Trevali Reports Second Quarter 2022 Results

VANCOUVER, Aug. 15, 2022 - Trevali Mining Corp. ("Trevali" or the "Company") (TSX: TV) (BVL: TV) (OTCQX: TREVF) (Frankfurt: 4TI) today released financial and operating results for the three and six months ended June 30, 2022. All amounts herein are reported in United States dollars ("US$") unless otherwise specified.

• Zinc payable production of 34.5 million pounds due to the suspension of operations at the Perkoa mine and production challenges at the Caribou mine partially offset by positive performance from Rosh Pinah.
• C1 Cash Cost¹ and AISC¹ of $1.19 and $1.61 per pound, respectively, 12% and 32% increases from the prior quarter due to a combination of factors, including higher direct operating costs from continuing inflationary pressures across the portfolio, lower payable zinc volume contribution from Perkoa and Caribou, and higher than planned sustaining capital.
• Caribou's full-year production and cost guidance has been suspended and the operation is under review, following continued operational performance issues due to low productivity rates and equipment and operator availability, from the mining contractor.
• Perkoa operations remain suspended following the April 16^th flooding event that resulted in eight fatalities and the suspension of mining and milling operations. Costs related to the flooding event for Q2 amount to $15.2 million. Operating cost and production guidance at Perkoa remain suspended.
• A non-cash, after-tax impairment of $23.7 million was recorded on the Perkoa and Caribou operations and near-mine exploration asset at Perkoa.
• Revised full-year guidance for Rosh Pinah for 2022 with production guidance of 62 - 66 million pounds of payable zinc, a C1 Cash Cost¹ of $0.84 - 0.90/lb and AISC¹ of $1.22 - 1.28/ lb.
• Q2 2022 revenues of $52.0 million, a decrease of 44% over the prior quarter, due to the suspension of operations at Perkoa and Caribou operational underperformance.
• Adjusted EBITDA¹ of $9.2 million, a decrease of 78% over the prior quarter, primarily due to the Perkoa mine's suspension of operation on April 16, 2022 and Caribou operational underperformance.
• Net Debt¹ for Q2 2022 decreased from $81.8 million at March 31, 2022, to $59.4 million due to the timing of collection of settlement receivables built up from Q1 2022.
• Updated RP2.0 expansionary capital cost to $121 million with an estimated commissioning date of Q4 2024, assuming financing is in place by the end of Q3 2022 and a full funding decision is made. Guidance on the $20 million Early Works program included in the $121 million, has been suspended and is under review.
• Financing Initiative to fund the RP2.0 expansion project and refinance the existing debt that matures in September of 2022, which had progressed with several capital providers, including Standard Bank, an Export Credit Agency, Glencore, and a metal streaming company, has not sufficiently advanced in a manner that will allow for the refinancing to be completed prior to the maturity of existing Debt Facilities, if at all.
• A Strategic Review process was initiated in Q2, in parallel to the Financing Initiative, to solicit proposals for a broad range of transaction alternatives including a potential investment in Trevali and the potential sale of all or part of the business and assets of Trevali. Following recent developments, there can be no assurance that the Strategic Review process will progress in a fashion that will allow for the culmination of a transaction in a timely manner or sufficient value to refinance the Debt Facilities.
• Based on a review of its available liquidity, the Company anticipates that it will not be in a position to make a mandatory prepayment of approximately $7.5 million on its revolving credit facility when such payment is due on August 17, 2022. The Company remains in discussions with its senior lenders regarding this anticipated breach of the terms and potential default of the Facility.

Trevali is a global base-metals mining company, headquartered in Vancouver, Canada. The bulk of the Company's revenue is generated from base-metals mining at the 90%-owned Perkoa mine in Burkina Faso (which mine's operations are currently suspended following a flooding event that occurred April 16, 2022), the 90%-owned Rosh Pinah mine in Namibia and the wholly owned Caribou mine in New Brunswick. In addition, Trevali owns the Halfmile and Stratmat properties and the Restigouche deposit in New Brunswick, Canada, and the past producing Ruttan mine in northern Manitoba, Canada. Trevali also owns an effective 44% interest in the Gergarub project in Namibia. The shares of the Company are listed on the TSX (symbol TV), the OTCQX (symbol TREVF), the Lima Stock Exchange (symbol TV), and the Frankfurt Exchange (symbol 4TI). For further details on Trevali, readers are referred to the Company's website (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.

