Minera IRL Reports Year-End 2016 Financial Results

LIMA, PERU--(Marketwired - March 31, 2017) - Minera IRL Limited ("Minera IRL" or the "Company"), (BVLAC:MIRL)(CSE:MIRL)(CSE:MIRL.CN), the Latin America gold mining company, has reported its financial results for the year ended 31 December 2016. The Company has also provided an update on its outlook for 2017.

2016 Highlights:

Financial

• Gold sales of 23,343 ounces (2015: 24,056 ounces) at an average realized gold price of $1,245 per ounce (2015: $1,143 per ounce).
• Revenue of $29.1 million, (2015: $27.6 million).
• Gross profit of $7.2 million (2015: $6.5 million).
• Loss before tax of $10.4 million (2015: 14.7 million).
• After tax loss of $10.4 million (2015: 15.1 million).
• Cash balance of $6.8 million at the end of the quarter (December 2015: $15.6 million).
• Debt of $69.2 million at 31 December 2016, up from $65.7 million at 31 December 2015 (including amounts due to Rio Tinto).

Operational Performance

Corihuarmi, Peru

• Gold production from the Corihuarmi Gold Mine of 23,399 ounces (2015: 23,917 ounces).
• Ore mined and staked of 3,040,331 tonnes (2015: 2,965,576 tonnes).
• Waste of 1,430,311 tones (2015: 825,985 tonnes).
• Total cash costs were $806 per ounce produced (2015: $793).
• Total all-in sustaining costs (AISC) were $1,074 per ounce produced (2015: $1,047)

Ollachea, Peru

• Results of the 2016 Minapampa East zone drill program outline an exploration target of 370,000 to 550,000 ounces of gold contained within 3.1 to 4.6 million tonnes, grading 2.9 to 4.3 g/t gold

Commenting on the annual results, Gerardo Perez, Minera IRL Limited's Chairman, said, ""I have the honor to Chair the Board of Directors, which has received the mandate from our shareholders to pursue opportunities which generate value for the Company. Thus, in these few months we have made good progress in the company. The two most important milestones that we achieved last year were"

• The revocation of the cease trade orders issued by the Canada and Peru securities regulators and subsequent recommencement of trading on the Lima Stock Exchange (BVL) and Canadian Securities Exchange (CSE) earlier this year.

• The successful drilling campaign carried out at Ollachea during the second half of 2016, proving the continuation of the Minapampa mineralization over 500m to the east. The results outline an exploration target of 370,000 to 550,000 ounces of gold contained within 3.1 to 4.6 million tonnes. The mineralization at Ollachea remains open to the east and at depth.

"Our Corihuarmi Gold Mine continued to exceed expectations and provided strong cash contributions in 2016. The exploration campaign the Company carried out between December 2016 and March 2017 allows us to extend Corihuarmi's life of mine well into 2019. Whereas we have recorded a gross profit of US$7.2 million, we incurred an after-tax loss of US$10.4. The gold price is, at the date of this report above the US$1,200 level which compared to the price at the end of 2016 of US$1,159 per ounce, and US$1,062 at the end of 2015, shows a moderate upwards trend.

Regarding the Ollachea Project we are currently evaluating to optimize the CAPEX, the processing plant size, cutoff ore grade and mine development strategy.

The cash flow from the Corihuarmi mine covers our general, administrative and social costs.

Regarding the mandate for the U$240m structured financing subscribed with COFIDE dated June 2015; the agreement was revoked by COFIDE due to a strategy change of the organization by the government of Peru. Once the exclusivity clause of the mandate lapses on April 1st 2017, the company's objective is to secure financing for the Ollachea project during the second quarter of 2017.

Community relations at Ollachea remain strong. The Company supports important programs in health and welfare, nutrition, education and sustainable development.

I wish to convey my sincere appreciation to our current Board of Directors, management team and all employees for their loyalty, dedication and hard work. I would also like to thank our shareholders for their continuing support. I feel confident that continuing potential at our Corihuarmi gold mine and our Ollachea gold project places Minera IRL Limited in a good position to continue building a successful Gold Producer Company

A summary of the key financial measures for the three- and twelve-month periods ended 31 December 2016.

Table 1: Summary of Key Financial and Operational Measures

1 - Refer to the Cautionary Non-GAAP and Non-IFRS Statements at the end of this release

Outlook

In 2017, the Company is forecasting gold production of 22,000 ounces from Corihuarmi. Production is expected to come mainly from the Cayhua zone, along with continued production from zones Susan, Laura, Tambo Nuevo, Diana extension, plus nearby Scree Slope material.

The 2017 Corihuarmi capital budget is $2.0 million for the construction of a heap leach pad. This expansion is to accommodate all of the material that is scheduled to be mined and stacked until the second quarter of 2018.

Between December 2016 and March 2017, the Company completed 7,291 metres of exploration drilling in 86 drill holes at the Corihuarmi mine. The exploration program defined additional material at the Cayhua, Tambo Nuevo and Laura zones. As a result of the exploration activities and evaluation, the Corihuarmi life of mine has been extended until mid-2019.

This press release should be read in conjunction with the Company's full Report & Accounts, including the Management's Discussion and Analysis ("MD&A") for the year ended 31 December 2016, which are available from the Company's website (www.minera-irl.com) and on SEDAR (www.sedar.com).