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Orvana Reports Results for the First Quarter of Fiscal 2013 With Adjusted Net Income of $0.03/Share

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TORONTO, ONTARIO -- (Marketwire) -- 02/08/13 -- Orvana Minerals Corp. (TSX: ORV) (the "Company") announced today operating and financial results for the first quarter ended December 31, 2012.

The Company reported adjusted net income for the first quarter of fiscal 2013 of $0.03 per share excluding the unrealized gain from the revaluation of the Company's financial instruments and the tax effect thereof.

The unaudited condensed interim consolidated financial statements for the first quarter of fiscal 2013 (the "Q1 2013 FS") and Management's Discussion & Analysis related thereto (the "Q1 2013 MD&A") are available on SEDAR at www.sedar.com and at www.orvana.com.

Dollar amounts (other than per ounce/pound and per share amounts) are in thousands of U.S. dollars unless stated otherwise. Fine troy ounces of gold and silver are referred to as "ounces".

Q1 2013 Operating and Financial Highlights

- Production of 17,759 ounces of gold, 4.4 million pounds of copper and 233,452 ounces of silver and sales of 13,035 ounces of gold, 4.1 million pounds of copper and 244,516 ounces of silver in the first quarter of fiscal 2013 compared to production of 9,937 ounces of gold, 3.2 million pounds of copper and 82,654 ounces of silver and sales of 8,276 ounces of gold, 0.7 million pounds of copper and 9,283 ounces of silver in the first quarter of fiscal 2012. (1)- Consolidated revenue of $34,028 in the first quarter of fiscal 2013 compared to $15,373 in the first quarter of fiscal 2012, an increase of 121%.- Net income of $13,651 in the first quarter of fiscal 2013 compared to a net loss of $4,505 in the first quarter of fiscal 2012.- Adjusted net income of $4,341 in the first quarter of fiscal 2013 compared to an adjusted net loss of $3,254 in the first quarter of fiscal 2012. (2)- Cash flows provided by operating activities of $51 in the first quarter of fiscal 2013 compared to cash flows provided by operating activities of $5,290 in the first quarter of fiscal 2012 and cash flows provided by operating activities before changes in non-cash working capital of $8,189 in the first quarter of fiscal 2013 compared to cash flows used in operating activities before changes in non-cash working capital of $6 in the first quarter of fiscal 2012. (2)(1) For a description of the EVBC Mine and the UMZ Mine, please see "Overall Performance - EVBC Mine" and "Overall Performance - UMZ Mine".(2) Adjusted net income (loss) and cash flows from operating activities before changes in non-cash working capital are non-IFRS performance measures with no standard definition under IFRS. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use this information to evaluate the Company's performance including the Company's ability to generate cash flows from its mining operations. Accordingly, it is intended to provide additional information and should not be considered in isolation or as substitutes for measures of performance prepared in accordance with IFRS. For further information and a detailed reconciliation, please see the "Other Information - Non-IFRS Measures" section of the Q1 2013 MD&A.



"Our first quarter of fiscal 2013 results were affected by not selling the 1,000 tonnes of concentrate in the EVBC inventory until early January, but overall we are pleased with our performance" said Bill Williams, President and Chief Executive Officer. "Operations continued to improve, including the production of over 6,000 ounces of gold at the EVBC Mine in December. We expect Q2 to be a strong quarter."

Overall Performance

The following table summarizes the Company's operating and financial performance for the periods set out below:

---------------------------------------------------------------------------- Q4 2012 Q1 2013 Q1 2012 2012----------------------------------------------------------------------------Operating Performance (1)Gold Production (oz) 15,155 17,759 9,937 55,929 Sales (oz) 18,604 13,035 8,276 55,052 Average realized price / oz (2) $ 1,666 $ 1,684 $ 1,588 $ 1,659Copper Production ('000 lbs) 4,058 4,384 3,231 15,366 Sales ('000 lbs) 5,259 4,078 691 14,730 Average realized price / lb (2) $ 3.50 $ 3.17 $ 3.82 $ 3.54Silver Production (oz) 277,081 233,452 82,654 716,280 Sales (oz) 289,356 244,516 9,283 669,810 Average realized price / oz (2) $ 31.06 $ 29.20 $ 10.67 $ 29.43----------------------------------------------------------------------------Financial PerformanceRevenue $ 50,608 $ 34,028 $ 15,373 $ 140,917Mining costs $ 24,738 $ 18,623 $ 12,582 $ 83,574Depreciation and amortization $ 3,958 $ 4,019 $ 2,437 $ 15,017Gross margin $ 21,912 $ 11,386 $ 354 $ 42,326Financial instruments gain (loss) $ (17,493) $ 11,748 $ (1,956) $ (26,095)Net income (loss) $ (2,007) $ 13,651 $ (4,505) $ (2,353)Net income (loss) per share (basic and diluted) $ (0.01) $ 0.10 $ (0.03) $ (0.02)Adjusted net income (loss) (3) $ 12,325 $ 4,341 $ (3,254) $ 15,474Adjusted net income (loss) per share (basic and diluted) (3) $ 0.09 $ 0.03 $ (0.02) $ 0.11Operating cash flows $ 29,617 $ 51 $ 5,290 $ 41,705Operating cash flows before non-cash working capital changes (3) $ 14,453 $ 8,189 $ (6) $ 33,276Ending cash and cash equivalents $ 13,200 $ 11,988 $ 13,763 $ 13,200Restricted cash (including long-term) $ 18,399 $ 15,954 $ 2,241 $ 18,399Capital expenditures (including primary mine development) (4) $ 12,572 $ 4,229 $ 7,694 $ 37,718----------------------------------------------------------------------------(1) Metals production and sales are from the EVBC Mine and the UMZ Mine. The UMZ Mine was not in commercial production during the first quarter of fiscal 2012.(2) Average realized metal prices are calculated by dividing gross revenue recorded for the period from sales of the particular metal, before deduction of treatment and refinement charges, by ounces of gold or silver or pounds of copper sold during the period.(3) Adjusted net income (loss), adjusted net income (loss) per share and operating cash flows before non-cash working capital changes are non- IFRS performance measures with no standard definition under IFRS. For further information and a detailed reconciliation, please see the "Other Information - Non-IFRS Measures" section of the Q1 2013 MD&A.(4) Capital expenditures for the first quarter of fiscal 2013 included capital expenditures for the EVBC Mine of $3,355 reduced by $1,578 for unpaid capital expenditures which will be paid in subsequent quarters in fiscal 2013.



EVBC Mine, Spain

Through its wholly-owned subsidiary, Kinbauri Espana S.L.U. ("Kinbauri"), the Company owns and operates the EVBC Mine, which is located in the Rio Narcea Gold Belt in northern Spain. The following table includes operating and financial performance data for the EVBC Mine for the periods set out below. The EVBC Mine reached commercial production in August 2011.