Intense and unseasonal rainfall on April 16, 2022, near the Perkoa mine created a flash flood that entered the mine property and breached the mine's safety controls, flooding the underground mine, preventing eight workers from evacuating the mine. A summary of the results of Trevali's investigation of the flooding event was previously provided to the Burkina Faso Ministry of Mines and Quarries, and additional information regarding actions taken and external expert analysis was provided to the Ministry. The Company and its management team have worked closely with the Burkinabe authorities throughout the search and recovery efforts at the mine, with daily briefings at the site as well as regular inspections of the operations. In addition, pursuant to applicable Burkina Faso law, an independent investigation into the flood event was initiated by the Public Prosecutor. Trevali and its personnel have been cooperating fully with the investigation which remains ongoing. The bodies of the eight workers were recovered in May and June and returned to their families, except for the two expatriates that still need to be repatriated to their home country. All of us at Trevali grieve their loss.

By late July, more than 165 million litres of water and more than 9,000 cubic metres of solids had been removed from the mine. Perkoa is now dewatered to the lowest mine level, Level 710, all damaged equipment has been recovered, and all areas of the mine are fully accessible. A significant amount of mine rehabilitation work is already complete, including re-establishing the electrical and communication systems, ventilation, egress and entrapment infrastructure, backfilling of voids, inspecting the adequacy of ground support after the flooding event and ensuring that there are no underground stability concerns. All permits remain in good standing.

Trevali and various expert consultants have investigated the circumstances of the extreme rainfall event and have reached several conclusions and the Company has committed to actions to prevent the catastrophic outcome of any future potential flood from occurring at Perkoa. While we are unable to prevent an extreme weather event, the result of the investigation allows us to determine some key lessons that can prevent similar catastrophic results in the future, and which may also be applicable across the mining industry:

• Historical climate data used for assumptions: Floods and other extreme weather events are becoming more intense and frequent as our climate warms. Historically, we have been able to predict these extreme events by observing how often they occurred in the past. The frequency and magnitude of past extreme events are no longer a reliable indicator. We need to review and modify our plans, procedures, and designs to ensure they can counter these new risks.
• Design criteria: The flood protection design criteria at Perkoa did not anticipate the intensity, scale, or timing of the rainfall and flooding event. The mining industry and others are making the transition to more robust designs for facilities, especially tailings dams, by performing an analysis of consequences to provide data for the design. It is important to validate the current designs and conduct an analysis of structures and facilities in place, and challenge this against the shifts that climate change has brought.
• Data quality: Historically, many rainfall data collection stations provide only daily returns, leading to potential gaps in understanding of short-term intense rain events. Quality data is needed to understand the potential for weather events of short duration but of greater intensity, like the one that occurred at Perkoa.
• Design and implementation of modern early warning and response time systems: The flooding at the mine was caused by extreme rain falling some distance from the site. To manage this risk, early warning systems on-site that can predict off-site events are needed. Modern detection tools based upstream of all sites and connected to on-site warning systems will improve both situational awareness and emergency response times.

The investigation of the flooding event has resulted in Trevali taking several actions to minimize the impacts of future weather events at Perkoa, and prevent any future flooding of the underground operations, including:

• Raised the flood protection berm along the existing berm alignment to protect the open pit against flooding for a 1:10,000-year event. The guidance to raise the berm follows expert hydrologic modelling conclusions that indicated that the flooding event occurred following an intense rainfall over a period of approximately 45 minutes, which corresponds with a return period of approximately 300 to 500 years;
• Installed an early warning system that provides updated weather reporting, real-time weather and rain monitoring and real-time stream water level indication with automatic triggers when there is a potential flood risk;
• Improved emergency management plans with the inclusion of predictive triggers such as: predictive alerting and smart IOT sensors that detect changes in water levels and various weather parameters (wind, rain, lightning, pressure) to trigger an evacuation in advance of a significant weather event impacting the site.

