SAM.TO · 2016-07-29

Starcore Reports Year End 2016 Results

Financials

July 29, 2016 TSX: SAM

Starcore Reports Year End 2016 Results

Vancouver, B.C. – Starcore International Mines Ltd. (the “Company”) has filed the results for the adjusted year end dated April 30, 2016 for the Company and its mining operations. 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. All financial information is prepared in accordance with IFRS On May 13, 2016, the Company changed its fiscal year end from July 31 to April 30. With this year‐end change, and all dollar amounts are expressed in thousands of Canadian dollars unless otherwise indicated.

the Company will report a one‐time transitional period for the nine months ended April 30, 2016.

Financial Highlights for the period ending April 30, 2016 (audited) compared to the year ended July 31, 2015 (audited) and period ended April 30, 2015 (unaudited):

Cash and short-term investments on hand is $10 million at April 30, 2016 compared to $6 million at July 31, 2015;
Gold and silver sales of $20.3 million for the nine months ended April 30, 2016 compared to $21.7 million for the nine months ended April 30, 2015, a decrease of 6%;
Net income of $0.2 million for the period ended April 30, 2016 compared to net income of $0.3 million for the nine months ended April 30, 2015;
EBITDA⁽¹⁾ of $2,747 for the period ended April 30, 2016 compared to $4,429 for the nine months ended April 30, 2015, a decrease of 38%.

The following table contains selected highlights from the Company’s audited consolidated statement of operations for the periods ended April 30 2016 and 2015:

2015

For the nine month period ended April 30, 2016

(in thousands of Canadian dollars) (unaudited)

(audited)

Revenues $ 20,326 $ 22,039 Cost of Sales (21,001)

(18,807)

Earnings from mining operations	1,519		1,038
Administrative Expenses	(3,963)		(1,781)
Income tax recovery (expense)	2,639	1,049
Net income	$ 195	$ 306
(i) Income per share – basic	$ 0.00	$ 0.02
(ii) Income per share – diluted	$ 0.00	$ 0.02

Reconciliation of Net income to EBITDA⁽¹⁾

Suite 750 – 580 Hornby Street, Box 113, Vancouver, British Columbia, Canada V6C 3B6 Suite 904 – 85 Richmond Street West, Toronto Ontario M5H 2C9 Telephone: (604) 602-4935 Fax: (604) 602-4936 e-mail. [email protected] website: www.starcore.com

For the nine month period ended April 30,

(in thousands of Canadian dollars) (Unaudited)

2016 2015

Net Income	$ 195 $	306
Income tax recovery	(2,639)	(1,049)
Interest	387	-
Depreciation and depletion	4,784	5,172

$ 4,429

EBITDA $ 2,727 EBITDA MARGIN⁽²⁾ 13.4%

20.1%

(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 period ending April 30, 2016 compared to the year ended July 31, 2015 and period ended April 30, 2015:

Equivalent gold production of 13,215 ounces in period ended April 30, 2016 compared to production of 14,941 ounces in period ended April 30, 2015, a decrease of 11%;
Mine operating cash cost is US$846/EqOz for the period ended April 30, 2016 compared to cost of US$920/EqOz for the period ended April 30, 2015, a decrease of 8%;
All-in sustaining costs of US$1,146/EqOz for the period ended April 30, 2016 compared to costs of US$1,080/EqOz for the period ended April 30, 2015, an increase of 6%;

The following table is a summary of mine production statistics for the San Martin mine for nine months ended April 30, 2016 and 2015 and the year ended July 31, 2015:

Actual results for Actual results for Actual results for

		9 months ended	9 months ended	12 months ended
	Unit of measure	April 30, 2016	April 30, 2016	July 31, 2015
Production of Gold in Dore	thousand ounces	12.3	14.0	18.3
Production of Silver in Dore	thousand ounces	70.2	70.1	97.1
Equivalent ounces of Gold	thousand ounces	13.2	14.9	19.6
Silver to Gold equivalency ratio		76.2	71.1	71.6:1
Gold grade	grams/tonne	1.96	2.19	2.14
Silver grade	grams/tonne	18.4	18.0	18.2
Gold recovery	percent	84.9%	84.6%	85.1%
Silver recovery	percent	51.7%	51.6%	53.1%
Milled	thousands of tonnes	229.6	234.6	311.9
Operating Cost per tonne milled	US dollars/tonne	49	59	57
Operating Cost per Equivalent ounceUS dollars/ounces		846	920	903

“Despite some production issues in the past few months, we have consistently maintained a positive cash flow. This has allowed us to explore for and find additional higher grade zones at the mine, as we recently reported, as well as to commence an aggressive drill program on our Toiyabe project located in Nevada. With the ramp up of

our Altiplano processing facility, we are fully active in exploration, mining and industrial milling of concentrates, covering all facets of mining activity.” reported Robert Eadie, President of the Company.

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. 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 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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