TriMetals Mining Inc.
TSX : TMI
TSX : TMI.B
OTCQX : TMIAF
OTCQX : TMIBF

TriMetals Mining Inc.

September 25, 2014 06:00 ET

TriMetals Mining Inc.'s Subsidiary, South American Silver Limited, Seeks US$ 385.7 Million in its Statement of Claim in the Treaty Arbitration Against Bolivia

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 25, 2014) - TriMetals Mining Inc. (TSX:TMI)(TSX:TMI.B)(OTCQX:TMIAF)(OTCQX:TMIBF) (the "Company") reports that its Bermudian subsidiary, South American Silver Limited ("South American Silver"), filed yesterday a Statement of Claim in its international arbitration proceedings against the Plurinational State of Bolivia ("Bolivia") for the expropriation of its Malku Khota project in Bolivia in July 2012.

The Permanent Court of Arbitration at The Hague in the Netherlands is the administrating authority in this arbitration under the Rules of the United Nations Commission on International Trade Law (UNCITRAL). The arbitration is brought under the UK-Bolivia Bilateral Investment Treaty ("UK-Bolivia Treaty").

South American Silver alleges that Bolivia breached the UK-Bolivia Treaty and international law by, among other things, expropriating its investments in Bolivia without prompt, adequate and effective compensation, failing to accord the investments fair and equitable treatment and full protection and security, impairing South American Silver's investments through unreasonable and discriminatory measures, treating the investments less favorably than it treated investments of its own national and nationals of other countries, and by failing to observe its obligations with regard to those investments.

South American Silver seeks full reparation for Bolivia's breaches of the UK-Bolivia Treaty and international law, plus interest until full payment is made. South American Silver also requests reimbursement for all fees and costs incurred in connection with the arbitration proceeding, plus interest. Based on a valuation performed by independent experts, South American Silver seeks compensation for damages in the amount of US$ 385.7 million, which includes US$ 307.2 million for all of its losses caused by Bolivia's breaches of the UK-Bolivia Treaty, plus US$78.5 million in pre-award interest but excludes fees and costs incurred in connection with the arbitration proceeding. Alternatively, South American Silver seeks restitution of the Malku Khota project along with monetary damages in the amount of US$176.4 million, including pre-award interest.

Investors should be aware that a large majority of the costs of the arbitration to be incurred by South American Silver or the Company will be paid only in the event there is an award in favour of South American Silver and will be paid out of the proceeds of any such award. These costs include all fees and other expenses incurred in connection with the arbitration, including financing costs and other commitments. These fees, costs and expenses will be paid out of any such award, thus potentially reducing funds received by South American Silver by as much as one-third of the amount of any award in its favour.

Based on the procedural schedule included in Procedural Order No.1 (See NR 14-14 dated June 3, 2014) and unless there is a negotiated settlement of the dispute, it is expected that any actual award, if there is one, would not be received until after May 2016, when the final hearing on the merits is scheduled to be held.

Ralph Fitch, President, CEO and Chairman of the Company said "We are satisfied to see that the arbitration is moving forward in pursuit of full compensation for South American Silver who suffered significant losses as a result of Bolivia's blatant and deliberate breaches of the treaty and international law".

Information regarding the progress of the arbitration, and relevant documentation, can be viewed on the Company's website at www.trimetalsmining.com or on the Permanent Court of Arbitration's website at www.pca-cpa.org (Under "Search" enter South American Silver or look under the tab "Cases").

About TriMetals Mining Inc.

TriMetals Mining Inc. is a growth focused mineral exploration company creating value through the exploration and development of the near surface, Gold Springs gold-silver project in mining friendly Nevada and Utah in the U.S.A.; the advancement of the large scale Escalones copper-gold project in Chile, and realization of value from the expropriated Malku Khota project in Bolivia through an arbitration process.

South American Silver Limited is a company incorporated in the Bermuda Islands, an overseas territory of the United Kingdom, which through its wholly owned Bahaman subsidiaries: Malku Khota Ltd, G.M. Campana Ltd. and Productora Limited., owns 100% of the outstanding shares of Compañía Minera Malku Khota S.A., a Bolivian company, holder of the Malku-Khota mining concessions until their expropriation by the Bolivian Government.

The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry.

The Company's common shares and Class B shares are listed on the Toronto Stock Exchange under the symbols "TMI" and "TMI.B" and the common shares and Class B shares also trade on the OTCQX market under the symbol "TMIAF" and "TMIBF". Additional information related to TriMetals Mining Inc. is available at www.trimetalsmining.com and on SEDAR at www.sedar.com.

Forward-looking statements

This News Release contains forward-looking statements, including statements regarding the timing and amount of any award, settlement or recoveries to be received pursuant to the arbitration proceedings against Bolivia. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.

Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, the political and economic climate in Bolivia including the attitudes and actions of the Bolivian government related to foreign investment in Bolivia and the response of the Bolivian government to the filing of the Statement of Claim; the advancement of the international arbitration process in a customary manner and in accordance with Procedural Order No.1; the outcome of the international arbitration process, including the timing and value of any arbitral award or settlement; management's expectation with regards to the final amount of costs, fees and other expenses and commitments payable in connection with this arbitration; any inability or delay in recovering from Bolivia the amount of any award or settlement; and other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the ability of the Company to realize value from its investments in Bolivia pursuant to the international arbitration process; and the advancement of the international arbitration process in the customary manner and in accordance with Procedural Order No.1.

Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this News Release describe the Company's expectations as of September 25, 2014.

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