TORONTO, ONTARIO--(Marketwired - May 13, 2013) -

All Dollar Amounts are in U.S. Dollars ("US$") Unless Otherwise Indicated

Ivernia Inc. ("Ivernia" or, collectively with its subsidiaries, the "Company") (News - Market indicators) today reported its first quarter 2013 results. During the first quarter of 2013, the Company's Paroo Station lead mine (the "Mine") continued the preparation work required for a restart of operations. In April 2013, mining, processing and transportation operations were recommenced at the Mine.

The Company recorded net loss after tax of $7.3 million or $0.01 per common share for the first quarter of 2013, compared to net loss after tax of $1.9 million or $0.00 per common share for the same period last year.

FIRST QUARTER 2013 HIGHLIGHTS

Financial

• Gross loss of $7.1 million for the first quarter of 2013.
• Net loss after tax of $7.3 million for the first quarter of 2013. Net loss after tax for the first quarter of 2013 includes a foreign exchange gain of $0.5 million mainly related to Rosslyn Hill Mining Pty Ltd's ("Rosslyn Hill Mining") functional currency being the A$ while Ivernia's reporting currency is the US$. The gain was as a consequence of the A$ strengthening against the US$ in the first quarter of 2013 with the US$/A$ rate increasing from 1.0392 on December 31, 2012 to 1.0426 on March 31, 2013. The foreign currency gain is mainly related to foreign exchange movements on US$ and C$ intercompany loans. These intercompany loans are with wholly owned subsidiaries of the Company and are eliminated from the Statement of Financial Position on consolidation.
• On January 29, 2013, the Company closed a C$20 million secured loan facility, bearing a monthly compounded interest rate of 12% per annum (the "Sprott Facility") with Sprott Resources Lending Partnership ("Sprott"), with a C$15 million and C$5 million drawdown made on January 29, 2013 and March 20, 2013, respectively. The Sprott Facility matures February 28, 2015.
• In conjunction with the Sprott Facility, Enirgi Group Corporation ("Enirgi Group"), the Company's majority shareholder, agreed to extend the expiry date of its fully drawn C$6 million loan facility (the "Enirgi Facility") to March 31, 2015.

Operational

• On March 27, 2013, the OEPA issued a news release confirming that the Company had completed all of the management and monitoring plans required to restart transportation of lead carbonate concentrate from the Mine pursuant to Ministerial Statement 905, which contains the majority of the Company's new operating and transportation conditions (the "Operating Conditions").
• On March 28, 2013, the Company announced it was recommencing operations at the Mine. Mining, processing and export operations were recommenced in April 2013.
• The Mine expects to produce between 40,000 to 45,000 tonnes of lead contained in concentrate and to sell between 45,000 to 50,000 tonnes of lead contained in concentrate for the year ended December 31, 2013. Full production levels at the Mine are targeted by the end of 2013.
• The main capital project (completed in the first quarter of 2013) required prior to restart, was upgrading the infrastructure and systems around the concentrate handling process at the Mine and along the transport route including building a significant hardstanding and washdown area at the Mine.
• On December 28, 2012, the Company entered into management services agreements (the "Management Services Agreements") with Enirgi Group and its wholly owned Australian subsidiary Enirgi Metal Group Pty Ltd. ("EMG"), pursuant to which, among other things Enirgi Group is managing the day to day operations of Ivernia and EMG is managing the restart and ongoing operation of the Mine. Enirgi Group and EMG have performed well to date against the Management Services Agreements and provided the Mine with increased support and expertise.

FINANCIAL AND OPERATING HIGHLIGHTS

The following table is a summary of Ivernia's financial and operating highlights for the three months ended March 31, 2013 and 2012:

OPERATIONS REVIEW

On July 27, 2012, the Company received the Operating Conditions from the Minister for Environment, Water for Western Australia (the "Minister") which, in general were consistent with the draft recommended conditions (the "Draft Recommended Conditions") for the Mine that were released by the Environmental Protection Authority of Western Australia ("EPA"). The Operating Conditions replace and supersede the Interim Implementation Conditions, which were issued on February 23, 2011 and the previous Ministerial Statements 559 and 783. See "New Operating Conditions" below.

