Trevali Mining Corporation
TSX : TV
FRANKFURT : 4TI
OTCQX : TREVF
BVLAC : TV

Trevali Mining Corporation

July 08, 2011 13:52 ET

Trevali Defines Multiple Priority Targets at Santander Zinc-Lead-Silver Project

Surface Values Up to 27.9 oz/T (955.9 g/t) Silver, 1.34 g/t Gold, and 4.8% Lead

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2011) - Trevali Mining Corporation ("Trevali" or the "Company") (TSX:TV)(OTCQX:TREVF)(FRANKFURT:4TI)(BVLAC:TV) is pleased to announce that ongoing multi-disciplinary exploration has defined four high priority polymetallic (zinc-lead-silver) targets for follow-up testing on its Santander Mine Project in west-central Peru.

These new targets share many similarities to the Magistral deposits prior to initial discovery drilling such as location on known productive mineral fairways / structural settings, proven host units, anomalous outcropping mineralization and/or 'productive' alteration gangue mineral assemblage and spatial association with geophysical (magnetic) anomalies (Table 1 & Fig. 1-2). All four prospects have anomalous rock and/or soil geochemical signatures displaying elevated manganese, lead, silver and zinc values.

"Our latest exploration continues to demonstrate the significant mineral potential on the Santander project," stated Dr. Mark Cruise, President & CEO of Trevali. "Concurrent with mine development presently underway on the three Magistral deposits at Santander, we will also be undertaking exploration programs to evaluate these recently defined targets with the ultimate aim of further building the zinc-lead-silver resources on the project."

The Capilla and Nati targets have sulphide mineralization outcropping on surface. The Nati prospect consists of an outcrop of skarn alteration with disseminated mineralization surrounded by alluvial cover. Sulphide mineralization at the Capilla prospect is exposed discontinuously on surface within a 250-metre long and 1-to-2-metre wide structural corridor. Fifteen characterization samples of sulphide mineralization returned grades ranging from 27.9 - 0.5 oz/T (955.9 - 18.7 g/t) silver, 1.34 - 0.013 g/t gold and 4.8 – 0.04% lead. An additional five characterization samples in wall rock outside of sulphide mineralization had elevated but sub-economic lead and silver values. Detailed mapping and sampling are currently underway with the goal of preparing these targets for near term exploration drilling.

Prospect Outcropping Mineralization Dimension Surface Alteration Structural Intersection Mineral Fairway Magnetic Anomaly
Nati 150m X 20m Skarn-re-crystalization Y Santander Anticline Y
Capilla 250m X 2m Silicification Y Santander Fault Y
El Toro Norte Anomalous surface geochemistry Silicification Y Santander Fault Y
El Toro Sur Anomalous surface geochemistry Silicification Y Santander Fault Y
Condor Anomalous surface geochemistry Silicification Y Y
Puajanca Norte up to 350m X 1m None Y Santander Anticline Y
MINERALIZED BODIES DISCOVERED TO DATE – REMAIN OPEN FOR EXPANSION
Magistral Norte(MN) 90m X 3m Silicification Y Santander Fault Y
Magistral Central (MC) Blind Body Silicification Y Santander Fault Y
Magistral Sur(MS) Blind Body Silicification Y Santander Fault Y
Puajanca Sur 80m X 5m Skarn-re-crystalization Y Santander Anticline Y
Santander Pipe (SP) 120m X 120m Skarn-re-crystalization Y Santander Anticline Y
Table 1: Comparison of key targets to known mineralized bodies at Santander Project, Peru.

Trevali's exploration team has successfully discovery five new zinc-lead-silver deposits to date on its large, 44km2 property. All mineralized bodies remain open for expansion and three diamond drill-rigs are currently extending mineralization at depth – the most recent hole SAN-167 extended the Magistral Central body 130-metres down dip to approximately 480 metres below surface, intersecting 10.15 metres at 1.4 oz/T (47.7 g/t) silver, 14.4% zinc and 0.23% copper.

To view Figures 1 and 2, click on the following link: http://media3.marketwire.com/docs/TVfigures1and2.pdf

Annual and Special General Meeting of Shareholders Results

At the Company's recent Annual and Special General Meeting of Shareholders, all matters put to vote were passed including the approval by the Disinterested (Non-Insider) Shareholders of the Amendments to the Stock Option and Stock Bonus Plan.

