Orvana Minerals Corp.

Orvana Minerals Corp.

May 15, 2009 17:00 ET

Orvana Announces Completion of Updated Feasibility Study and Decision to Proceed With Development of Don Mario Upper Mineralized Zone

- Updated feasibility study confirms robust economics of the copper-gold deposit - Orvana targets first production toward the end of fiscal 2010

TORONTO, ONTARIO--(Marketwire - May 15, 2009) - Orvana Minerals Corp. (TSX:ORV) announced today that the Board has approved development of the Don Mario Upper Mineralized Zone ("UMZ"). Approval follows completion of a feasibility study that incorporates a financial summary based on an updated mine model for this polymetallic deposit located in eastern Bolivia. The financial summary was updated by Kappes, Cassiday & Associates ("KCA") of Reno, Nevada.

"The updated financial summary confirms the robust economics of the UMZ, which are facilitated by the existing infrastructure at the Don Mario Mine," said Carlos Mirabal, President and Chief Executive Officer of Orvana. "We will be utilizing the existing infrastructure at Don Mario after the expected end of gold production from Las Tojas during the second half of fiscal 2010."

"Our experienced development and operating team in Bolivia has determined that the pre-production capital costs presented in the KCA feasibility study can be significantly decreased, thereby increasing an already attractive 28.9% internal rate of return ("IRR"). We plan to start construction immediately with the goal of achieving first production toward the end of fiscal 2010."

The UMZ copper-gold deposit overlies the Lower Mineralized Zone ("LMZ"), a gold-bearing shear zone currently being mined underground by Orvana. The UMZ deposit lies in the hanging wall of the LMZ shear zone. A calc-silicate rock hosts copper, gold, silver, and zinc in four defined mineralized zones, from surface downward: 1) porous, 2) oxide, 3) transition, and 4) sulphide.

The UMZ mine plan set out by KCA, based on an updated mine model contemplates a flotation plant with a mill throughput of 1,900 tonnes per day over a 9-year mine life. During the first six years, the oxides will be stockpiled and the transition zone and sulphide zone ores will be treated to recover copper, gold, and silver. During the remaining years, the stockpiled oxide ore will be treated to recover gold and silver.

Base-case operational parameters set out by KCA over the
life of mine (LOM) are:

Throughput (transition & sulphide): 1,9900 tpd (for 5.8 years)
Avg. Annual Production: 5,300 tonnes Cu
19,000 ounces Au
700,000 ounces Ag
Stockpile (oxides): 1,900 tpd (for 2.7 years)
Avg. Annual Production: 25,000 ounces Au
680,000 ounces Ag
Strip ratio: 0.50:1
Copper recovery (LOM): 70% for transition & sulphide
Gold recovery (LOM): 68%-transition & sulphide, 74%-oxide
Silver recovery (LOM): 83%-transition & sulphide, 65%-oxide
Copper production (LOM): 32,000 tonnes
Gold production (LOM): 176,000 ounces
Silver production (LOM): 6,100,000 ounces

Key financial input parameters are (all values in US dollars):

Pre-production capital: $26,500,000
Working & sustaining capital: $ 6,200,000
Mine operating cost: $ 5.61/t ore
Processing cost: $11.83/t ore
G&A: $ 3.20/t ore
Copper price (LOM): $ 2.00/lb.
Gold price (LOM): $650.00/ounce
Silver price (LOM): $ 10.00/ounce

Production is subject to a 3% net smelter return royalty ("NSR") that is held by Royal Gold, Inc. In addition, the Bolivian government is entitled to NSRs on contained metal at percentage rates which are different for each metal and which vary based on a formula related to metal prices at the time of shipment.

The financial summary for the feasibility study of the UMZ presented herein was completed by or under the supervision of Dan Kappes, KCA, an independent Qualified Person for the purposes of NI 43-101. The summary report will be available on the Company's website, www.orvana.com.

About Orvana

Orvana Minerals Corp. is a Canadian mining and exploration company based in Toronto, Canada, involved in the evaluation, development and mining of precious and base metal deposits in the Americas. The Company owns and operates the Don Mario Mine in eastern Bolivia. Orvana's long-term goal is to become a low cost, long-life, multi-mine gold and base metals producer in the Americas. Orvana's shares have been listed on the Toronto Stock Exchange since 1992 under the trading symbol ORV. Further information on Orvana may be found on the Company's website at www.orvana.com and on SEDAR at www.sedar.com.

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). These may include statements with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Orvana, or developments in Orvana's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Orvana cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements may relate to, among other things, all aspects of the possible development of the UMZ Project and of its potential operation and production; mineral resource and mineral reserve estimates; the realization of mineral reserve estimates; estimates of future capital expenditures and timing of development and production and estimates of the outcome and timing of decisions with respect to whether and how to proceed with such development and production; permitting time lines; and possible changes in the regulatory, political, social and economic environment in Bolivia.

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 results to differ materially from current expectations of estimated or anticipated events or results. Some of these risks, uncertainties and factors include fluctuations in the price of gold; the impact or unanticipated impact of: the need to recalculate estimates of reserves and 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; risks generally associated with mineral exploration and development, including the Company's ability to develop the UMZ Project; and the risks identified in Orvana's Management's Discussion and Analysis for the year ended September 30, 2008 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.

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