(OMI) Orosur Mining

Change of Chairman

Orosur Mining Inc.

Orosur Mining Inc. Announces

Change of Chairman

SANTIAGO, Chile, January 17, 2012 – Orosur Mining Inc. (the "Company") (TSX VENTURE: OMI) (LSE: OMI) announces that Mario Caron has stepped down as Chairman. He will continue as a Non Executive Director. Mr. Ralph Browning, who has been a Non-Executive Director of Orosur Mining since December 2010, will become Executive Chairman of the Board with immediate effect.

Mr. Caron joined the Board of the Company as Chairman on October, 2009. He has recently been appointed as Chief Executive Officer of Aldridge Minerals Inc. and is stepping down as Chairman of Orosur to dedicate more time to this role.

David Fowler, Orosur Mining Director and Chief Executive Officer said, "I am delighted to welcome Ralph to the role of Chairman of Orosur Mining. Ralph's experience in corporate development and international transactions will be invaluable as we look to build a leading gold producer in South America.”

"I wish to thank Mario Caron for his leadership and dedication to the development of our Company, exemplified by the recent successful commissioning of Orosur’s first underground mine at Arenal Deeps in Uruguay and the acquisition of the prospective ‘Mina Talca’ exploration properties in Chile."

Mr. Browning, aged 48, is a finance executive with over 25 years of experience in the banking and finance industry including board and management expertise in corporate development, fund management and capital markets running businesses in the Americas, Europe, Middle East, Africa and South-East Asia.

He holds a Bachelor of Science degree in Geography from The London School of Economics and Political Science and has been a registered representative of the London Stock Exchange.

Mr. Browning started his career at Imperial Chemical Industries (now "ICI") managing a base and precious metals portfolio for use as catalysts by ICI in its petrochemical and other businesses. Subsequently, he has been involved in the establishment and growth of numerous other businesses with Citibank, NatWest and Deutsche Bank as well as other significant providers of risk capital. He is also Chairman of London quoted GMA Resources Plc.

ENDS

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Orosur Mining Inc.

Orosur Mining Inc. is a fully integrated gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay and Chile. The Company is quoted in Canada (TSX-Venture Exchange: OMI) and London (AIM: OMI).

For further information, please contact:

Orosur Mining Inc

David Fowler, CEO

Ignacio Salazar, CFO + 562 9246800; info@orosur.ca

Canaccord Genuity Limited (Nominated Adviser & Broker)

+44 (0) 20 7050 6500

Rob Collins

Bhavesh Patel

Blythe Weigh Communications (Public Relations and Investor Relations)

Tim Blythe: +44 (0) 7816 924626

Ana Ribeiro: +44 (0) 7980 321505

Matthew Neal: +44 (0) 7917 800011

Orosur Mining Inc. Announces Results of the Preliminary Economic Assessment on Pantanillo Norte Project in Chile

Orosur Mining Inc.

Orosur Mining Inc. (“OMI” or “the Company”) (TSX VENTURE: OMI) (LSE: OMI), a South American-focused gold producer and explorer announces the results of the Preliminary Economic Assessment ('PEA') on its wholly owned Pantanillo Norte project in Chile. The study was completed by AMEC E&C Services Inc. ('AMEC') and compliant with NI 43-101 regulations.

Highlights of the PEA

Summary of Financial Parameters	�	�	�	�	�	�	�	�
�	�	�	�	Unit	�	�	�	LOM
Gold Contained	�	�	�	oz ‘000	�	�	�	686
Gold Recovered	�	�	�	oz ‘000	�	�	�	484
Total Cash Cost	�	�	�	US$/oz	�	�	�	581
Net Present Value @ 8%	�	�	�	US$ million	�	�	�	32.2
Internal Rate of Return	�	�	�	%	�	�	�	17
Average Annual Gold Production	�	�	�	Ounces ‘000	�	�	�	97

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Discount Rate Sensitivity

Financial parameter

�

�

�

Unit

�

�

�

0%

�

�

�

5%

�

�

�

8%

NPV

�

�

�

US$ million

�

�

�

96.8

�

�

�

52.2

�

�

�

32.2

IRR

�

�

�

%

�

�

�

17

�

�

�

17

�

�

�

17

Payback time

�

�

�

Month

�

�

�

34

�

�

�

40

�

�

�

45

The financial results indicated a five-year mine life, with Net Present Value of US$32 million (before tax) and IRR of 17per cent. The gold price assumption for the PEA was constant at US$ 1,200/oz. No other metals were considered payable.