Bridge Loan Facility

Trevali has arranged a US$10 million Bridge Loan Facility with Resource Income Fund, L.P. of Fort Lee, New Jersey for mine development and working capital purposes. The loan will bear a fixed interest rate of 12 per cent per annum, has a term of up to three months and is secured by the pledging of the shares of the operating companies holding the Halfmile and Stratmat projects in New Brunswick. The Company has also negotiated an extension option with the Lender that would allow the Company to extend the Maturity date for up to an additional 90 days, subject to typical terms and conditions, should the same be necessary at the maturity of the Bridge Loan.

Trevali has paid a closing fee of 1.5 per cent of the Facility amount and will issue Common Stock Purchase Warrants for 500,000 shares at an exercise price set at a 10 per cent premium to the 5-day volume weighted average closing price, prior to loan closing and with a term of 12 months.

Qualified Person and Quality Control/Quality Assurance

EurGeol Dr. Mark D. Cruise, Trevali's President and CEO and a qualified person as defined by National Instrument 43-101, has supervised the preparation of the scientific and technical information that forms the basis for this news release. Dr. Cruise is not independent of the Company, as he is an officer and shareholder.

The work programs at Santander were designed by, and are supervised by, Tim Kingsley (Senior Geologist) and Mark D. Cruise, President & CEO, Trevali and who together are responsible for all aspects of the work, including the quality control/quality assurance programs. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to ACME Laboratories, Vancouver, for assay. ACME's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. Blind certified reference material is inserted at regular intervals into the sample sequence by Trevali personnel in order to independently assess analytical accuracy. Finally, representative blind duplicate samples are routinely forwarded to ACME and an ISO compliant third party laboratory for additional quality control.

ABOUT TREVALI MINING CORPORATION

Trevali is advancing two polymetallic deposits to production in Canada and Peru – the Halfmile and Santander projects respectively. In Canada, Trevali has the Halfmile and Stratmat polymetallic deposits near Bathurst, New Brunswick, and the Ruttan copper-zinc deposit in northern Manitoba. Mine development is underway at Halfmile with a proposed production at a rate of 2,000-tonnes-per-day anticipated to commence in 2011. In Peru, the Company has the Santander zinc-lead-silver mine project and the Huampar silver mine both located in the Central Peruvian Polymetallic Belt.

At Santander, in conjunction with Glencore International A.G., mine commissioning and production is anticipated to commence at 2,000-tonne-per-day in late 2011 with full production to follow immediately thereafter. Additionally through its subsidiary Trevali Renewable Energy Inc., Trevali is undertaking a significant upgrade of its wholly-owned Tingo run-of-river hydroelectric generating facility along with transmission line upgrades and extensions to allow, in addition to supplying power to the mining operation on the property, the potential sale of surplus power into the Peruvian National Energy Grid.

The common shares of Trevali are currently listed on the TSX (symbol TV), the OTCQX (symbol TREVF) and on the Lima Stock Exchange (symbol TV). For further details on Trevali, readers are referred to the Company's web site (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.

On Behalf of the Board of Directors of
TREVALI MINING CORPORATION

"Mark D. Cruise" (signed)
Mark D. Cruise, President

This news release contains "forward-looking statements" within the meaning of the United States private securities litigation reform act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and the company does not intend, and does not assume any obligation to, update such statements containing the forward-looking information. Such forward-looking statements and information include, but are not limited to statements as to: the accuracy of estimated mineral reserves and resources, anticipated results of future exploration, and forecast future metal prices, anticipated results of future electrical sales and expectations that environmental, permitting, legal, title, taxation, socio-economic, political, marketing or other issues will not materially affect estimates of mineral reserves. These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies.

These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release and the company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in spot and forward markets for silver, zinc, base metals and certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in currency markets (such as the Peruvian sol versus the U.S. dollar); risks related to the technological and operational nature of the Company's business; changes in national and local government, legislation, taxation, controls or regulations and political or economic developments in Canada, the United States, Peru or other countries where the Company may carry on business in the future; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the presence of laws and regulations that may impose restrictions on mining,; diminishing quantities or grades of mineral reserves as properties are mined; global financial conditions; business opportunities that may be presented to, or pursued by, the Company; the Company's ability to complete and successfully integrate acquisitions and to mitigate other business combination risks; challenges to, or difficulty in maintaining, the Company's title to properties and continued ownership thereof; the actual results of current exploration activities, conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors; increased competition in the mining industry for properties, equipment, qualified personnel, and their costs. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

The TSX has not approved or disapproved of the contents of this news release.

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