDE and the Cmpany have appinted their arbitratrs. These tw arbitratrs will appint a third arbitratr t cmplete the Arbitratin Panel. Onging discussins with ptential investrs The Cmpany cntinues with its cmmunity prgrams and maintaining a psitive relatinship with the Ollachea Cmmunity. Cmmenting n the quarterly results, Gerard Perez, Minera IRL Limited s Chairman, stated: Our Crihuarmi Gld Mine cntinues t exceed expectatins, gld prductin has increased by 17% and the annual prductin is nw estimated t reach 24,000 unces cmpared t a budget f 22,000 unces at the beginning f the year. The Cmpany has extended the life f mine thrugh mid-2020 and is currently updating Crihuarmi s technical reprt NI43-101 which is expected t be cmpleted during the next quarter. In additin, the mine renewed a $1.5 millin lease agreement n 10 trucks and expected t renew the lease n the remaining 5 trucks during the next quarter. During the secnd quarter f 2017 with assistance frm Mining Plus and Ernst & Yung, the Cmpany has made significant effrts t ptimize its mining plan and financial mdel reducing CAPEX and increasing the cut-ff grade f ur flagship Ollachea Prject. We believe that this ptimizatin exercise enhances the attractiveness f the prject t ptential investrs and will facilitate the funding f the prject. The Cmpany plans t upgrade the Minapampa Far East explratin target int its resurce estimate and mine plan nce additinal funds are available t cmplete an in-fill drill campaign. The drill hle results, annunced in February 2017, have been used t utline an explratin target in the Minapampa Far East mineralized zne f 370,000 t 550,000 unces f gld cntained within 3.1 t 4.6 millin tnnes, grading 2.9 t 4.3 g/t gld. Cncerning the arbitratin in the Natinal and Internatinal Arbitratin Centre f the Lima Chamber f Cmmerce, COFIDE and the Cmpany have appinted their arbitratrs, wh will appint a third arbitratr t cmplete the Arbitratin Panel. We hpe t achieve a reasnable slutin fr the parties. In the meantime, the Cmpany assets and investments cntinue t be prtected by a precautinary rder frm the Superir Curt f Justice f Lima issued n 06 June 2017. We thank ur emplyees fr their hard wrk, the cmmunity fr their cnstant supprt and ur sharehlders fr their faith and patience. We are anticipating a year f gd results, while the Bard is fcused n imprving perating csts and prductin as well as lking fr new pprtunities t btain financing t advance Ollachea s develpment.
Summary f the key financials fr the three and six mnths ended 30 June 2017. Summary f Key Financial and Operatinal Measures Operating Parameters Three Mnth Perid Six Mnth Perid Ended 30 de June 1,025 1,090 966 998 2017 2016 2017 2016 Waste (tnnes) 584,949 366,141 1,006,093 679,377 Ore mined & stacked n heaps (tnnes) 803,111 697,213 1,480,712 1,455,035 Ore grade, mined and stacked (g/t gld) 0.34 0.33 0.36 0.32 Gld prduced (unces) 6,678 5,700 13,089 11,469 Gld sld (unces) 6,531 5,635 12,928 11,267 Realized gld price ($ per unce sld) 1,253 1,263 1,238 1,228 Ttal cash csts ($ per unce prduced) 1 812 784 783 776 Ttal all-in sustaining csts ($ per unce) 11 prduced) 1 Financial Results Three Mnths Perid Six Mnth Perid 2017 2016 2017 2016 Revenue ($ 000) 8,183 7,126 16,001 13,870 Gld sld (unces) 6,531 5,635 12,928 11,267 Realized gld price ($ per unce ) 1,253 1,263 1,238 1,228 Grss prfit ($ 000) 2,671 1,979 4,838 3,361 Lss after-tax ($ 000) (1,527) (2,421) (3,276) (5,100) Cmprehensive lss ($ 000) (1,527) (2,421) (3,276) (5,100) Lss per share (cents) (0.7) (1.0) (1.4) (2.2) 1. Refer t Nn-IFRS Measures at the end f the Cmpany s Management s Discussin and Analysis fr the quarter ended June 30, 2017. Outlk In 2017, the Cmpany is frecasting gld prductin f 24,000 unces frm Crihuarmi. Prductin is expected t cme mainly frm the Cayhua zne, alng with cntinued prductin frm znes Susan, Laura, Tamb Nuev, Diana extensin, plus nearby Scree Slpe material. The 2017 Crihuarmi capital budget is $2.0 millin fr the cnstructin f a heap leach pad and a waste dump site. This expansin is t accmmdate all f the material that is scheduled t be mined and stacked until the secnd quarter f 2018.
