Trevali Announces Preliminary Q4-2018 Production Results and Provides 2019 Production and Cost Guidance

Press Release

VANCOUVER, British Columbia, Jan. 17, 2019 — Trevali Mining Corporate (“Trevali” or the “Company”) (TSX:TV; BVL: TV; OTCQX: TREVF; Frankfurt: 4TI) reports preliminary fourth quarter (“Q4”) and 2018 full year production and sales results, and provides its production, cash costs, and capital and exploration expenditure guidance for 2019.

Dr. Mark Cruise, Trevali’s President and CEO stated, “2018 was an eventful year for Trevali. It was the Company’s first full year operating in Africa and we successfully increased production at both Perkoa and Rosh Pinah over 2017 levels and are on track to extend mine lives through our focus on exploration. Despite the challenges faced at Caribou, Trevali produced 407 million lbs of payable zinc in 2018, in-line with our initial guidance set out one year ago. Heading into 2019, the Company continues to drive forward on creating value through exploration, evaluating ways to reduce costs and maximize production and looks forward to delivering increased shareholder value.”

Key highlights include:

• Total 2018 zinc production of 407 million payable pounds, in-line with initial guidance of 400 – 427 million pounds set at the start of 2018. Total lead production of 41.7 million payable pounds and silver production of 1.2 million ounces.
• Consolidated Q4 production of 103 million pounds payable zinc, 9.7 million payable pounds of lead and 285,423 payable ounces of silver.
• Zinc concentrate inventories reduced to 57 thousand DMT at year end, a 26 thousand DMT reduction from the third quarter. Normal shipping schedules were realized at all operations in the fourth quarter and there were no material inventory backlogs that affected concentrate sales.
• Repurchased 12.7 million shares as part of the normal course issuer bid.
• 2019 zinc production guidance of 361 – 401 million payable pounds, with the decline from 2018 attributed to the anticipated grade declines at Perkoa and Rosh Pinah. Lead and silver production are expected to modestly increase to 44 to 49 million payable pounds and 1.32 to 1.47 million ounces respectively as higher grades are mined.
• We expect production in 2019 at Caribou to be in-line with 2018 as site continues to advance underground development to increase operating flexibility. At Santander, higher grades and increased throughput are expected to result in increased zinc production levels in 2019.
• Operating costs in 2019 are expected to be higher than those in 2018 as additional investments are made to improve operating flexibility and ensure stable operating results.
• Capital and committed exploration expenditures are expected to be $74 million and $8 million, respectively, with 2019 exploration to focus on regional targets at Perkoa and near-mine opportunities at Santander.

Table 1: Preliminary Consolidated Q4-2018 Production Results
	Three months ended December 31		Twelve months ended December 31
	2018	2017	2018	2017(1)
Tonnes mined	723,384	832,878	3,253,617	2,128,018
Tonnes milled	737,496	818,690	3,300,948	2,250,464
Payable production: Zinc (million pounds) Zinc (tonnes) Lead (million pounds) Lead (tonnes) Silver (thousand ounces)	102.7 46,562 9.7 4,406 285	104.8 47,530 13.5 6,103 397	406.9 184,545 41.7 18,915 1,171	225.1 102,122 45.8 20,790 1,562

(1) Twelve months ending December 31, 2017 consolidated preliminary production includes only September 1 to December 31, 2017 for Rosh Pinah and Perkoa. Trevali acquired the Perkoa and Rosh Pinah mines on August 31, 2017.
(2) Please refer to “Use of Non-IFRS Financial Performance Measures” below.
Perkoa Mine, Burkina Faso

Perkoa delivered a strong performance in 2018 with annual production of 184 million pounds, materially above the Company’s initial target of 155 – 165 million pounds. In 2019, lower mined grades (estimated annual run-of-mine of 14.0% in 2019 versus 14.9% in 2018) will lead to reduced metal production and consequently slightly higher operating costs.

The new high-efficiency heavy fuel oil power plant is nearing completion. We expect cost savings of approximately $5 per tonne to be realized once it is fully operational. The reduction in power costs, however, is expected to be mostly offset by reduced production levels, resulting in similar costs per tonne as seen over recent quarters.

Record concentrate trucking during December lowered site inventories to 24 kilotonnes at year end, significantly below historic and anticipated inventory staging levels ranging from 30 – 35 kilotonnes. The Company continues to focus on logistic improvements and initiatives to minimize concentrate levels as far as feasible.

Table 2: Perkoa Preliminary Q4-2018 Production (100 percent basis)
	Three months ended December 31		Twelve months ended December 31
	2018	2017	2018	2017(1)
Tonnes mined	161,815	203,635	708,263	270,909
Tonnes milled	185,661	180,022	724,995	237,832
Payable production: Zinc (million pounds) Zinc (tonnes)	47.6 21,577	47.7 21,627	183.9 83,428	62.8 28,483

(1) Twelve months ending December 31, 2017 consolidated preliminary production includes only September 1 to December 31, 2017. Trevali acquired the Perkoa mine on August 31, 2017.
(2) Please refer to “Use of Non-IFRS Financial Performance Measures” below.
Rosh Pinah Mine, Namibia

Similar to the third quarter of 2018, harder ore and head grades above mill design from the new Western Ore Field resulted in lower throughput and recovery. Ongoing projects, such as a new filter press, as well as flotation circuit and grinding circuit modifications are budgeted to resolve these issues in 2019 and are being appropriately sized to facilitate any potential future throughput increases. The increase in capital expenditures planned for 2019 reflect these enhancements and are being incorporated into the Rosh Pinah 2.0 study, which is evaluating an increase in mill throughput by 50% and is advancing to P/BFS level study with final results anticipated in H2 2019.

