PML.V · 2017-05-23 12:00:00

Panoro Minerals Commences Drill Program at Cotabambas Project in Peru, Targeting High Grade, Near Surface, Low Cost Expansion Potential

Exploration Programs

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Panoro Minerals Commences Drill Program at Cotabambas Project in Peru, Targeting High Grade,

Near Surface, Low Cost Expansion Potential

Vancouver, B.C., May 2 3, 2017 - Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM)

("Panoro", the "Company") is pleased to announce that it has commenced an exploration drill program at its

100% owned Cotabambas Cu/Au/Ag Project in Peru. The 14,000 m exploration program is targeting

resource growth from four zones within Cluster 1 at the Cotabambas Project . The targets include high

grade, near surface sulphides, oxide gold and oxide copper in close proximity to the proposed North Pit.

The target areas are illustrated on the attached map and summarized below:

1. Breccia Target

The Breccia Target is located adjacent to the northern limit of the proposed North P it along a

northeast to southwest geologic structure. The existing resources of the Ccalla and Azulccaca

deposits are also located along a similar and parallel structural control. This target was the subject of

press release April 3, 2017 , announcing the delineation of a new oxide gold zone. The target

potential is defined by eleven gold anomalies distributed over an area of 1.0 km x 1.4 km and 2,000

m of exploration drilling is plan ned for the zone. The zone has the potential to contain near surface

oxide gold mineralization with low copper grades indicating the potential to add a low cost gold heap

leaching operation to the project. The oxide gold zone may be underlain by a blanket of oxide

copper mineralization which will also be tested with the proposed drilling program.

2. Petra-David Target

The Petra David Target is located to the west side of the proposed North Pit over an area of 900 m

by 200 m. The target is formed by mixed and oxide copper oxide mineralization hosted in porphyry

outcroppings and 2,000 m of exploration drilling is planned for the zone. The zone has the potential

to contain near surface oxide copper mineralization for the potential addition of a low cost heap

leach and SX/EW component to the project.

3. Maria Jose Target

The Maria Jose Tar get is located 2 km to the northeast of the proposed North Pit along the local

northeast to southwest geologic structure and covers an area of 1.2 km by 280m. The target is

formed by pervasive supergene argillization in the surface and copper sulphides out croppings

hosted in andesi te volcanic rocks intruded by porphyries related to the mineralization. The drilling

program includes 8,000 m of exploration drilling in this zone. The zone has the potential to add

additional higher grade sulphides to the proposed concentrator plant mill feed.

4. Buenavista-Puente Target

The Buenavista -Puente Target is located 2 km to the Northwest of the proposed North Pit and

covers an area of 800 m by 300 m. The target is formed by porphyry and s karn type mineralization

having an east-west structural control that may connect with Maria Jose target . The drilling program

includes 2,000 m of exploration drilling in this zone. The zone has the potential to add additional

higher grade sulphides to the proposed concentrator plant mill feed.

The drill targets are all near surface zones of mineralization identified through the Company’s recent

exploration work. In 2017 the Company has completed the following works at the Cotabambas Project in

preparation for the current exploration drill program:

 Detailed geologic mapping of over 768 hectares of the Company’s concessions in the Cluster 1 area

surrounding the current resources;

 Rock chip sampling of outcroppings in Cluster 1 where a total of 597 samples were collected and

assayed;

 Trenching to expose additional bedrock for detailed mapping and sampling. A total of 60 trenches

with a total length of over 6.9 km were completed; and

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 A geophysical program over the areas defined by the four target areas is in progress . The

geophysical program advanced to date includes:

o 44.5 km of Magnetic Surveys; and

o 34.4 km of Induced Polarization Surveys.

An additional 35 km of Induced Polarization Surveys over these four target areas is underway and expected

to be completed shortly.

Additional near surface mineralization identified by this work has good potential , and is to be tested in the

drill program . It may be indicative of new porphyry centres clustered around t he Ccalla and Azulccaca

Porphyries containing the current project resource and serving as the base for the Preliminary Economic

Assessment. Panoro’s primary objective in the current drill program will be to delineate near surface, high

grade and low cost mineralization.

