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January 21, 2016

Bisha Mining Zinc Expansion Project Update

 

HIGHLIGHTS

  • Zero lost time injury incidents to date on the zinc expansion
  • Significantly under budget with estimated cost of the zinc expansion now $80 million
  • On schedule for ore commissioning mid Q2 2016 with zinc plant over 90% complete

 

Bisha Mining Share Company (BMSC) is pleased to advise that the Bisha Mine zinc expansion project (the “Project”) is on schedule and well under budget.  The Project, which will enable Bisha to produce and sell zinc concentrate, is on-track for ore commissioning in mid-Q2 2016 and commercial production later in 2016.

The Project enables processing of the primary copper-zinc-gold-silver ore at up to 2.4 million tonnes per year, producing both copper and zinc concentrates from the existing copper flotation and new zinc flotation plants.  Based on the current open pit mine plan, Bisha expects to produce on average 225 million pounds of zinc and 53 million pounds of copper in concentrate per year through 2025.  The 2016 Outlook will be released in the second week of February 2016.

The forecasted total cost will be approximately $80 million, significantly under the budget of $100M.

A Project photo gallery is regularly updated to track visual progress and can be found at:

http://www.bishamining.com/gallery

Detailed Zinc Expansion Project Progress

The Project is proceeding well on health and safety performance. The Project maintains a zero lost time injury status, with zero environmental non-conformances.

Overall the Project is over 90% complete. All major equipment and materials have been delivered to site and procurement activities are limited to site based orders and amendments. The structural, mechanical, piping and plate work is 98% progressed. The electrical and instrumentation installation is well advanced. The power upgrade from Aggreko has been completed. The search and selection process for the commissioning team for the Project has nearly been completed. Cold commissioning has commenced in certain areas. Primary ore commissioning is planned for mid-Q2 2016.

Zinc Concentrate Bulk Handling Update

As the total tonnage of copper and zinc concentrate produced going forward is expected to be similar to total copper concentrate quantities in 2015, there is no need for additional transport or shipping infrastructure upgrades.  The existing Rotainer trucking and loading system continues to operate safely, efficiently and in an environmentally sound manner.

Forward Looking Statements

The above contains forward-looking statements the Company’s mine operations and plant operations. 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 about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors.  The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future.

Bisha Mining Share Company

“Cliff T. Davis”

Cliff T. Davis
Chairman