Orvana Minerals Corp. Historical Reports - copyright © 2008 Canwest Digital Media, a division of Canwest Publishing Inc. of Revised December 9, 2008 Orvana Minerals Corp. Head Office: 1530-320 Bay St Toronto ON, M5H 4A6 Tel: (416) 369-1629; Fax: (416) 369-1402 Email: mking@orvana.com WWW: www.orvana.com Quick Reference Data Major Shareholder: Fabulosa Mines Limited held 52.5% interest and Sprott Asset Management Inc. held 12.3% interest at Dec. 31, 2007 CUSIP: 68759M Incorporation: Ontario, Feb. 24, 1992 amalg. Fiscal Year End: Sept. 30 Listed (Canada): ORV: TSX Investor Relations: Malcolm King; Tel: (416) 369-1629 Auditors: PricewaterhouseCoopers LLP, C.A., Toronto, Ont., Canada Lawyers: Blake, Cassels & Graydon LLP, Toronto, Ontario Transfer Agents: Equity Transfer & Trust Company, Toronto, Ontario Profile Holds the producing Don Mario gold-copper-silver mine in eastern Bolivia. Related Companies Wholly Owned Subsidiaries Orvana Cyprus Limited - Cyprus 100% interest in Orvana Sweden International AB - Sweden 99.9% interest in Clarendon Mining Limited - Jamaica 99.6% interest in Empresa Minera Paititi S.A. - Bolivia 99.5% interest in Minera El Alto S.A. - Bolivia 99.9% interest in Minera Orvana Mexico S.A. de C.V. - Mexico 99.8% interest in Minera Orvana Peru S.A. - Peru Orvana Pacific Minerals Corp. - Canada 0.1% interest in Clarendon Mining Limited - Jamaica 0.2% interest in Empresa Minera Paititi S.A. - Bolivia 0.25% interest in Minera El Alto S.A. - Bolivia 0.1% interest in Minera Orvana Mexico S.A. de C.V. - Mexico 0.1% interest in Minera Orvana Peru S.A. - Peru Orvana Resources U.S. Corp. Investments 0.2% interest in Empresa Minera Paititi S.A. - Bolivia 0.25% interest in Minera El Alto S.A. - Bolivia 0.1% interest in Minera Orvana Peru S.A. - Peru History The company was incorporated as Orvana Resources Inc. on Mar. 27, 1987, under the Company Act of British Columbia. On Sept. 4, 1987, the company's name was changed to Pan Orvana Resources Inc. On Feb. 24, 1992, the company acquired and amalgamated with New Kelore Mines Limited on the basis of one new share for 3.67 old shares and concurrently changed its name to Orvana Minerals Corp. and continued into Ontario. On Jan. 11, 2002, Compania Minera del Sur S.A. (Comsur) agreed to develop the Don Mario deposit. The company issued to Comsur 52,995,143 common shares valued at US$4,000,000 and Comsur agreed to finance the purchase of a mining concession with a gold mill plant and equipment valued at US$8,000,000 (purchase closed in March 2002); lend the company US$6,000,000 to purchase additional equipment, develop open-pit and underground mining operations in the lower mineralized zone (LMZ) of the Don Mario deposit and construct a processing plant and related infrastructure; and place the LMZ into production within 18 months, with a mine and mill capacity of a minimum of 600 tpd. Comsur also agreed to fund any cost overruns for the project above US$18,000,000. Also in January, the company paid Butte Highlands Mining Company Cdn$50,000 in full and final settlement of obligations for the Butte Highlands property near Butte, Mont. The company was originally required to pay Cdn$50,000 in each of 2000 and 2001 as part of an agreement to acquire the property. The company changed its fiscal year end from Dec. 31 to Sept. 30, effective Sept. 30, 2003. During fiscal 2005, Minera S.A. sold the parent company of Compania Minera del Sur S.A. (Comsur), which was the company's controlling shareholder prior to the sale. The 59,914,695 common shares formerly held by Comsur were transferred to Fabulosa Mines Limited, a wholly owned subsidiary of Minera S.A. In March 2006, the company agreed to sell its 40% interest in the Pederson gold property in the Altiplano area of Bolivia to Castillian Resources Corp., requiring payment of US$1,200,000 within five years of completion of a feasibility study on the property. In September 2006, Castillian declared force majeure after making two payments claiming that local community groups opposed to exploration and mining activities in the area had prevented it from conducting the required work. The property was written down to nominal value and the company proposed divesting its other non-core prospects in the region. During fiscal 2007, the company completed a corporate reorganization, combining four of its Bolivian subsidiaries into Empresa Minera Paititi S.A. and surrendering the charters of several inactive subsidiaries in other jurisdictions. Capital Stock   Authorized Outstanding1 Common unlimited 115,233,173 shs. 1 At Dec. 3, 2008. Options - At Sept. 30, 2008, options were outstanding to purchase 2,990,001 common shares at a weighted average exercise price of Cdn$0.90 per share with a weighted average contractual life of 2.12 years. Capital Stock Plans Stock Option Plan - The stock option plan was established in 2006 to attract, retain and compensate directors, senior officers, employees and consultants of the company. A committee appointed by the board of directors determines the number of stock options to be granted, the exercise price (which may not be less than the market price) and the vesting period. Options are generally granted for five