Following the receipt of the Operating Conditions in the third quarter of 2012, the Company completed its internal planning process in preparation for the restart of operations, which included critical path planning, capital expenditure requirements and the identification of key recruitment milestones. The operations remained on care and maintenance for the remainder of 2012 and the first quarter of 2013. Consequently, there was no production or sales of lead carbonate concentrate in 2012 or the first quarter of 2013.

Principal activities during the first quarter of 2013 focused on completing activities required to restart the Mine. The Company completed construction of a hardstanding area at the Mine. In addition, in conjunction with work being completed by the road and rail contractor, the facilities at the Leonora rail yard were being upgraded to include a hardstanding area for the Company's containers. During the quarter, the Company completed maintenance work on the plant aimed to maximize plant availability during the restart period and substantially completed all recruitment required to restart operations. On March 28, 2013, the Company announced that it was recommencing operations at the Mine. In April 2013, mining, processing and transportation operations were recommenced at the Mine.

New Operating Conditions

On July 27, 2012, the Company received the Operating Conditions from the Minister which, in general, were consistent with the Draft Recommended Conditions for the Mine that were released by the EPA in 2011. The Operating Conditions preserve the strict auditing, monitoring and reporting requirements that were imposed on the Company pursuant to the Interim Implementation Conditions.

Pursuant to the Operating Conditions, the Company can ship lead carbonate concentrate through the Port of Fremantle for only five years from the date of issuance of the Operating Conditions. The Company is strongly committed throughout this five year period to demonstrating that containerized shipping of the Company's product is both safe and appropriate. As with its other regulatory compliance and approval processes, including maintaining current operating licenses and permits and obtaining approvals to expand or alter the Mine's operations, the Company will need to demonstrate its sound environmental performance to maintain current licenses and permits or obtain approvals for new licenses or renewals for existing licenses on reasonable terms. See "Risk Factors - Regulatory Compliance and Approvals" in the annual information form dated March 28, 2013 (the "2012 AIF").

In addition, the Operating Conditions require that certain actions be undertaken by the Company prior to the re-commencement of transportation of any lead carbonate concentrate from the mine site. In accordance with the Operating Conditions, the Company:

• carried out a risk assessment ("Environmental Risk Assessment") of all key aspects of the operations regarding the potential pathways for lead carbonate concentrate contamination and submitted a report on such findings to the Chief Executive Officer ("CEO") of the of the OEPA;
• prepared and submitted to the CEO of the OEPA for approval (and on advice of the Department of Mines and Petroleum ("DMP") of Western Australia), an environmental management program ("Environmental Management Program") which among other things, documents standards, guidelines and codes of practice relating to management of lead carbonate concentrate and details procedures relating to mining, processing, storing, packaging and transport of lead carbonate concentrate;
• engaged a third party expert approved by the CEO of the OEPA to carry out an evaluation of the sampling methodology and analysis methodology ("Sampling Evaluation") for all rainwater tank, static dust, air, soil, drainage sump and benthic sediment sampling required under the Operating Conditions and reported to the CEO of the OEPA on its implementation of the recommendations in the Sampling Evaluation; and
• engaged the services of an independent inspector approved by the CEO of the OEPA to, among other things, visually inspect all sealed bags containing lead carbonate concentrate and established and documented the detailed roles and responsibilities of the inspector to the satisfaction of the CEO of the OEPA, in consultation with the Department of Environment and Conservation (the "DEC") and DMP (the "Inspector Report").

The Operating Conditions also require that shipping containers be free of all visible mud containing lead carbonate concentrate prior to being removed from the mine site and prior to being loaded onto trains at the Leonora rail yard. In the first quarter of 2013, the Company completed construction of a hardstanding area at the Mine. In addition, in conjunction with work being completed by the road and rail contractor, the design of facilities at the Leonora rail yard were completed to include a container washing facility and hardstanding area for the Company's containers, which is expected to be completed in the second quarter of 2013.

As required under the Operating Conditions, on January 31, 2013, the Company provided the CEO of the OEPA, a report detailing options for downstream processing of lead carbonate concentrate that, among other things, details the available options against best environmental practice (the "Downstream Processing Report"). The Downstream Processing Report was peer reviewed by an independent expert approved by the CEO of the OEPA. The Downstream Processing Report was a requirement of the Operating Conditions and the Company has not sought any change to its existing lead carbonate concentrate mining proposal in the Operating Conditions to include downstream processing. Further, the Downstream Processing Report did not require the Company to opine on the economic feasibility of a downstream processing facility. However, in 2011, the Company commissioned and received a process selection study from an independent third party engineering firm and delivered its preliminary findings to the OEPA and the Minister in January 2012. Those preliminary findings indicated that at current lead prices and exchanges rates, downstream processing of lead produced from the Mine remains uneconomic.

