ORVANA REPORTS Q1 FY2022 RESULTS AND ANNOUNCES FILING OF PEA NI 43-101 REPORT FOR TAGUAS

TSX:ORV

Q1 FY2022 Consolidated Highlights:

• Revenue: $27 million
• EBITDA: $5 million
• CAPEX: $4 million
• Unrestricted Cash EoP: $19 million

Q1 FY2022 Orovalle Highlights:

• 15,921 gold equivalent ounces produced (11,731 Au oz, 1.5 million Cu lb and 48,752 Ag oz)
• COC at $1,140 and AISC at $1,446

TORONTO, Feb. 11, 2022 /CNW/ - Orvana Minerals Corp. (TSX: ORV) (the "Company" or "Orvana") reports consolidated financial and operational results for the quarter ended December 31, 2021, and announces that it will file on SEDAR the updated independent preliminary economic assessment report (the "2021 Taguas PEA") for the Taguas Project ("Taguas") located in San Juan Province, Argentina. The 2021 Taguas PEA was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and the key 2021 Taguas PEA inputs and highlights were previously disclosed in the Company's news release dated December 29, 2021.

This news release should be read in conjunction with the Company's Management's Discussion and Analysis, unaudited Financial Statements and Notes to unaudited Financial Statements for the corresponding period, which have been posted on the Orvana Minerals Corp. SEDAR profile at www.sedar.com, and which are also available on the Company's website at www.orvana.com. All figures are in U.S. dollars unless otherwise noted.

"The Company continues delivering solid quarters with increasing gold equivalent production and EBITDA, which, coupled with our recent syndicated financing, resulted in a strong Q1 balance sheet," said Orvana CEO Juan Gavidia. "Looking ahead, we expect to continue delivering steady production, and continue developing Orvana's three units according to our now well established organic growth strategy", he added.

First Quarter of Fiscal 2022 Consolidated Financial Results and Operating Highlights:

• EBITDA of $5.1 million
• Free cash flow of $0.8 million
• Capital expenditures of $4.3 million
• €15 million syndicated loan with two Spain-based banks closed in December 2021.
• Orovalle:
• Gold production of 11,731 ounces and copper production of 1.5 million pounds. Gold and copper production increased by 36% and 16% respectively, compared with the fourth quarter of fiscal 2021. The production increase was driven primarily by a 31% higher throughput.
• 7,022 meters of infill and brownfield drilling were drilled.
• 1,415 meters of greenfield exploration were drilled.
• 20.66 g/t Au over 2.9 meters intercepted in Ortosa-Godán (investigation permit in Asturias, Spain).
• Starting December 2021, Orovalle has experienced the effects of the latest wave of COVID-19 cases in Spain despite the Company's ongoing efforts to safeguard the health of the workforce. During this period, the Company continued to operate safely and responsibly maintained employment and economic activity. This latest wave in the country is declining after reaching the peak in January 2022, and the Company expects to recover standard workforce levels at the operation.
• EMIPA:
• Don Mario operation continues in care and maintenance ("C&M"), transitioning to the Oxides Stockpile Project (plant overhaul to treat a 2 million tones stockpile accumulated from previous years of mining activity).
• On December 29, 2020, the Company filed a Technical Report on the Don Mario Oxide Stockpile Project ("OSP"). During 2021, the OSP quality assurance (metallurgical) testing advanced; studies were completed in November 2021. Results to date are validating the Company's preliminary assumptions in terms of its positive economics. Engineering and cost analysis to establish the CAPEX are in progress.
• On December 29, 2021, the Company filed a technical report effective September 30, 2021, on the Tailings Reprocessing Project ("TRP"). An infill drilling campaign is planned for the second quarter of fiscal 2022 to improve the tailings mineral resource category.
• As there can be only one current technical report in respect of a property, the Company is in the process of preparing a new technical report ("Amended Don Mario Report") that will effectively merge the disclosure contained in the OSP Technical Report and the TRP Technical Report, as both projects are located on the same property. Once filed, the Amended Don Mario Report will replace the previous OSP and TRP reports.
• During the first quarter of fiscal 2022, exploration was carried out in two previously unexplored areas of Las Tojas and Oscar sectors. Mapping, geochemical and geophysical sampling were carried out. Data obtained will be processed and analyzed in order to continue with fiscal 2022 program.
• Orvana Argentina:
• On December 29, 2021 the Company announced the results of its 2021 Taguas PEA. The report will be filed on SEDAR on February 11, 2022.
• The Company started in late December 2021 the infill drilling program at Taguas to improve confidence in the continuity of oxide mineralization, and to upgrade mineral resource classification categories. An update on the Taguas infill drilling program will be provided in March 2022.

