El Valle-Boinás/Carlés Reserves and Resources

In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed in this news release have been prepared as at September 30, 2018 in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines").

Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral Reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral Reserve, or is or will ever be economically or legally mineable or recovered.

In fiscal 2014, the Company engaged an independent engineering firm, Roscoe Postle Associates Inc. (“RPA”), to complete mineral reserves and resources estimates and a life-of-mine-plan update, which were published in the “Technical Report on El Valle Boinás-Carlés Operation, Asturias, Spain” dated September 26, 2014 by Mr. Jason J. Cox, P.Eng., who is a qualified person independent of the Company for the purposes of NI 43-101, and filed on September 29, 2014 (“El Valle Mine 43-101 Report”).

Since the El Valle Mine 43-101 Report, the Company has updated the mineral reserves and resources. The updated mineral resource estimates for El Valle as at September 30, 2018 were prepared by OroValle under the supervision of Ms. Guadalupe Collar Menéndez, European geologist and the Chief of Geology of OroValle, based on updating resource block models incorporating drilling results from April 1, 2017 to June 30, 2018 and accounting for production depletion from September 30, 2017 to September 30, 2018. Mineral resource estimates are summarized in the tables below.

Mineral reserves were estimated by OroValle under the supervision of Mr. Brian W. Buss, Peng., based on mine designs applied to measured and indicated resources, taking into account appropriate dilution and extraction factors. Mr. Buss, a Professional Mining Engineer, registered in the province of Ontario, Canada, is a qualified person independent of the Company for the purposes of NI 43-101. Mineral reserves are summarized in the table below.

Skarn reserves are evaluated at a break-even cut-off grade of 2.6 g/t AuEq. This average factor resulted from a detailed analysis, which started with a factor of 3.0 g/t AuEq (initial cut-off grade factor calculated and based on the planned data), but which was filled with portions of skarn of 2.6 g/t, and 2.14 g/t AuEq for the purpose of obtaining the optimal grade of skarn to sustain mill feed of 45% skarn; 55% oxides.