Update on Hammer Mill 3 Commissioning

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1 Update on Hammer Mill 3 Commissioning ASX/Media Release 18 April 2018 Hammer Mill 3 (HM3) production of ounces of gold in doré during 7.5-day initial commissioning run-time in March (i.e., average of 17.5 ounces per day) HM3 was fed with 640 tonnes of tailings, low and medium grade ores and mine development material producing an average 6.4 g/t grade and an estimated recovery of 83.9%. Higher grade run of mine ore to be processed as part of final commissioning HM3 commissioning expected to be completed by the end of April, with May the first full month of commercial production utilising run of mine ore. HM3 commissioning did encounter some delays due to equipment breakdowns (not unusual given recommissioning) and spare parts availability (2-3 weeks in total). Key issues have been addressed to ensure optimal results when processing run of mine ore as opposed to lower grade development ore Final commissioning involves processing 5,428 tonnes of a blend of low, medium and highgrade ores and development material currently on the pad and another 1,041 tonnes of mainly high-grade ore which is underground awaiting haulage. HM3 being run at 50% capacity of 25 tonnes per hour until commissioning irons out some of the equipment breakdowns in other parts of the gravity mill, which should be overcome before the end of April Of note, the smaller test Hammer Mill 2 produced ounces of gold doré from 15 tonnes of run of mine ore from the Mestre and central Zones for g/t (see Photos 2, 3 and 4) as a test run. HM4 arriving in May to be sequenced into Cascavel plant operations with capacity of 50 tonnes per hour Level 5 Mestre was reached on 10 April with a vein that appears to range between 0.5 and 2.5 metres (see Map 1 and Photos 2, 3 and 4). So far OGX has mined 25 metres of this lode. HM2 processed four tonnes of this material in mid-april and returned an average grade of 26.4 g/t gold Cost savings of 30% on track for Q2 18 as part of 'Back to Basics' strategy Drilling along strike and down dip at Cascavel and Cuca will commence in mid-may. Results from Eliseo s (25 km north of Cascavel) initial pit sampling programme and the first 3 holes at Antenna (8 km to the south of Cascavel) on track to be reported before end of April. The results from the Cobalt rock chip sampling at Tintiero (2 km west of Cascavel) are also expected then. Drilling at Sertão (25 km south of Cascavel) also planned to commence late May. Orinoco Gold Limited (ASX: OGX) (Orinoco or the Company) is pleased to announce an update on recommissioning operations at its Cascavel Mine, a core asset within its Faina Goldfields Project in the State of Goiás, Central Brazil. Managing Director, Jeremy Gray commented I m pleased the commissioning of Hammer Mill 3 continues to move forward with solid results, albeit a little behind schedule. As the mill commissioning moves from development ore to run of mine ore, the Company can expect to see some significant gold production increases based on the current test work being completed by Hammer Mill 2 on our underground production. Orinoco Gold Suite 2, 33 Cedric Street Stirling WA 6005 PO Box 234 West Perth WA 6872 Contact P (08) F (08) info@orinocogold.com ASX Code OGX (Ordinary Shares) OGXOD (Listed Options) Issued Capital 1,029,392,129 Ordinary Shares 223,695,196 Listed Options 80,677,846 Unlisted Options

