Orvana Reports FY2021 Results & FY2022 Guidance and Annouces a New €15 Million Syndicated Loan

TSX:ORV

All Amounts in US Dollars Unless Otherwise Stated

FY2021 Consolidated Financial Highlights:

FY2021 Orovalle Highlights:

• 63 K Au Oz Eq produced (47.4 K Au Oz, 6.3 M Cu lb and 166 K Ag oz)

• COC at $1,043 and AISC at $1,376

FY2022 Orovalle Guidance:

• Gold: 48K – 53 K Au Oz

• Copper: 5.8 M – 6.5 M Cu lb

• COC and AISC: $1,050 – $1,150 and $1,550 – $1,700

• CAPEX: $22 M – $25 M

Juan Gavidia, CEO of Orvana Minerals Corp. stated: “We are pleased to close fiscal 2021 with a strong operational and financial performance. EBITDA of USD20M allowed the Company to internally fund exploration and development strategies in Spain, Argentina and Bolivia. Looking ahead to fiscal 2022, continued cash flow generation coupled with the new cost-competitive financing in Spain, will allow us to successfully advance the “Organic Growth Strategy” for all of our three units“.

TORONTO, Nov. 30, 2021 /PRNewswire/ – Orvana Minerals Corp. (TSX:ORV) (the “Company” or “Orvana”) announced today financial and operational results for the fourth quarter and for the fiscal year ended September 30, 2021 (“FY2021”), and the approval of a €15 million syndicated loan in Spain.

The audited consolidated financial statements for FY2021 and Management’s Discussion and Analysis related thereto are available on SEDAR and on the Company’s website at www.orvana.com.

FY2021 Highlights:

• Orovalle Operation, Spain:

• EMIPA Operation, Bolivia:

Selected Consolidated Operational and Financial Information

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Fiscal 2022 (“FY2022”) Outlook:

The Company continues to implement comprehensive and proactive measures to respond to the COVID-19 pandemic; and continues to work closely with local governments and authorities to ensure that proper protocols are followed during the ongoing COVID-19 crisis. The overall impact on each of our sites will depend on the progression of the pandemic and measures in place for preventing transmission.

The Company continues to pursue its objectives of optimizing production, lowering unitary cash costs, maximizing free cash flow, and extending the life-of-mine of its operations under a long term operational strategy. Main objectives per unit are:

• Orovalle: Strong cash flow generation based on stable production plan. Continue exploration drive to keep replenishing, and expanding, the resource base. Renew 5-Year Life of Mine Plan on an annual basis, as has been the case for the last five years.

• Orvana Argentina: Complete a new PEA on the Taguas Project in Q1 FY2022. Start Infill Drilling Program in Q1 FY2022, required to develop Pre-Feasibility Study.

• EMIPA: Determine the viability of the OSP in fiscal 2022. Subject to approval and financing, construction is planned for fiscal 2023; with a 3-year production life between 2024 and 2026. Scoping studies for a subsequent project regarding reprocessing tailings will be underway in fiscal 2022. A comprehensive exploration program that started in fiscal 2021 is planned to continue throughout fiscal 2022, with non-drilling field and cabinet work.

FY2022 Guidance:

The Company is pleased to provide FY2021 results and FY2022 guidance for its operating unit in Spain:

New €15 Million Syndicated Loan

Orvana has been evaluating alternatives to fund the development of the Taguas Project in Argentina and structural capital expenditures in Spain. Subsequent to September 30, 2021 the Company, through its wholly-owned subsidiaries Orovalle Minerals S.L. and Orvana Minerals Iberia, S.L. (“Iberia”), has obtained approval from two Spain-based banks to access a syndicated loan (the “Syndicated Loan”) for €15 million.

The closing of the Syndicated Loan is subject to the execution of applicable legal documentation, and is expected by December 2021. Once closed, the Syndicated Loan will provide the Company with improved financial metrics to fulfill its growth strategy.

The Syndicated Loan bears a variable interest rate of Euribor plus 2.5%, with semi-annual repayments over a four-year term, and is subject to a 1.5% commission fee. Orvana’s obligations are secured by the pledge of Orovalle and Iberia’s shares. Amongst the obligations, the ratio net finance debt to EBITDA calculated based on the aggregated financial information of Orovalle and Iberia, must be, throughout the life of the financing, less than 3.5.

ABOUT ORVANA – Orvana is a multi-mine gold-copper-silver company. Orvana’s assets consist of the producing El Valle and Carlés gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in Bolivia, currently in care and maintenance, and the Taguas property located in Argentina. Additional information is available at Orvana’s website (www.orvana.com).

Cautionary Statements – Forward-Looking Information

Certain statements in this presentation constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance (often, but not always, using words or phrases such as “believes”, “expects”, “plans”, “estimates” or “intends” or stating that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “are projected to” be taken or achieved) are not statements of historical fact, but are forward-looking statements.

