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Orvana Reports Adjusted Net Income of $0.09/Share for the Fourth Quarter and $0.11/Share for Fiscal 2012

TORONTO, ONTARIO -- (Marketwire) -- 12/21/12 -- Orvana Minerals Corp. (TSX:ORV) (the "Company") announced today financial and operating results for the fourth quarter ("Q4 2012") and fiscal year ended September 30, 2012.

The Company reported adjusted net income for Q4 2012 of $0.09 per share excluding the unrealized loss from the revaluation of the Company's derivative instruments and the tax effect thereof and the one-time expense associated with the conversion of an outstanding debenture relating to a royalty.

The audited consolidated financial statements for the fiscal year ("2012 Financials") and Management's Discussion & Analysis related thereto ("2012 MD&A") are available on SEDAR and at www.orvana.com.

Dollar amounts (other than per ounce/pound and per share amounts) are in thousands of U.S. dollars unless stated otherwise, and fine troy ounces of gold and silver are referred to as "ounces".

Q4 2012 Operating and Financial Highlights


--  Production of 15,155 ounces of gold, 4 million pounds of copper, 277,081
    ounces of silver and 636,126 pounds of lead and sales of 18,604 ounces
    of gold, 5.3 million pounds of copper, 289,356 ounces of silver and
    636,126 pounds of lead. (1) 
    
--  Consolidated revenue of $50,608 in the fourth quarter of fiscal 2012
    compared to $10,576 in the fourth quarter of fiscal 2011, an increase of
    379%. 
    
--  Net loss of $2,007 in the fourth quarter of fiscal 2012 compared to net
    income of $8,037 in the fourth quarter of fiscal 2011. 
    
--  Adjusted net income of $12,325 or $0.09 per share compared to an
    adjusted net loss of $4,852 or adjusted net loss of $0.04 per share in
    the fourth quarter of fiscal 2011. (2) 
    
--  Cash flows provided by operating activities of $29,617 in the fourth
    quarter of fiscal 2012 compared to cash flows provided by operating
    activities of $91 in the fourth quarter of fiscal 2011 and cash flows
    provided by operating activities before changes in non-cash working
    capital of $14,453 in the fourth quarter of fiscal 2012 compared to cash
    flows used in operating activities before changes in non-cash working
    capital of $1,217 in the fourth quarter of fiscal 2011. (2) 

2012 Annual Operating and Financial Highlights


--  First full year of commercial production at the EVBC Mine and nine
    months of commercial production at the UMZ Mine. 
    
--  Major permitting milestones achieved at the Copperwood Project. 
    
--  Production of 55,929 ounces of gold, 15.4 million pounds of copper,
    716,280 ounces of silver and 636,126 pounds of lead and sales of 55,052
    ounces of gold, 14.7 million pounds of copper, 669,810 ounces of silver
    and 636,126 pounds of lead. (1) 
    
--  Consolidated revenue of $140,917 for fiscal 2012 compared to $25,085 for
    fiscal 2011, an increase of 462%. 
    
--  Net loss of $2,353 for fiscal 2012 compared to a net loss of $21,306 for
    fiscal 2011. 
    
--  Adjusted net income of $15,474 for fiscal 2012 or $0.11 per share
    compared to adjusted net loss of $12,671 or adjusted net loss of $0.11
    per share for fiscal 2011. (2) 
    
--  Cash flows provided by operating activities of $41,705 in fiscal 2012
    compared to cash flows used in operating activities of $12,623 in fiscal
    2011 and cash flows provided by operating activities before changes in
    non-cash working capital of $33,276 in fiscal 2012 compared to cash
    flows used in operating activities before changes in non-cash working
    capital of $2,263 in fiscal 2011. (2) 
    
--  Cash and cash equivalents of $13,200 and short-term restricted cash of
    $16,783 at September 30, 2012. 
    
--  New executive management leadership with a new Chief Executive Officer
    in December 2011, Chief Financial Officer and Bolivia country manager in
    June 2012, Chief Operating Officer in August 2012 and Spain country
    manager in September 2012. 
    

