Xiana Reports Full Year 2019 Operational Results

Vancouver, British Columbia--(Newsfile Corp. - February 21, 2020) - Xiana Mining Inc. (TSXV: XIA) ("Xiana" or the "Company") is pleased to announce operating results for the full year ended December 31, 2019. The results cover the full year 2019 ("FY 2019") operational results for Minera Altos de Punitaqui ("MAP"). Xiana completed the acquisition of MAP in November 2018 and the FY 2019 results present the first full year of ownership by Xiana.

Production for FY 2019 totalled 13.12 mlbs of copper in concentrate (copper equivalent terms) vs full year 2018 ("FY 2018") of ^(1)(2). Average C1 Cash Costs⁽²⁾ for FY 2019 were US$2.67lb (down 41.4% from US$4.56/lb for FY 2018). Average unit cost per tonne milled for FY 2019 was US$46.9/tonne (vs US$53.6/tonne milled for FY 2018).

Commenting on the production and operational results, Carlos Ballon, Chairman & CEO said, "2019 has represented the first full year of Xiana's ownership of MAP. Our first priority was to establish a sustainable cost base - which we have successfully achieved in 2019. As we now focus on increase in own ore production and achieving full plant utilisation we expect to see significant cost improvements as a result of the volume effect. The newly opened San Andres mine is under development and forms the next strategic source of own ore for MAP resulting in targeted 1mtpa own ore extraction in 2020. The Dalmacia UG provides potential further longer term inventory for MAP. Whilst the commodity price environment continues to be challenging, we progress towards positioning MAP as a low cost mid-tier sustainable producer in the medium term. We are confident of the team's ability to deliver on outlined milestones and create stakeholder value. We also continue to progress on other high quality inorganic growth opportunities and continue building upon the hub and spoke approach for MAP in Region IV, Chile."

YTD 2019 Operational Highlights

• Production⁽⁴⁾: FY 2019 total production of 13.12 mlbs (+20.7% vs FY 2018 total production of 10.9mlbs) ⁽¹⁾ (including silver production of 39.20 koz and gold production of 7.8 koz for FY 2019)
• Total ore mined: 556,327 tonnes for FY 2019 (-1.8% vs FY 2018 of 566,405 tonnes). Average mined grade of 1.18% Cu Eq FY 2019 (+1.9% vs FY 2018 of 1.16% Cu Eq).
• Total tonnes processed⁽⁵⁾: 808,498 tonnes (-3.4% vs FY 2018 of 836,655 tonnes). Average monthly tonnes processed of 67,375 tonnes (67.3% nameplate capacity utilisation)
• Plant recoveries⁽⁶⁾: FY 2019 Recoveries: Cu: 75.7%, Au: 79.3% and Ag: 64.1%. Significant improvement made in gold recoveries (+11.5% vs FY 2018 of 71.1%) as a result of improved plant performance and better quality ore purchased and extracted.
• Concentrate Grade: FY 2019 Concentrate Grade of 21.2% (+6.5% vs FY 2018 of 19.9%)
• Unit Cost/tonne Milled⁽⁷⁾: Average unit cost per tonne milled of US$46.9/tonne for FY 2019 (-37.4% reduction in mining costs vs FY 2018, -19.8% reduction in processing costs vs FY 2018, increase in ore purchasing as a result of high quality (precious metals inclusive) ore available and increase in indirect costs for non-recurring acquisition related payments).
• Revenue & Operating Costs (unaudited)⁽⁸⁾: Total revenue of US$37.2m for FY 2019, total operating costs of US$37.9m. Significant impact of commodity pricing affecting overall profitability for the first year following acquisition.

Qualified Person

The technical information contained in this news release has been reviewed and approved by Robert Baxter (FAusIMM), a Director of Xiana Mining Inc. and a qualified person as defined by National Instrument 43-101. Mr. Baxter is not independent of the Company.

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Notes:
(1) Copper Equivalent Terms computed on the basis of metal pricing: FY 2018: US$2.80/lb Cu US$1,228/oz Au and US$15/oz Ag FY 2019: US$2.96/lb Cu, US$1,269/oz Au and US$16/oz Ag.
(2) Figures include historical information from MAP for the period 1 January 2019-13 November 2019, Xiana does not assume any responsibility for historical operating information as this was under prior ownership.
(3) C1 Cash Costs defined as: Mining, processing, G&A, ore purchasing costs, freight net of bi-product credits divided by the total own payable production for the period. C1 Cash Costs are a non IFRS term.
(4) Ag production: 53.8koz and Au production of 4.8koz for FY 2018
(5) Average monthly tonnes processed of 69,721 for FY 2018
(6) FY 2018 Recoveries: Cu: 75.9%, Au 71.% Ag: 74.2%.
(7) Unit Cost/tonne milled reflects mining, processing, ore purchasing and G&A costs (does not include tolling revenue or bi-product credits). FY 2019 (Unit Cost/t milled): Mining Cost: US$15.7/tonne, Processing Cost: US$16.1/tonne, Ore Purchasing: US$6.3/tonne and Indirect: US$8.8/tonne. FY 2018 (Unit Cost/t milled): Mining Cost: US$25.1/tonne, Processing Cost: US$20.1/tonne, Ore Purchasing: U$1.3/tonne and Indirect: US$7.0/tonne
(8) EBITDA is defined as earnings before interest taxation depreciation and amortization. This is a non -IFRS term.

About Xiana Mining Inc.

Xiana Mining is a TSX Venture Exchange listed mining company focused on its producing operations and development properties in Region IV, Chile. Xiana acquired 100% ownership of Minera Altos de Punitaqui ("MAP") from Glencore plc in November 2018. MAP is comprised of four producing copper-gold mines, a 3,600 tpd concentrator and associated infrastructure.

Since the closing of the acquisition, Xiana has advanced an optimisation plan aimed at reducing costs, extending mine life and improving profitability.

MAP owns a total land package of 11,838 hectares in Region IV comprised of exploration and exploitation concessions. Xiana is focussed on proving up the district-scale potential of MAP's properties that will continue to provide sustainable feed for the concentrator and provide sustainable and increased production growth in the medium term at low cash costs.

Xiana is also engaged in the ongoing evaluation of producing and development stage mineral resource opportunities on an ongoing basis. The Company's common shares are listed on the TSX Venture Exchange under the symbol XIA. For more information about the company please visit www.xianamining.com

ON BEHALF OF THE BOARD OF DIRECTORS OF
XIANA MINING INC.

Carlos Ballon
Carlos Ballon, Chairman & CEO

For further information please contact:

Tony Drescher (Chief Financial Officer)
Telephone: +1-604-685-1017
E-mail: ajd@harbourpacific.com

Rita Adiani (Executive Vice President)
Telephone: +1-604-306-1403
E-mail radiani@xianamiing.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This press release may contain forward looking statements within the meaning of applicable Canadian securities legislation, including without limitation statements concerning future plans and objectives or expected results. Although Xiana believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Xiana can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward looking statements. Accordingly, readers should not place undue reliance on forward looking statements. The forward-looking statements contained in this press release are made as of the date hereof and Xiana undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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