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Trevali Reports Preliminary Q1-2018 Production

April 12, 2018

Q1 zinc production of 99 million payable lbs,
12 million lbs payable lead and 336,927 ozs payable silver

Vancouver, British Columbia: Trevali Mining Corporation (“Trevali” or the “Company”) (TSX: TV; BVL: TV; OTCQX: TREVF; Frankfurt: 4TI) reports preliminary consolidated first quarter (“Q1-2018”) 2018 production of 99 million payable pounds of zinc, 12 million payable pounds of lead and 336,927 payable ounces of silver (Table 1).

Table 1: Preliminary Consolidated Q1-2018 Production

 Q1-2018Q1-2017 (1)
Tonnes Mined790,215370,953
Tonnes Milled743,935433,129
Concentrate Produced (dry metric tonnes):  
  Zinc107,90636,576
  Lead14,93312,510
Payable Production:  
 Zinc (lbs)98,738,94431,946,229
 Lead (lbs)12,296,5559,983,664
 Silver (ozs)336,927345,661

(1) Q1-2017 production includes only Santander and Caribou.

“Trevali’s operations continue to perform well with first quarter production in line with our annual guidance range,” stated Dr. Mark Cruise, Trevali’s President and CEO. “As previously stated, first quarter production was planned to be lower than subsequent quarters, reflecting scheduled maintenance at our Santander operations and winter conditions at Caribou. We will continue to further optimize the operations through the remainder of the year and beyond.”

Perkoa Mine, Burkina Faso
Preliminary Q1-2018 Perkoa production was 45.9 million lbs of payable zinc with an average zinc recovery of 94% (Table 2). Mine output and mill throughput for the quarter were 192,158 tonnes and 179,940 tonnes of ore, respectively. The re-introduction of the zinc regrind mill to the circuit has continued to maintain high recoveries while mill throughput is maximized.

Any update to Perkoa production guidance will occur post second quarter of 2018.

Table 2: Perkoa Preliminary Q1-2018 Production

 Q1-2018Q4-2017
Tonnes Mined192,158203,635
Tonnes Milled179,940180,022
Average Head Grades:  
  Zinc (%)14.49%15.00%
Average Recoveries (%):  
  Zinc94%94%
Concentrate Produced (dry metric tonnes):  
  Zinc47,41348,579
Payable Production:  
Zinc (lbs)45,874,97447,666,248

Rosh Pinah Mine, Namibia
Preliminary Q1-2018 Rosh Pinah production was 22.8 million lbs of payable zinc, 3.9 million lbs of payable lead and 50,794 ozs of payable silver, which is within the mine’s planned metal budget for the first quarter (Table 3). Mine output and mill throughput for the quarter was 172,334 tonnes and 177,837 tonnes, respectively.

Mine performance for the quarter maintained a steady feed of ore to the mill with key improvements made from fourth quarter-2017 business initiatives. Production drilling, raise bore drilling, and mine planning optimizations continue to improve mine performance. Commissioning of the new regrind circuit also continued through the first quarter with realized improvements to throughput and recovery on a quarter-to-quarter basis.

Table 3: Rosh Pinah Preliminary Q1-2018 Production

 Q1-2018Q4-2017
Tonnes Mined172,334177,820
Tonnes Milled177,837171,020
Average Head Grades:  
  Zinc (%)7.92%8.40%
  Lead (%)1.40%1.40%
  Silver (ozs/ton)0.580.50%
Average Recoveries (%):  
  Zinc88%80%
  Lead77%60%
  Silver51%52%
Concentrate Produced (dry metric tonnes):  
  Zinc25,17523,399
  Lead4,2683,086
Payable Production:  
  Zinc (lbs)22,831,57521,336,745
  Lead (lbs)3,925,0123,081,212
  Silver (ozs)50,79449,316

Caribou Mine, Canada
Preliminary Q1-2018 Caribou production was 19.0 million lbs of payable zinc, 7.2 million lbs of payable lead and 216,087 ozs of payable silver (Table 4). Mine production and mill throughput set new first quarter highs of 238,650 tonnes and 235,531 tonnes, respectively.

Overall seasonality effects were in line with prior years and we anticipate performance to improve in subsequent quarters.