David Fowler, Chief Executive Officer commented:

“We are pleased to announce a preliminary economic assessment for the Pantanillo project in Chile which has been independently prepared by AMEC. This PEA is based on the existing resource at Pantanillo Norte and demonstrates Pantanillo development potential. We believe that further exploration has the potential to significantly enhance the project and a number of initiatives will be pursued through development in an effort to reduce capital expenditure further.”

PEA Background

OMI has requested AMEC to prepare an updated NI 43-101 Technical Report on the wholly-owned Pantanillo Norte Au Project, located in the III Region, Northern Chile.

The Technical Report discloses a Mineral Resource estimate for the Project, which supported a Preliminary Economic Assessment. The life of Mine plan (“LOM”) was based on the resources disclosed effective as of July 9, 2010, at a commodity price of US$ 1,035/oz gold.

The PEA envisages a 7 Mt per annum heap leaching operation processing only the oxide, leached and mixed materials to a total of approximately 686 thousand oz gold in situ.

Mineral Resource Statement

Mineral Resources take into account geologic, mining, processing and economic constraints, and have been confined within appropriate pit shells based on Lerchs-Grossman Algorithm (LG), and therefore are classified in accordance with the 2010 CIM Definition Standards for Mineral Resources and Mineral Reserves.

Mineral Resources are reported at a commodity price of US$1,035/oz gold, and have an effective date of 9 July 2010. Table 1 summarises these resources and table 2 details the parameters used to establish the open pit resource shell.

Table 1: Mineral Resources by Mineralization Domains as of July 9, 2010

Mineralization Type

�

�

�

Cutoff

�

�

�

Measured

�

�

�

Indicated

�

�

�

Measured + Indicated

�

�

�

Inferred

Au

Tonnage

�

�

�

Au

�

�

�

Au Metal

Tonnage

�

�

�

Au

�

�

�

Au Metal

Tonnage

�

�

�

Au

�

�

�

Au Metal

Tonnage

�

�

�

Au

�

�

�

Au Metal

�

�

�

(g/t)

�

�

�

(kt)

�

�

�

(g/t)

�

�

�

(koz)

�

�

�

(kt)

�

�

�

(g/t)

�

�

�

(oz)

�

�

�

(kt)

�

�

�

(g/t)

�

�

�

(koz)

�

�

�

(kt)

�

�

�

(g/t)

�

�

�

(koz)

Oxide

0.3

19,806

0.72

456

1,752

0.55

31

21,558

0.70

488

124

0.39

2

Mixed

0.3

16,011

0.7

361

8,336

0.65

174

24,348

0.68

535

180

0.62

4

Sulphide

�

�

�

0.5

�

�

�

748

�

�

�

0.72

�

�

�

17

�

�

�

440

�

�

�

0.68

�

�

�

10

�

�

�

1,187

�

�

�

0.70

�

�

�

27

�

�

�

0

�

�

�

0.00

�

�

�

0

Total

�

�

�

�

�

�

�

36,565

�

�

�

0.71

�

�

�

835

�

�

�

10,528

�

�

�

0.63

�

�

�

215

�

�

�

47,093

�

�

�

0.69

�

�

�

1,050

�

�

�

304

�

�

�

0.53

�

�

�

6

Notes to accompany Mineral Resource Table

1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

2. Mineral resources are reported within a Lerchs-Grossman (LG)-optimized pit shell using Whittle� software with a gold price of 1,035 US$/oz; mining cost of 1.65 US$/t; processing cost of 4.00 US$/t; general and administration cost of 1.00 US$/t and recoveries of 75.0% for leached and oxide material types, 65.0% for mixed material, and 50.0% for sulphide material

3. Copper and arsenic average grades above cut-off are respectively: 0.025% and 144 ppm for Measured plus Indicated and 0.019% and 124 ppm for Inferred

4. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content

5. Tonnage and grade measurements are in metric units. Contained gold ounces are reported as troy ounces.

Table 2: Optimization Parameters for Open-Pit Resource Shell
Parameter	�	�	�	Value
Slope Angle (�)	�	�	�	45
Mining Cost (US$/t)				1.65
Processing Cost (US$/t) 1				4.0
General and administration cost (US$/t)				1.0
Au recoveries for Leached and Oxide (%)				75
Au recoveries for Mixed (%)				65
Au recoveries for Sulphide (%)				50
Gold Price (US$/oz)	�	�	�	1,035

Note: Processing cost is based on heap leach recovery method only

Mining

Mine planning was constrained within the limits of an optimized open-pit shell. Table 3 shows the parameters set up in Whittle to generate this ultimate pit.