2 HM3 commissioning During its commissioning up time, HM3 operated successfully. For the initial phase, HM3 was fed with a mixture of tailings, low and medium grade ore and development material (not run of mine). Over the 7.5- days actual aggregate run-time in March, HM3 was fed with 640 tonnes of material of average 6.4g/t grade, 83.9% of the hold was successfully recovered (i.e., ounces) into gold doré. The HM3 results are encouraging, exhibiting a proof of concept that high-grade gold can be successfully recovered from the tailings stockpile as well as mine development ore. The results demonstrate recoveries using hammer milling are scaling up well from the initial results observed with Hammer Mill 1 (HM1) and Hammer Mill 2 (HM2). The initial commissioning phase for Hammer Mill 3 (HM3) has been interrupted by unavoidable break-downs and availability issues with spare and replacement parts. Such issues are not unexpected given most of the plant is being re-commissioned following some time remaining idle with key issues now addressed. Mechanical and availability issues that negatively impacted HM3 utilization in March included: 2 days downtime related to imported pump breakdown and replacement; 2 days delay waiting for an electrical panel replacement; 8 days downtime from ongoing breakdowns related to the main shaft of the tailings thickener; 1 day of downtime for impact plate maintenance; 2 days downtime from unexpected power outages caused by a lightning strike; and Slower mill feed rate due to cone crusher breakdown Most of these issues are not Hammer Mill related and are in part of a legacy of what has been an underperforming existing milling complex which our Back to Basics strategy is slowly addressing. Management confirm that these issues and others have been or will be rectified during April and expect processing throughput to increase substantially in May. The first 2 weeks of April have shown an improvement in equipment availability overall with a focus on obtaining critical spares. A complete preventative maintenance plan for the recovery plant has been implemented and senior plant personnel replaced. Our COO Richard Crew commented: Cascavel and our Hammer Mill strategy is showing real promise. Hammer Mill 3 has proven that gold can be liberated and at a low cost. Furthermore, we can consider the potential for very robust production from Cascavel Mine once commissioning completes and higher-grade ores are presented to the plant. Every day is a challenge, but none the less it s exciting to see this mine begin to show the promise it has always had. Photo 1: Hammer mill 3 2

3 Mining Mining continues to show significant grades underground. Level 5 Mestre was reached on 10 April with a vein that appears to range between 0.5 and 2.5 metres (see Map 1 and Photos 2, 3 and 4). So far Orinoco has mined 25 metres of this lobe. HM2 processed four tonnes of this material in mid-april and returned an average grade of 26.4 g/t of recovered gold. Mining also continues to bring up to surface some very highgrade gold specimens that we have included in this report. The sample in photo 2 was discovered in our Mestre zone on the 27 th of March and supports some of the bonanza grades we have already reported for Mestre (refer to our ASX releases on 17 January entitled Mestre Assays Show Bonanza Grades up to 265 g/t and on the 2 February 2018 entitled Mestre Assays Show Further Bonanza Grades up to 185 g/t). Another batch of Mestre panel samples were sent to the independent laboratory ALS at the end of March in Goiana and will be reported later this week. We continue to believe that Mestre offers the highest grading zones for our mills although Cuca samples have been higher with one sample as high as 300 g/t as previously reported on the 27 March 2018 entitled Cuca s 2 nd batch of panel samples average 48.3 g/t. During March, the smaller test Hammer Mill 2 produced ounces of gold doré from 15 tonnes of high grade ore from the Mestre and central Zones for 26,84 g/t (see Photos 2, 3 and 4). Map 1: showing levels 5 & 6 3

4 Photo 2: Sample recovered from Mestre Photo 3: Sample from Mestre 4

5 Photo 4: Sample from Mestre Photo 5: Under drainage installed in the dry stack tailing Bayers After the successful panel sampling at Cuca which recorded an average grade of 40.9 g/t from the 73 samples taken, bulk sampling will begin in late May once the workings have had further roof support installed and a temporary crane driven shaft is operating (refer to ASX release dated 27 February 2018, Cuca Assays Show Bonanza Grades and on 27 March 2018 Cuca s 2 nd batch of panel samples average 48.3 g/t). We regard Cuca as an important source of high grade ore for our Hammer Mills. Underground drilling at Cuca will also commence once the roof refurbishment is complete to better understand the Cuca structure. 5

6 Mining has benefitted substantially from the break through between Mestre access and Mestre decline which was completed in mid-february (refer to ASX release dated 19 February 2018 titled Cascavel Operational Update ). This formed a critical part of our plan and has reduced haulage distances to the hoisting skip from over 600 metres to under 100 metres. As a result, bogging machine cycle time have reduced which has continued to result in large reductions in fuel costs and machine wear and tear of our haulage equipment. Despite some equipment breakdowns which have been addressed through new purchasers, mining continues to show promising grades underground. Level 5 Mestre was reached on 10 April with a vein that appears to range between 0.5 and 2.5 metres (see Map 1 and Photos 6, 7 and 8). So far, we have mined 25 metres of this lode. Hammer Mill 2 processed four tonnes of this material last week and returned an average grade of g/t gold doré. A new LHD arriving before end April will assist in moving this material to surface for processing by HM3. Photo 6: Start of high grade ore vein level 5S Photo 7: Level 5S ore vein Level 6 Mestre has been started and is currently being driven on development ore, further to this the central decline is being extended as we have encountered further ore bearing veins which were not expected. Photo 8: Level 6 driven on ore 6

