SAM.TO · 2017-12-15 12:00:00

Starcore Reports Q2 2018 Results

Financials

Suite 750 – 580 Hornby Street, Box 113, Vancouver, British Columbia, Canada V6C 3B6

Suite 700 - 350 Bay Street, Toronto, Ontario, Canada M5H 2S6

Telephone: (604) 602-4935 Fax: (604) 602-4936 e-mail. [email protected] website: www.starcore.com

December 15, 2017 TSX: SAM

Starcore Reports Q2 2018 Results

Vancouver, B.C. – Starcore International Mines Ltd. (TSX: SAM) (the “Company” ) has filed the results for the

second quarter ended October 31, 2017 for the Company and its mining operations in Queretaro, Mexico and

toll processing operations in Matehuala, Mexico. All financial information is prepared in accordance with IFRS

and all dollar amounts are expressed in thousands of Canadian dollars unless otherwise indicated.

“We have reported the lowest production and earnings over the last two quarters in the ten years that we have

operated San Martin mine.” reported Robert Eadie, President of the Company. “The San Martin mine has gone

through a transition period where we experienced a lack of developed ore and capex investment during the

change in management and introduction of the CIL plant. Our priorities going forward remain focused on

exploration in areas that are open at depth, developing a mine plan that addresses our previous undeveloped

ore stopes, and continuing with our strategy to carry out cost efficient mining.”

Financial Highlights for the three‐month period ended October 31, 2017 (unaudited):

 Cash and short‐term investments on hand is $5.1 million at October 31, 2017;

 Gold and silver sales of $6.4 million;

 Loss of $1.945 million, or $(0.04) per share;

 EBITDA(1) for the 6 month period ended October 31, 2017 in a loss of $1,146;

The following table contains selected highlights from the Company’s unaudited consolidated statement of

operations for the three and six months ended October 31, 2017 and 2016:

(in thousands of Canadian dollars)

(Unaudited)

Three Months ended

October 31,

Six Months ended

October 31,

2017 2016 2017 2016

Revenues $ 6,407 $ 7,061 $ 14,502 $ 14,249

Cost of Sales (7,761) (5,792) (16,235) (11,832)

Earnings (Loss) from mining operations (1,354) 1,269 (1,733) 2,417

Administrative expenses (1,311) (1,230) (1,831) (2,087)

Income tax recovery 720 148 1,405 343

Net income (Loss) $ (1,945) $ 187 $ (2,159) $ 673

(i) Income (Loss) per share – basic (0.04) 0.00 $ (0.04) $ 0.01

(ii) Income (Loss) per share – diluted (0.04) 0.00 $ (0.04) $ 0.01

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Reconciliation of Net income to EBITDA(1)

For the six months ended October 31, 2017 2016

Net income (Loss) $ (2,159) $ 673

Income tax recovery (1,405) (343)

Interest ‐ 320

Depreciation and depletion 2,418 2,795

EBITDA $ (1,146) $ 3,445

EBITDA MARGIN(2) (7.90%) 24.18%

(1) EBITDA (“Earnings before Interest, Taxes, Depreciation and Amortization”) is a non‐GAAP financial performance measure with no standard

definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another Corporation. The

Corporation uses this non‐GAAP measure which can also be helpful to investors as it provides a result which can be compared with the

Corporation’s market share price.

(2) EBITDA MARGIN is a measurement of a company’s operating profitability calculated as EBITDA divided by total revenue. EBITDA MARGIN is a

non‐GAAP financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be

comparable with a similar measure of another Corporation. The Corporation uses this non‐GAAP measure which can also be helpful to

investors as it provides a result which can be compared with the Corporation’s market share price.

Production Highlights for the three month period ended October 31, 2017:

 Equivalent gold production of 2,739 ounces;

 Mine operating cash cost of US$1,457/EqOz;

 All‐in sustaining costs of US$1,558/EqOz;

Actual Results for

Unit of measure

3 months ended

October 31,

2017

6 months ended

October 31,

2017

12 months ended

April 30, 2017

Mine Production of Gold in Dore thousand ounces 2.5 6.2 14.2

Mine Production of Silver in Dore thousand ounces 14.8 30.0 66.1

Gold equivalent ounces thousand ounces 2.7 6.6 15.2

Silver to Gold equivalency ratio 75.6 75.3 70.2

Mine Gold grade grams/tonne 1.56 1.78 1.97

Mine Silver grade grams/tonne 13.6 13.1 16.1

Mine Gold recovery percent 80.9% 83.3% 81.5%

Mine Silver recovery percent 54.0% 52.7% 46.5%

Milled thousands of tonnes 62.4 132.1 275.1

Mine operating cash cost per tonne milled US dollars 64 61 53

Mine operating cash cost per equivalent ounce US dollars 1,457 1,220 969

The full version of the Company's Financial Statements and Management's Discussion and Analysis can be

viewed on the Company's website at www.starcore.com, or SEDAR at www.sedar.com.

About Starcore

Starcore is engaged in exploring, extracting and processing gold and silver through its wholly‐owned subsidiaries,

Compañia Minera Peña de Bernal, S.A. de C.V., which owns the San Martin mine in Queretaro, Mexico, and

Altiplano Gold Silver, S.A. de C.V., which operates the newly commissioned Altiplano Concentrate Processing

Plant located in Matehuala, Mexico. The Company is a public reporting issuer on the Toronto Stock Exchange.

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The Company is also engaged in owning, acquiring, exploiting, exploring and evaluating mineral properties, and

either joint venturing or developing these properties further. The Company has interests in properties which are

exclusively located in North America.

ON BEHALF OF STARCORE INTERNATIONAL

MINES LTD.

Signed “Gary Arca”

Gary Arca, Chief Financial Officer and Director

FOR FURTHER INFORMATION PLEASE CONTACT:

GARY ARCA EVAN EADIE

Telephone: (604) 602‐4935 Investor Relations

Facsimile: 1‐604‐602‐4936 Telephone: (416) 640‐1936

Toll Free: 1‐866‐602‐4935

This news release contains forward‐looking statements. These statements may reflect management’s current

estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions

that all forward‐looking statements are inherently uncertain and that actual performance may be affected by a

number of material factors, many of which are beyond the Company’s control. Accordingly, actual and future events,

conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or

implied in the forward‐looking information. The Company undertakes no obligation to publicly update or revise

forward‐looking information.

The Toronto Stock Exchange has not reviewed nor does it accept responsibility

for the adequacy or accuracy of this press release.

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