Table 3: Rosh Pinah Preliminary Q4-2018 Production
	Three months ended December 31		Twelve months ended December 31
	2018	2017	2018	2017(1)
Tonnes mined	158,354	177,820	627,295	237,865
Tonnes milled	149,201	171,020	641,980	227,650
Payable production: Zinc (million pounds) Zinc (tonnes) Lead (million pounds) Lead (tonnes) Silver (thousand ounces)	25.4 11,675 1.5 677 22	21.3 9,681 3.1 1,398 49	94.2 42,706 8.5 3,870 104	29.3 13,299 4.4 1,986 68,533

(1) Twelve months ending December 31, 2017 consolidated preliminary production includes only September 1 to December 31, 2017. Trevali acquired the Rosh Pinah mine on August 31, 2017.
(2) Please refer to “Use of Non-IFRS Financial Performance Measures” below.
Caribou Mine, Canada

Planned remediation works (increased development, ground support and installation of cemented fill in key areas of the mine) remain on track to return the mine to normal production levels in Q2 2019 but will result in higher operating costs particularly in Q1. The technical team continues to evaluate modifications to the extraction method in order to improve productivity and decrease costs, in addition to ongoing short- and long-term strategic reviews of the Bathurst Mining Camp.

Table 4: Caribou Preliminary Q4-2018 Production
	Three months ended December 31		Twelve months ended December 31
	2018	2017	2018	2017
Tonnes mined	184,635	250,225	887,141	937,459
Tonnes milled	174,180	252,857	884,529	945,436
Payable production: Zinc (million pounds) Zinc (tonnes) Lead (million pounds) Lead (tonnes) Silver (thousand ounces)	13.7 6,214 5.5 2,485 122	21.7 9,826 8.7 3,941 250	72.0 32,639 25.3 11,456 632	79.9 36,264 30.9 14,026 890

(1) Please refer to “Use of Non-IFRS Financial Performance Measures” below.
Santander Mine, Peru

Over the course of the fourth quarter, Santander transitioned to fully owner operated, recovered from third quarter production disruptions and met its forecasted annual production target, delivering a 2018 monthly zinc production record in December. The mine is well positioned for production in 2019 with all development in place for the year.

Table 5: Santander Preliminary Q4-2018 Production
	Three months ended December 31		Twelve months ended December 31
	2018	2017	2018	2017
Tonnes mined	218,580	201,198	750,970	681,785
Tonnes milled	228,454	214,791	803,265	839,546
Payable production: Zinc (million pounds) Zinc (tonnes) Lead (million pounds) Lead (tonnes) Silver (thousand ounces)	16.0 7,236 2.7 1,244 142	14.1 6,396 1.7 764 98	56.8 25,760 7.9 3,588 435	53.1 24,076 10.5 4,779 603

(1) Please refer to “Use of Non-IFRS Financial Performance Measures” below.

2019 CONSOLIDATED PRODUCTION GUIDANCE
Consolidated production guidance for 2019 is estimated between 361 – 401 million pounds of payable zinc, 44 – 49 million pounds of payable lead and 1.3 – 1.5 million ounces of payable silver.

Table 6: 2019 Consolidated Production Guidance (1&2)
Mine	2019 Zinc Production	2019 Lead Production	2019 Silver Production
Perkoa (100%)	151 – 168 million lbs 68 – 76 ktonnes	N/A	N/A
Rosh Pinah (100%)	80 – 89 million lbs 36 – 40 ktonnes	10 – 11 million lbs 4 – 5 ktonnes	145 – 161 k ozs
Caribou	71 – 79 million lbs 32 – 36 ktonnes	24 – 27 million lbs 11 – 12 ktonnes	641 – 713 k ozs
Santander	59 – 65 million lbs 27 – 29 ktonnes	10 – 11 million lbs 4 – 5 ktonnes	536 – 595 k ozs
Total	361 – 401 million lbs 163 – 181 ktonnes	44 – 49 million lbs 19 – 22 ktonnes	1,322 – 1,469 k ozs

⁽¹⁾ Constitutes forward-looking information; see “Cautionary Note Regarding Forward-Looking Statements”.
⁽²⁾ Trevali’s ownership interest is 90% of Perkoa and 90% of Rosh Pinah.
Consolidated operating costs are forecast to range from $69 – $76 per tonne, with cash costs (net of by-product credits) of between $0.81 – $0.88 per pound of zinc (see Table 7). Including capital expenditures forecast of $74 million, consolidated AISC are expected to range from $0.99 – $1.09 per pound of zinc (for the purpose of AISC guidance, all capital is considered to be sustaining). Relative to 2018, higher capital expenditures at Rosh Pinah and Santander are planned, with incremental spending on process plant upgrades (new filter press and floatation and grinding circuit improvements) and power infrastructure, respectively, the main drivers.

