Orosur Mining Inc Announces Second Quarter Results

  Orosur Mining Inc Announces Second Quarter Results

Business Wire

SANTIAGO, Chile -- January 11, 2013

Orosur Mining Inc (‘OMI’ or the ‘Company’) (TSX: OMI) (AIM: OMI), the South
American focused gold producer and explorer, today announces its results for
the second quarter ending 30 ^ November 2012.

Further to the announcement of 7 December, the Company reiterates that
production for the quarter was 13,970 ounces and Orosur remains on track to
achieve its forecast production target of 63,000 to 68,000 ounces for the full
year.

The Company reports that the development of the Arenal Deeps ramp and lateral
development to enable production from transverse stopes are on track for
completion during the quarter ending 28 ^ February 2013. Completion of the
ramp and lateral development will enable the Company to access higher grade
transverse stope ore at Arenal Deeps for the first time in the last quarter of
the financial year ending 31 May 2013.

Operating and Financial Summary

                                                   
                              Three months ended     Six Months Ended
Key Results Summary^1            30^th November            30^th November
                              2012      2011      2012      2011
Operating                                            
Results
Gold produced    Ounces    13,970    11,916    29,421    24,404
Cash cost^2      $US/oz    1,215     1,007     1,151     975
Average price    $US/oz    1,694     1,717     1,642     1,663
received
                                                    
Financial                                            
Results
Revenue          $US       24,168    20,985    50,502    42,011
                    ‘000s
Net income
for the          $US       1,210     2,565     3,501     6,977
period after        ‘000s
tax
Cash flow           $US
from             ‘000s     3,485     4,651     8,523     10,223
operations^3
Cash at the         $US
end of the       ‘000s     3,745     17,054    3,745     17,054
period
Total debt at       $US
the end of       ‘000s     9,718     5,949     9,718     5,949
the period

^(1)Results are based on IFRS and expressed in US dollars
^(2)Operating cash cost is total cost excluding royalties and capital tax on
production assets
^(3)Before non-cash working capital movements

Production for the quarter was 13,970 ounces. Despite ore production being
slowed from all pits due to heavy rain during the quarter and the mining
sequence being changed production and cash costs from Arenal Deeps,
Sobresaliente, and Zapucay were all in line with expectations.

However, ore mined from the Crucera pit during the quarter was of a lower
grade than planned, resulting in lower ounces produced and higher cash costs
per ounce at that pit. The cash cost per ounce for Crucera has increased
because, though we have produced approximately the same amount of ore at the
same cost, the grade of the ore has been lower than expected and so we have
produced fewer ounces, thus increasing the total cash cost per ounce for the
quarter to $US 1,215 an ounce compared with a target of approximately $US
1,100.

The impact of the higher cash costs and lower production from Crucera, offset
in part by higher gold prices than we had planned for, reduced our cash flow
for the quarter by $US 2.0 million. As a result the Company’s cash balance at
the end of the quarter was $US 3.7 million.

CEO’s Comment

David Fowler, Chief Executive Officer, commented:

“Production was at the lower end of expectations for the quarter due to lower
than anticipated grades from the Crucera pit. During December we slowed the
rate of mining at Crucera in order to adapt the mining approach to reduce
dilution, thus achieving less tonnes of ore produced at an improved grade.
Accordingly, and taking account of the significant progress made on developing
the ramp at Arenal Deeps, we remain confident that we will meet our production
target for the second half, and achieve production for the full year of
between 63,000 and 68,000 ounces.

“We anticipate that the grade achieved at Crucera will result in cash costs
for the full year being in the range of $US 1,000 to $US 1,065 per ounce, a
modest increase on the $US 975 that we forecast in October. We are focused on
improving grade control and mining practices, and identifying where cost
savings can be made elsewhere in the operation to offset part of the impact of
the lower grade from Crucera.

“As a result of the lower cash flow in the second quarter we expect that our
cash balance, prior to the additional capital expenditure outlined below, at
year end will be approximately $US 13 million (based on production of 65,750
ounces and a gold price of $1,625 an ounce) compared with the $US 15 million
that we announced in October. We expect to commit up to $US 4 million of
additional capital expenditure in the second half of the year to accelerate
the “pre-strip” of the San Gregorio extension that had been planned to
commence in the next financial year . We have also incurred additional
exploration expenditure to earn our interest in Pantanillo during the first
half and plan, following a positive review of the project, to complete the
initial acquisition of 25% of the Talca asset. Together with San Gregorio
these investments will reduce the expected cash balance as at 31 May 2013 to
approximately $US 8 million.