The forward-looking statements herein relate to, among other things, Orvana’s ability to achieve improvement in free cash flow; the ability to maintain expected mining rates and expected throughput rates at El Valle Plant; the potential to extend the mine life of El Valle and Don Mario beyond their current life-of-mine estimates including specifically, but not limited to, in the case of Don Mario, the processing of the mineral stockpiles and the reprocessing of the tailings material; Orvana’s ability to optimize its assets to deliver shareholder value; the Company’s ability to optimize productivity at Don Mario and El Valle; estimates of future production, operating costs and capital expenditures; mineral resource and reserve estimates; statements and information regarding future feasibility studies and their results; future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; the potential for discovery of additional mineral resources; future financial performance, including the ability to increase cash flow and profits; future financing requirements; and mine development plans.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies, which includes, without limitation, as particularly set out in the notes accompanying the Company’s most recently filed financial statements. The estimates and assumptions of the Company contained or incorporated by reference in this information, which may prove to be incorrect, include, but are not limited to the various assumptions set forth herein and in Orvana’s most recently filed Management’s Discussion & Analysis of the Company’s most recently completed fiscal year, and the latest filed Annual Information Form (the “Company Disclosures”) or as otherwise expressly incorporated herein by reference as well as: there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; permitting, development, operations, expansion and acquisitions at El Valle and Don Mario being consistent with the Company’s current expectations; political developments in any jurisdiction in which the Company operates being consistent with its current expectations; certain price assumptions for gold, copper and silver; prices for key supplies being approximately consistent with current levels; production and cost of sales forecasts meeting expectations; the accuracy of the Company’s current mineral reserve and mineral resource estimates; labour and materials costs increasing on a basis consistent with Orvana’s current expectations; the availability of necessary funds to execute the Company’s plan; there will be no material change to the results of the preliminary economic assessment, including but not limited to the mineral resource estimation, conceptual mine plan and operations, internal rate of return, sensitivities, taxes, net present value, potential recoveries, design parameters, operating costs, capital costs, production data and economic potential; the timing and costs for production decisions; permitting timelines and requirements are achieved in a timely manner; exploration and planned exploration programs are sufficiently funded and executed in a timely manner; timing for completion of a feasibility study; timing for first gold production; processing the stockpile at El Valle in connection with the metal production catch-up program; identifying additional resources beyond the replenishment of annual depletion rates at El Valle for the extension of mine life; issuing an expanded resource PEA for Taguas in a timely manner; completion of the infill drilling program at Taguas; making a decision on the oxides stockpile at Don Mario in a timely manner; and the Company’s general objectives and strategies.

A variety of inherent risks, uncertainties and factors, many of which are beyond the Company’s control, affect the operations, performance and results of the Company and its business, and could cause actual events or results to differ materially from estimated or anticipated events or results expressed or implied by forward looking statements. Some of these risks, uncertainties and factors include: the potential impact of the COVID-19 on the Company’s business and operations, including: our ability to continue operations; our ability to manage challenges presented by COVID-19; the accounting treatment of COVID-19 related matters; Orvana’s ability to prevent and/or mitigate the impact of COVID-19 and other infectious diseases at or near our mines; our ability to support the sustainability of our business including through the development of crisis management plans, increasing stock levels for key supplies, monitoring of guidance from the medical community, and engagement with local communities and authorities; fluctuations in the price of gold, silver and copper; the need to recalculate estimates of resources based on actual production experience; the failure to achieve production estimates; variations in the grade of ore mined; variations in the cost of operations; the availability of qualified personnel; the Company’s ability to obtain and maintain all necessary regulatory approvals and licenses; the Company’s ability to use cyanide in its mining operations; risks generally associated with mineral exploration and development, including the Company’s ability to continue to operate the El Valle and/or ability to resume long-term operations at the Carlés Mine; the Company’s ability to successfully implement a sulphidization circuit and ancillary facilities to process the current oxides stockpiles at Don Mario; the Company’s ability to successfully carry out development plans at Taguas; sufficient funding to carry out development plans at Taguas and to process the oxides stockpiles at Don Mario; the Company’s ability to acquire and develop mineral properties and to successfully integrate such acquisitions; the Company’s ability to execute on its strategy; the Company’s ability to obtain financing when required on terms that are acceptable to the Company; challenges to the Company’s interests in its property and mineral rights; current, pending and proposed legislative or regulatory developments or changes in political, social or economic conditions in the countries in which the Company operates; general economic conditions worldwide; current and future environmental matters; and the risks identified in the Company’s disclosures. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements and reference should also be made to the Company’s Disclosures for a description of additional risk factors.

Any forward-looking statements made herein with respect to the anticipated development and exploration of the Company’s mineral projects are intended to provide an overview of management’s expectations with respect to certain future activities of the Company and may not be appropriate for other purposes. Forward-looking statements are based on management’s current plans, estimates, projections, beliefs and opinions and, except as required by law, the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Readers are cautioned not to put undue reliance on forward-looking statements. The forward-looking statements made in this information are intended to provide an overview of management’s expectations with respect to certain future operating activities of the Company and may not be appropriate for other purposes.

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SOURCE Orvana Minerals Corp.