The Company is also reviewing its design infrastructure at its other mine sites and will consider implementing similar measures if deemed appropriate. Insurance claims have been filed related to dewatering, rehabilitation, and the replacement of mining, electrical, ventilation, and other equipment damaged from the mine flood. Subject to approval by the Burkina Faso authorities, the Company is undertaking precursory activities to ensure operational readiness. The Ministry of Mines and Quarries is currently reviewing the Perkoa restart plan. Operating cost and production guidance at Perkoa remain suspended.

Although the performance of Rosh Pinah continues to be consistent, the second quarter was challenging at Perkoa and Caribou. The April 16^th flooding event that triggered an evacuation of the Perkoa Mine and the suspension of mining and milling operations, global inflationary impacts and continued challenges in contract miner productivity and equipment and operator availability at Caribou have resulted in lower production results and higher costs.

The Company is experiencing significant cost inflation since initial guidance was provided in January, with the prices of key consumables remaining materially above 2021 levels. Notable examples include explosives, diesel, grinding media, and ocean freight rates.

Operating cost and production guidance at Perkoa remain suspended and Caribou's full year production and cost guidance has been suspended and the operation is under review.

Management of the Company revises Rosh Pinah production and cost guidance. Annual production guidance at Rosh Pinah Mine is now estimated at between 62 - 66 million pounds of payable zinc (previous: 58 - 66); guidance of 16 - 18 million pounds of payable lead remains unchanged; and 168 - 178 thousand ounces of payable silver (previous: 158 - 178). C1 Cash Cost¹ guidance is estimated between $0.84 - $0.90 per pound of zinc (previous: $0.71 - $0.78) and AISC¹ is expected to range between $1.22 - $1.28 per pound of zinc (previous: $1.07 - $1.17).

Revised Consolidated 2022 Production Guidance²

Revised 2022 Consolidated Operating Cost Guidance²

Sustaining capital guidance at Rosh Pinah was revised to $27 million from $24 million and suspended at Perkoa and Caribou. Planned $2.0 million in exploration capital is unchanged while the Early Works program at Rosh Pinah is under review and guidance suspended.

Revised 2022 Consolidated Capital Expenditure Guidance²

The Company appointed Endeavour Financial in September 2021 to advise the Company on the formation of a lending syndicate, coordinate lender due diligence and negotiate financing documentation with the objective of providing a competitive non-equity financing solution for the RP2.0 expansion project at Rosh Pinah and refinancing both the existing Facility and Glencore Facility which mature in September 2022. The Company is in negotiations with several capital providers, including Standard Bank, an Export Credit Agency, Glencore, and a metal streaming company for a potential financing package (the "Financing Initiative").

Following recent developments, the Financing Initiative which had progressed with several capital providers, including Standard Bank, an Export Credit Agency, Glencore, and a metal streaming company, has not sufficiently advanced in a manner that will allow for the refinancing to be completed prior to the maturity of existing Debt Facilities, if at all.

In May 2022, in parallel with the Financing Initiative, the Company engaged a financial advisor to conduct a strategic review process (the "Strategic Review") in order to solicit proposals for a broad range of transaction alternatives including a potential investment in Trevali and the potential sale of all or part of the business and assets of Trevali. Following recent developments, there can be no assurance that the Strategic Review process will progress in a fashion that will allow for the culmination of a transaction in a timely manner or sufficient value to refinance the Debt Facilities.

As at June 30, 2022, the Company had $64.7 million of available liquidity, comprised of cash and cash equivalents of $41.7 million and $23.0 million of available liquidity from the revolving credit facility (the "Facility"). As both the Facility and a second lien secured facility agreement with Glencore of $13.0 million (the "Glencore Facility") (together, the "Debt Facilities") are due for repayment at maturity on September 18, 2022, a period of less than twelve months, these balances are classified as current liabilities.