“Overall, we are confident that the Company remains on track to successfully
deliver the strategy that was outlined in October 2012.”

Financial Highlights

  *Revenue increased 15 per cent to $US 24.1m for the quarter (Q2 2011: $US
    21.0m), with an average realized gold price of $US 1,694 (Q2 2011: $US
    1,717/oz).
  *Net profit after tax for the quarter was $US1.2m (Q2 2011: $US 2.6m). For
    the half year net profit after tax was $US3.5m (1H 2011: $US 7.0m).
  *Cash flow from operations for the quarter was $US3.5m (Q2 2011: $US 4.6m)
    with $US 8.5m for the half year (1H 2011: $US 10.2m). $US 4.8m was
    consumed in working capital during the half. Working capital is expected
    to be maintained or reduced in the second half of the current financial
    year.
  *Capital expenditure for the first half was $US 11.75m. Total capital
    expenditure for the year is expected to be $US 24.5m compared to an
    original budget of $US 20.5m. The Company is planning to spend up to $US4m
    in the second half of the current year to change the mining sequence of
    San Gregorio to accelerate pre-strip on this deposit. This will allow the
    Company to maintain higher ore stock levels to reduce risk and maximise
    throughput and maintain consistent production over the coming years.
  *The Company’s cash balance at 30 November 2012 was $US 3.75m compared to
    $US 7.2m at 31 August 2012. This is in accordance with previous guidance.
    Cash flow from operations and profitability in the second half is expected
    to be significantly stronger as higher production levels are forecast with
    similar cost levels. The Company’s cash balance is therefore expected to
    increase in the second half.

Production Highlights

  *Production for the quarter increased by 17 per cent year on year to 13,970
    ounces (Q2 2011: 11,916 ounces). 29,422 ounces were produced for the half
    year (1H 2011: 24,404), an increase of 20.6 per cent.
  *During the quarter 1.8m tonnes of waste (Q2 11/12 – 1.4m) and 284,880
    tonnes of ore (Q2 11/12 – 232,070) were mined with an average grade of
    1.50 g/t (Q2 11/12 – 1.25g/t).
  *During the quarter 385,271 tonnes of ore (Q2 11/12 – 391,686) were fed
    into the plant at an average grade of 1.21 g/t (Q2 11/12 – 1.02 g/t) to
    produce 13,970 ounces of gold (Q2 11/12 – 11,916) with a metallurgical
    recovery of 93.4% (Q2 11/12 – 92.6%).
  *Cash operating costs for the quarter were $US1,215 per ounce (Q2 2011:
    $US1,007). Higher costs were due to lower head grade mined from the
    Crucera pit, planned higher stripping costs for the quarter and Uruguayan
    inflation and peso exchange rate when compared to the prior year. Unit
    mining and processing costs including Arenal Deeps underground costs were
    in accordance or below budget.
  *Successful continued development of the ramp at Arenal Deeps with 352
    metres completed during the quarter. The ramp is planned for completion
    during January with ore production targeted for the second half of
    February when level development for the initial mining levels is complete.
  *The production forecast for the full year remains on track to be in the
    range of 63,000 to 68,000 ounces. Production in the second half is
    expected to increase as Arenal development will transition from waste to
    ore, higher grade Arenal ore will be accessed in the last quarter and
    Crucera ore delayed from the first half of the year will be processed in
    the second half.
  *Cash cost per ounce for the full year is expected to be in the range of
    $US1,000 to $US1,065 per ounce, approximately 6 per cent above the
    Company’s budget for the year, as a result of the average grade of ore
    mined from the Crucera open pit in the first half of the year being lower
    than initially expected. Unit operating costs are in line with budget.

