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Press release from Marketwire

Orvana Reports Production Results for the Fourth Quarter and Fiscal Year 2012 and Provides Guidance for Fiscal Year 2013

Thursday, October 18, 2012

Orvana Reports Production Results for the Fourth Quarter and Fiscal Year 2012 and Provides Guidance for Fiscal Year 201308:30 EDT Thursday, October 18, 2012TORONTO, ONTARIO--(Marketwire - Oct. 18, 2012) - Orvana Minerals Corp. (TSX:ORV) (the "Company") announced today production results for the fourth quarter ended September 30, 2012 ("Q4 2012") and fiscal year 2012 ("FY2012") as well as production guidance for fiscal year 2013 ("FY2013") for the Company's El Valle-Boinás/Carlés ("EVBC") mine in northern Spain and the Don Mario Upper Mineralized Zone ("UMZ") mine in eastern Bolivia, a summary of which is provided in the table below.Q4 2012FY 2012FY 2012FY 2013UMZEVBCTotalTotalGuidanceGuidanceThroughput (t)191,725118,436310,1601,113,745HeadgradeCu %1.650.371.16--Au, g/t1.552.952.08--Ag, g/t75.28.449.7--RecoveryCu %4782---Au, %4993---Ag, %5476---ProducedCu, lbs3,259,235799,4434,058,67815,366,64116,500,00018,000,000Au, ounces4,69110,46415,15555,92860,00075,000Ag, ounces252,36424,718277,081716,280700,000850,000Pb, lbs636,126-636,126636,126Fourth quarter total cash costs at EVBC, including royalties net of by-product revenues, were approximately $750 per ounce gold. Fourth quarter total cash costs at UMZ on a co-product basis, including all royalties, were less than $2.00 per pound copper, less than $1,000 per ounce gold, and less than $20 per ounce silver net of lead by-product revenues. Cash costs at both mines are based on sales (1). The FY2013 production guidance for gold, silver, and copper is 34%, 19%, and 17% more than the FY2012 results, respectively. "Our FY2012 production targets for gold and copper were missed due to various operational challenges at EVBC, which included ground instability, dewatering issues, and the delay related to the commissioning of the shaft," said Bill Williams, President and Chief Executive Officer of the Company. "The shaft is now operational and the instability and dewatering issues have been mitigated. Meanwhile, the UMZ operation is stable and we are working on optimizing recoveries in order to improve production and thus cash flow." Qualified Person The technical information herein was compiled by Bill Williams, Ph.D., CPG, President and Chief Executive Officer of Orvana, who is a qualified person for the purposes of NI 43-101. About Orvana Orvana Minerals is a multi-mine gold and copper producer. Orvana's primary asset is the El Valle-Boinás/Carlés gold-copper Mine in northern Spain. Orvana also owns and operates the Don Mario Upper Mineralized Zone Mine in Bolivia, which is a copper-gold-silver deposit. Orvana is also advancing its Copperwood copper project in Michigan, USA. Additional information is available at Orvana's website (www.orvana.com). (1) Total Cash Costs (by-product) per gold ounce sold and Total Cash Costs (co-product) per pound of copper and per ounce of gold and silver sold 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 Company's Management's Discussion & Analysis for its financial year ended September 30, 2012 to be released by the Company in December 2012. 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-Boinás/Carlés 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-Boinás/Carle╠üs 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-Boinás/Carle╠üs 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 June 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.FOR FURTHER INFORMATION PLEASE CONTACT: Bill WilliamsOrvana Minerals Corp.President and Chief Executive Officer(416) 369-1629ORNatalie FrameOrvana Minerals Corp.Investor Relations(289) 200-7640ask_us@orvana.comwww.orvana.com