Tinka Resources Limited announced the results from an updated Preliminary Economic Assessment (PEA) on the Company's 100% owned polymetallic Ayawilca project (Ayawilca or the Project) in central Peru. The updated PEA shows Ayawilca to be an excellent base metals project with significant enhancements from the previous PEA study. The Project now features a smaller, more efficient zincsilverlead plant, introduces a separate tin plant for additional revenue and commodity diversification and highlights the development path forward for Ayawilca to become a producing mine.

Mining: The Ayawilca Project is planned as an underground mine operation. For the purposes of the PEA, the Zinc Zone (together with the Silver Zone) will be mined at a rate of 2.0 Mtpa, whilst the Tin Zone will be mined at a rate of 0.3 Mtpa. Mining of both zinc and tin zones commence together with each feeding separate processing plants.

The LOM is 21 years for the Zinc Zone and 15 years for the Tin Zone. Mining in the Zinc and Tin Zones will utilize a long hole open stoping ("LHOS") method in a transverse direction with level spacing ranging from 15 to 20 m. The Silver Zone uses LHOS in a longitudinal direction at a 20 m level spacing. A topdown overhand mining sequence is applied, working on top of pastefill between sill pillars which are recovered.

Three declines are planned from surface, initially two declines to access the South, Silver, and West areas and in later years the Central and East areas will be accessed by a third decline. The Tin Zones are also accessed through these planned declines. Production is assumed to commence following 18 months of construction and commissioning.

The mine plan for the Zinc and Silver Zones is based on mining a total of 41.2 million tonnes grading 5.02% Zn, 17.3 g/t silver and 0.19% lead over a 21year LOM using an NSR cutoff of USD 60/t. The Tin Zone is based on mining a total of 4.32 million tonnes grading 0.92% tin over a 15year LOM using an NSR cutoff of USD 80. The mill feed will be trucked to the surface via multiple ramp systems connecting the three mine portals to the underground infrastructure and accessing production areas starting at the South and West areas of the Zinc Zone, the Silver Zone, and the high recovery area of the Tin Zone. Metallurgy and Processing: Processing of the zincrich mineralization will be through a conventional crushing and grinding circuit followed by froth flotation, concentrate thickening and filtration.

Metallurgical test work indicates a zinc concentrate grading 50% zinc can be produced from Zinc and Silver Zones with 92% of the zinc in the Zinc Zone recovered to the zinc concentrate, and 87% of the zinc in the Silver Zone recovered to the zinc concentrate. The lead concentrate is expected to contain 47% lead and average 3,140 g/t silver over the LOM. Based on preliminary metallurgical test work, 45% of the silver in the Zinc Zone is expected to report to the lead concentrate and be payable, while 40% of the silver is expected to report to the zinc concentrate and not be payable.

In the Silver Zone, 85% of the silver (and 85% of the lead) is expected to report as a credit to a commercial lead concentrate. The zinc concentrate is expected to be a marketable concentrate with no deleterious elements other than an iron penalty. Concentrate grade assumptions and recoveries for the principal metals in the Zinc and Silver Zones.

The first 200,000 wmt/a of zinc concentrates are assumed to be delivered directly to a local refinery (around 90% of LOM production); the balance is assumed to be sold to refineries in east Asia. The zinc concentrate also contains high indium (around 650 ppm In) and receives a USD 20/dmt credit in concentrate shipped to Asia. All of the silverlead concentrates are assumed to be sold overseas.

Offsite charges include transport costs, treatment charges, refining charges, and iron penalties at refinery. Initial metallurgical testwork indicates that a tin concentrate grading 50% with 90% recovery can be produced from the high recovery (coarse tin) part of the Tin Zone, and a tin concentrate grading 50% with 50% recovery can be produced from the lower recovery (fine tin) part of the Tin Zone. The coarse tin represents 19% of the overall tin feed.

The tin concentrates are anticipated to have markets in Asia and therefore all of the tin concentrate produced is assumed to be shipped overseas. Offsite charges include transport, treatment charges, refining charges, and penalties at refinery. Approximately 60% of the tailings will be thickened and filtered for dry stack tailings disposal.

The remaining 40% will be prepared as pastefill and reticulated to the underground mine to be used as structural backfill. Infrastructure: Access: There is a good existing road network from the Project to the coast of Peru. The Project lies approximately 250 km from the Port of Callao and a zinc refinery.

The road leaving the Project is an allweather gravel road that crosses the high central Andes for about 60 km before joining a bitumen road to the coast and then to the Port of Callao via the PanAmerican highway. The Cajamarquilla zinc refinery is situated on the eastern outskirts of the city of Lima with good access from the highway. Tailings and Mine Waste Management: The tailings and mine waste concept for the Ayawilca PEA is based on a commitment to implementing best available practices and best available technologies.

The location of the TSF has been selected to minimize any potential risks for downstream areas. It is envisaged that: 100% of mine waste rock and 40% of tailings production will be reused as underground mine backfill; Onsurface tailings will be processed as filtered tailings and stacked at a secure and prepared facility. This method will reduce the environmental footprint and the risk of failure and the attendant environmental impacts, while also minimizing water consumption.

The filtered tailings facility has been located adjacent to the process plant area, minimizing the haul distance for the tailings and reducing environmental and social impacts. Power: A new electricity substation is currently under construction 4.7 km from Ayawilca by a 3rd party mining company. The Project will include construction of a transmission line from this substation to a substation at Ayawilca.

Tinka has recently received approval of a preoperation environmental study ("EPO") to access 220kV /23 MW power supply through a substation at Ayawilca. Ayawilca is now planned to become connected to the national electrical grid.