Exploration and Development Highlights

  *Maiden NI43-101 compliant resource estimate expected at Mahoma in the
    second half of fiscal 2013 – expected to support the commencement of
    feasibility work. 4,530 metres of infill and extension drilling have been
    completed on the Mahoma vein project. Best results reported to date for
    the current programme include 1.4 meters at 219 g/t, 1.6 meters at 32.1
    g/t, 1.4 meters at 36.7 g/t, 3 meters at 20 g/t and 4 meters at 41.2 g/t.
  *Company completed drilling and expenditure commitments on the Pantanillo
    project it optioned from Anglo American. During December the Company
    exercised its option to acquire the Pantanillo project and now owns the
    project. Field work during quarter three will be focused on target
    generation with no further drilling planned for this fiscal year.
  *Completion of the previously announced review of the Talca project. The
    review identified a number of new areas with potential for discovery of
    high grade veins. Company to complete the acquisition of initial 25 per
    cent interest during 2013. Upon completion, the Company will have five
    years to perform further exploration work without having to make further
    payments. A CSMT geophysical survey is planned to test these and existing
    zones before further drilling is performed.
  *At Anillo 75 km² of new mapping and 28 trenches were completed during the
    quarter. Anomalous Au and Ag values were obtained in the Anillo Central
    and South East sectors that suggest the existence of an underlying
    hydrothermal cell. A CSMT geophysical survey is planned for the third
    quarter with 2,000 meters of drilling in the fourth quarter to test these
    targets.

Financial and Operating Performance Details

Further information on financial and operating performance can be found in the
Company’s Management Discussion and Analysis filed on SEDAR.

Exploration and Development

Mahoma

During fiscal 2013, 44 drill holes equal to 4,530.2 m were completed at the
project: 1560.20 m of diamond drilling and 2970 m RC drilling (of which 1830 m
were for pre-collars). Resource modelling will commence when the pending assay
results are received in January with a first NI43-101 resource estimate for
Mahoma targeted for completion during the second half of the financial year. A
plan view of the drill holes contained in the following table is available on
the Company’s website.

                                                  
Hole         from      to        interval    Au g/t    Comments
Number          meters       meters       meters
MHDD029      70.8      72.4      1.6         5.96      
MHDD030      25.9      26.4      0.5         1.39      
             32.7      34.7      2           3.30      
             17.2      18        0.8         1.88      
MHDD031      38.8      39.85     1.05        1.02      
             67        67.8      0.8         4.60      
             86.15     87.55     1.4         219.33    
MHDD032      92.03     92.6      0.57        30.10     
             91.9      92.6      0.7         3.13      
MHDD033      96.6      97.2      0.6         16.72     
             98.3      99.9      1.6         32.15     
             108.9     109.9     1           1.06      
MHDD034      103.2     103.9     0.7         2.82      
MHDD035      102.6     105.55    2.95        3.48      
             106.1     106.6     0.5         2.80      
MHDD036      91.9      93.3      1.4         36.71     
MHDD037      No significant results                             
MHDD037      97        98.4      1.4         3.15      
             101.5     102       0.5         3.56      
MHDD038      103       105       2           1.77      
             107.5     108       0.5         2.09      
             138.1     138.6     0.5         2.06      
MHDD039      139.2     140       0.8         2.80      
             141.5     142       0.5         4.06      
MHDD040      106.7     107.85    1.15        4.03      
MHDD041      129.5     130.5     1           2.87      
MHDD042     118.7     119.7     1           2.80      
             125.7     126.2     0.5         2.10      
MHDD043     51.55     52.1      0.55        1.62      
             58.2      58.75     0.55        11.73     
MHDD045      102.1     104.35    2.25        12.33     
             73.2      73.9      0.7         2.62      
MHDD046      78.9      79.9      1           3.60      
             121.1     122.3     1.2         1.99      
                                                                      Assay
                                                                      results
MHDD047      No significant results from RC pre-collar          pending
                                                                      from 100
                                                                      m diamond
                                                                      drilling.
                                                                      Assay
                                                                      results
MHDD048      No significant results from RC pre-collar          pending
                                                                      from 50 m
                                                                      diamond
                                                                      drilling.
                                                                      Assay
                                                                      results
MHDD049      No significant results from RC pre-collar          pending
                                                                      from 60 m
                                                                      diamond
                                                                      drilling.
                                                                      Assay
                                                                      results
                                                                      pending
MHDD050      23        25        2           2.16      from 55 m
                                                                      of
                                                                      diamond
                                                                      drilling.
                                                                      Assay
                                                                      results
                                                                      pending
MHDD051      No significant results from RC precollar           from 54 m
                                                                      of
                                                                      diamond
                                                                      drilling.
                                                                      Assay
                                                                      results
MHDD052      No significant results from RC precollar           pending
                                                                      from 70 m
                                                                      diamond
                                                                      drilling.
                                                                      Assay
MHDD053      40        41        1           10.70     results
                                                                      pending
                                                                      from 18 m
MHDD053      45        46        1           6.32      diamond
                                                                      drilling.
                                                                      Assay
                                                                      results
MHDD054      No significant results from RC precollar           pending
                                                                      from 30 m
                                                                      diamond
                                                                      drilling.
                                                                      Assay
                                                                      results
MHDD055      No significant results from RC precollar           pending
                                                                      from 34 m
                                                                      diamond
                                                                      drilling.
                                                                      Assay
                                                                      results
MHDD056      No significant results from RC precollar           pending
                                                                      from 50 m
                                                                      diamond
                                                                      drilling.
                                                                      Assay
                                                                      results
MHDD057      No significant results from RC precollar           pending
                                                                      from 28 m
                                                                      diamond
                                                                      drilling.
MHRC011      7         8         1           1.01      
MHRC012      48        49        1           3.33      
MHRC013      11        12        1           2.07      
MHRC013      22        23        1           1.84      
MHRC014      29        30        1           1.91      
MHRC015      45        48        3           20.02     
MHRC016      52        54        2           2.67      
MHRC016      71        72        1           3.68      
MHRC016      74        75        1           4.73      
MHRC017      77        78        1           2.56      
MHRC017      80        81        1           3.01      
MHRC017      52        53        1           1.42      
MHRC018      55        57        2           9.84      
MHRC019      61        63        2           1.98      
MHRC019      51        55        4           41.22     
MHRC020      62        63        1           1.18      
MHRC020      53        59        6           2.00      
MHRC021      62        63        1           2.41      
MHRC022      50        52        2           4.87      
MHRC022      28        29        1           1.29      
MHRC024      87        88        1           46.77     
MHRC025      90        92        2           1.81      