7 Cascavel operating outlook The Company anticipates HM3 will have its first full commercial production month in May given the significant stockpiled ore at surface and underground and having addressed key commissioning issues. There are currently 5,428 tonnes of low, medium and high-grade ore and development material at surface ready for milling with a further 1,041 tonnes of mainly high-grade ore available underground ready to be brought to the surface. As already reported the fourth hammer mill (HM4) is expected to arrive at Cascavel in May (3 weeks later due the slower runup of HM3) where it will be sequenced into the plant to produce alongside HM3. HM4 has been specified as a diesel generated machine (as opposed to HM1, HM2 and HM3, which are electrical) so that there is the option to locate it at the tailings from time to time to process that material without double handling. Orinoco believes that the tailings will be an important source of production material this year and so equipment flexibility in this regard is important (Refer to ASX release on 1 st of February 2018 entitled Orinoco Confirms Outstanding Grades of Gold in Tailings). Restructuring Photos 9 and 10: Gold panned from level 5S The group is most of the way through a major restructuring and refocus of working practices that will bring a reduction of approximately 30% to the overall costs for running Orinoco (pre-drilling campaigns and gold stream). Over the same period, gold prices in Brazilian Real have increased 12% and Orinoco is in good stead to benefit from the weakness in the Real with most of its cash reserves held in Australian dollars. This puts the Company in a strong position as it embarks on capital equipment purchases for Cascavel and its drilling programme. Environmental compliance works have been initiated to conform with our environmental licence and permanent structure drawings have been completed for the explosive magazines all works are scheduled to be completed by the end of June Exploration and drilling update Drilling along strike and down dip at Cascavel and Cuca will commence in mid-may and our team is currently working on a drilling programme. Results from the first 3 holes at Antenna (8 kilometres to the south of Cascavel) should be returned from the independent laboratory ALS later this week and will be reported next week. The Cobalt rock chip sampling at Tintiero (2 kilometres west of Cascavel) are also expected to the be returned from ALS early next week and will be announced soon after. Eliseo s initial pit sampling programme will also be announced before the end of this month. 7

8 Drilling at Sertão (25 kilometres south of Cascavel) is likely to commence in late May. Work at Sertão will focus on both the in-pit optimisation study and down dip mineralisation. Management is currently assessing the option to restart Sertão in the existing pit alongside the potential Antenna restart. More work, drilling and permitting is needed before a decision is made on these two potentially exciting open pittable restart projects. -ENDS- For further information, please contact: Jeremy Gray Joseph Pinto Managing Director Non-Executive Chairman Orinoco Gold Limited Orinoco Gold Limited info@orinocogold.com info@orinocogold.com Competent Person Statement: The information in this announcement that relates to Exploration Results is based on information compiled by Thiago Vaz Andrade who is a member of the Australasian Institute of Mining and Metallurgy. Thiago Vaz Andrade is an employee of Orinoco Gold Limited and has sufficient experience, which is relevant to the style of mineralization under consideration and to the activity that they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Thiago Vaz Andrade consents to the inclusion in this announcement of the matters based on the information in the form and context in which it appears. Forward-Looking Statements: This Announcement includes forward-looking statements as that term within the meaning of securities laws of applicable jurisdictions. Forwardlooking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Orinoco Gold Limited s control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitation, those regarding Orinoco Gold Limited s future expectations. Readers can identify forward-looking statements by terminology such as aim, anticipate, assume, believe, continue, could, estimate, expect, forecast, intend, may, plan, potential, predict, project, risk, should, will or would and other similar expressions. Risks, uncertainties and other factors may cause Orinoco Gold Limited s actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include, but are not limited to, the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for gold materials; fluctuations in exchange rates between the U.S. Dollar, the Brazilian Real and the Australian dollar; the failure of Orinoco Gold Limited s suppliers, service providers and partners to fulfil their obligations under construction, supply and other agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labour shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. The information concerning possible production in this announcement is not intended to be a forecast. They are internally generated goals set by the board of directors of Orinoco Gold Limited. The ability of the company to achieve any targets will be largely determined by the company s ability to secure adequate funding, implement mining plans and resolve logistical issues associated with mining. Although Orinoco Gold Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. 8