years, with one-third vesting immediately and one-third after each of the first and second anniversaries of the date of grant. Terms of options may not exceed 10 years from the date of grant. Price Range Orvana Minerals Corp. - ORV Year Volume High Low Close     $ $ $ 2007 27,531,033 1.12 0.52 0.74 2006 42,979,457 1.42 0.57 0.80 2005 16,502,036 1.32 0.80 1.05 2004 17,231,820 1.51 0.78 1.04 2003 34,752,358 1.94 0.90 1.39 2002 37,434,229 1.06 0.14 1.00 2001 16,738,479 0.23 0.06 0.15 2000 7,809,287 0.45 0.05 0.08 1999 8,147,435 0.89 0.17 0.25 1998 15,663,495 2.45 0.56 0.70 Note: All prices are for calendar years, and are adjusted to reflect stock splits (if applicable). Capital Stock Changes The company was formed by amalgamation of Pan Orvana Resources Inc. and New Kelore Mines Ltd. on Feb. 24, 1992, on the basis of 1 Orvana share for each 3.67 New Kelore shares held. During 1992, common shares were issued as follows: 3,348,804 by private placement for net proceeds of Cdn$1,090,618, 2,563,113 pursuant to the acquisition of New Kelore Mines, Ltd. and 200,000 on conversion of special warrants. In March 1993, private placement of 2,000,000 common shares was completed at Cdn$0.65 per share. In June 1993, private placement of 2,158,842 common shares was completed at Cdn$1.50 per share. Also during 1993, common shares were issued as follows: 1,125,000 shares on exercise of warrants, 270,425 on exercise of options, 150,000 on conversion of special warrants and 12,480 on acquisition of mineral property. In March 1994, 2,650,000 common shares were issued on exercise of special warrants sold previously by private placement at Cdn$7.375 each. Also during 1994, common shares were issued as follows; 500,000 on exercise of warrants, 142,540 on exercise of options, 100,000 on conversion of special warrants and 2,595 on acquisition of mineral property. During 1995, common shares were issued as follows: 100,934 on exercise of options, 20,121 pursuant to the employee share purchase plan, 56,052 for cash and 13,715 on acquisition of mineral property. In April 1996, 3,315,000 common shares were issued on exercise of special warrants sold previously by private placement at Cdn$5.00 each. Also during 1996, common shares were issued as follows: 6,757,162 on acquisition of mineral property, 768,300 on exercise of options, 100,000 on conversion of special warrants, 33,162 common shares for cash and 14,774 pursuant to the employee share purchase plan. During 1997, 3,000,000 common shares were issued on exercise of special warrants sold previously by private placement at Cdn$6.25 each, 100,400 on exercise of options and 37,684 pursuant to the employee share purchase plan. In January 1998, private placement of 5,714,286 units (1 common share & 1/3 warrant) at Cdn$1.75 per unit was completed. Also during 1998, common shares were issued as follows: 156,666 pursuant to the employee share purchase plan and 70,192 on acquisition of mineral property. During 1999, 25,000 common shares were issued on acquisition of mineral property. During 2000, 6,552,986 common shares were issued on exercise of rights. There were no changes to capital stock during 2001. During 2002, common shares were issued as follows: 55,497,695 by private placement to Compania Minera del Sur S.A., 1,084,333 on exercise of options and 750,000 on exercise of warrants. During fiscal 2003, common shares were issued as follows: 1,350,000 by private placement to Compania Minera del Sur S.A., 1,320,500 on exercise of options and 30,000 on acquisition of mineral property. During fiscal 2004, common shares were issued as follows: 572,000 by private placement to Compania Minera del Sur S.A., 572,000 on exercise of options and 337 for an adjustment. During fiscal 2005, common shares were issued as follows: 180,333 by private placement to Fabulosa Mines Limited and 180,333 on exercise of options. During fiscal 2006, common shares were issued as follows: 350,000 by private placement to Fabulosa Mines Limited and 350,000 on exercise of options. There were no changes to capital stock during fiscal 2007 or 2008. Long-Term Debt At Sept. 30, 2008, long-term debt was US$4,245,000 (US$1,601,000 current) consisting entirely of a 7.75% credit facility due 2011. Commitments and Contingencies Tax Loss Carryforward - At Sept. 30, 2008, the company had non-capital tax loss carryforwards of US$12,429,000 expiring through 2018. Quarterly Earnings Quarter 1 Quarter 2 Quarter 3 Quarter 4 Fiscal Year Operating Revenue Net Inc. Bef. Disc. Ops. EPS Operating Revenue Net Inc. Bef. Disc. Ops. EPS Operating Revenue Net Inc. Bef. Disc. Ops. EPS Operating Revenue Net Inc. Bef. Disc. Ops. EPS US$000s US$000s US$ US$000s US$000s US$ US$000s US$000s US$ US$000s US$000s US$ No part of this publication may be reproduced in any form, or by any means, including photocopying without permission in writing from Financial Post DataGroup, CanWest Interactive, a division of CanWest MediaWorks Publications Inc. Information contained in this publication has been compiled from sources believed to be reliable. While every effort has been made to ensure accuracy and completeness, these are not guaranteed. 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