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

Trevali Mining Corporation

July 19, 2011 09:53 ET

Trevali finalizes Cooperation and Impact Benefits Agreement with Mi'gmag First Nations of New Brunswick

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2011) - Trevali Mining Corporation ("Trevali" or the "Company") (TSX:TV)(OTCQX:TREVF)(BVLAC:TV)(FRANKFURT:4TI) is pleased to announce that it has finalized an Impact Benefits Agreement (IBA) with the Mi'gmag First Nations of New Brunswick: including the Amlamgog (Fort Folly), Esgenoôpetotj (Burnt Church), Elsipogtog (Big Cove), L'nui Menikuk (Indian Island), Metepenagiag (Red Bank), Natoaganeg (Eel Ground), Oinpegitjoig (Pabineau), Tjipõgtõtjg (Buctouche), and Ugpi'ganjig (Eel River Bar) as represented by their respective Chiefs.

The agreement builds upon and formalizes the excellent working relationships between Trevali and the Mi'gmag First Nations, and the Company's planned development of the Halfmile Mine Project that is currently under construction. The IBA will facilitate ongoing consultation and mutual opportunities through-out the construction, production and ultimately decommissioning process.

"The signing this agreement and securing the support of the Mi'gmag First Nations is a vital step for Trevali as we progress towards the mutually beneficial development of the Halfmile Mine Project in northern New Brunswick," said Mark Cruise, President and CEO of Trevali Mining Corp. "We look forward to establishing a strong relationship with the Mi'gmag First Nations and appreciate the work and support of all involved in the process to reach this important milestone."

"Trevali has engaged the Mi'gmag First Nations in an open and transparent manner and we are excited about our involvement in the Project. We look forward to a meaningful relationship with Trevali that extends well into the future. The Mi'gmag First Nations and Trevali have completed a mutually beneficial Cooperation Agreement and are already implementing it jointly. We are close to concluding an Aboriginal and Treaty Rights Impact Agreement which protects our ability to exercise our rights throughout the Halfmile area," said Chief David Peter Paul of the Oinpegitjoig (Pabineau) First Nation.

The Company and the Mi'gmag are working together to mitigate impacts on First Nations traditional uses of the Project lands in addition to provide training, employment and business opportunities going forward as Halfmile moves towards production in 2011. Highlights of the IBA include:

  • Work Place Training – the Company is currently working with the First Nation communities, Alex MacIntyre and Associates – our contract miner, Aboriginal Workforce Development Initiative (AWDI) and New Brunswick Community College (NBCC) to develop and implement a certified Underground Core Mine Training program. The 22-week certified miner training program is scheduled to begin classroom training in August with underground training development in late September. The success of previous programs developed by the management team has proven positive in developing relationships while securing a strong committed local workforce for the future.
  • Trevali Mi'gmag Scholarship Fund will be provided annually during operations for First Nation's students who excel at high-school level to continue to fulfill their educational aspirations in post-secondary studies.
  • Mi'gmag Summer Student Internship for qualified and interested Grade 12 or post-secondary level students.
  • A Mi'gmag Benefits Manager will be hired to co-ordinate the various initiatives between the Company and the Mi'gmag and will ensure that all activities are conducted in a fair and unbiased manner.
  • The Halfmile mine will provide significant economic opportunities for northern New Brunswick. When in the first phase of operations, it is expected that Halfmile will provide approximately 80-100 jobs of which there will be an employment target of 20% First Nation employees.
  • Provide financial contributions to a mutually agreeable entity to be used to capitalize, promote and enhance the economic development and self-sufficiency of the Mi'gmag First Nations – the various training programs, scholarships and employment opportunities highlighted above will be taken into consideration.
  • Construction Monitor has been hired and is on site and is working with Trevali to implement the Heritage protocol of the IBA.
  • A Heritage Resources Impact Assessment shall build upon the Traditional Knowledge Study conducted by the North Shore Micmac District Council Inc. on behalf of the Company.
  • Industry standard dispute resolution and arbitration in accordance with the New Brunswick Arbitration Act.

ABOUT TREVALI MINING CORPORATION

Trevali is advancing two polymetallic (zinc-lead-silver-copper) 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 rate of 2,000-tonnes-per-day anticipated to commence in late 2011. In Peru, the Company has the Santander zinc-lead-silver mine project and the formerly-producing Huampar silver mine, both located in the Central Peruvian Polymetallic Belt.

At Santander, in conjunction with Glencore International A.G., mine commissioning 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 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.

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 included in this news release. Dr. Cruise is not independent of the Company, as he is an officer and shareholder.

On Behalf of the Board of Directors of TREVALI MINING CORPORATION

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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