Arenal Deeps

Infill and extension drilling continued during the quarter. Results of holes
drilled during the quarter are shown in the following table. Drill holes
ALDD142 and ALD143 were drilled from surface with the remained drilled from
underground. All holes are diamond drilling.

                                                     
HOLE_ID           from      to (m)    interval    Au      Comments
                     (m)                       (m)            ppm
                                                                         Drilled
                  267.70    275.15    7.45        2.06    from
                                                                         Surface
ALDD142           278.85    283.35    4.5         6.4    
                                                                         Includes
                  294.55    303.15    8.6         2.4     1.5 m at
                                                                         17.8 g/t
                  295.80    301.65    5.85        1.63    Drilled
ALDD143           305.45    306.85    1.4         1.96    from
                  338.10    342.70    4.6         1.30    Surface
                  352.60    361.45    8.85        2.65   
                  32        38.2      6.2         2.15    
DDHUGN132_W2_1    74.6      76.8      2.2         1.30    
                  78.95     80.9      2.0         2.75    
                  84.5      93.55     9.1         3.70    
DDHUGN132_W2_2    67.3      69.4      2.1         4.47    
                  108.5     117.9     6.3         4.05    
                  42.9      44.9      2.0         3.78    
DDHUGN132_W2_3    69.7      77.7      8.0         2.12    
                  82.9      85.9      3.0         5.43    
                  95.6      114.8     19.2        8.45    
                  28.9      32.53     3.6         2.32    
                  38.9      41.6      2.7         2.84    
DDHUGN132_W2_4    43.6      68.5      24.9        4.57    
                  76.3      84.3      8.0         5.63    
                  86.8      136.6     49.8        5.78    
                  26.7      29.1      2.4         2.27    
                  48.8      61.6      12.8        4.58    
DDHUGN132_W2_5    63.9      70.1      6.2         2.55    
                  72.1      101       28.9        4.54    
                  105.5     107.5     2.0         2.02    
                  28.5      30.15     1.7         1.73    
                  33.5      34.5      1.0         6.56    
DDHUGN157-8       45.9      47.9      2.0         8.97    
                  143.9     148.3     4.4         6.68    
                  154.4     159.2     4.8         5.19    

Other Uruguay

Field work has commenced on the Presidente Terra property which is located
approximately 240km NE fromMontevideoor 370 km NW by road to the San
Gregorio mine site. Geologic mapping and sampling are been carried on at the
Presidente Terra Central Zone and the Retamosa zone which is in the western
portion of the property. Both areas were previously not worked due to access
restrictions. Depending on the results, drilling is planned for May 2013.