Continuation as a going concern is dependent upon the Company's ability to generate sufficient cash flows from operations to sustain working capital requirements, and to source external capital to refinance the Debt Facilities in order to avoid default on maturity. Alternatively, sufficient funding will be required until a strategic alternative can be arranged, if at all. As at June 30, 2022, the Company's total current liabilities exceeded its current assets by $41.4 million.

The Company appointed an external advisor in September 2021, with the objective of providing a competitive non-equity financing solution for the RP2.0 expansion project at Rosh Pinah and refinance the existing Debt Facilities (the "Financing Initiative"). The Company has been considering several opportunities for the financing package, including project finance debt, subordinated debt, and a silver stream on Rosh Pinah's silver production.

On April 16, 2022, a flash flood occurred at the Perkoa mine in Burkina Faso following a period of intense unseasonal rainfall. After dewatering and search efforts all eight workers' bodies that were trapped in the underground mine due to the flooding were recovered. The Company incurred $15.2 million of direct and indirect costs between April 16 and June 30, 2022 related to dewatering efforts, infrastructure refurbishment and construction linked to repairs and rehabilitation at the mine. Additional costs related to the flooding event subsequent to June 30, 2022, continue to be incurred.

As a result of the flooding event at Perkoa, the previously announced targeted financing amount of $200 million could no longer be relied upon and the total financing target was suspended as of May 16, 2022. In addition, the Caribou operation is under review following continued operational and financial performance issues due to low productivity rates and equipment and operator availability, from the mining contractor. The financing requirement is expected to exceed the previously targeted financing amount of $200 million.

Following recent developments, the Financing Initiative which had progressed with several capital providers, including Standard Bank, an Export Credit Agency, Glencore, and a metal streaming company, has not sufficiently advanced in a manner that will allow for the refinancing to be completed prior to the maturity of existing Debt Facilities, if at all.

In May 2022, in parallel with the Financing Initiative, the Company engaged a financial advisor to conduct a strategic review process (the "Strategic Review") in order to solicit proposals for a broad range of transaction alternatives including a potential investment in Trevali and the potential sale of all or part of the business and assets of Trevali. Following recent developments, there can be no assurance that the Strategic Review process will progress in a fashion that will allow for the culmination of a transaction in a timely manner or sufficient value to refinance the Debt Facilities.

Based on a review of its available liquidity, the Company anticipates that it will not be in a position to make the mandatory prepayment of approximately $7.5 million on its revolving credit facility when such payment is due on August 17, 2022. The Company remains in discussions with its senior lenders regarding this anticipated breach of the terms of the Facility.

The Company's ability to continue as a going concern is dependent upon its ability to generate cash flows from operations and to secure a financing package consisting of debt financing, equity financing and/or the sale of all or part of the business and assets of Trevali. While the Company has been successful in arranging financing in the past, it cannot be assured that the current Financing Initiative will be successful and there is no guarantee that the Company will ultimately be able to generate sufficient positive cash flow from operations or that the Company will find an acceptable strategic alternative. These circumstances indicate the existence of material uncertainties that create significant doubt as to the Company's ability to meet its obligations when due, and accordingly, continue as a going concern.

CONSOLIDATED FINANCIAL RESULTS

The following table summarizes the change in net income (loss) YTD and Q2 2022 quarter:

There was a net loss YTD Q2 2022 compared to a positive net income in the corresponding period of 2021 due to a combination of factors, including decreased revenue related to the suspension of mining operations at Perkoa following the flood incident on April 16, 2022 and no revenue from Santander following the sale of the Santander mine in December 2021. These were partially offset by a 37% increase in the average zinc LME price and a higher volume of lead payable sold due to the timing of shipments.

The decrease in mine operating expenses in YTD Q2 2022 compared to the corresponding period of 2021 is primarily due to the suspension of operations at Perkoa resulting in lower variable mining and milling costs and lower units of production depreciation, as well as no costs from Santander following the sale of the Santander mine in December 2021 and partially offset by Caribou which was restarted in Q1 2021 and incurred partial mine operating expenses.

