MONTEVIDEO, Uruguay, March 6, 2012 � Orosur Mining Inc. (the "Company") (TSX VENTURE: OMI) (LSE: OMI) a South American-focused gold producer and explorer, announces that the mining permits have been granted on March 1 for exploitation of ore from the Arenal Deeps project.

Highlights

• Mining Permit was granted on March 1 to allow ore exploitation from all levels of the Arenal Deeps Project. A permit to commence development of the mine had already been granted in 2011, so the Arenal Deeps mine is now fully permitted to operate. This permit to mine on all levels was received one month later than anticipated by Orosur in its second quarter report.
• All of the mining equipment and personnel necessary to ramp up stope production to its designed level are currently on site. Production levels are ramping up and are expected to reach design capacity in the fourth quarter of fiscal 2012.
• Production for the quarter was 13,668 ounces of gold. The delay in receiving the full production permit, a decision to develop on a 5 x 5 meter basis rather than 8 x 5 meter basis and a planned reduction in the rate of stope advance due to the need to complete additional infill drilling will result in approximately 6,500 ounces less production than budgeted in the financial year to 31 May 2012. Mining of open pit material will be accelerated and planned mill throughput increased to compensate for this shortfall. As a result a revised target range of 55,000 ounces to 57,500 ounces of production has been established for the 2012 financial year. This represents a reduction of 4%.
• As a consequence of the need to incur additional cost to accelerate open pit mining and increase mill throughput, target cash costs per ounce have increased to a range of US$930 to US$950 per ounce.
• The second tailings storage facility at Orosur's San Gregorio Operation is substantially completed and awaiting the final permit from DINAMA (the environmental agency in Uruguay) to start operating. This permit is now expected to be received in early Q2 2012. Operations will run unaffected as there is capacity in the first tailings storage for two to three more months

David Fowler, CEO of the Company commented: "Permitting and the ramp up in stope production at Arenal Deeps has taken longer than anticipated which has affected production and operating cost per ounce for the 2012 financial year. While marginally lower production and higher cash costs for this year are disappointing, the full permitting of the first mechanized underground mine in Uruguay, the completion of the new tailings dam facility which will ultimately provide capacity for 7+ years of mine life and the successful development of the Arenal Deeps mine are all critical milestones for the Company that have been achieved. With major capital expenditure commitments completed, Orosur will now focus on ramping up production and reducing cash costs.

To read the complete news release, please see the following link:
http://www.orosur.ca/_resources/news/OMI-PR-Mar6-2012.pdf