Selected Consolidated Operational and Financial Information:

Highlights of the 2021 Taguas PEA to be filed include:

• Pre-Tax NPV of US $104M at 8.0% discount rate
• Pre-Tax Internal Rate of Return (IRR): 27.4%
• After-Tax NPV of US $57M at 8.0% discount rate
• After-Tax IRR: 20.2%
• Payback Period (from start of operations): 2.9 years (years based on after-tax)
• Initial Capital: US $141M
• LOM Capital: US $148M
• Estimated Average LOM All-In Sustaining Costs (AISC): US $915/Au oz payable

Cautionary Statement - Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is preliminary in nature and includes inferred mineral resources that 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 no certainty that the results of the PEA will be realized. The PEA study is conceptual in nature and the PEA mine plan is based on 100% inferred resources. The projections, forecasts and estimates presented in the PEA constitute forward-looking statements and readers are urged not to place undue reliance on such forward-looking statements. Additional cautionary and forward-looking statement information is detailed at the end of this news release.

There are no material differences in the 2021 Taguas PEA from those results disclosed in the Company's press release dated December 29, 2021.

The 2021 Taguas PEA will be filed on February 11, 2022, with an effective date of December 29, 2021, and is entitled "Preliminary Economic Assessment NI 43-101 Technical Report on the Taguas Heap Leach Project San Juan, Argentina ". The 2021 Taguas PEA, prepared in accordance with National Instrument 43-101 - "Standards of Disclosure for Mineral projects," replaces the previous independent technical report preliminary economic assessment dated June 30, 2021 and filed on SEDAR on July 28, 2021. The 2021 Taguas PEA refers only to the oxidized gold-silver mineralization occurring near surface in Cerro Taguas. The 2021 Taguas PEA is available for review on SEDAR (www.sedar.com) and on the Company's website (www.orvana.com).

The 2021 Taguas PEA was prepared for Orvana Argentina, S.A. by Kappes, Cassiday and Associates (KCA), NCL Ingenieria & Construccion SpA (NCL), Dr. Joseph J. Kowalik and Geosim Services Inc. (Geosim) with support from SAXUM Engineered Solutions.

Qualified Persons:

The following were the Qualified Persons (QPs) for the 2021 Taguas PEA, as defined by NI 43-101:

• Caleb Cook, P.E., Kappes, Cassiday & Associates
• Carlos Guzman, FAusIMM and RM CMC, NCL Ingenieria & Construccion SpA
• Joseph J. Kowalik PhD, QP MMSA, Senior Consulting Geologist
• Ronald G. Simpson, P Geo, Mineral Resource Consultant, Geosim Services, Inc.

Quality Control:

All technical data contained in this news release in relation to the 2021 Taguas PEA has been reviewed and approved by Caleb Cook, P.E., a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

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; future financial performance, including the ability to increase cash flow and profits; future financing requirements; mine development plans; and Orvana's ability to address the deficiencies raised by staff of the Ontario Securities Commission and to complete and file the Amended Technical Report (Don Mario) within the time frame set out above.

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 and Annual Information Form in respect of the Company's most recently completed fiscal year (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; and the availability of necessary funds to execute the Company's plan. Without limiting the generality of the foregoing, this presentation also contains certain "forward-looking statements" within the meaning of applicable securities legislation, including, without limitation, statements with respect 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; exploration and planned exploration programs; the potential for discovery of additional mineral resources; timing for completion of a feasibility study; timing for first gold production at Taguas; 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; the challenges presented by COVID-19; fluctuating operational costs such as, but not limited to, power supply costs; 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.

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