---------------------------------------------------------------------------- Q4 2012 Q1 2013 Q1 2012 2012----------------------------------------------------------------------------Operating PerformanceOre mined (tonnes) 129,015 163,051 123,858 558,583Ore milled (tonnes) 118,436 145,890 123,566 519,690Gold Grade (g/t) 2.95 3.19 2.17 2.77 Recovery (%) 93.2 93.2 92.2 92.5 Production (oz) 10,465 13,949 7,655 42,864 Sales (oz) 13,457 8,759 8,276 42,837Copper Grade (%) 0.37 0.51 0.34 0.41 Recovery (%) 82.0 82.5 80.0 84.1 Production ('000 lbs) 800 1,347 727 3,951 Sales ('000 lbs) 1,241 816 691 3,951Silver Grade (g/t) 8.41 11.46 7.23 9.17 Recovery (%) 76.3 79.5 69.9 76.4 Production (oz) 24,718 42,877 19,725 117,113 Sales (oz) 29,098 33,279 9,283 106,199----------------------------------------------------------------------------Total cash costs (by- product) ($/oz of gold sold) (1) $ 720 $ 847 $ 1,244 $ 854Total production costs (by-product) ($/oz of gold sold) (1) $ 987 $ 1,053 $ 1,459 $ 1,071----------------------------------------------------------------------------Financial PerformanceRevenue $ 25,718 $ 17,278 $ 15,373 $ 82,239Mining costs $ 13,156 $ 9,731 $ 12,507 $ 47,615Depreciation and amortization $ 3,971 $ 2,483 $ 2,437 $ 11,754Financial instruments gain (loss) $ (17,493) $ 11,748 $ (1,956) $ (26,095)Income (loss) before tax $ (9,961) $ 16,020 $ (2,720) $ (6,506)Adjusted income (loss) before tax (1) $ 6,040 $ 2,720 $ (933) $ 14,487Capital expenditures (including primary mine development) (2) $ 9,457 $ 3,355 $ 7,407 $ 31,136----------------------------------------------------------------------------(1) Total cash costs (by-product) and total production costs (by-product) per ounce of gold sold and adjusted income (loss) before tax are non- IFRS performance measures with no standard definition under IFRS. For further information and a detailed reconciliation, please see the "Other Information - Non-IFRS Measures" section of the Q1 2013 MD&A. Adjusted income before tax includes realized expenses in connection with financial instruments settled during the period but does not include the mark-to-market fair value adjustments of the Company's outstanding financial instruments at the end of the period. See also "Other Information - Financial Instruments" below.(2) Capital expenditures include primary mine development expenditures capitalized during the period. Primary mine development expenditures of $2,558 were capitalized in the first quarter of fiscal 2013. Capital expenditures in the first quarter of fiscal 2013 includes $1,578 for unpaid capital expenditures which will be paid in subsequent quarters in fiscal 2013.



UMZ Mine, Bolivia

Through its wholly-owned subsidiary, Empresa Minera Paititi S.A. ("EMIPA"), the Company owns and operates the UMZ Mine in southeastern Bolivia. The following table includes operating and financial performance data for the UMZ Mine for the periods set out below. The UMZ Mine was not in commercial production during the first quarter of fiscal 2012, accordingly, this comparative information has not been provided.

---------------------------------------------------------------------------- Q4 2012 Q1 2013 2012----------------------------------------------------------------------------Operating Performance (1)Ore mined (tonnes) 336,772 483,042 1,178,809Ore milled (tonnes) 191,725 201,312 594,054Gold Grade (g/t) 1.55 1.18 1.75 Recovery (%) 49.2 49.8 39.1 Production (oz) 4,691 3,810 13,065 Sales (oz) 5,147 4,276 12,215Copper Grade (%) 1.65 1.45 1.76 Recovery (%) 46.7 47.8 49.4 Production ('000 lbs) 3,259 3,037 11,415 Sales ('000 lbs) 4,018 3,262 10,779Silver Grade (g/t) 75.23 52.0 81.17 Recovery (%) 54.4 56.6 38.6 Production (oz) 252,364 190,575 599,167 Sales (oz) 260,054 211,237 563,611----------------------------------------------------------------------------Total cash costs (co-product) ($/lb) copper (2) $ 1.92 $ 2.03 $ 2.39Total cash costs (co-product) ($/oz) gold (2) $ 969 $ 1,039 $ 1,143Total cash costs (co-product) ($/oz) silver (2) $ 18.69 $ 20.00 $ 22.00----------------------------------------------------------------------------Financial PerformanceRevenue $ 24,889 $ 16,750 $ 58,678Mining costs $ 11,581 $ 8,892 $ 35,959Depreciation and amortization (3) $ (13) $ 1,536 $ 3,263Income (loss) before tax $ 12,116 $ 6,063 $ 17,060Capital expenditures $ 1,164 $ 1,382 $ 1,969----------------------------------------------------------------------------(1) The UMZ Mine commenced commercial production on January 1, 2012. Information relating to production for fiscal 2012 includes production from the UMZ Mine during the start-up and commissioning period in the first quarter of fiscal 2012. Sales for the first quarter of fiscal 2012 from the UMZ Mine were credited against capitalized commissioning costs and sales from January 1, 2012 onwards were recorded as revenue.(2) Total cash costs (co-product) per pound of copper and per ounce of gold and silver are non-IFRS performance measures with no standard definition under IFRS. For further information and a detailed reconciliation, please see the "Other Information - Non-IFRS Measures" section of the Q1 2013 MD&A.(3) Depreciation and amortization costs for the fourth quarter of fiscal 2012 include a reduction of $2,234 as a result of higher depreciation and amortization expenses recorded in prior quarters.