The increase in impairment is a result of the flooding event of the Perkoa underground mine on April 16, 2022, upon which the operations at the site were immediately suspended. The flooding event triggered an impairment indicator as of June 30, 2022, and, accordingly, the recoverable amounts of the Perkoa cash generating unit ("CGU") were estimated and compared against its carrying values. In addition, the carrying values of exploration and evaluation assets that would be dependent on processing ore at the Perkoa mill, and the T3 deposit, were reviewed for impairment. A non-cash impairment charge of $17.5 million was recognized at Perkoa ($13.5 million related to property, plant and equipment and $4.0 million related to near-mine exploration assets). A non-cash impairment was also recognized at Caribou following the negative cash flow for consecutive quarters.

Other items in YTD Q2 2022 include an increase in the settlement mark-to-market loss on open invoices between February and May 2022 with a quotational period between June and September, due to a significant decline in the commodity prices and Perkoa flood-related costs of $15.2 million.

There was a net loss Q2 2022 compared to a positive net income in the corresponding period of 2021 primarily due to decreased revenue related to the suspension of mining operations at Perkoa following the flood incident on April 16, 2022 as well as no revenue from Santander following the sale of the Santander mine in December 2021.

Mine operating expenses decreased in Q2 2022 compared to Q2 2021 due to the suspension of operations at Perkoa resulting in lower variable mining costs and lower units of production depreciation, and no costs from Santander following the sale of the Santander mine in December 2021.

Other items in Q2 2022 include an increase in the settlement mark-to-market loss on open invoices between February and May 2022 with a quotational period between June and September due to a significant decline in the commodity prices, the Perkoa flood-related costs of $15.2 million and the related non-cash impairment of $17.5 million and unrelated non-cash impairment of $6.2 million at Caribou.

The average zinc price in Q2 2022 as quoted on the LME of $1.78 per pound increased by 5% when compared to the previous quarter and 35% compared to Q2 2021. The price of lead decreased by 6% when compared to the prior quarter while it was 4% higher when compared to the comparative quarter in 2021. The silver price decreased by 5% over the prior quarter while still 15% below the comparative quarter in 2021.

Payable zinc sales volumes decreased by 44% when compared with the prior quarter to 35.6 million pounds primarily due to the impact of limited production at Perkoa caused by the flood incident that led to the suspension of operations for the majority of the current quarter. Smelting and refining costs decreased by 37% primarily due to 44% lower zinc volumes sold, partially offset by the increase in the annual benchmark treatment charge rate in 2022 to $230 per tonne with a 5% escalator above a zinc price of $1.72 per pound (2021 benchmark rate: $159 per tonne). The 2022 benchmark rate applies to payable zinc produced during 2022; similarly, the 2021 benchmark rate applies to 2021 production, including amounts in inventory at December 31, 2021 and sold in early 2022.

Payable zinc sales declined compared to the corresponding quarter in the prior year due to limited production at Perkoa caused by the flood incident that led to the suspension of operations for a major part of the current quarter, no sales from Santander mine in 2022 as it was sold on December 3, 2021 and lower sales volumes at Caribou and Rosh Pinah due to lower production.

Lead revenues of $9.3 million decreased by 19% from the prior quarter as a result of the smaller shipment that could be arranged and the 6% decrease in the lead price. The YTD 2022 increased lead sales quantities were a result of the timing of lead shipments from the Rosh Pinah mine, which typically has two lead shipments annually, one which occurred in Q1 2022 relating to lead produced in 2021 and the second occurred in Q2 2022. By-product revenues decreased compared to the corresponding quarter in the prior year due to the sale of Santander mine in December 2021 and lower lead production at the Rosh Pinah mine and the Caribou mine during the current quarter.

Although challenged by negative market sentiment, rising interest rates, inflationary pressures and recession risk, management of the Company believes that the outlook for the zinc market is positive. The base metals sector performed poorly in the second quarter. As measured by the LME Index, the base metal complex declined by 25%. Despite headwinds, backlogs of work for manufacturers in many parts of the world remain substantial and for the year-to-date zinc demand has been robust according to Wood Mackenzie. As highlighted in past quarters, management of the Company believes the ongoing structural changes related to "green energy" initiatives, combined with underinvestment in the mining sector and a positive global capex cycle provide the Company with opportunities to further develop the business.

