El Valle-Boinás/Carlés Reserves and Resources

Cautionary Notes to Investors - Reserve and Resource Estimates

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, 2014 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” 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, 2017 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, 2016 to March 31, 2017 and accounting for production depletion from September 30, 2016 to September 30, 2017. Mineral resource estimates are summarized in the tables below.

Notes:

1. CIM definitions were followed for mineral resources.
2. Mineral resources are estimated at gold equivalent (“AuEq”) cut-off grades of 3.1 g/t for El Valle oxides, 2.1 g/t for El Valle skarns and 2.6 g/t for Carlés Mine skarns. AuEq cut-offs are based on recent operating results for recoveries, off-site concentrate costs and on-site operating costs.
3. Mineral resources are estimated using a long-term gold price of US$1,350 per ounce; copper price of US$2.75 per pound; and a silver price of US$19 per ounce. A US$/Euro exchange rate of 1/1.20 was used.
4. Mineral resources are inclusive of mineral reserves.
5. A crown pillar of 50 m is excluded from the mineral resource below El Valle open pit.
6. A crown pillar of 42m is excluded from the mineral resource below El Valle East open pit.
7. Unrecoverable material in exploited mining areas has been excluded from the mineral resource.
8. Numbers may not add due to rounding.
9. 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 under the supervision of Mr. David Duncan, a Professional Mining Engineer of Canada and the Director of Operations at OroValle, based on mine designs applied to measured and indicated resources, taking into account appropriate dilution and extraction factors. Mineral reserves are summarized in the table below.

Notes:

1. CIM definitions were followed for mineral reserves.
2. Mineral reserves are estimated using gold equivalent break-even cut-off grades by zone, consisting of 3.7 g/t AuEq for El Valle oxides, 3.2 g/t AuEq for El Valle skarns, and 2.7 g/t AuEq for Carlés Mine longhole stoping. Gold equivalent cut-offs are based on recent operating results for recoveries, off-site concentrate costs and on-site operating costs.
3. Mineral reserves are estimated using average long-term prices of US$1,250 per ounce gold, US$2.50 per lb copper, and US$17.00 per ounce silver. A US$/Euro exchange rate of 1/1.20 was used.
4. A minimum mining width of 4 m was used.
5. Certain incremental material (below break-even cut-off grade) was included in the estimated mineral reserves in order to maintain production levels.
6. Numbers may not add due to rounding.
7. El Valle mineral reserve estimates were prepared under the supervision David Duncan, a qualified person for the purposes of NI 43-101, who is an employee of OroValle and thus not independent of the Company.