In the first quarter of 2013, the Company completed all material actions specified in the Operating Conditions that were required to be undertaken prior to the recommencement of transportation of lead carbonate concentrate from the mine site. On March 27, 2013, the OEPA issued a news release confirming that the Company had completed all of the management and monitoring plans required to restart transportation of lead carbonate concentrate from the Mine pursuant to the Operating Conditions. On March 28, 2013, the Company announced that it was recommencing processing operations at the Mine. In April 2013, mining, processing and transportation operations were recommenced at the Mine.

Mine Update and Restart Planning

During the care and maintenance period, all process vessels were drained, flushed and inspected with minor repairs conducted and the process vessels then refilled with water to prevent corrosion. Major equipment including motors, pumps and agitators were operated on a routine basis to ensure that they are in good working order. The power supply was rationalized in line with reduced power requirements. In the first quarter of 2013, the Company completed maintenance work on the plant aimed to maximize plant availability during the restart period.

At the start of the care and maintenance period, all haul roads were secured. Access to the open pits were limited to authorised personnel and regular inspections indicate that the pits have remained in geotechnically stable condition in connection with a restart of mining activities.

In 2004, the mining contractor was awarded a five year contract, since extended to December 31, 2014, to carry out the mining and supply of ore to the concentrator. Following the decision to enter care and maintenance in April 2011, the Company amended its open pit mining contract (the "Amended Mining Contract") to suspend the services of the mining contractor at the Mine. Pursuant to the Amended Mining Contract, the Company is permitted to reinstitute the services of the mining contractor following the Company providing notice of re-commencement of work. In addition, the expiry date of the Amended Mining Contract will be extended by the length of the suspension period that commenced on April 6, 2011 and that terminates following the issuance of a notice of recommencement of work to the mining contractor. In the first quarter of 2013, the Company advanced discussions with the mining contractor on the re-mobilization of its workforce from the temporary suspension under the contract. When in operation, ore is extracted via open pit operations over the life of the Mine. The pits are shallow with a maximum depth of 50 metres and excavators are used to dig and load waste and ore into 85 tonne haulage trucks. Qualified personnel employed or contracted directly by the Company carry out Mine planning and grade control. The mining contractor recommenced mining operations in April 2013.

As security for the punctual performance of the Emergency Response Plan under the Operating Conditions, prior to removing shipping containers with lead carbonate concentrate from the Mine, the Company was required to issue in favour of the Minister for Environment and the CEO of the OEPA an A$5 million unconditional and irrevocable guarantee from a bank (the "Bond") acceptable to the OEPA. In November 2012, the Company had the A$5 million bond refunded that was previously in place to cover shipments from the Mine to use as working capital. In March, 2013, the Company received a C$5 million final advance under the Sprott Facility to refund the A$5 million Bond and the Bond has been reinstated. The Company's aggregate current performance bonds as at March 31, 2013 are A$7.6 million.

Throughout the first quarter of 2013, a total of approximately 140 employee positions were filled in Perth and at the Mine as part of the restart of operations.

At the time that the transport operations were stopped in April 2011 there were approximately 10,100 tonnes of lead concentrate stockpiled on site at an estimated average concentrate grade of 64% lead, containing approximately 6,450 tonnes of contained lead in concentrate. This concentrate is stored in sealed bags and protected from the weather. There was no production or ore processed in 2012. Transportation of the stockpiles of lead carbonate concentrate commenced in April 2013.

Production Outlook

With the resumption of operations in the second quarter of 2013, the Company expects to produce between 40,000 and 45,000 tonnes of lead contained in concentrate in 2013. The Company expects to sell between 45,000 and 50,000 tonnes of lead contained in concentrate in 2013.

Financing activities

Sprott Facility

On January 29, 2013, the Company announced that it had entered into the Sprott Facility with Sprott which is expected to provide the Company with the funding needed to restart operations at the Mine. On the closing of the Sprott Facility, the Company drew down a C$15 million initial advance under the Sprott Facility. A subsequent advance of C$5 million was drawn down on March 20, 2013 to fund the Bond required for punctual performance of the Emergency Response Plan under the Company's Operating Conditions. The Sprott Facility is secured by the Mine and all of its assets.