Global manufacturing output has turned lower in recent months as higher interest rates and business confidence wanes in the western economies. Euro area manufacturing sector conditions continued to disappoint at the end of the second quarter. The final reading of the S&P Global Eurozone Manufacturing Purchasing Managers' Index ("PMI") for June of 52.1, fell from 54.6 in May, its lowest reading since August 2020 while the indicator of sentiment as measured by business confidence slid to a 25-month low. The manufacturing PMI for Japan came in at 52.7 in June, a decrease from 53.3 in May and marking the seventeenth consecutive improvement in the health of the manufacturing sector. Recall that a PMI reading above 50 indicates growth or expansion. The Chinese manufacturing sector registered the first expansion of output since February. Thus, at 51.7 in June, the headline seasonally adjusted general manufacturing PMI was up from 48.1 posted in the prior month; the rate of increase was the strongest since May 2021. Chinese business confidence regarding the 12-month outlook for output improved to a four-month high in June. Finally, in the US, the seasonally adjusted US Manufacturing PMI posted 52.7 in June, down from 57.0 in May. Notably, this is the lowest level since July 2020 as factory output stagnates and new orders fall. The decrease in client demand was the first in over two years. Firms stated that inflationary pressures, weak client confidence in the outlook and supply-chain disruption drove the decline.

As reported in the media in April, the annual benchmark contract treatment charge for zinc concentrate was agreed to at $230 per tonne in 2022 versus $159 per tonne established in 2021. Unlike last year however, the 2022 settlement includes an escalator of +5% for an LME zinc price above $1.72 per pound. Trevali's concentrate off-take agreements reference the annual benchmark treatment charges. According to Wood Mackenzie, the indicative spot treatment charge for June is $235 per tonne cost, insurance and freight into China, higher than $175 per tonne observed in March, and within the range of Chinese spot averages of $285 and $209 per tonne in 2019 and 2020, respectively.

The zinc price began the quarter at $1.96 per pound and ended the quarter at $1.47 per pound and traded in a very wide $0.58 per pound range. During Q2 2022, the LME zinc price averaged $1.78 per pound, maintaining its improvement from its pandemic low of $0.82 per pound reached back in March 2020. LME exchange inventories decreased to 81,075 tonnes by the end of Q2 2022 versus 139,950 tonnes on March 31, 2022. Shanghai Futures Exchange zinc stocks decreased to 112,959 tonnes versus 176,177 tonnes at the end of Q1 2022. Total exchange stocks decreased into quarter end, and now stand at the equivalent of just 5 days of global consumption, very low by historical standards, and do not provide much of a buffer against any further supply disruptions to smelter production.

Relatively low refined zinc stocks and strong demand continue to put upward pressure on spot zinc premiums which remain elevated. In the US high freight costs and shortages of trucking capacity have pushed spot premiums as high as 35 to 40 cents per pound, meanwhile in Europe they are in the territory of $450 to $500 per tonne (20.4 to 22.7 cents per pound).

On January 20, 2022, the Company announced that Trevali was working toward securing project financing for the RP2.0 expansion project and refinancing both the existing corporate revolving credit facility (the "Facility") and the secured facility agreement with Glencore (the "Glencore Facility"), maturing in September 2022. In parallel, an early works program commenced for RP2.0.

On January 24, 2022, the Company announced preliminary 2021 full year and Q4 production results and 2022 operating, capital and exploration expenditure guidance.

On January 24, 2022 and February 4, 2022, the Company announced that the Perkoa mine in Burkina Faso was unaffected by, and continued to closely monitor, the ongoing political situation.

On March 31, 2022, the Company reported its Mineral Reserves and Mineral Resources statements as of December 31, 2021. Proven and Probable Mineral Reserves increased 50% at the Rosh Pinah mine and there was a 4.9 million tonne increase in the Company's consolidated Proven and Probable Mineral Reserves, which was a 28% increase over the year ended 2020. For further information, refer to the March 31, 2022 press release.