Table 7: 2019 Consolidated Operating Cost and Capital Expenditure Guidance (1&2)
Mine	Operating Costs (per tonne)	Cash Costs net of By-product Credits ($/lb Zn)	All-in Sustaining Costs ($/lb Zn)	Capital Expenditures ($M)
Perkoa (100%)	106 – 117	0.84 – 0.92	0.91 – 0.99	11
Rosh Pinah (100%)	56 – 63	0.70 – 0.77	0.99 – 1.09	26
Caribou	72 – 79	0.95 – 1.02	1.15 – 1.28	16
Santander	45 – 49	0.71 – 0.78	1.02 – 1.13	21
Exploration	–	–	–	8
Total	69 – 76	0.81 – 0.88	0.99 – 1.09	82

⁽¹⁾ Constitutes forward-looking information; see “Cautionary Note Regarding Forward-Looking Statements”.
⁽²⁾ Trevali’s ownership interest is 90% of Perkoa and 90% of Rosh Pinah.

Quarterly Variability
Zinc: While production guidance has been provided on an annual basis, we expect moderate production fluctuations on a quarter-to-quarter basis due to mine scheduling. Zinc production overall is forecast to be slightly stronger in the second half of 2019, with Caribou in particular expected to deliver a weaker quarter in Q1 as the Company completes the advanced rates of development and production catches up in Q2 – Q4. Conversely, Rosh Pinah is forecast to have a stronger start to 2019, with production strongest in Q1 and declining thereafter as zinc grades decline from approximately 10% to 8%. Due to the mining sequence, lower grades are planned at Perkoa in Q2 and Q3.

Lead: Production is expected to show more quarterly variability than zinc, with consolidated lead production increasing in each successive quarter throughout 2019. Lead grades at Santander and Rosh Pinah are forecast to increase throughout the year, with Rosh Pinah expected to mine significantly higher lead grades in the second half of 2019.

Operating costs: The Company expects costs to generally be at their highest level for each mine in Q1 with consolidated costs per tonne to range from $73 – $81 per tonne during the quarter. Operating costs will be higher in Q1 compared to the yearly target due to the following:

• Increased mining scope to build inventories and further de-risk annual production;
• Seasonal impact of winter at Caribou Mine and reduced mined ore until planned development is in place;
• Benefit of the HFO generating plant at Perkoa is forecast to improve costs starting in Q2;
• Seasonal pumping requirements at Santander Mine;
• Lower planned throughput due to planned maintenance.

Exploration – Targeting Resource and Reserve Growth and Mine Life Extensions

The exploration group is on track to successfully replace mined inventory at all the operations in addition to modestly increasing resources. Specific highlights include the emerging Santander Pipe deposit, which will remain a focus for 2019 and material extensions to the Perkoa deposit where the Hanging Wall zone was extended approximately 300 meters below the current mine plan. Finally, regional exploration drilling commenced at Perkoa in Q4 and to date has successfully intersected sulphide bearing (stringer – disseminated to narrow massive zones – non-economic to date) VMS systems at several of the targets. Drill testing is ongoing.

The 2019 exploration program will continue to focus on brownfield, near-mine, exploration targets to expand and discover new resources in proximity to existing mine infrastructure and extend the current mine lives. For 2019, the Company intends to invest a minimum $8.4 million on approximately 36,300 metres of diamond drilling from surface and underground primarily focused on the Perkoa and Santander mineral systems. Contingent on positive results and available funds, additional funding may be deployed towards further drilling.

Updated resource and reserve estimates at all sites are expected to be completed at the end of the first quarter of 2019.

Qualified Person and Quality Control/Quality Assurance
EurGeol Dr. Mark D. Cruise, Trevali’s President and CEO, is a qualified person as defined by NI 43-101, has supervised the preparation of, and has verified the scientific and technical information that forms the basis for this news release. Dr. Cruise is not independent of the Company as he is an officer, director and shareholder.

ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused, base metals company with four mines: the 90% owned Perkoa mine in Burkina Faso, the 90% owned Rosh Pinah mine in Namibia, the wholly-owned Caribou mine in the Bathurst Mining Camp of northern New Brunswick in Canada, and the wholly-owned Santander mine in Peru.

The shares of Trevali are listed on the TSX (symbol TV), the OTCQX (symbol TREVF), the Lima Stock Exchange (symbol TV), and the Frankfurt Exchange (symbol 4TI). For further details on Trevali, readers are referred to the Company’s website (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.

On Behalf of the Board of Directors of
TREVALI MINING CORPORATION
“Mark D. Cruise” (signed)
Mark D. Cruise, President

Contact Information:
Steve Stakiw, Vice President – Investor Relations and Corporate Communications
Email: sstakiw@trevali.com
Phone: (604) 488-1661 / Direct: (604) 638-5623

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