Surface geologic mapping and sampling was carried on at Arroyo Laureles,
Rincon de los Castillos and Vaca Muerta projects during the quarter.
Geophysics and subsequent RCD drilling is planned, depending on permitting
during the second half of fiscal 2013. Rincon de los Castillos and Arroyo
Laureles are thought to be the eastern strike extent of the San Gregorio
system that has produced 1m ounces of mineralisation.

Anillo

During the quarter field work resulted in detailed geologic mapping of 75 km²
and the completion of 28 trenches from which 528 samples were taken of which
approximately 70 per cent of assay results have been received. Anomalous Au
and Ag values were obtained at Anillo Central, consistent anomalous Au values
at SE part suggest the existence of underlying hydrothermal cell. Locally high
Cu values support this assumption.

Trench sampling results:

                                                  
Hole          from      to        interval    Au       Comments
Number           meters       meters       meters         ppb
T-ANC-06      66        68        2           48       
                                                                      Grey
             72        76        4           78       quartz
                                                                      vein
including     72        74        2           92       
             82        84        2           73.6     
             162       166       4           64       
T-ANC-07      4         6         2           44       
             18        20        2           49       
                                                                      Breccia
             24        28        4           69       and
                                                                      grey/white
including     24        26        2           77       quartz
                                                                      vein
             52        54        2           81       
             60        68        8           84       
including     60        62        2           118.5    
T-ANC-20      50        56        6           80       
including     54        56        2           95       
T-ANC-23      4         16        12          450      
                                                                      And 7.8
                                                                      gr/t Ag
including     8         14        6           550      including
                                                                      12-14m
                                                                      @17gr/t Ag
T-ANC-25      0         2         2           73       
T-ANC-27      6         14        8           45       
T-ANC-22      22        23        1                   1980ppm Cu
             36        38        2                   1950ppm Cu
             36        37        1                   2500ppm Cu
T-AN-SE-09    20        22        2           51.5     
             62        64        2           47       

Anillo is the higher part of an epithermal, advanced argillic alteration zone,
and buried high grade Au mineralized structures are being targeted. The area
is located to the NE of el Peñon Mine and SW of the Veta Victoria project,
both owned by Yamana Gold Inc. A total of 11 km of CSAMT (6 lines) and 2.500 m
of RCD drilling is planned for the first half of 2013.

Other Chile

Surface mapping and sampling at Talca has defined a number of new target areas
during the half and confirmed the potential for the project to host additional
economic mineralisation. A CSAMT survey is planned to follow-up these target
areas during 2013.

Field work to define new targets is expected to commence in January 2013. No
additional drilling is planned for the current fiscal year.

ENDS

About Orosur Mining Inc.

Orosur Mining Inc. is a fully integrated gold producer and exploration company
focused on identifying and developing gold projects in Latin America. The
Company operates the only producing gold mine in Uruguay (San Gregorio), and
has assembled an exploration portfolio of high quality assets in Uruguay and
Chile. The Company is quoted in Canada (TSX: OMI) and London (AIM: OMI).

Qualified Person's Statement

The information presented in this press release has been reviewed by Eric
Roth, Director of OMI and Francisco Castillo, Manager of OMI both of whom are
considered to be in compliance with NI 43-101 reporting guidelines. Dr. Roth
holds a Ph.D. in Economic Geology from the University of Western Australia, is
a Fellow of the AusIMM, and has had over 20 years of experience in
international minerals exploration and property evaluation. Mr. Castillo is a
mining engineer from the Universidad de Santiago de Chile, he is certified by
the Comisión Minera de Chile and has 12 years of experience.