The Sprott Facility matures on February 28, 2015 after twelve equal principal repayments starting March 31, 2014, however early repayment of the Sprott Facility, at Ivernia's option, is allowed without penalty provided that Ivernia has paid at least six months of interest under the Sprott Facility. The Sprott Facility bears interest at a rate of 12% per annum, compounded monthly, which is payable at the end of each month. In addition to the payment of interest, under the Sprott Facility, Ivernia also issued 10,169,491 Ivernia common shares to Sprott and its nominees having a value of C$1.2 million and paid a cash structuring fee of C$0.2 million.

As a condition to the execution of the Sprott Facility, Enirgi Group agreed to postpone the maturity date of the Enirgi Facility to March 31, 2015.

Capital Resources and Working Capital Requirements

As of March 31, 2013, the Company had approximately $7.6 million in cash. At current lead prices and foreign exchange rates, the Company expects that it has sufficient working capital to fund the Mine until operations turn cashflow positive. Operations are expected to turn cashflow positive in the third quarter of 2013. While the Company anticipates that cashflow from operating activities will be sufficient to fund non- operating activities going forward, the Company's financial condition will remain subject to certain risks and uncertainties as it ramps-up operations over the course of 2013. For instance, ongoing cash flow from operating activities is exposed and continues to be exposed to fluctuations in metal prices, production and shipping rates and the A$/US$ exchange rate. See "Risk Factors - Funding Requirements" in the 2012 AIF and "Forward-Looking Statements" below.

Management's Discussion and Analysis and Consolidated Financial Statements

Ivernia's unaudited financial statements and management's discussion and analysis for the three months ended March 31, 2013 will be filed today and will be available on the Ivernia website at www.ivernia.com or SEDAR at www.sedar.com.

About Ivernia

Ivernia is an international base metal mining company and the owner of the Paroo Station Mine in Western Australia.

Ivernia trades under the symbol "IVW" on the Toronto Stock Exchange. Additional information on Ivernia is available on the Company's website at www.ivernia.com and at SEDAR at www.sedar.com.

Forward-Looking Statements

Certain statements contained in this news release are forward-looking information within the meaning of securities laws. All statements included herein (other than statements of historical facts) which address activities, events or developments that management anticipates will or may occur in the future are forward-looking statements, including statements as to the following: future targets and estimates for production and sales, projections with respect to cash flows and working capital, any additional financing requirements to restart the Mine, the cost and timing for completion of capital projects necessary for restart or ongoing operations, the Company's ability to comply with the new Operating Conditions, capital expenditures, operating costs, cash costs, mineral resources, mineral reserves, life of mine, recovery rates, grades and prices, business strategies and measures to implement such strategies, competitive strengths, estimated goals and plans for Ivernia's future business operations, lead market outlook and other such matters. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "contemplate", "target", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions.
These statements are based upon certain reasonable factors, assumptions and analyses made by management in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. However, whether actual results and developments will conform with management's expectations is subject to a number of risks and uncertainties, including factors underlying management's assumptions, such as, expected concentrate sales, the costs and other capital expenditures required to recommence operations and transportation, the timing, need and ability to raise any additional financing and the risks relating to ramping up mining and milling throughput and operations, funding requirements, operations being placed on care and maintenance, matters relating to regulatory compliance and approvals, shareholder dilution, matters relating to public opinion, presence of a majority shareholder and Management Services Agreements, matters related to the Esperance settlement and shipments through the Port of Fremantle, regulatory proceedings and litigation and general operating risks such as metal price volatility, lead carbonate concentrate treatment charges, exchange rates, the fact that the Company has a single mineral property, health and safety, environmental factors, mining risks, metallurgy, labour and employment regulations, government regulations, insurance, dependence on key personnel, constraints on cash distribution from the Mine, the nature of mineral exploration and development and common share price volatility. Additional factors and considerations are discussed in the 2012 AIF and elsewhere in other documents filed from time to time by Ivernia with Canadian securities regulatory authorities. While Ivernia considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. These factors may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and there can be no assurance that the actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected results on the Company. Undue importance should not be placed on forward-looking information nor should reliance be placed upon this information as of any other date. Except as required by law, while it may elect to, Ivernia is under no obligation and does not undertake to update this information at any particular time.