Second Quarter 2016 Operational Update Expansion Project Completed Ahead of Schedule and Under Budget

25 July, 2016

Atalaya is pleased to report the successful completion of the construction of its Expansion Project, with production ramping up towards 9.5Mtpa. The Company is also providing an operations update for Q2 2016.

Q2 2016 Highlights

The Expansion Project was declared mechanically complete during the first week of May 2016, ahead of schedule and under budget.

Copper production increased by 10% in Q2 2016 to 4,442 tonnes, compared with 4,048 tonnes in Q1 2016. The increase in production was significant considering the plant was temporarily shut down due to the administrative tailings discharge suspension and interruptions required to commission the Expansion.

1.3m tonnes of ore were processed compared with 1.1m tonnes during Q1 2016, representing a 15% increase.

Copper grade in final concentrate remained consistent at 21.54% while recoveries decreased to 79.80% due to the commissioning of the new flotation circuit. Recoveries have now reverted to normal and averaged over 84% in July.

Updated Reserves and Resources statement released following the end of Q2 2016, indicating a 12% increase in contained reserves and extended life of mine to 16.5 years.

…the announcement continues. Read the entire announcement “Second Quarter 2016 Operational Update
Expansion Project Completed Ahead of Schedule and Under Budget” (382KB pdf).