El Valle-Boinás/Carlés Reserves and Resources

See Orvana’s Annual Information Form dated December 20, 2023 for the fiscal year-ended September 31, 2023, pages 19-23 ("AIF").>

Mineral Reserves and Resources Estimates

In fiscal 2020, Orovalle engaged an independent engineering firm, Roscoe Postle Associates Inc. (“RPA”), to complete mineral reserves and resources estimates and a life-of-mine-plan (“LOMP”) update, which were published in the “Technical Report on Orovalle Operation, Asturias, Spain” dated November 30, 2020 by: (i) Rick C. Taylor, P.Eng., of RPA, in respect of the estimated mineral reserves and the life of mine plan, and (ii) John Makin, P.Geo., of RPA, in respect of the estimated mineral resources. Each of Messrs. Taylor and Makin is a Qualified Person within the meaning of NI 43-101.

Reproduced at “Appendix B - Principal Mineral Projects - Orovalle” of the AIF is the summary section of the Orovalle 43-101 Report. The full text of the Orovalle 43-101 Report is available for viewing on SEDAR at www.sedarplus.ca . Defined terms and abbreviations used herein and not otherwise defined shall have the meanings ascribed to such terms in the Orovalle 43-101 Report.

Since the Orovalle 43-101 Report, the Company has updated the mineral reserves and resources. The updated mineral resource estimates for El Valle as at September 30, 2023 were prepared by Orovalle under the supervision of Ms. Guadalupe Collar, European geologist and the Chief of Geology of Orovalle, based on updating resource block models incorporating drilling results from July 1, 2022 to June 30, 2023 and accounting for production depletion up to September, 2023. Greenfield program information is not included for resources estimation.

Mineral Resource estimates were based on robust cut-off grade. Isolated areas with ore above cut-off grade were removed from the Measured + Indicated Mineral Resources estimates, also constraining volumes were defined to be used in Mineral Resources estimation to satisfy the “reasonable prospects for eventual economic extraction” therefore in some cases, this potentially mineable volume can contain mineralization with grades below cut-off.

Mineral resource estimates are summarized in the following tables:

Notes:

1. CIM definitions and guidelines (November 29, 2019) were followed for Mineral Resources estimation.
2. Mineral Resources were estimated at gold equivalent ("AuEq”) stope cut-off grades of 2.08 g/t for Boinás skarns; 2.51 g/t for Boinás oxides and 2.51 g/t for La Brueva. At Carlés Mineral Resources were estimated at break-even AuEq cut-off grade of 1.93 g/t considering there to be additional risk as the Carlés mine is not currently operational.
3. AuEq cut-offs are based on recent operating results for recoveries, off-site concentrate costs and on-site operating costs. AuEq factors are based on metal prices, metallurgical recoveries, metal payables and selling costs.
4. Mineral Resources are estimated using a long-term prices of Gold (US$1,700/oz), Silver (US$ 20/oz), and Copper (US$3.25/lb). A US$/€ exchange rate of 1.1/1.0 was used.
5. Mineral Resources are inclusive of Mineral Reserves.
6. A crown pillar of 75 m is excluded from the Mineral Resource below El Valle TSF.
7. A crown pillar of 42 m is excluded from the Mineral Resource below Boinás East open pit.
8. A crown pillar of 55 m is excluded from the Mineral Resource below topography in Carles West.
9. Unrecoverable material in exploited mining areas has been excluded from the Mineral Resources.
10. A no-mining sterilization zone of 10 m below already mined stopes and 5 m around waste filled stopes has been excluded from the mineral resources.
11. Isolated areas with ore above cut-off grade were removed from the Mineral Resource.
12. Constraining shapes were defined to be used in Mineral Resource estimation to ensure RPEEE.
13. Numbers may not add due to rounding.
14. El Valle mineral resources estimates were prepared under the supervision G. Collar, European Geologist, a qualified person for the purposes of NI 43-101, who is an employee of OroValle and thus not independent of the Company.

Mineral Reserves were estimated by Orovalle. Mineral Reserves processes and the resulting Reserve Statements have been reviewed, scrutinized, audited, and approved by Brian William Buss, P. Eng., QP, a qualified person for the purposes of NI 43-101, who is an independent consultant of the Company. The bulk of the technical work in preparing the Mineral Reserves was conducted by experienced and capable staff at Orovalle for the Boinas and Carles underground mines. The review process included several meetings (video conferences) and in-person meetings with key management and technical staff, analysis of the methods applied to generate both the Mineral Resources and the Mineral Reserves, and a detailed review of the key supporting documents.

Mineral Reserve estimates were based on robust cut-off grade and mine design processes applied to the Measured and Indicated Resources. Appropriate dilution and extraction factor were applied based upon the specifics of each orebody type and assigned mining methods. Areas where stopes above cut-off grade were isolated or remote from existing infrastructure or otherwise deemed impractical to mine were removed from the Mineral Reserve estimate.

Mineral Reserves are summarized in the table below:

Notes:

1. CIM (November 29, 2019) definitions and guidelines were followed for Mineral Reserve estimation.
2. Crown pillars in Boinas of 75 m and 42 m are excluded from the Mineral Reserves below the El Valle TSF and Boinás East open pits respectively. A crown pillar of 55 m is excluded at Carles above Carles West. No-mining sterilisation zones are applied as follows: 10 m are below mined out stopes and 5 m around waste filled stopes.
3. No-mining sterilisation zones are applied as follows: 10 m are below mined out stopes and 5 m around waste filled stopes.
4. A minimum mining width of 4 m was used.
5. Appropriate modifying factors (dilution and mine recovery) based on historic back analysis were applied by specific lithology and mining method.
6. Mineral Reserves are based on the application of AuEq break-even cut-off grades by lithology & method, consisting of 3.17 g/t AuEq for Boinás oxides (D&F), 2.44 g/t AuEq for Boinás skarns (SLS), 2.85 g/t AuEq for Boinás skarns (D&F), and 2.06 g/t AuEq for Carlés skarn (SLS).
7. Additional Reserves were added based on application of Stope break-even cut-off grades by lithology & method, consisting of 2.69 g/t AuEq for Boinás oxides (D&F), 2.16 g/t AuEq for Boinás skarns (SLS), 2.47 g/t AuEq for Boinás skarns (D&F), and 1.69 g/t AuEq for Carlés skarn (SLS).
8. Some Reserves were included based on the application Incremental cut-off grades by lithology & method, consisting of 2.25 g/t AuEq for Boinás oxides (D&F), 1.60 g/t AuEq for Boinás skarns (SLS), 2.10 g/t AuEq for Boinás skarns (D&F), and 1.60 g/t AuEq for Carlés skarn (SLS).
9. AuEq cut-offs are based on recent operating results for recoveries, off-site concentrate treatment costs, and on-site operating costs. AuEq factors are based on metal prices, metallurgical recoveries, metal payables, and selling costs.
10. Mineral Reserves are estimated using average long term prices of Gold (US$1,600/oz), Silver (US$18/oz), and Copper (US$3.00/lb). A US$/€ exchange rate of 1.1/1.0 was used.
11. A small portion of inferred material (1%) is included in the mineable stope shapes as reserves.
12. El Valle mineral reserves estimates were prepared under the supervision of Brian William Buss, P. Eng., QP, a qualified person for the purposes of NI 43-101, who is an independent consultant of the Company.
13. Numbers may not add due to rounding.