                                                                            
(1) For a description of the EVBC Mine and the UMZ Mine, please see "Overall
    Performance - EVBC Mine" and "Overall Performance - UMZ Mine".          
                                                                            
(2) Adjusted net income (loss) excludes the unrealized losses from the      
    revaluation of the Company's financial instruments at the end of the    
    period and the tax effect thereof and the one-time expense of $3,132    
    payable in fiscal 2013 associated with the conversion of an outstanding 
    debenture relating to a royalty associated with the EVBC Mine. Adjusted 
    net income (loss) and cash flows provided by operating activities before
    changes in non-cash working capital are non-IFRS performance measures   
    with no standard definition under IFRS. The Company believes that, in   
    addition to conventional measures prepared in accordance with IFRS, the 
    Company and certain investors use this information to evaluate the      
    Company's performance including the Company's ability to generate cash  
    flows from its mining operations. Accordingly, it is intended to provide
    additional information and should not be considered in isolation or as  
    substitutes for measures of performance prepared in accordance with     
    IFRS. For further information and a detailed reconciliation, please see 
    the "Other Information - Non-IFRS Measures" section of the MD&A for the 
    financial year ended September 30, 2012.                                

"Our financial performance greatly improved in the fourth quarter, ending the 2012 fiscal year on a positive note," said Bill Williams, President and Chief Executive Officer. "With the UMZ operation stabilized and EVBC Mine recovering from the ground stability issues, in addition to getting the shaft operational, we expect fiscal 2013 to be very successful both operationally and financially."

OVERALL PERFORMANCE

The key factors affecting Orvana's operating and financial performance are tonnages mined and treated, metal grades and recoveries, quantities of metal produced and sold, realized metals prices, cost of supplies including labour and energy, mine development and other capital expenditures, foreign exchange rates, financial instruments and tax rates.

The Company's operating and financial performance for the fourth quarters ended September 30, 2012 and 2011 and the 2012, 2011 and 2010 fiscal years are summarized in the table below:


----------------------------------------------------------------------------
                          Q4 2012   Q4 2011       2012       2011      2010 
----------------------------------------------------------------------------
Operating Performance                                                       
 (1)                                                                        
Gold                                                                        
 Production (oz)           15,155     9,336     55,929     19,313    27,751 
 Sales (oz)                18,604     5,520     55,052     16,179    28,341 
 Average realized price                                                     
  / oz (2)              $   1,666  $  1,479  $   1,659  $   1,402  $  1,141 
Copper                                                                      
 Production ('000 lbs)      4,058       469     15,366      1,056         - 
 Sales ('000 lbs)           5,259       504     14,730        504         - 
 Average realized price                                                     
  / lb (2)              $    3.50  $   1.93  $    3.54  $    1.93         - 
Silver                                                                      
 Production (oz)          277,081    11,691    716,280     11,691         - 
 Sales (oz)               289,356    13,270    669,810     13,270         - 
 Average realized price                                                     
  / oz (2)              $   31.06  $  29.16  $   29.43  $   34.58         - 
----------------------------------------------------------------------------
Financial Performance                                                       
Revenue                 $  50,608  $ 10,576  $ 140,917  $  25,085  $ 32,344 
Mining costs            $  24,738  $  7,503  $  83,574  $  18,290  $ 21,475 
Depreciation and                                                            
 amortization           $   3,958  $  2,706  $  15,017  $   4,079  $  3,610 
Gross margin            $  21,912  $    367  $  42,326  $   2,716  $  7,259 
Financial instruments                                                       
 gain (loss)            $ (17,493) $ 17,139  $ (26,095) $ (13,611)        - 
Net income (loss)       $  (2,007) $  8,037  $  (2,353) $ (21,306) $ (2,431)
Net income (loss) per                                                       
 share (basic and                                                           
 diluted)               $   (0.01) $   0.07  $   (0.02) $   (0.18) $  (0.02)
Adjusted net income                                                         
 (loss)                 $  12,325  $ (4,852) $  15,474  $ (12,671) $    864 
Adjusted net income                                                         
 (loss) per share                                                           
 (basic and diluted)                                                        
 (3)                    $    0.09  $  (0.04) $    0.11  $   (0.11) $   0.01 
Operating cash flows    $  29,617  $     91  $  41,705  $ (12,623) $ (8,644)
Operating cash flows                                                        
 before non-cash                                                            
 working capital                                                            
 changes (3)            $  14,453  $ (1,217) $  33,276  $  (2,263) $  2,545 
Ending cash and cash                                                        
 equivalents            $  13,200  $ 12,244  $  13,200  $  12,244  $ 11,947 
Restricted cash         $  18,399  $  2,275  $  18,399  $   2,275  $    753 
Capital expenditures                                                        
 (including primary                                                         
 mine development) (4)  $  12,572  $ 14,948  $  37,718  $  59,819  $ 37,497 
----------------------------------------------------------------------------
(1) Metal production and sales are from the EVBC Mine and the UMZ Mine. In  
    addition to gold, copper and silver, during the fourth quarter of fiscal
    2012, the Company produced and sold 636,126 pounds of lead.             
(2) Realized metal prices are calculated by dividing gross revenue recorded 
    for the period from sales of the particular metal, before deduction of  
    treatment and refinement charges, by ounces of gold or silver or pounds 
    of copper sold during the period.                                       
(3) Adjusted net income (loss), adjusted net income (loss) per share and    
    operating cash flows before non-cash working capital changes are non-   
    IFRS performance measures with no standard definition under IFRS. For   
    further information and a detailed reconciliation, please see the "Other
    Information - Non-IFRS Measures" section of the MD&A for the financial  
    year ended September 30, 2012.                                          
(4) Capital expenditures for fiscal 2012 recorded in the 2012 Financials are
    $37,718. This includes capital expenditures for the EVBC Mine for the   
    twelve months ended September 30, 2012 of $31,136 adjusted by an        
    increase for finance lease payments of $1,961 and a decrease of $3,234  
    for capital expenditures that were incurred but unpaid at September 30, 
    2012.                                                                   

