January 12, 2017

BMSC Meets Zinc and Gold Production Guidance and

Delivers on Objectives in 2016

Bisha Mining Share Company (the “Company” or “BMSC”) is pleased to report its operating results for the year ending December 31, 2016 and a review of 2016 achievements against corporate objectives.

2016 PERFORMANCE HIGHLIGHTS

  • Achieved top quartile safety performance at Bisha with no lost time injuries
  • Completed the Bisha zinc project on-time and under budget, declaring commercial production October 1
  • Bisha production:
    • Exceeded supergene copper guidance producing 55.8 million pounds at a C1 cash cost of $1.03 per payable pound sold
    • Achieved zinc guidance, producing 90 million pounds from primary ore
    • Achieved gold guidance, monetizing 90,000 gold equivalent ounces from stockpiles
  • Secured Bisha District through significantly expanded exploration rights

BMSC’s Chairman, Cliff Davis, commented, “BMSC had a strong 2016 delivering on our primary objectives as set out in February of last year.  First and foremost we maintained an incredible safety record in our operations, solidly in the top quartile in the sector.  Second, we had a solid year at Bisha, beating guidance on supergene copper production and delivering the Bisha zinc expansion on-time and under budget.”

Mr. Davis continued, “We enter 2017 with a strong balance sheet and the leading growth profile in the sector.  The clear priority remains continuing resolution of the challenges related to the copper flotation circuit at Bisha.”

A summary of Bisha's quarterly and full year operating results follow.

 


Q1 2016

Q2 2016

Q3 2016

Q4 2016

2016

Mining

 

 

 

 

 

Ore mined, tonnes(1)

1,337,000

964,000

672,000

670,000

3,643,000

Waste mined, tonnes

2,028,000

2,448,000

2,446,000

2,445,000

9,367,000

Strip ratio, (using tonnes)

1.5

2.5

3.6

3.6

2.6

Processing – Supergene Ore

 

 

 

 

 

Ore milled, tonnes(2)

584,000

471,000

-

-

1,055,000

Copper feed grade, %

3.1

2.5

-

-

2.8

Recovery, % of copper

87.0

82.9

-

-

85.2

Copper concentrate grade, %

23.0

21.2

-

-

22.2

Copper in concentrate produced, millions of pounds

34.2

21.6

-

-

55.8

Copper in concentrate produced, tonnes

15,500

9,800

-

-

25,300

Payable copper in concentrate sold, millions of pounds

34.9

22.9

0.8

-

58.6

Payable copper in concentrate sold, tonnes

15,900

10,300

300

-

26,500

Payable gold in concentrate sold, ounces

6,000

4,500

200

-

10,700

Payable silver in concentrate sold, ounces

226,000

192,000

7,000

-

425,000

Processing – Primary Ore




Ore milled, tonnes - 134,000 510,000 579,000 1,223,000
Zinc feed grade, % - 5.0 5.8 5.7 5.7
Copper feed grade, % - 1.1 1.0 0.8 0.9
Recovery, % of zinc (3) - 33.8 59.1 63.6 58.8
Zinc concentrate grade, % - 41.4 41.3 38.8 40.0
Zinc in concentrate produced, millions of pounds(4)(5) - 5.1 38.6 46.5 90.2
Zinc in concentrate produced, tonnes(4)(5) - 2,300 17,500 21,100 40,900
Payable zinc in concentrate sold, millions of pounds - - 21.2 35.2 56.4
Payable zinc in concentrate sold, tonnes - - 9,600 16,000 25,600

(1)     Ore tonnes mined in 2016 include 902,000 tonnes of supergene ore and 2,741,000 tonnes of primary ore.

(2)     The supergene phase of the Bisha mine ceased on June 2, 2016.

(3)     This represents the overall combined zinc recovery from both the copper and zinc flotation circuits. Copper recovery for both circuits averaged 41.2% in Q3 2016 and 60.7% in Q4 2016.

(4)     The Company as yet has not been able to produce a commercially saleable copper concentrate due to metallurgical challenges when processing the variable primary ore. The by-product revenues from copper, gold and silver in the zinc concentrates have not been material during 2016.

(5)     The zinc in concentrate inventory at December 31, 2016 was approximately 20.4 million pounds.

2017 Outlook and Guidance

BMSC is currently completing its annual forecasting process where the work on a robust geo-metallurgical resource model and the copper flotation plant metallurgy are ongoing.  We expect to provide our 2017 Outlook and update on the resolution to the challenges related to the copper flotation circuit in mid-February 2017.

Forward Looking Statements

Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved.  Forward-looking statements are statements concerning the Company’s current beliefs, plans and expectations about the future including but not limited to commercial production, future production of copper and related cash flows and other events or conditions that may occur in the future, and are inherently uncertain.

Bisha Mining Share Company

“Cliff T. Davis”

Cliff T. Davis
Chairman