Table 4: Caribou Preliminary Q1-2018 Production

 Q1-2018Q1-2017
Tonnes Mined238,650222,264
Tonnes Milled235,531232,880
Average Head Grades:  
  Zinc (%)5.94%6.15%
  Lead (%)2.43%2.68%
  Silver (ozs/ton)2.142.29
Average Recoveries (%):  
  Zinc75%75%
  Lead62%64%
  Silver41%38%
Concentrate Produced (dry metric tonnes):  
  Zinc22,76922,539
  Lead9,55610,390
Payable Production:  
  Zinc (lbs)19,079,12319,619,395
  Lead (lbs)7,200,9558,107,773
  Silver (ozs)216,087217,085

Santander Mine, Peru
Preliminary Q1-2018 production was 11.0 million lbs of payable zinc, 1.2 million lbs of payable lead and 70,046 ozs of payable silver (Table 5). Recoveries averaged 89% for zinc, 79% for lead and 58% for silver.

As previously disclosed, mill throughput during the quarter was reduced to approximately 1,675 tonnes-per-day while maintenance was performed on one of the ball mills; throughput for the quarter was 150,627 tonnes. Mine production was maintained at budgeted rates of approximately 2,000 tonnes-per-day, for 187,073 tonnes of ore for the quarter.  All mill repairs were completed on time and budget, and the mill is currently operating at approximately 2,300 tonnes-per-day.

It is anticipated that milling operations will make-up metal production shortfalls during the balance of 2018.

The newly installed mine pumping system was commissioned in the quarter and this is expected to improve the mine’s ability to manage water, whilst reducing power consumption.

Table 5: Santander Preliminary Q1-2018 Production

 Q1-2018Q1-2017
Tonnes Mined187,073148,689
Tonnes Milled150,627200,249
Average Head Grades:  
  Zinc (%)4.46%3.80%
  Lead (%)0.48%0.58%
  Silver (ozs/ton)0.770.96
Average Recoveries (%):  
  Zinc89%88%
  Lead79%79%
  Silver58%63%
Concentrate Produced (dry metric tonnes):  
  Zinc12,54914,037
  Lead1,1092,120
Payable Production:  
  Zinc (lbs)10,953,27212,326,834
  Lead (lbs)1,170,5881,875,891
  Silver (ozs)70,046128,576

Q1-2018 PRELIMINARY OPERATING COSTS AND ANNUAL COST GUIDANCE (1, 2, 3)

Table 6: Q1-2018 Preliminary Operating Costs and Annual Cost Guidance

MineAnnual Operating Cost Guidance (per tonne)Q1-2018 Preliminary Operating Costs
Perkoa (100%)$103-$113$112
Rosh Pinah (100%)$49-$54$56
Caribou$55-$61$64
Santander$38-$42$63
Total$60-$66$73

(1) Constitutes forward-looking information; see “Cautionary Note Regarding Forward-Looking Statements”.
(2) Trevali’s interest is 90% of Perkoa and 80% of Rosh Pinah.
(3) Costs are preliminary and subject to final reconciliation.

Perkoa first quarter preliminary operating costs are within the published guidance range.

Rosh Pinah first quarter preliminary costs are modestly above guidance due to one-time costs in securing longer-term labour agreement, which was settled in Q1-2018, in addition to ongoing mine training initiatives. We expect Rosh Pinah to trend towards annual guidance costs through the remainder of the year.

Caribou first quarter preliminary costs were higher due to winter seasonality effects, as is consistent with prior years. This cost was approximately $4-$5/tonne. Similar to prior years, we expect costs to trend lower for the remainder of the year and costs are expected to be within our annual guidance range towards the latter part of 2018.

Santander first quarter preliminary costs were higher due primarily to the previously announced decrease in mill throughput, from approximately 2,400 to 1,675 tonnes-per-day, to accommodate mill maintenance. Mine production continued at full nameplate through the quarter resulting in an ore-stock pile of 65,000 tonnes. With the mill now back to full operational levels of approximately 2,300 to 2,500 tonnes-per-day, it is anticipated that lost first quarter metal production will be recouped during the remainder of 2018. Additionally, the new pumping system is now fully operational and performing better than originally modelled, resulting in further cost savings.

2018 CONSOLIDATED PRODUCTION GUIDANCE

Production guidance for the year remains unchanged and is estimated between 400 and 427 million lbs of payable zinc, 43.8 and 46.0 million lbs of payable lead and 1.40 and 1.47 million ozs of payable silver.