EVBC Mine, Spain

Through its wholly-owned subsidiary, Kinbauri Espana S.L.U. ("Kinbauri"), the Company owns and operates the EVBC Mine, which is located in the Rio Narcea Gold Belt in northern Spain and consists of 14 exploitation concessions comprising 4,298 hectares and two investigation permits comprising 754 hectares.

The following table includes operating and financial performance data for the EVBC Mine for the third and fourth quarters of fiscal 2012, the fourth quarter of fiscal 2011 and the 2012 and 2011 fiscal years. The EVBC Mine reached commercial production in August 2011.


----------------------------------------------------------------------------
                         Q3 2012   Q4 2012    Q4 2011       2012       2011 
----------------------------------------------------------------------------
Operating Performance                                                       
 (1)                                                                        
Ore mined (tones)        161,115   129,015     68,595    558,583    203,821 
Ore milled (tones)       150,711   118,436     94,658    519,690    177,926 
Gold                                                                        
 Grade (g/t)                3.09      2.95       2.04       2.77       1.92 
 Recovery (%)               93.4      93.2       87.5       92.5       87.0 
 Production (oz)          13,983    10,465      5,439     42,864      9,336 
 Sales (oz)               11,358    13,457      5,520     42,837      5,520 
Copper                                                                      
 Grade (%)                  0.51      0.37       0.33       0.41       0.41 
 Recovery (%)               86.5      82.0       67.8       84.1       66.1 
 Production ('000 lbs)     1,468       800        469      3,951      1,056 
 Sales ('000 lbs)            934     1,241        504      3,951        504 
Silver                                                                      
 Grade (g/t)               10.43      8.41       7.06       9.17       8.64 
 Recovery (%)               78.4      76.3       54.5       76.4       57.8 
 Production (oz)          39,621    24,718     11,691    117,113     28,456 
 Sales (oz)               36,260    29,098     13,270    106,199     13,270 
Total cash costs (by-                                                       
 product) ($/oz of                                                          
 gold sold) (2)        $     806 $     720  $   1,370  $     854  $   1,370 
Total production costs                                                      
 (by-product) ($/oz of                                                      
 gold sold) (2)        $     982 $     989  $   1,778  $   1,071  $   1,778 
----------------------------------------------------------------------------
Financial Performance                                                       
 (1)                                                                        
Revenue                $  20,845 $  25,718  $  10,473  $  82,239  $  10,473 
Mining costs (3)       $  13,664 $  13,156  $   7,242  $  47,615  $   7,242 
Depreciation and                                                            
 amortization (4)      $   2,730 $   3,971  $   2,754  $  11,754  $   2,754 
Financial instruments                                                       
 gain (loss)           $  10,621 $ (17,493) $  17,139  $ (26,095) $ (13,611)
Income (loss) before                                                        
 tax (2)               $  15,100 $  (9,961) $ (15,727) $  (6,506) $ (14,519)
Adjusted income (loss)                                                      
 before tax            $   2,947 $   6,040  $  (2,687) $  14,487  $  (2,184)
Capital expenditures                                                        
 (including primary                                                         
 mine development) (4) $   6,976 $   9,457  $   5,714  $  31,136  $  45,924 
----------------------------------------------------------------------------
