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Orla Provides Update on its Projects

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 24, 2017) - Orla Mining Ltd. (TSX VENTURE:OLA) ("Orla" or the "Company") is pleased to provide an update on progress at its 100% owned Cerro Quema project in Panama and the closing of the Camino Rojo agreement with Goldcorp.

Cerro Quema

Exploration efforts at Quemita have been focused on discovering additional oxide material which could be accretive to the economics of the 488,000 ounce Cerro Quema oxide gold reserve (19.7 mT at 0.77 g/t Au - see 2014 N43-101 Technical Report on Orla website). Three drill rigs are on site testing various geological and geophysical targets. A total of 6,629 metres have been drilled in 56 holes in 2017 to date. All holes have intersected variably altered rock, including sections of vuggy silica and hydrothermal brecciation.

Encouraging results subsequent to a press release dated April 26, 2017 include two holes in the Quemita zone that intersected oxide material below the pit outline proposed in the 2014 Preliminary Feasibility Study (PFS). CQDH17-101 and CQDH17-103, drilled at different angles from the same pad, intersected 76.2m @ 0.45g/t and 89.0m @ 0.32 g/t Au respectively. These holes demonstrate that potentially economic gold values in oxide extend to depth below the current reserve. Follow-up holes are planned.

Hole CQDH17-115 intersected 84.8m @ 0.23 g/t gold 170 metres to the northeast of the Quemita proposed pit. The well oxidized material indicates potential for extending the pit outline to the east. Previously released results from hole CQDH17-068, (21.3 m @ 1.35 g/t Au), drilled 35 metres west of the proposed Quemita pit, similarly show potential for extension in that direction. Follow-up holes are planned in both areas.

A 47.8 metre intersection averaging 0.26 g/t Au in CQDH17-111 shows potential for oxide resource at the Idaida zone, 1.5 kilometres southeast of Quemita. Drilling is in progress in this area.

While the current exploration focus is on oxide material, work to test the potential for economic sulphide mineralization is also being conducted. While drilling, if mineralization is observed below the oxide-sulphide boundary, the holes are continued to fully test all mineralization. Copper intercepts thus far include 76.5m @ 0.87% Cu (+0.15 g/t Au) in CQDH17-112 north of the Quemita PFS pit and 66.0m @ 0.52% Cu (+0.24 g/t Au) in CQDH17-089 drilled in the Caballito area 2 kilometres to the southeast of Quemita.

Drilling is continuing, following-up on holes that show potential to increase the current oxide resource and testing remaining targets. The current work plan also includes metallurgical and other engineering studies required to update the economic analysis presented in the 2014 Pre-Feasibility Study. In addition to expansion of the zones that host the current reserve, potential sources of upside to the $110 million Net Present Value estimate in the PFS include opportunities to increase gold recovery and/or reduce operating costs. Estimates for these parameters will be revised based on a new geological model and results from column tests conducted at coarser crush sizes than previous testing.

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