Orvana Provides Update ON 2015 Judicial Process IN Spain
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Date: March 3, 2021 #05-2021
ORVANA PROVIDES UPDATE ON 2015 JUDICIAL PROCESS IN SPAIN
TORONTO, ONTARIO, March 3, 2021 – Orvana Minerals Corp. (TSX:ORV) (the “Company” or
“Orvana”). The Company is providing an update on its subsidiary’s OroValle Minerals S.L. (“OroValle”),
ongoing judicial process (the “Process”) which started in 2015. This Process has been continuously disclosed
and updated in the company’s quarterly financial statements since June 30th 2015
The Process relates to selenium discharge levels in the Cauxa R iver. This river, flows past OroV alle’s
operations as well as other properties owned by third parties. Selenium is a naturally occurring element that
is found in rocks, land and water in the area, and is not used in OroValle’s operations whatsoever. The results
of scientific studies conducted by OroV alle have confirmed that past and current levels of selenium in
waterways in the vicinity do not cause environmental damage. The latest historical summary of this matter
may be found in the quarter-ended December 31, 2020, financial statements.
OroValle’s position in this Process is that the petitioned sanctions are unreasonable and without merit.
OroValle has filed its preliminar y statement of defence requesting for the dismissal of the Prosecutor’s
allegations on the basis that, among other things, there is an absence of a committed offence. Orovalle has
submitted proven and conclusive evidence that demonstrate that its activities have not resulted in any
environmental damage. Considering the strength of the legal defence and evidence in favor of OroValle’s
position, OroValle is confident that this Process will result in the dismissal of this matter.
Due to procedural matters, on March 1st, 2021, the trial has been rescheduled to an undetermined date in the
future. The request of the Prosecutor and the State’s Attorney acting in this Process includes a fine of up to
€20m and the eventual withholding of OroValle’s operations until it is demonstrated that the alleged polluting
activity has ceased. The petition also includes a €5m indemnity for civil liability.
The company will provide further updates as the process advances.
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, and the Don Mario gold -silver
property in Bolivia, currently in care and maintenance. Orvana is in the process of completing the registration
of transfer docum ents with the mining authorities in connection with the acquisition of Taguas, Argentina.
Additional information is available at Orvana’s website (www.orvana.com).
For further information please contact:
Nuria Menéndez
Chief Financial Officer
Joanne Jobin
Investor Relations Officer
T: 647 964 0292
Cautionary Statements - Forward-Looking Information
Certain statements made herein 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”, “intends” or “anticipates” 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
potential to extend the mine life of El Valle and Don Mario beyond their current life-of-mine estimates including specifically, but not limited
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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; any measures
taken by the Company to prevent and/or mitigate the impact of COVID-19 and other infectious diseases at or near the Company’s mines
and support the sustainability of its 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; estimates of
future production, operating costs and capital expenditures; mineral resource and reserve estimates; statements and informati on
regarding future feas ibility studies and their results; future transactions (including the completion of the acquisition of Taguas and
subsequent results of any exploration work on Taguas ); 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; 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. The estimates and assumptions of the Company contained or incorporated by reference in
this news release, 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 Com pany’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; and labour and materials costs increasing on a basis consistent with Orvana’s current expectations.
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 pending
outcome of the pending trial to be held in connection with the alleged selenium discharge at El Valle, the effect of COVID-19 and other
infectious diseases on the Company’s operations, workforce and supply chain, 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 abili ty 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 Don
Mario 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 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; 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.