(1) The EVBC Mine commenced commercial production on August 1, 2011.        
    Information relating to production and sales for fiscal 2011 includes   
    production and sales for the start-up and commissioning period of May to
    July 2011. Sales for May to July 2011 were credited against capitalized 
    commissioning costs and sales for August and September 2011 were        
    recorded as revenue.                                                    
(2) Total cash costs (by-product) and total production costs (by-product)   
    per ounce of gold sold and adjusted net income (loss) before tax are    
    non-IFRS performance measures with no standard definition under IFRS.   
    For further information and a detailed reconciliation, please see the   
    "Other Information - Non-IFRS Measures" section of the 2012 MD&A for    
    fiscal 2012. Adjusted income before tax includes realized expenses in   
    connection with financial instruments settled during the period but does
    not include the mark-to-market fair value adjustments of the Company's  
    outstanding financial instruments at the end of the period. See also    
    "Other Information - Financial Instruments" below.                      
(3) The information for the third quarter of fiscal 2012 includes $2,134 of 
    costs that were incurred in the second quarter of fiscal 2012 and       
    recorded in inventory and subsequently recorded in cost of sales in the 
    third quarter of fiscal 2012.                                           
(4) Capital expenditures include primary mine development expenditures which
    have been capitalized during the period. In fiscal 2012, the Company    
    capitalized $14,026 in respect of primary mine development expenditures.
    Depreciation and amortization recorded in the fourth quarter of fiscal  
    2012 includes an adjustment for depreciation and amortization in respect
    of the full fiscal 2012. Total production cost (by-product) for the     
    fourth quarter of fiscal 2012 is higher as a result of this higher      
    depreciation adjustment recorded in the period ($85 per sold ounce).    

UMZ Mine, Bolivia

Through its wholly-owned subsidiary, Empresa Minera Paititi S.A. ("EMIPA"), the Company owns and operates the UMZ Mine in south-eastern Bolivia. The UMZ Mine reached commercial production in January 2012, thus sales therefrom were recorded as revenue for the full second, third and fourth quarters of fiscal 2012.

A Leach-Precipitation-Flotation ("LPF") circuit, which included conventional flotation circuits, was installed to process the oxide and transition ores from the UMZ Mine. As a result of higher than expected acid consumption, it was realized that the LPF process could not be run on a continuous basis monthly as the sulphuric acid plant could not supply the necessary quantities to operate the mill at high availability. In March 2012, the Company commenced processing the transition ore, which includes both copper in oxide minerals and copper in sulphide minerals, by flotation-only as well as oxides through the LPF process. Processing ore through both the LPF and flotation-only circuits allows the plant to operate at greater than 90% availability. As a result of the LPF low copper recovery, gold-silver dore cannot be produced.

On December 13, 2012, the Company announced National Instrument ("NI") 43-101-compliant updated resource and reserve estimates for the UMZ. This Technical Report is available on www.sedar.com and the Company's website at www.orvana.com. During 2012, EMIPA made significant changes to the mining and processing aspects of the operation thus warranting an update.

The following table includes operating and financial performance data for the UMZ Mine for the third and fourth quarters of fiscal 2012 and the 2012 and 2011 fiscal years. The UMZ Mine was not in commercial production during the third and fourth quarters of fiscal 2011, accordingly, this comparative information has not been provided.