Copperwood Project

Through its wholly-owned subsidiary, Orvana Resources US Corp., Orvana entered into long-term mineral lease agreements covering 936 hectares comprising the "Copperwood Project", which is located in the Upper Peninsula, Michigan, USA. The Company's focus over the last year has been applying for permits that would allow for mining this copper deposit. The Company achieved a number of major permitting milestones in fiscal 2012. In November 2012, the Company announced, in co-operation with the Michigan Department of Environmental Quality ("MDEQ"), that it agreed to withdraw its Wetlands Permit application in order to provide more time for review by the MDEQ and the Environmental Protection Agency ("EPA"). The permit application was re-submitted at the end of November 2012, with expectations of a decision before the end of February 2013.

Total capital expenditures in respect of the Copperwood Project during the first quarter of fiscal 2013 were $1,070 compared to a total of $5,842 in fiscal 2012.

Outlook

Orvana's short-term focus is operational optimization at the EVBC Mine and the UMZ Mine to generate increasing operating cash flows in order to pay down debt and set a foundation for growth. Fiscal 2013 guidance for production is 75,000 ounces of gold, 18 million pounds of copper and 850,000 ounces of silver.

Fiscal 2013 production guidance for the EVBC Mine is 63,000 ounces of gold, 6 million pounds of copper and 200,000 ounces of silver. Orvana continues to work on improving head grade, increasing gold production and reducing total cash costs (net of by-product revenue) per ounce of gold. The shaft, which became operational during the first quarter of fiscal 2013, is expected to allow for more efficient ore haulage resulting in improved flexibility, increased mine production and cost optimization. Orvana will also investigate alternatives to maximize the mill throughput and enhance recoveries.

Fiscal 2013 production guidance for the UMZ Mine is 12,000 ounces of gold, 12 million pounds of copper and 650,000 ounces of silver. During fiscal 2013, the Company's focus at the UMZ Mine will be on improving recoveries.

At Copperwood, the Company is awaiting the decision by the MDEQ regarding the Wetlands Permit.

Orvana's long-term focus is to utilize future cash flow and mining capabilities to build long-term value for its shareholders specifically through organic growth and possibly through certain strategic acquisitions primarily focused on advanced-stage gold and/or copper properties.

The Company will hold a conference call on Thursday, February 14, 2013 at 10:00 a.m. (Eastern Time) to discuss the first quarter results. Following the presentation there will be a question and answer period for analysts and investors.

The conference call can be accessed at 1-416-695-7806 or the North American toll-free number at 1-888-789-9572, using the pass code 8728099 followed by the number sign.

About Orvana

Orvana Minerals is a multi-mine gold and copper producer. Orvana's primary asset is the El Valle-Boinas/Carles gold-copper Mine in northern Spain. Orvana also owns and operates the Don Mario Mine in Bolivia, processing its copper-gold-silver Upper Mineralized Zone deposit. Orvana is also advancing its Copperwood copper project in Michigan, USA. Additional information is available at Orvana's website (www.orvana.com).

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-Boinas/Carles 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-Boinas/Carle's 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-Boinas/Carle's 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 September 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.



Contacts:
Orvana Minerals Corp.
Bill Williams
President and Chief Executive Officer
(416) 369-1629

Orvana Minerals Corp.
Daniella Dimitrov
Chief Financial Officer
(416) 369-1629

Orvana Minerals Corp.
Natalie Frame
Investor Relations
(289) 200-7640
ask_us@orvana.com
www.orvana.com



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