The value of the blocks was calculated assuming the mineralization will be treated to recover the gold by heap leaching.

The metal prices used for the pit optimization are based on AMEC`s internal guideline on industry consensus of long term prices provided by the Financial Services Group.

Table 3: Ultimate Pit Input Parameters
Parameters	�	�	�	Unit	�	�	�	Value
Metal Price-Au	�	�	�	US$/oz	�	�	�	1,000
Mining Cost				US$/t				1.40
Processing Cost				US$/t feed				3.23
Overall G&A Cost				US$/t feed				1.52
Au Recovery- Oxide				%				75.00
Au Recovery- Mixed				%				57.00
Selling Cost-Au				US$/oz				1.00
Whittle Pit Slope (Overall Pit Slope, based on inter-ramp angle of 45�)	�	�	�	Degrees	�	�	�	39.0

The marginal cut-off grades and the parameters considered for the different material types are shown Table 4.

Table 4: Material Type Cut-Off Grades

Marginal Cu-Off Grades

Parameters

�

�

�

Unit

�

�

�

Material Type

�

�

�

�

�

�

Oxide

�

�

�

Mixed

Au Price

US$/oz

1,000

�

�

�

1,000

Au Refining Cost

US$/oz

11.00

11.00

Processing Cost

US$/t

3.23

3.23

G&A Cost

US$/t

1.52

1.52

Au Recovery

%

75.00

57.00

Au Cut-off Grade

�

�

�

g/t

�

�

�

0.20

�

�

�

0.26

The proposed mine production schedule was prepared on an annual basis. Table 5 shows the proposed production plans. AMEC cautions that the mine production forecast is preliminary in nature. Dates discussed are for illustrative purposes only, as a decision to proceed with mine construction still requires additional studies, regulatory approval, and approval by the management of OMI.

Table 5: Proposed Mine Production Plan

Period

�

�

�

Oxide Material Mined (Tonnes and Au Grades)

�

�

�

Leached Material Mined (Tonnes and Au Grades)

Measured

�

�

�

Indicated

�

�

�

Inferred

Measured

�

�

�

Indicated

�

�

�

Inferred

�

�

�

kt

�

�

�

g/t

�

�

�

kt

�

�

�

g/t

�

�

�

kt

�

�

�

g/t

�

�

�

kt

�

�

�

g/t

�

�

�

kt

�

�

�

g/t

�

�

�

kt

�

�

�

g/t

1

974

�

�

�

0.64

144

�

�

�

0.50

�

�

�

4,425

�

�

�

0.59

749

�

�

�

0.47

9

�

�

�

0.35

2

5,495

0.64

306

0.51

2

0.37

960

0.56

110

0.32

14

0.35

3

5,660

0.75

105

0.49

10

0.32

112

0.40

6

0.25

17

0.28

4

2,994

0.61

241

0.43

5

0.27

66

0.34

7

0.36

5

1,698

0.61

245

0.47

1

0.25

378

0.36

169

0.41

Total

�

�

�

16,822

�

�

�

0.67

�

�

�

1,040

�

�

�

0.48

�

�

�

18

�

�

�

0.31

�

�

�

5,940

�

�

�

0.57

�

�

�

1,041

�

�

�

0.44

�

�

�

40

�

�

�

0.32

�

�

�

�

�

�

�

�

�

�

�

�

�

Period

�

�

�

Mixed Material Mined (Tonnes and Au Grades)

�

�

�

Waste

�

�

�

Total Rock

Measured

�

�

�

Indicated

�

�

�

Inferred

�

�

�

kt

�

�

�

g/t

�

�

�

kt

�

�

�

g/t

�

�

�

kt

�

�

�

g/t

�

�

�

kt

�

�

�

kt

1

�

�

�

�

�

�

�

�

�

13,706

20,006

2

101

0.47

12

0.47

13,061

20,061

3

878

0.63

213

0.72

13,014

20,014

4

2,981

0.68

688

0.59

18

0.37

13,077

20,077

5

2,881

0.75

695

0.75

5,913

11,980

Total

�

�

�

6,841

�

�

�

0.70

�

�

�

1,607

�

�

�

0.67

�

�

�

18

�

�

�

0.37

�

�

�

58,772

�

�

�

92,139

Once the pit optimization was completed, AMEC designed four preliminary phases and scheduled production.