On April 7, 2022, the Company announced the appointment of Derek du Preez as Chief Operating Officer effective immediately.

On April 16, 2022, the Company reported a flooding event at the Perkoa mine in Burkina Faso following intense and unseasonal rainfall. The mine was evacuated, and mine rescue efforts were immediately initiated and continue to be incurred.

On April 21, 2022, the Company provided an update on search and rescue efforts at the Perkoa mine and announced the suspension of production and cost guidance at the Perkoa mine.

During May and June, the Company provided multiple updates on the dewatering progress and search efforts at the Perkoa mine, culminating with a final update on June 20, 2022, when the Company reported that the remaining missing workers were found with no survivors.

On June 28, 2022, the Company published its 2021 Sustainability Report.

On June 29, 2022, the Company announced the results of the Annual General and Special Meeting of Shareholders.

On August 3, 2022 the Company announced that it had received credit approval from Standard Bank of Namibia Limited and The Standard Bank of South Africa Limited for a Senior Secured Financing Facility of $110 million to fund the expansion of the Company's Rosh Pinah Mine in Namibia. Closing of the Senior Secured Financing Facility is subject to a number of conditions, including the negotiation and settlement of definitive loan facility and security documentation, the execution and delivery of definitive documentation in respect of the other elements of the comprehensive financing package, including an intercreditor agreement between Standard Bank and the various subordinated secured lenders, and the consent of and release of existing security by Trevali's existing senior secured lenders. While the Company is progressing these various workstreams, there is no certainty that the conditions set out in the Standard Bank credit approval will be satisfied in a timely manner or at all. Negotiations for other components of the comprehensive funding package for RP2.0 and the refinancing of both the existing corporate revolving credit facility and Glencore loan facility, which mature in September 2022, are ongoing.

The Company has cancelled a conference call and webcast presentation regarding the second quarter financial and operational results. For additional detail, please see Trevali's quarterly consolidated financial statements and management's discussion and analysis for the three and six months ended June 30, 2022, which are available on Trevali's website and the Company's profile on SEDAR at www.sedar.com.

Trevali is a global base-metals mining Company headquartered in Vancouver, Canada. The bulk of Trevali's revenue is generated from zinc and lead concentrate production at its three operational assets: the 90%-owned Perkoa Mine in Burkina Faso, the 90%-owned Rosh Pinah Mine in Namibia, and the wholly owned Caribou Mine in northern New Brunswick, Canada. In addition, Trevali owns the Halfmile and Stratmat Properties and the Restigouche Deposit in New Brunswick, Canada. Trevali also owns an effective 44% interest in the Gergarub Project in Namibia. The Company's growth strategy is focused on the exploration, development, operation, and optimization of properties within its portfolio, as well as other mineral assets it may acquire that fit its strategic criteria. Trevali's vision is to be a responsible, top-tier operator of long-life, low-cost mines in stable pro-mining jurisdictions. Trevali is committed to socially responsible mining, working safely, ethically, and with integrity. Integrating responsible practices into its management systems, standards, and decision-making processes is essential to ensuring everyone and every community's long-term sustainability.

The shares of Trevali are listed on the TSX (symbol TV), the OTCQX (symbol TREVF), the Lima Stock Exchange (symbol TV), and the Frankfurt Exchange (symbol 4TI). For further details on Trevali, readers are referred to the Company's website (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.

This news release contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). Forward-looking statements are based on the beliefs, expectations and opinions of management of the Company as of the date the statements are published, and the Company assumes no obligation to update any forward-looking statement, except as required by law. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "outlook", "guidance", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology.

