Orla Files Preliminary Economic Assessment Technical Report on Camino Rojo Project

Vancouver, British Columbia--(Newsfile Corp. - July 12, 2018) - Orla Mining Ltd. (TSXV: OLA) ("Orla" or the "Company") is pleased to announce that the Company has filed a technical report, prepared in accordance with National Instrument 43-101, for its 100% owned Camino Rojo Project located in Zacatecas State, Mexico. Orla previously released the results of the preliminary economic assessment ("PEA") in its May 29, 2018 news release which included a summary of all assumptions and key results contained in the technical report.

The independent report dated June 19, 2018, entitled "Preliminary Economic Assessment, NI 43-101 Technical Report on the Camino Rojo Gold Project — Municipality of Mazapil, Zacatecas, Mexico" was completed by Kappes, Cassiday & Associates ("KCA") and provides details and supporting disclosure to the information contained in the Company's news release issued on May 29, 2018. The technical report is available under the Company's profile on SEDAR at www.sedar.com.

PEA Summary

The mineral resource at Camino Rojo and PEA support a technically simple open-pit mine and heap-leach operation that offers low capital and operating costs, rapid payback, and strong financial performance. The PEA is based on near-surface oxide and partly oxidized (transitional) material within the overall resource, all located within Orla mineral concessions. Key highlights are summarized in the table below:

PEA Highlights Base Case (in USD)
Pre -Tax - Net Present Value (5%) / Internal Rate of Return ("IRR")$231 million / 38.1%
After-Tax - Net Present Value (5%) / IRR$121 million / 24.5%
Payback3.3 years
Production Rate per Day18,000 tonnes
Total Material to Leach Pad42.5M tonnes
Average Grade Au / Ag (g/t)0.71 / 13.56
Contained gold / silver ounces966,000 / 18,517,000
Average Recovery Au / Ag67% / 15%
Average Annual gold Production97,500 ounces
Strip Ratio0.58
Initial Capex$125 million
Avg. LOM production costs (per tonne of material processed)$8.02
Total By-Product Cash Cost1 ($/oz Au)$499
All-In Sustaining Cost1 ($/oz Au)$555
Gold Price (US$/oz)$1,250
Silver Price (US$/oz)$17.00

 

The PEA is preliminary in nature and includes the use of inferred mineral resources, which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Qualified Persons

The technical information in this news release has been reviewed and approved by Carl Defilippi, RM SME, Michael G. Hester, FAusIMM, and Matthew Gray, Ph.D., C.P.G, each of whom is an Independent Qualified Person under NI 43-101 standards.

On behalf of the Board of Directors,

Marc Prefontaine, M.Sc., P.Geo.,
President & Chief Executive Officer

About Orla Mining Ltd.

Camino Rojo is an advanced gold and silver project located in Zacatecas State, Central Mexico. The project is 100% owned and covers over 200,000 hectares. Access and infrastructure are excellent with a paved highway and powerline nearby. A NI 43-101 Technical Report on Camino Rojo dated June 19, 2018 is available on SEDAR under the Company's profile. Orla also owns 100% of the Cerro Quema project in Panama which includes a near-term gold production scenario and various exploration targets. Cerro Quema's 14,800-hectare concession is close to infrastructure with easy access to site and strong community support. The Cerro Quema project is currently in the last stage of the permitting process for a proposed open pit mine and gold heap leach operation. Please refer to the "Cerro Quema Project - Pre-feasibility Study on the La Pava and Quemita Oxide Gold Deposits" dated August 15, 2014, which is available on SEDAR.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-looking and Cautionary Statements

This news release contains certain "forward-looking statements" within the meaning of Canadian and United States securities legislation, including, without limitation, statements with respect to the results of the preliminary economic assessment, including but not limited to the mineral resource estimation, mine plan and operations, internal rate of return, sensitivities, taxes, net present value, potential recoveries, design parameters, operating costs, capital costs, production data and economic potential; the timing and costs for production decisions; permitting timelines and requirements; requirements for additional land; exploration and planned exploration programs, the potential for discovery of additional mineral resources; upside opportunities, pit wall angles, larger crush size and increase in the silver recoveries; timing for completion of a feasibility study; timing for first gold production; and the Company's objectives and strategies. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements are discussed in this news release, including without limitation, assumptions regarding the price of gold and silver; the accuracy of mineral resource estimations; that there will be no material adverse change affecting the Company or its properties; that all required permits and approvals will be obtained; that no social or environmental issues exist; and that there will be no significant disruptions affecting the Company or its properties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: risks related to uncertainties inherent in the preparation of preliminary economic assessments, drill results and the estimation of mineral resources, including changes in the economic parameters; risks relating to not securing agreements with third parties or not received required permits; risks associated with executing the Company's objectives and strategies, including costs and expenses, as well as those risk factors discussed in the Company's most recently filed management's discussion and analysis, as well as its annual information form dated January 26, 2018, available on www.sedar.com. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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1 Non-IFRS Measures

The Company has included certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers and the non-IFRS measures do not have any standardized meaning. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Cash Costs per Ounce — the Company calculated cash costs per ounce by dividing the sum of operating costs, royalty costs, production taxes, refining and shipping costs, net of by-product silver credits, by payable gold ounces. While there is no standardized meaning of the measure across the industry, the Company believes that this measure will be useful to external users in assessing operating performance.

All-In Sustaining Costs ("AISC") — the Company has disclosed an AISC performance measure that reflects all of the expenditures that are required to produce an ounce of gold from operations. While there is no standardized meaning of the measure across the industry, the Company's definition conforms to the all-in sustaining cost definition as set out by the World Gold Council in its guidance dated June 27, 2013. The Company believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current operations.

For further information, please contact:

Marc Prefontaine
President & Chief Executive Officer

604-564-1852
info@orlamining.com
www.orlamining.com

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