Forward Looking Statements

All statements, other than statements of historical fact, contained or
incorporated by reference in this news release, including any information as
to the future financial or operating performance of the Company, constitute
"forward-looking statements" within the meaning of certain securities laws,

including the "safe harbour" provisions of the Securities Act (Ontario) and
the United States Private Securities Litigation Reform Act of 1995 and are
based on expectations estimates and projections as of the date of this news
release. There can be no assurance that such statements will prove to be
accurate, such statements are subject to significant risks and uncertainties,
and actual results and future events could differ materially from those
anticipated in such statements. Forward-looking statements include, without
limitation success of exploration activities; permitting time lines; the
failure of plant; equipment or processes to operate as anticipated; accidents;
labour disputes; requirements for additional capital title disputes or claims
and limitations on insurance coverage. The Company disclaims any intention or
obligation to update or revise any forward looking statements whether as a
result of new information, future events and such forward-looking statements,
except to the extent required by applicable law.

                       - Financial Statements follow -


Orosur Mining Inc.
Condensed Interim Consolidated Statement of Financial Position
Thousands of United States Dollars, except where indicated

                                      Note        As at              As at May
                                  Ref.     November 30,    31,
                                                  2012 ($)           2012 ($)
                                                           
Assets
                                                                     
Cash and cash equivalents                         3,745              11,461
Accounts receivables and other        3           4,823              4,734
assets
Inventories                           4           18,371          17,110
Total current assets                              26,939             35,305
                                                                     
Property plant and equipment          5           63,180             58,737
and development costs
Exploration and evaluation            6           31,652             26,872
costs
Deferred income tax assets            11          5,225              3,642
Restricted cash                                   231             231
Total non-current assets                          100,288            89,482
                                                                 
Total Assets                                      127,227         122,787
                                                                     
                                                         
                                                                     
Liabilities and Shareholders’
Equity
                                                                     
Trade payables and other              3           16,290             18,868
accrued liabilities
Financial debt                        16          5,559              3,418
Derivative financial                  13          0               41
instruments
Total current liabilities                         21,849             22,327
                                                                     
Financial debt                                    4,159              2,805
Environmental rehabilitation          7           5,025           5,091
provisions
Total non-current liabilities                     9,184              7,896
                                                                 
Total liabilities                                 31,033          30,223
                                                                     
Capital stock                         8           55,153             55,074
Warrants                                          276                276
Contributed surplus                               5,474              5,424
Retained earnings                                 35,291          31,790
Total shareholders’ equity                        96,194          92,564
                                                                     
Total liabilities and                             127,227         122,787
shareholders’ equity


Approved on behalf of the Board of Directors
“David Fowler”    CEO    “Ignacio Salazar”    CFO

Orosur Mining Inc.
Condensed Interim Consolidated Statements of Income and Comprehensive income
Thousands of United States Dollars, except for earnings per share amounts

                  Note    Three months ended         Six months ended
                     Ref.       November 30,                  November 30,
                        2012 ($)    2011 ($)    2012 ($)    2011 ($)
                                                                      
Sales                           24,168         20,985         50,502         42,011
Cost of sales        18         (22,067)    (15,745)    (43,803)    (30,707)
Gross profit                    2,101          5,240          6,699          11,304
                                                                             
Corporate and
administrative                  (1,304)        (1,296)        (2,600)        (2,477)
expense
Exploration                     (87)           (223)          (416)          (659)
expenses
Other income                    358            576            391            632
Finance cost         17         (166)          (65)           (247)          (90)
Finance income       17         4              8              7              17
Derivative           13         472            0              41             0
gain
Net foreign
exchange                        (343)       95          (338)       138
(loss) gain
Profit before                   1,035          4,335          3,537          8,865
income tax
                                                                             
Recovery
(provision)          11         175         (1,770)     (36)        (1,888)
for income
taxes
Total income
and
comprehensive                   1,210       2,565       3,501       6,977
income for the
period
                                                                             
                                                                             
Earnings per
common share
Basic                15         0.02           0.03           0.05           0.09
Diluted              15         0.02           0.03           0.05           0.09
                                                                             

Orosur Mining Inc.
Condensed Interim Consolidated Statements of Cash Flows
Thousands of United States Dollars, except where indicated

                      Three months ended         Six months ended
                        November 30,                  November 30,
                      2012 ($)    2011 ($)    2012 ($)    2011 ($)
Net inflow
(outflow) of cash
related to the
following
activities
                                                               