Table 7: 2018 Consolidated Production Guidance (1&2)

Mine2018 Zinc Production
(million lbs payable)
2018 Lead Production
(million lbs payable)
2018 Silver Production
(000 ozs payable)
Perkoa (100%)155-165N/AN/A
Rosh Pinah (100%)105-1155.7-6.0123-129
Caribou86-9027.1-28.4627-658
Santander54-5711.0-11.6654-687
Total400-42743.8-46.01,400-1,474

(1) Constitutes forward-looking information; see “Cautionary Note Regarding Forward-Looking Statements”.
(2) Trevali’s interest is 90% of Perkoa and 80% of Rosh Pinah.

Production guidance has been provided on an annual basis and will vary by quarter reflecting detailed mine plans and schedules at the various operations.

Perkoa 2018 Guidance:
The mine continues the positive performance from the fourth quarter of last year with solid first quarter performance. The site is well placed to meet or potentially exceed annual guidance. Any update to guidance will occur post second quarter of 2018.

Rosh Pinah 2018 Guidance:
Key strategic improvements started in the fourth quarter of 2017 produced significant improvements in the overall site performance. These improvements have positioned the site well for the year with increasing metal output planned for the second half of 2018, and going forward, as higher-grade stopes are sequenced.

Caribou 2018 Guidance:
The first quarter is always the most challenging due to the winter weather conditions. Despite this, the mine was able to improve mining and milling throughput compared to the corresponding quarter of 2017. Production is scheduled to increase in the second quarter and for the balance of 2018. The operation remains on track to achieve 2018 guidance.

Santander 2018 Guidance:
The mill repair is fully complete and the site will continue to process fresh ore from the mine for the remainder of the year at higher than designed throughput rates. During the first quarter the mine was able to build a stockpile of approximately 65,000 tonnes of run-of-mine ore. The newly commissioned pumping infrastructure is expected to also allow water levels to be managed more efficiently whilst consuming significantly less power.

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 wholly-owned Santander mine in Peru, the wholly-owned Caribou mine in the Bathurst Mining Camp of northern New Brunswick, its 80% owned Rosh Pinah mine in Namibia and its 90% owned Perkoa mine in Burkina Faso.

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

Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking information” within the meaning of the Canadian securities legislation and “forward-looking statements” within the meaning of Section 27A of the United States Securities Act of 1933, as amended, Section 21E of the United States Exchange Act of 1934, as amended, the United States Private Securities Litigation Reform Act of 1995, or in releases made by the United States Securities and Exchange Commission, all as may be amended from time. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and the Company does not intend, and does not assume any obligation to, update such statements containing the forward-looking information. Such forward-looking statements and information include, but are not limited to statements as to: the timing and amount of estimated future production, the estimation of Mineral Resources and Mineral Reserves, costs and timing of development, operating efficiencies, including the ability to manage water, whilst reducing power consumption, costs and expenditures, expectations regarding milling operations and metal production shortfalls, metal output and throughput rates, cost guidance and anticipated annual results, anticipated results of future exploration, and forecast future metal prices.

These statements reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. If any assumptions are untrue, it could cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such statements. Assumptions have been made regarding, among other things, present and future business strategies and the environment in which the Company will operate in the future, including commodity prices, anticipated costs and ability to achieve goals.

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to joint venture operations; fluctuations in spot and forward markets for silver, zinc, base metals and certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in currency markets; risks related to the technological and operational nature of the Company’s business; changes in national and local government, legislation, taxation, controls or regulations and political or economic developments in Canada, the United States, Peru, Namibia, Burkina Faso, or other countries where the Company may carry on business in the future; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the presence of laws and regulations that may impose restrictions on mining; diminishing quantities or grades of Mineral Resources as properties are mined; global financial conditions; business opportunities that may be presented to, or pursued by, the Company; the Company’s ability to complete and successfully integrate acquisitions and to mitigate other business combination risks; challenges to, or difficulty in maintaining, the Company’s title to properties and continued ownership thereof; the actual results of current exploration activities, conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors; increased competition in the mining industry for properties, equipment, qualified personnel, and their costs, as well as those factors discussed in the section entitled “Risk Factors” in the Company’s most recently filed annual information form. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

We advise US investors that while the terms "Measured Mineral Resources", "Indicated Mineral Resources" and "Inferred Mineral Resources" are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize these terms. US investors are cautioned not to assume that any part or all of the material in these categories will ever be converted into reserves.

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