ORVANA STRENGTHENS POSITION IN ITS TAGUAS PROPERTY IN ARGENTINA BY REACQUIRING 1% NSR INTEREST

On October 20, 2025, Orvana announced it will reacquire a 1% Net Smelter Return (NSR) royalty on its Taguas exploration property in Argentina for a total of US$5.6 million. The payment is structured in installments, with an initial US$1.4 million due by October 31, 2025, and subsequent US$1.4 million payments annually until October 2028. The company stated this reflects its commitment to optimizing long-term value from Taguas as it repositions the project towards a larger-scale copper-gold porphyry opportunity. The transaction is with a related party and has received conditional acceptance from the TSX.

The repurchase of the 1% NSR on the Taguas property is a strategically sound, long-term positive move. It signals management's confidence in the exploration potential of the asset, which they are actively repositioning as a large-scale copper-gold porphyry target. By removing a future royalty burden, the company enhances the project's potential future economics, making it more attractive for development or partnership. The structured payment plan over three years makes the US$5.6 million cost manageable and preserves near-term cash. As of the last reported financials (June 30, 2025), Orvana had US$23.35 million in cash, which is sufficient to cover the initial US$1.4 million payment.

However, the impact of this news must be viewed in the context of the company's recent operational performance. The preceding news release on October 16, 2025, which reported Q4 and full-year FY2025 production, revealed a significant operational miss. Annual gold production from the Orovalle mine in Spain was 29,276 ounces, falling short of the company's already-lowered guidance of 30,000-31,000 ounces issued on August 12, 2025. This marks a failure to meet expectations at their sole producing asset and primary source of cash flow.

Therefore, while the NSR buyback is a positive step for a long-term exploration project, it is routine in nature and does not address the more immediate and material risk of operational underperformance. The transaction is with an undisclosed related party, which also introduces a governance concern that warrants scrutiny. The news is positive for the long-term potential of Taguas, but it is overshadowed by the negative operational reality at Orovalle.

Orvana Minerals Corp. is a multi-national gold, copper, and silver mining company with assets in Europe and the Americas. * Orovalle (Spain): The company's sole producing asset, consisting of the El Valle Boinás and Carlés underground mines. This operation has faced significant challenges, leading to a major downward revision of FY2025 guidance, which it subsequently failed to meet. * Don Mario (Bolivia): A past-producing mine currently on care and maintenance. The flagship development project is the Oxides Stockpile Project (OSP), which involves expanding the plant to re-process stockpiled ore. Construction is under way, with production targeted for early 2026. This is the company's key near-term growth driver. * Taguas (Argentina): An exploration-stage gold-copper project. The company is pivoting its strategy here to test for a large, deep copper-gold porphyry system, making it the flagship long-term exploration project.