Orsu Metals Corporation

TSX: OSU PRESS RELEASE

August 3, 2016

Results for the six period ended June 30, 2016 (Unaudited)

Orsu Metals Corporation ("Orsu" or the "Company") a London-based base and precious metals exploration and development company, listed on TSX (TSX: OSU), today reports its unaudited results for the six months ended June 30, 2016 ("Q2 2016"). A full Management's Discussion and Analysis of the results ("MD&A") and Consolidated Financial Statements (Unaudited) for Q2 2016 (the "Financials") will soon be available on the Company's profile on SEDAR (www.sedar.com) or on the Company's website (www.orsumetals.com). Copies of the MD&A and Financials can also be obtained upon request from the Company Secretary.

The Financials have been prepared in accordance with applicable International Financial Reporting Standards ("IFRS").

All amounts are reported in United States Dollars ($) unless otherwise indicated. Canadian Dollars are referred to herein as CAD$ and British Pounds Sterling are referred to as GBP£.

The following information has been extracted from the MD&A and the Financials. Reference should be made to the complete text of the MD&A and the Financials.

BUSINESS UPDATE

In April 2016, the Company entered into two separate agreements with Karasat Trading FZE ("Karasat"), a company registered in the United Arab Emirates, for the sale of the Company's Karchiga Project and Kogodai Project (both defined below) in Kazakhstan:

Karchiga Project

The Company's principal and most advanced project comprising a license area in eastern Kazakhstan containing the copper bearing Karchiga volcanogenic massive sulphide ("VMS") deposit which is part of the Rudny Altai polymetallic belt (the "Karchiga Project"). Since 2012, the Company has been seeking to secure the funding required for the construction of a mine and processing facilities at the project. However, due to the continuing adverse economic environment during this period the Company was unable to secure the necessary funding required. As a result, the Company considered alternative solutions which resulted in the Company entering an agreement to sell its 94.75% interest in GRK MLD ("MLD") which owns the Karchiga Project to Karasat for an initial consideration of $7.75 million, plus deferred consideration of up to $2 million based on relief for corporate tax losses and the future recovery of Value Added Tax ("VAT") accumulated by MLD (the "Karchiga Transaction") subject to various conditions (further details of which are set out in the MD&A).

Kogodai Project

This comprises the exploration project for a prospect 70 km north west of the Karchiga Project identified as a VMS copper mineralization within the Kurchum-Kalzhir metamorphic terrain, the same tectonic unit that hosts the Karchiga deposit (the "Kogodai Project"). The Company entered into a separate agreement with Karasat to sell its effective 51% interest in the Kogodai Project for $10,000 (the "Kogodai Transaction") subject to certain conditions (further details of which are set out in the MD&A).

Other asset in Kyrgyzstan

The Company's exploration interest in Kyrgyzstan is through its 100% interest in Tournon Finance Limited ("Tournon") which owns 100% of Oriel in Kyrgyzstan LLC ("OiK") and owner of the Akdjol and Tokhtazan exploration licenses (the "Akdjol-Tokhtazan Project"). The exploration license area for the Akdjol-Tokhtazan Project are located in the Jelal-Abad Oblast, western Kyrgyzstan. During 2010, the Company identified the Akdjol license area as a gold-silver epithermal prospect and the Tokhtazan license area as a gold prospect. The Akdjol and Tokhtazan exploration licenses were renewed to January 1, 2020 following their expiry on December 31, 2015. Since 2011 the Company sought to dispose of the Akdjol-Tokhtazan Project but was not able to successfully dispose of the project and consequently, as at December 31, 2015 the Company decided to suspend work at the Akdjol-Tokhtazan Project. Thereafter as announced on August 2, 2016 the Company entered into an agreement to sell the Akdjol-Tokhtazan Project (see "Post quarter highlights" below).

SECOND QUARTER 2016 HIGHLIGHTS

• A year on year reduction of $0.6 million in net losses to $0.8 million for the six months ended June 30, 2016, from $1.4 million for the six months ended June 30, 2015, along with a year on year reduction of

$0.4 million in net cash outflows for the quarter.

• As at June 30, 2016 the Company had cash and cash equivalents of $3.7 million and expects to have sufficient working capital to fund its exploration and administration obligations for the next 12 months.

• In April 2016, the Company announced that it entered into two separate agreements in respect of the Karchiga Transaction and the Kogodai Transaction for the sale of the Karchiga Project and Kogodai Project to Karasat subject to the successful completion of various conditions as set out in (as set out in in the MD&A).

• In May 2016, the Company announced that it had received $100,000 deposit from Karasat pursuant to the terms of the Karchiga Transaction (as set out in the MD&A).

• In May 2016, the Company announced that effective from May 11, 2016 it shares were no longer admitted for trading on the London Alternative Investment Market ("AIM").

• In June 2016, the Company announced that at its annual shareholders meeting held on June 23 a special resolution to authorise the sale of the Karchiga Project and Kogodai Project was passed by 99.88% of the votes cast.

  POST QUARTER HIGHLIGHTS

• In August 2016, the Company announced that its wholly owned subsidiary, Lero Gold Corp. ("Lero"), had entered into an agreement with three arm's length individuals (the "Purchasers") to sell its effective 100% interest in the Akdjol-Tokhtazan Project (the "Sale and Purchase Agreement") through the sale of its 100% interest in Tournon for an effective initial consideration of approximately $0.5 million (see announcement dated August 2, 2016 for further details).

  FINANCIAL RESULTS FOR Q2 2016

  For Q2 2016 the Company reported a net comprehensive loss of $0.8 million, compared to a net loss of $1.4 million for the six months ended June 30, 2015.

  In April, the Company announced the sale of both the Karchiga Project and the Kogodai Project and as a result re-classified the assets and liabilities in relation to both projects as at June 30, 2016 as well as the combined net losses of both projects for the six months ended June 30, 2016 and 2015 as "Assets held for sale".

  As at June 30, 2016 the Company had net assets of $11.4 million ($12.2 million as at December 31, 2015) of which $3.7 million was held in cash and cash equivalents ($4.7 million as at December 31, 2015).

  The net loss of $0.8 million for the six months ended June 30, 2016 consisted of: administrative costs of

  $0.3 million, legal and professional costs of $0.14 million, a net loss of $0.2 million in relation to the disposal group asset held for sale, a net loss of $0.1 million in relation to the discontinued operation and net finance expense of $27,000.

  LIQUIDITY AND CAPITAL RESOURCES

  As at June 30, 2016 the Company's main source of liquidity was unrestricted cash and cash equivalents of

  $3.7 million, compared with $4.7 million as at December 31, 2015.

  During the six months ended June 30, 2016 the net cash used by the Company's operating expenditures was $1.0 million, compared to $1.4 million for the six months ended June 30, 2015.

  The minimum working capital the Company estimates for 2016 is set out below:

  Estimate for the full year $000
  Estimated corporate and administrative expenditure (1)	2,125

  Note:

• In estimating the forecast expenditures, the Company has applied an assumed average 2016 exchange rate of GBP£/ $ of 1.4882 for its UK corporate expenditures. The estimated expenditure excludes significant exploration expenditures at the Karchiga Project and Kogodai Project, but does include estimates of continuing administrative costs for those projects during the completion period.

Consolidated statements of net loss and comprehensive loss (Unaudited)

(Prepared in accordance with IFRS)