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Orvana Reports Revised Resource and Reserve Estimates for the Upper Mineralized Zone ("UMZ") Copper-Gold-Silver Mine, Bolivia

TORONTO, ONTARIO--(Marketwire - Dec 13, 2012) - Orvana Minerals Corp. (ORV.TO), through its wholly-owned subsidiary, Empresa Minera Paititi ("EMIPA"), provides updated National Instrument ("NI") 43-101-compliant resource and reserve estimates for its Don Mario UMZ copper-gold-silver mine operations in Bolivia. During 2012, EMIPA made significant changes to the mining and processing aspects of the operation thus warranting an update.

The updated NI 43-101-compliant resource and reserve estimates are effective October 1, 2012 and are shown in the tables below. The reserve estimate contains approximately 177,000 ounces of gold, 5.6 million ounces of silver, and 120 million pounds of copper, which is a decrease of about 5%, 2%, and 11%, respectively, after considerations for production through September 30, 2012 as well as the exclusion of certain oxide mineralization whose metals cannot be extracted economically (see press release of January 18, 2012); testing of these ores will continue in order to seek a viable extraction method. The most significant change in the mine plan is the processing of Transition ore by a Flotation-Only process instead of the Leach-Precipitation-Flotation ("LPF") process.

        MEASURED           INDICATED           INFERRED    
    tonnes,   Gold,   Copper,   Silver,   tonnes,   Gold,   Copper,   Silver,   tonnes,   Gold,   Copper,   Silver,
ORE TYPE   ''000s   g/t   %   g/t   ''000s   g/t   %   g/t   ''000s   g/t   %   g/t
Oxides (in situ)   149   1.90   1.74   77   219   1.94   1.88   63   38   1.93   1.80   52
Oxides (stockpile)                   757   1.78   1.79   44                
Transition (in situ)   701   1.30   1.23   44   938   1.22   1.18   41   97   0.96   1.10   43
Transition (stockpile)                   3   1.40   1.53   72                
Sulphides   874   1.16   1.15   30   1,344   1.03   1.07   31   28   1.02   0.73   17
    1,724   1.28   1.23   39   3,261   1.32   1.32   39   162   1.20   1.20   40
            TOTAL M&I   4,985   1.31   1.29   39                
            PROVEN           PROBABLE       PROVEN + PROBABLE    
    tonnes,   Gold,   Copper,   Silver,   tonnes,   Gold,   Copper,   Silver,   tonnes,   Gold,   Copper,   Silver,
ORE TYPE   ''000s   g/t   %   g/t   ''000s   g/t   %   g/t   ''000s   g/t   %   g/t
Oxides (in situ)   131   1.85   1.78   83   196   1.86   1.90   67   327   1.85   1.85   73
Oxides (stockpile)                   401   1.74   1.81   49   401   1.74   1.81   49
Transition (in situ)   643   1.32   1.22   43   908   1.23   1.17   41   1,551   1.27   1.19   42
Transition (stockpile)                   3   1.40   1.53   72   3   1.40   1.53   72
Sulphides   820   1.13   1.16   30   1,231   1.05   1.10   31   2,051   1.08   1.12   31
    1,594   1.26   1.23   40   2,739   1.27   1.28   40   4,333   1.27   1.26   40
            TOTAL 2P   4,333   1.27   1.26   40                

Note: As of October 1, 2012, the effective date of the Technical Report to be filed.

The mine plan now consists of 720,000 tonnes per year of Flotation-Only processing of Transition and Sulphide ores and 100,800 tonnes per year of LPF processing of oxide ores through 2017; the LPF processing of 224,300 tonnes of certain stockpiled oxide ores will continue in 2018. Model parameters are as follows:

Mine Plan: Flotation-Only - 2,700 tonnes/day (263 days/yr)
  LPF - 1,667 tonnes/day (60 days/yr)
  224,300-tonne oxide stockpile sent to LPF in 2018
Gold recovery: Flotation-Only (Transition) - 50%  
  Flotation-Only (Sulphide) - 60%  
  LPF - 56%  
Copper recovery: Flotation-Only (Transition) - 60%  
  Flotation-Only (Sulphide) - 80%  
  LPF - 60%  
Silver recovery: Flotation-Only (Transition) - 50%  
  Flotation-Only (Sulphide) - 60%  
  LPF - 40%  

Key financial input parameters are (all values in US dollars):

Sustaining capital: $ 26,900,000
Mine operating cost: $ 4.78 per tonne (ore + waste)
Strip ratio (waste:ore):   0.55:1
Processing cost:    
  LPF: $ 80.23 per tonne ore (Oxide)
  Flotation -only: $ 13.09 per tonne ore (Transition, Sulphide)
G&A: $ 6.76 per tonne ore (LPF)
  $ 5.68 per tonne ore (Flotation-Only)
Copper sales: $ 0.85 per pound (LPF)
  $ 1.28 per pound (Flotation-Only)
Gold sales: $ 127.64 per ounce (LPF)
  $ 168.80 per ounce (Flotation-Only)
Silver sales: $ 3.40 per ounce (LPF)
  $ 5.20 per ounce (Flotation-Only)
Copper price (LOM): $ 3.00/pound
Gold price (LOM): $ 1,400.00/ounce
Silver price (LOM): $ 25.00/ounce

Certain oxide resources are not included in the mine plan, whether in situ or in stockpile, since treatment by Flotation-Only or LPF processes is not practical and/or not economically viable because of the input price deck or other parameters, but will be processed opportunistically during the life of mine. Likewise, some Transition and Sulphide resources not included in the mine plan will also be mined and processed opportunistically if extraction of the metals is economically viable.

Products made from the LPF process include a copper cement and a talc-rich precious-metal concentrate, and from the Flotation-Only process a copper concentrate with levels of lead from 8% to as high as 20% as well as a lead concentrate. All products are under contract.

"This mine plan outlines a path forward that optimizes the UMZ operation," said Bill Williams, President and Chief Executive Officer of Orvana Minerals Corp. "We will continue to pursue opportunities to improve recoveries as well as seek alternatives to extend production beyond 2018, including exploration in proximal concessions," he added.

During October, production was about 973,000 pounds of copper, 1,440 ounces of gold, and 76,000 ounces of silver. Total cash costs, on a co-product basis including all royalties and based on sales, were approximately $1.80 per pound copper, $910 per ounce gold and $16 per ounce silver. During November, production was about 1,060,000 pounds of copper, 1,290 ounces of gold, and 62,000 ounces of silver at total cash costs of <$2.00 per pound, <$980 per ounce, and <$22.00 per ounce, respectively. Whereas the Flotation-Only process was operable during October and November, the LPF process is currently active and processing will switch over to Flotation-Only next week and continue in January.

The information regarding the NI 43-101-compliant technical report was prepared under the supervision of Francisco Alcalde Garmendia of Kminante Consultores in Santiago, Chile, who is a qualified person for the purposes of NI 43-101 and is independent of EMIPA. The compilation of production information was prepared by Bill Williams, President and Chief Executive Officer of Orvana Minerals Corp, who is a qualified person for the purposes of NI 43-101.

The Technical Report will be filed on www.sedar.com and the Orvana website within 45 days of this release.

About Orvana

Orvana Minerals Corp. is a multi-mine gold and copper producer. Orvana''s primary asset is the El Valle-Boinás/Carlés gold-copper Mine in northern Spain. Orvana also owns and operates the Don Mario Upper Mineralized Zone Mine in Bolivia, which is a copper-gold-silver deposit. In addition, Orvana is 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-Boinás/Carlés 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-Boinás/Carlés 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-Boinás/Carlés 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 June 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.