Q2 FY2022 Orovalle Highlights:

Production impacted by the nationwide transportation strike in March, the COVID-19 sixth wave in Spain and delays in spare parts supply in Europe. Mining and milling activities returned to full operational levels in April
Costs impacted by exorbitant electricity prices when the conflict in Ukraine started. Actions are being taken by the Spanish Government to limit prices
10,595 gold equivalent ounces produced (8,341 Au oz, 0.8 million Cu lb and 25,703 Ag oz)
COC at $1,983 and AISC at $2,306
Q2 FY2022 Consolidated Highlights:

Revenue ($M): 21.9
EBITDA ($M): (2.7)
CAPEX ($M): 4.7
Unrestricted Cash EoP ($M): 13.6
TORONTO, May 10, 2022 /CNW/ - Orvana Minerals Corp. (TSX: ORV) (the "Company" or "Orvana") reports consolidated financial and operational results for the quarter ended March 31, 2022 and announces revised guidance for fiscal year 2022 for the Orovalle operation to take into consideration the impacts caused by COVID-19 related absenteeism, delays in spare parts supply in Europe, the nationwide transportation strike in Spain, and rising annual inflation rates in Spain reaching near 40-year highs causing higher prices for energy, materials, supplies and services.

This news release should be read in conjunction with the Company's Management's Discussion and Analysis, unaudited Financial Statements and Notes to unaudited Financial Statements for the corresponding period, which have been posted on the Orvana Minerals Corp. SEDAR profile at www.sedar.com, and which are also available on the Company's website at www.orvana.com. All figures are in U.S. dollars unless otherwise noted.

"Orvana has a well defined and clear strategy based on developing its three assets for the long term. In that sense we had an exceptional quarter, with very encouraging drilling results in Spain and Argentina, coupled with the successful completion of metallurgical testing and economic modeling in Bolivia. On the annual production side, we did have a challenging quarter in Spain as exceptional national, and continental, events, unfolded simultaneously, causing intermittent disruptions of operations and rising production costs", said Orvana CEO Juan Gavidia. "Our Spanish operation's amended guidance reflects the impact of the previous months, but does not affect our outlook of Orovalle's performance in the medium to longer term. Spain continues to be the cornerstone of Orvana's "organic growth strategy", meaning free operating cash for the rest of the year is committed to create value through expanded mineral resource modeling for Spain and Argentina, and detail project engineering for Bolivia. The Company, expects to be in a favourable position by the end of this fiscal year to continue the development of its defined strategy of continued production and development of organic growth," added Juan Gavidia.

Consolidated Financial Results and Operating Highlights:

Revenue of $21.9 million for the three months ended March 31, 2022 ("Q2 FY2022") and $48.5 million for the six months ended March 31, 2022 ("H1 FY2022").
EBITDA of negative $2.7 million for Q2 FY2022 and positive $2.4 million for H1 FY2022.
Capital expenditures (on a cash basis) of $4.7 million for Q2 FY2022, and $9 million for H1 FY2022.
$13.6 million of cash and cash equivalents as at March 31, 2022.
Orovalle:
Q2 FY2022 production was impacted by a multi-day operations stoppage caused by a nationwide transportation strike, in March.
Starting December 2021, Orovalle experienced the effects of the sixth wave of COVID-19 cases in Spain, despite the Company's ongoing efforts to safeguard the health of the workforce. The wave reached its peak in January 2022, impacting workforce attendance levels. During this stressful period, the Company continued operating safely and responsibly, although with productivity challenges.
Gold production of 8,341 oz in Q2 FY2022, compared to 11,731 ounces in the first quarter of fiscal 2022 ("Q1 FY2022"). Production decrease was due to 17% lower tonnes milled and 15% lower head grade.
Copper production of 0.8 million lbs in Q2 FY2022, compared to 1.5 million lbs in Q1 FY2022. Production decrease was due to 17% lower tonnes milled, 31% lower head grade and 4% lower recovery.
6,642 meters of infill and brownfield drilling.
1,447 meters of greenfield exploration drilling.
196.50 meters at 0.53 g/t Au grade were intercepted in greenfield Lidia Project.
EMIPA:
A new National Instrument 43-101 "Technical Report for the Don Mario Property, Eastern Bolivia" was filed on March 15, 2022. Highlights being its upside with the Oxides Stockpile Project ("OSP") and the Tailings Reprocessing Project ("TRP").
Don Mario continues in care and maintenance ("C&M"), transitioning to the OSP.
OSP has completed metallurgical testing with very satisfactory results in terms of recoveries and consumption of key OPEX items. Basic engineering for construction to define CAPEX levels is under way, as well as project financing.
TRP conducted 1,022.5 meters of infill drilling (82 holes) in Q2 FY2022.
During Q1 FY2022, mapping, geochemical and geophysical sampling were carried out in two previously unexplored areas in Las Tojas and Oscar sectors. During Q2 FY2022, the resulting data has been processed and analyzed in order to continue with fiscal 2022 exploration program.
During the second quarter of fiscal 2020, as a result of the suspension of operations, EMIPA implemented a labor restructuring process, which was managed in full compliance with the terms defined by applicable laws in Bolivia. Certain former employees of EMIPA affected by the restructuring process decided not to accept the dismissal terms provided for under applicable employment laws in Bolivia, and started a reinstatement claiming process at labor, administrative and criminal jurisdictions. Late April 2022, in relation to one of the files at the criminal jurisdiction, the Court issued a sentence determining the imprisonment of the General Manager of EMIPA for a period of four years. A legal complaint against the sentence was presented, and, on May 9, the sentence was invalidated. The restructuring process was carried out according to all the applicable local regulations. Considering the strength of EMIPA's arguments and the evolution of the process as of today, the Company expects a positive outcome of the process.
Orvana Argentina:
On December 29, 2021 the Company announced its updated Taguas Project preliminary economic assessment report ("2021 Taguas PEA"), which was filed on SEDAR on February 11, 2022. Orvana retained SAXUM Engineered Solutions (Argentina), in cooperation with Kappes, Cassiday & Assoc. (Reno, Nevada, USA), and NCL (Chile), to prepare the report. The report was prepared in accordance to National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). The 2021 Taguas PEA replaced a previous one dated May 14, 2019, and filed on SEDAR on July 9, 2019.
The 2021 Taguas PEA refers only to the oxidized gold-silver mineralization occurring near surface in Cerros Taguas, leaving the bigger Au-Ag-Cu sulfidic volume for a second developmental phase.
The Company started an infill drilling campaign in late December 2021 to upgrade the mineral resource from the inferred category, and to realize its oxide mineral tonnage upside potential. As of March 31, 2022, 26 DDH holes totaling 4,210 meters had been drilled. The drilling program continues progressing and the Company estimates to achieve a total of 6,500 meters by mid May 2022.
Consolidated Financial Results and Operating Highlights:

Consolidated Results
Q2 2022 Q1 2022 Q2 2021 YTD 2022 YTD 2021
Operating Performance
Gold
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