Cash flow from
Operating
activities
Net income for the       1,210          2,565          3,501          6,977
period
Adjustments to
reconcile net
income to net cash
provided from
operating
activities:
Depreciation             4,133          1,990          7,063          3,990
Fair value of            (472)          0              (41)           0
derivatives
Accretion of asset
retirement               19             13             38             26
obligation
Deferred income          (938)          597            (1,583)        (377)
tax assets
Stock based              22             90             59             216
compensation
Gain on sale of
property, plant          (481)          (562)          (514)          (562)
and equipment
Others                   (8)         (42)        0           (47)
Subtotal                 3,485          4,651          8,523          10,223
Changes in
operating assets
and liabilities
Accounts
receivables and          (236)          (402)          (989)          304
other assets
Inventories              (1,557)        (368)          (1,261)        (146)
Trade payables and
other accrued            (335)       5,444       (2,578)     3,070
liabilities
Net cash generated
from operating           1,357       9,325       3,695       13,451
activities
                                                                      
Cash flow from
financing
activities
Proceeds from the
issue of share           54             4              70             20
options
Proceeds from the
issue of shares in       0              0              0              12,360
a private
placement
Loans received           2,834          1,235          3,573          5,080
Loans payment            (10)        (15)        (21)        (27)
Net cash from
financing                2,878       1,224       3,622       17,433
activities
                                                                      
Cash flow from
investing
activities
Purchase of
property, plant          (7,040)        (10,632)       (11,752)       (19,543)
and equipment and
development costs
Loans collected          900            0              900            (1,000)
(granted)
Proceeds from the
sale of fixed            909            1,366          942            1,366
assets
Exploration and
evaluation               (2,451)     (4,515)     (5,123)     (8,831)
expenditure assets
Net cash used in
investing                (7,682)     (13,781)    (15,033)    (28,008)
activities
                                                                      
Increase
(Decrease) in cash       (3,447)        (3,232)        (7,716)        2,876
and cash
equivalents
                                                                      
Cash and cash
equivalents at the       7,192       20,286      11,461      14,178
beginning of
period
                                                                      
Cash and cash
equivalents at the       3,745       17,054      3,745       17,054
end of period
                                                                      

Orosur Mining Inc.
Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
Thousands of United States Dollars, except where indicated

                      Three months ended         Six months ended
                         November 30,                  November 30,
                     2012 ($)    2011 ($)    2012 ($)    2011 ($)
Capital stock                                                  
Balance at
beginning of             55,099         55,068         55,074         42,692
period
Private placement
net of share             0              (276)          0              12,085
issuance costs
Finder’s fee for         0              250            0              250
Talca acquisition
Exercise of stock        54             6              70             21
options
Transfer from
contributed              0           0           9           0
surplus
Balance at end of        55,153      55,048      55,153      55,048
period
                                                                      
Broker Warrants
Balance at
beginning of             276            0              276            0
period
Commission on            0           276         0           276
private placement
Balance at end of        276         276         276         276
period
                                                                      
Contributed
surplus
Balance at
beginning of             5,452          5,264          5,424          5,138
period
Transfer to              0              (2)            (9)            (2)
capital stock
Employee stock
based compensation       22          90          59          216
recognized
Balance at end of        5,474       5,352       5,474       5,352
period
                                                                      
Retained earnings
Balance at
beginning of             34,081         35,005         31,790         30,593
period
Net income for the       1,210       2,565       3,537       6,977
period
Balance at end of        35, 291     37,570      35,291      37,570
period
                                                                      
Shareholders’
equity at end of         96,194      98,246      96,194      98,246
period

Contact:

Orosur Mining Inc
David Fowler
CEO
or
Ignacio Salazar, + 562 9246800
CFO
info@orosur.ca
or
Canaccord Genuity Limited (Nominated Adviser & Joint Broker)
Rob Collins / Andrew Chubb, +44 (0) 20 7523 8000
or
Seymour Pierce (Joint Broker)
Stewart Dickson / Jeremy Stephenson, +44 (0) 20 7107 8000
or
Blythe Weigh Communications (Public Relations and Investor Relations)
Paul Weigh, +44 (0) 7989 129658
or
Robert Kellner, +44 (0) 7800 554377