Forward-looking statements relate to future events or future performance and reflect management's expectations or beliefs regarding future events including, but not limited to, statements with respect to the Company's revised financial and operational guidance for fiscal 2022, including the Company's forecast AISC, C1 Cash Costs, production and capital expenditures, growth strategies, expected annual savings from capital projects, anticipated supply, demand and market outlook for commodities, future commodity prices, anticipated effects of commodity prices on revenues, estimation of Mineral Reserves and Mineral Resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production and capital expenditures, success and restart of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, future anticipated property acquisitions, the content, cost, timing and results of future exploration programs and life of mine expectancies, the approval of up to 100% of the amount of a new financing package, the completion and satisfaction of the condition precedent to receive a new financing package, the securing of additional financing from mining-focused alternative lenders, including Standard Bank, an Export Credit Agency, Glencore and a metal streaming company, before the maturity of the Debt Facilities, if at all, the timing of the release of the PEA, the proposed mining methods at Caribou and their anticipated effects on recoveries and mining flexibility, the Company's planned development activities at Caribou and their ability to extend the Caribou mine life, the restart of processing operations at the Perkoa and Caribou mines and the anticipated timing thereof, the efficacy of the Company's implemented recommendations following the incident investigation, the Company's assessment of the effect of the flooding on the safety and structural integrity of the Perkoa mine's underground areas, the delivery of critical mining equipment to replace equipment damaged in the flooding incident, the Company's expectations to fund its current liabilities from cash flows generated by operating activities and to renegotiate the Debt Facilities with current and new prospective lenders and the Company's belief that it may default on the mandatory prepayment and therefore breach the terms of the Facility. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "outlook", "guidance", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to the fact that the Company's cost, expenditure and production guidance may not accurately estimate the Company's actual costs, expenditures or production at the Company's projects; securing additional financing and the timing thereof; the anticipated default on a mandatory prepayment and therefore breach of the Facility; actual results of current exploration activities; the flooding of the Perkoa mine may have a material adverse effect on the mine and Trevali; the Company's implemented recommendations following the incident investigation may not guarantee sufficient protection; the timing of the delivery of critical mining equipment to replace equipment damaged in the flooding incident; changes in project parameters as plans continue to be refined; the suspension of the Caribou mine's full-year production and cost guidance; the review of the Caribou mine's operations; the review of the Early Works Program; the suspension of capital spending guidance of the Early Works Program; future prices of zinc, lead, silver and other minerals and the anticipated sensitivity of our financial performance to such prices; possible variations in ore reserves, grade or recoveries; results of current and planned exploration activities; dependence on key personnel; potential conflicts of interest involving our directors and officers; labour pool constraints; labour disputes; availability of infrastructure required for the development of mining projects; delays or inability to obtain governmental and regulatory approvals for mining operations, including the restart of operations at the Perkoa and Caribou mines, or financing or in the completion of development or construction activities; counterparty risks; increased operating and capital costs; foreign currency exchange rate fluctuations; operating in foreign jurisdictions with risk of changes to governmental regulation; compliance with governmental regulations; compliance with environmental laws and regulations; land reclamation and mine closure obligations; challenges to title or ownership interest of our mineral properties; maintaining ongoing social license to operate; impact of climatic conditions on the Company's mining operations; corruption and bribery; limitations inherent in our insurance coverage; compliance with debt covenants; competition in the mining industry; our ability to integrate new acquisitions into our operations; cybersecurity threats; litigation; and other risks of the mining industry including, without limitation, other risks and uncertainties that are more fully described in the Company's annual information form, interim and annual audited consolidated financial statements and management's discussion and analysis of those statements, all of which are filed and available for review under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Trevali provides no assurance that forward-looking statements will prove to be accurate, as actual results and future events may differ from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The items marked with a "1" are non-IFRS measures. This press release may refer to the following non-IFRS financial performance measures: Earnings before interest, taxes, depreciation and amortization ("EBITDA"), Earnings before interest and taxes ("EBIT"), Adjusted EBITDA, Adjusted Earnings per Share, Net Debt, C1 Cash Cost and All-In Sustaining Cost ("AISC").

These measures are not recognized under IFRS as they do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Trevali uses these measures internally to evaluate the underlying operating performance of the Company for the reporting periods presented. The use of these measures enables the Company to assess performance trends and to evaluate the results of the underlying business. Trevali understands that certain investors, and others who follow the Company's performance, also assess performance in this way.

The Company believes that these measures reflect our performance and are useful indicators of our expected performance in future periods. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

SOURCE Trevali Mining Corp.