----------------------------------------------------------------------------
                            Q3 2012      Q4 2012          2012         2011 
----------------------------------------------------------------------------
Operating Performance                                                       
 (1)                                                                        
Ore mined (tones)           343,450      336,772     1,178,809      279,620 
Ore milled (tones)          179,923      191,725       594,054      279,620 
Gold                                                                        
 Grade (g/t)                   1.92         1.55          1.75         1.37 
 Recovery (%)                  39.2         49.2          39.1         80.1 
 Production (oz)              4,361        4,691        13,065        9,977 
 Sales (oz)                   5,484        5,147        12,215       10,659 
Copper                                                                      
 Grade (%)                     1.83         1.65          1.76            - 
 Recovery (%)                  49.7         46.7          49.4            - 
 Production ('000 lbs)        3,612        3,259        11,415            - 
 Sales ('000 lbs)             4,520        4,018        10,779            - 
Silver                                                                      
 Grade (g/t)                  87.58        75.23         81.17            - 
 Recovery (%)                  41.3         54.4          38.6            - 
 Production (oz)            209,287      252,364       599,167        2,218 
 Sales (oz)                 247,975      260,054       563,611        2,418 
Total cash costs (co-                                                       
 product) ($/lb)                                                            
 copper (2)            $       2.35 $       1.92  $       2.39            - 
Total cash costs (co-                                                       
 product) ($/oz) gold                                                       
 (2)                   $      1,119 $        969  $      1,143        1,033 
Total cash costs (co-                                                       
 product) ($/oz)                                                            
 silver (2)            $      21.20 $      18.69  $      22.00            - 
----------------------------------------------------------------------------
Financial Performance                                                       
Revenue                $     22,846 $     24,889  $     58,678 $     14,612 
Mining costs           $     14,193 $     11,581  $     35,959 $     11,048 
Depreciation and                                                            
 amortization (3)      $      2,073 $        (13) $      3,263 $      1,325 
Income (loss) before                                                        
 tax                   $      6,315 $     12,116  $     17,060 $       (253)
Capital expenditures   $        197 $      1,164  $      1,969 $     16,139 
----------------------------------------------------------------------------
(1) The UMZ Mine commenced commercial production on January 1, 2012.        
    Information relating to production and sales for fiscal 2011 includes   
    production and sales from Las Tojas deposit of the Don Mario Mine but   
    does not include production from the UMZ Mine during the start-up and   
    commissioning period. Information relating to production for fiscal 2012
    includes production from the UMZ Mine during the start-up and           
    commissioning period in the first quarter of fiscal 2012. Sales for the 
    first quarter of fiscal 2012 from the UMZ Mine were credited against    
    capitalized commissioning costs and sales from January 1, 2012 onwards  
    were recorded as revenue.                                               
(2) Total cash costs (co-product) per pound of copper and per ounce of gold 
    and silver are non-IFRS performance measures with no standard definition
    under IFRS. For further information and a detailed reconciliation,      
    please see the "Other Information - Non-IFRS Measures" section of the   
    MD&A for the financial year ended September 30, 2012.                   
(3) Depreciation and amortization costs for the fourth quarter of fiscal    
    2012 include a reduction of $2,234 as a result of higher depreciation   
    and amortization expenses recorded in prior quarters.                   

Copperwood Project

Through its wholly-owned subsidiary, Orvana Resources US Corp., Orvana entered into long-term mineral lease agreements covering 936 hectares within the Western Syncline, which is located in the Upper Peninsula of the State of Michigan, USA, comprising the "Copperwood Project". In addition, the Company purchased the surface rights on about 700 hectares that secured access to the Copperwood Project and additional space for infrastructure.

On February 7, 2012, the Company announced positive results in an NI 43-101-compliant feasibility study, which included a reserve estimate. The Company has achieved the following major permitting milestones during the fiscal year:


--  In April 2012, it received its mining permit from the Michigan
    Department of Environmental Quality ("MDEQ"), as prescribed by Part 632
    of the Non-Ferrous Metallic Mining regulation of the State of Michigan.
    This permit is an important step in obtaining all regulatory approvals
    for the Copperwood Project and indicates that the State of Michigan
    considers the project to have met all the necessary criteria to operate
    a mine in a responsible manner. 
    
--  In July 2012, it received the Permit to Install, or Air Quality Permit,
    from the MDEQ, Air Quality Division. 
    
--  In November 2012, it received the National Pollutant Discharge
    Elimination System permits for treated sanitary and process wastewaters
    from the MDEQ. 
    
--  In November 2012, the Company announced, in cooperation with the MDEQ,
    that it has agreed to withdraw the Wetlands Permit application in order
    to provide more time for review by the MDEQ and the Environmental
    Protection Agency ("EPA"). The permit application was re-submitted at
    the end of November 2012, with expectations of a final decision before
    the end of January 2013. 