Between December 2016 and March 2017, the Cmpany cmpleted 7,291 meters f explratin diamnd drilling in 86 drill hles at the Crihuarmi mine. The explratin prgram defined additinal resurces at the Cayhua, Tamb Nuev and Laura znes. As a result f the explratin activities and evaluatin, the Crihuarmi mine life has been extended until mid-2020. An updated NI43-101 reprt n the mine plan is currently being prepared and is expected t be cmpleted in the next quarter. FOR FURTHER INFORMATION, PLEASE CONTACT: Minera IRL Limited Gerard Perez, Chairman Dieg Benavides Nrlander Directr and Chief Executive Officer Carls Ruiz de Castilla Chief Financial Officer +51 1 418-1230 +51 1 418-1230 +1 778 387 5434 N stck exchange, securities cmmissin r ther regulatry authrity has apprved r disapprved the infrmatin cntained in this news release. Cautinary Statement n Frward-Lking Infrmatin Certain infrmatin in this news release, including infrmatin abut the Cmpany s financial r perating perfrmance, infrmatin abut the legislative regime t which the Cmpany is subject, and ther statements expressing management s expectatins r estimates f future events, perfrmance and explratin and develpment prgrams r plans cnstitute frward-lking statements. Frward-lking statements in this press release include that annual prductin is nw estimated t reach 24,000 unces, that we expected t renew the lease n the remaining 5 trucks during the next quarter, ur plans fr establishment f updated resurce estimates, that ur updated mining plans will facilitate the funding f the Prject, ur plans t upgrade the Minapampa Far East explratin target int ur resurce estimate and cmplete an in-fill drill campaign, and the expected timing t accmplish each f them; and that the Minapampa Far East mineralized zne cntains 370,000 t 550,000 unces f gld grading 2.9 t 4.3 g/t gld. Frward-lking statements are, necessarily, based upn a number f estimates and assumptins. While cnsidered by management t be reasnable in the cntext in which they are made, frward-lking statements are inherently subject t plitical, legal, regulatry, business and ecnmic risks and cmpetitive uncertainties and cntingencies. The Cmpany cautins readers that frward-lking statements invlve knwn and unknwn risks, uncertainties and ther factrs
that may cause Minera IRL s actual financial results, legislative envirnment, future perfrmance and results f explratin and develpment prgrams and plans t be materially different than thse expected r estimated future results, perfrmance r achievements and that frward-lking statements are nt guarantees f future perfrmance, results r achievements. Minera IRL assumes n bligatin, except as may be required by law, t update r revise them t reflect new events r circumstances. Risks, uncertainties and cntingencies and ther factrs that might cause actual perfrmance t differ frm frward-lking statements include, but are nt limited t, any failure t btain r cmplete prject financing fr the Ollachea Gld Prject (including the Senir Debt Facility), availability f labur and equipment and financial resurces, delays in develpment r in receiving reprts n ur develpment, changes in the price f precius metals and cmmdities, changes in the relative exchange rates f the US dllar against the Peruvian nuev sl, interest rates, legislative, plitical, scial r ecnmic develpments bth within the cuntries in which the Cmpany perates and in general, cntests ver title t prperty, the speculative nature f mineral explratin and develpment, perating r technical difficulties in cnnectin with the Cmpany s develpment r explratin prgrams, increasing csts as a result f inflatin r scarcity f human resurces and input materials r equipment. Knwn and unknwn risks inherent in the mining business include ptential uncertainties related t the title f mineral claims, the accuracy f mineral reserve and resurce estimates, metallurgical recveries, capital and perating csts and the future demand fr minerals. Fr additinal infrmatin, please cnsult the Cmpany s mst recently filed MD&A and Infrmatin Frm.