All permits to commence the drill program are in place. Panoro has an approved Semi-Detailed

Environmental Impact Study (EIAsd) and completed an agreement with the local community , as announced

in January 2017. The EIAsd covers all of the four target areas defined above and the Company expects to

be drilling the targets for the balance of the year.

Additionally the Company is prepari ng a submission to expand the area covered by the existing EIAsd to

include areas of Cluster 2 including the Chaupec tar get, the new Porphyry/Skarn zone of mineralization

hosting high copper grades , located 3 km to the west of the proposed North Pit. This target was the subject

of pr ess release July 25, 2016. Panoro is planning a drilling campaign of an additional 5,000 m at the

Chaupec target.

About Panoro

Panoro Minerals is a uniquel y positioned Peru focused copper exploration and development company. The

company is advancing its flagship project, Cotabambas Copper-Gold-Silver Project and its Antilla Copper-

Molybdenum Projects located in the strategically important area of southern Peru. The company is well

financed to expand, enhance and advance its projects in the region where infrastructure such as railway,

roads, ports, water supply, power generation and transmission are readily available and expanding quickly.

The region boasts the recent investment of over $US 15 billion into the construction or expansion of four

large open pit copper mines.

Since 2007, the Company has completed over 70,000 m of exploration drilling at these two key projects

leading to substantial increases in the mineral resource base for each, as summarized in the table below.

Summary of Cotabambas and Antilla Project Resources

Project Resource

Classification

Million

Tonnes

Cu (%) Au (g/t) Ag (g/t) Mo (%)

Cotabambas Cu/Au/Ag Indicated 117.1 0.42 0.23 2.74 0.001

Inferred 605.3 0.31 0.17 2.33 0.002

@ 0.20% CuEq cutoff, effective October 2013, Tetratech

Antilla Cu/Mo Indicated 291.8 0.34 - - 0.01

Inferred 90.5 0.26 - - 0.007

@ 0.175% CuEq cutoff, effective May 2016, Tetratech

Preliminary Economic Assessments (PEA) have been completed for both the Cotabambas and Antilla

Projects, the key results are summarized below.

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Summary of Cotabambas and Antilla Project PEA Results

Key Project Parameters Cotabambas Cu/Au/Ag

Project

Antilla Cu/Mo Project

Mill Feed, life of mine million tonnes 483.1 350.4

Mill Feed, daily tonnes 80,000 40,000

Strip Ratio, life of mine 1.25 : 1 0.85 : 1

Before

Tax1

NPV7.5% million USD 1,053 491

IRR % 20.4 22.2

Payback years 3.2 3.3

After

Tax1

NPV7.5% million USD 684 225

IRR % 16.7 15.1

Payback years 3.6 4.1

Annual

Average

Payable

Metals

Cu thousand tonnes 70.5 36.8

Au thousand ounces 95.1 -

Ag thousand ounces 1,018.4 -

Mo thousand tonnes - 0.9

Initial Capital Cost million USD 1,530 603

Project economics estimated at commodity prices of; Cu = US$3.00/lb, Au = US$1,250/oz, Ag = US$18.50/oz, Mo = US$12/lb

The PEAs are considered preliminary in nature and include Inferred Mineral Resources that are considered

too speculative to have the economic considerations applied that would enable classification as Mineral

Reserves. There is no certainty that the conclusions within the updated PEA will be realized. Mineral

Resources are not Mineral Reserves and do not have demonstrated economic viability.

Luis Vela, a Qualified Person under National Instrument 43 -101, has reviewed and approved the scientific

and technical information in this press release.

On behalf of the Board of Panoro Minerals Ltd.

Luquman Shaheen. PEng, PE, MBA

President & CEO

FOR FURTHER INFORMATION, CONTACT:

Panoro Minerals Ltd.

