Day: January 17, 2019

“We had another year of consistent production at the Avino property, producing 2,863,753 silver equivalent ounces, which was in line with our internal projections.” said David Wolfin, President and CEO. “The completion of Mill Circuit 4 contributed to an increase of 6% in silver equivalent ounce production over 2017, and also helped offset decreasing grades at the San Gonzalo Mine which is nearing the end of its mine life. The underground development at San Luis was temporarily reduced to save costs in the third and fourth quarters of 2018, therefore we are positioned to increase the throughput and the rate of development of the San Luis area during the latter part of 2019. We expect 2019 production to be similar to 2018. We continue to be mindful of costs Company-wide and are taking a pragmatic approach to expanding our operations. Finally, I wish to thank the operations team in Mexico for all their hard work and dedication.”

PRIZE MINING CORPORATION wishes to provide an update on the status of the Alberta Securities Commission Notice of Application dated December 21, 2018 seeking an interim order pursuant to section 33 and 198 of the Securities Act(Alberta), which names the Company as a respondent. Counsel for Prize applied for a further adjournment in order to obtain sufficient time to prepare its response to properly address the matters noted in the Notice of Application. The Alberta Securities Commission issued a variation order (the “Order”) dated January 14, 2019 to adjourn the hearing to February 1, 2019. The Order also requires that all trading in securities of Prize cease and that Prize must cease trading in all securities and that all exemptions contained in Alberta securities laws do not apply to Prize pending the determination of the hearing.

“We have taken the step of realigning our Mexican operations to reduce unit costs and maximize mine operating cash-flow, with a modest reduction in our production ounces”, stated James Bannantine, President and CEO. “The continuous improvement of our Mexican operations is important to our primary growth initiatives that include completing the acquisition of Beadell Resources Limited, which is expected to close shortly after respective shareholder votes during the week of February 11th, and the completion of the latest phase of our Coricancha project to enable advancement toward a production decision by the end of March.”

Through an aggregate C$2.6 million equity investment in Prospero Silver Corp., Fortuna funded a Strategic Alliance with Prospero. This strategic alliance provided for the initial drilling of multiple targets at Prospero’s Matorral, Petate, Pachuca SE, Buenavista and Bermudez properties located in Durango, Hidalgo and Chihuahua States. High-level epithermal clay alteration with anomalous gold, silver or pathfinder elements are present at each property, none of which has been previously drilled.