Total capital expenditures in respect of the Copperwood Project during the fourth quarter of fiscal 2012 were $2,597 for a total of $5,842 in fiscal 2012. Orvana is continuing to investigate a variety of possible options to enhance the value of the Copperwood Project to Orvana's shareholders, including financing options such as the sale of an equity interest and debt and equity financing should it determine to proceed to bring the Copperwood Project into production.

Outlook

Orvana's short-term focus is operational optimization at the EVBC Mine and the UMZ Mine to generate increased operating cash flows in order to pay down debt as well as possibly advance the development of the Copperwood Project. Fiscal 2012 guidance for production was 60,000 ounces of gold, 16.53 million pounds of copper and 700,000 ounces of silver. Mostly due to the delays related to the commissioning of the EVBC shaft and other operational issues at the EVBC Mine, production for fiscal 2012 was 55,929 ounces of gold, 15.4 million pounds of copper and 716,280 ounces of silver. Fiscal 2013 guidance for production is 75,000 ounces of gold, 18 million pounds of copper and 850,000 ounces of silver.

Orvana's long-term focus is to utilize future cash flow and mining capabilities to build long-term value for its shareholders specifically through organic growth and possibly through certain strategic acquisitions primarily focused on advanced-stage gold and/or copper properties.


Notes:                                                                      
                                                                            
(1) Adjusted net income (loss), adjusted net income (loss) per share and    
    cash-flows from operating activities before changes in non-cash working 
    capital are non-IFRS performance measures. Adjusted net income (loss)   
    after-tax excludes unrealized gains/losses recognized as a result of the
    revaluation of Orvana's outstanding financial instruments at the end of 
    the period as well as the deferred income tax impact relating thereto.  
    For further information and a detailed reconciliation, please see the   
    "Other Information - Non-IFRS Measures" section of the 2012 MD&A.       
                                                                            
(2) Total Cash Costs (by-product) per gold ounce is a non-IFRS performance  
    measure with no standard definition under IFRS. For further information 
    regarding the calculation and IFRS reconciliation, please see the "Other
    Information - Non-IFRS Measures" section of the 2012 MD&A.              
                                                                            
(3) Total cash costs (co-product) per pound of copper and per ounce of gold 
    and silver sold for the periods presented are non-IFRS performance      
    measures with no standard definition under IFRS. For further information
    regarding the calculation and IFRS reconciliation, please see the "Other
    Information - Non-IFRS Measures" section of the 2012 MD&A.              

The Company will hold a conference call on Friday, January 4, 2013 to discuss the fourth quarter and fiscal 2012 results. Following the presentation there will be a question and answer period for analysts and investors. Participation information will be press released prior to the conference call.

About Orvana

Orvana Minerals is a multi-mine gold and copper producer. Orvana's primary asset is the El Valle-Boinas/Carles gold-copper Mine in northern Spain. Orvana also owns and operates the Don Mario Mine in Bolivia, processing its copper-gold-silver Upper Mineralized Zone deposit. Orvana is also advancing its Copperwood copper project in Michigan, USA. Additional information is available at Orvana's website (www.orvana.com).

Forward Looking Disclaimer

Certain statements in this press release 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" or "intends" 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.

Forward-looking statements relate to, among other things, all aspects of the development of the Upper Mineralized Zone ("UMZ") deposit at the Don Mario Mine in Bolivia, the El Valle-Boinas/Carles Mine in Spain and the Copperwood project in Michigan and their potential operations and production; the outcome and timing of decisions with respect to whether and how to proceed with such development and production; the timing and outcome of any such development and production; estimates of future capital expenditures; mineral resource estimates; estimates of permitting time lines; statements and information regarding future feasibility studies and their results; production forecasts; future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; future production costs; 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 Orvana as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Orvana 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 the Company's most recently filed Annual Information Form, 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 the UMZ deposit, El Valle-Boinas/Carles Mine and the Copperwood project 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 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 ability 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 develop the UMZ deposit, the Copperwood project or the El Valle-Boinas/Carles Mine; the Company's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; 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 Orvana's Management's Discussion and Analysis for the period ended September 30, 2012 under the heading "Risks and Uncertainties". 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 Annual Information Form for a description of additional risk factors.

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.

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