Luquman Shaheen, President & CEO

Phone: 604.684.4246 Fax: 604.684.4200

Email: [email protected]

Web: www.panoro.com

Renmark Financial Communications Inc.

Laura Welsh

Tel.: (416) 644-2020 or (416) 939-3989

[email protected]

www.renmarkfinancial.com

CAUTION REGARDING FORWARD LOOKING STATEMENTS : Information and statements contained in

this news release that are not historical facts are “forward -looking information” within the meaning of

applicable Canadian securities legislation and involve risks and uncertainties.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other

factors which could cause actual events or results to differ materially from those expressed or implied by the

forward-looking statements, including, without limitation:

 risks relating to metal price fluctuations;

 risks relating to estimates of mineral resources, production, capital and operating costs,

decommissioning or reclamation expenses, proving to be inaccurate;

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 the inherent ope rational risks associated with mining and mineral exploration, development, mine

construction and operating activities, many of which are beyond Panoro’s control;

 risks relating to Panoro’s ability to enforce Panoro’s legal rights under permits or licenses or risk that

Panoro’s will become subject to litigation or arbitration that has an adverse outcome;

 risks relating to Panoro’s p rojects being in Peru, including political, economic and regulatory

instability;

 risks relating to the uncertainty of applications to obtain, extend or renew licenses and permits;

 risks relating to potential challenges to Panoro’s right to explore and/or develop its projects;

 risks relating to mineral resource estimates being based on interpretations and assumptions which

may result in less mineral production under actual circumstances;

 risks relating to Panoro’s operations being subject to environmental and remediation requirements,

which may increase the cost of doing business and restrict Panoro’s operations;

 risks relating to being adversely affected by environmental, safety and regulatory risks, including

increased regulatory burdens or delays and changes of law;

 risks relating to inadequate insurance or inability to obtain insurance;

 risks relating to the fact that Panoro’s properties are not yet in commercial production;

 risks relating to fluctuations in foreign currency exchange rates, interest rates and tax rates; and

 risks relating to Panoro’s ability to raise funding to continue its exploration, development and mining

activities.

This list is not exhaustive of the factors that may affect the forward -looking information and statements

contained in this news release. Should one or more of these risks and uncertainties materialize, or should

underlying assumptions prove incorrect, actual results may vary materially from those described in the

forward-looking information. The forward -looking information contained in this news release is based on

beliefs, expectations and opinions as of the date of this news release. For the reasons set forth above,

readers are cautioned not to place undue reliance on forward -looking information. Panoro does not

undertake to update any forward -looking information and statements included herein, except in accordance

with applicable securities laws.

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.

Maria Jose

Target

Buenavista - Puente

Target

Petra - David

Target

Breccia Target

North PIT

785000

786000

787000

8480000

8481000

8482000

8483000

8484000

1:5,500

0 500250

Lithology

Road Access

Drenage

Simbology

Argilized QMP

Main Quartz Monzonite (QMP)

Faulting

Mineralogy/Alteration

Pervasive Argilization

Influence

D:\PA NO RO_SE RV ER\DATA G ENE RA L\

Mx d_pr oyecto P anor o\Cotabam bas \Cochapata\Nueva c arpeta

Cotabambas Project

Lamine

1:5,500

Scale:Format: File Name:

A1PSAD56_UTM

Revised:

L.Vedego

Area:Approved

GeologiaL.V

Versión:

01Febrero-2017

Location:

Antilla-Apurimac

Av. Pardo y Aliaga Nº699, Of. 601B

San Isidro

Telf; 6285978 Fax; 6285979

http://WWW.Panoro.com

PANORO APURIMAC S.A.

Project

Description:

Datum:

Drawing:

Date:

System Corrd: PSAD56 UTM Zone 18S

Gold-Structural control

PEA Pit

Cuarzo Monzonita (Pre Mineral)

Latita

Andesita

Coarzo Monzonita (Horblendico)

Covertura

Diorita

Limestone

Panoro Property

Map, Geology

Target

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