AMEC applied horizontal and vertical dilution of 0.5 m and 1.8 m, respectively, to the block model to account for mining dilution and material loss.

The average stripping ratio over the mine life is relatively low at 1.57.

Process Plant

AMEC proposed a preliminary process plant similar to other gold plants in Latin America.

The crushing plant capacity is 19,886 tpd, maintaining the product size at P80 = 25 mm. The material is then processed by heap leaching with cyanide solution and carbon-in-column recovery of gold.

The run-of-mine material will be placed on a stockpile at the primary crusher. From there, it will be processed in the following steps:

• Primary crushing

• Transport by conveyor to secondary crushing

• Transport by conveyor to the ore load out bin and reagent addition (lime)

• Transport and heap loading with trucks

• Heap cyanide leaching/solution recovery

• ADR/EW plant.

The primary crushing plant is located near the pit to reduce the trucking distance and hence reduce the mine operating costs. The crushed material is conveyed via a conveyor belt for secondary crushing. The crushed material is hauled by trucks to a new leach pad located near the pit where it is leached using a cyanide solution. The pregnant solution rich in gold (PLS) is processed in an ADR plant. The ponds and ADR plant are located near the leach pad.

The Pantanillo plant has the capacity to process up to 115,000 oz/year of gold from a total resource of 33.4 million tonnes at an average grade of 0.64 g/t of gold. The life of the project is estimated to be 5 years.

Capital and Operating Costs

The initial capital cost to construct the Pantanillo project was assessed at US$ 178.2 million, as detailed in Table 6.

Table 6: Initial Capital Cost Estimate
ITEM	�	�	�	Total (MUS$)
Mine fleet	�	�	�	34.5
Primary crushing				9.0
Fine crushing				8.5
Conveying				4.7
Leaching				13.7
ADR / Reactives				11.6
Fresh water				5.0
Truck shops				9.3
Camp / facilities				8.3
Electrical (power supply)				17.9
Roads (access)	�	�	�	4.6
Subtotal				127.2
Indirect Construction				27.8
Contingencies	�	�	�	23.2
TOTAL	�	�	�	178.2

The capital cost estimate for the project includes US$ 12.9 million of sustaining capital for the process plant.

Operating costs over the projected life-of-mine are as indicated in Table 7.

Table 7: Total Operating Costs

Operating Cost

�

�

�

Total Cost (US$ ‘000)

�

�

�

Unit Cost (US$/t feed)

�

�

�

Unit Cost (US$/oz Au)

Mining

�

�

�

135,894

�

�

�

4.07

�

�

�

280.8

Process

111,611

3.34

230.6

G&A

33,793

1.01

69.8

Total

�

�

�

281,298

�

�

�

8.43

�

�

�

581.2

Economic Analysis

AMEC has estimated the project’s net present value based on a discounted cash flow model. Using the mine plan as input, the model calculates annual quantities of metal production and associated revenues, and the capital, operating and other costs to sustain the production.

The metallurgical recoveries were updated and used in the pit optimization analysis. Based on the latest test works, the recoveries considered in the financial analysis are:

• Au recovery oxide material: 80.27 %
• Au recovery leached material: 80.27 %
• Au recovery mixed material: 43.05 %

An updated long-term average price of US$ 1,200/oz for gold was used by AMEC. Based on the current data there is no other credit or saleable product.

An Anglo American royalty of 3.5% was considered in the financial analysis.

No taxes were applied since this financial model is showing results before taxes.

The closure and salvage costs considered in the project are US$ 6 million and US$ 20million respectively.

The financial results are shown in Table below.

A sensitivity analysis was conducted on the financial model to identify key variables with significant impact on forecasted project returns. The analysis included consideration of metal recovery, gold price, capital costs and operating costs.

Tables 8 to 13 show sensitivity results and Figure 1 presents the same results represented in a spider diagram.

The Project is most sensitive to variations in gold price, then to variations in operating costs and capital costs and least sensitive to variations in metal recovery.

Table 8: Financial Results Variation of the discount rate

Discount rate variation

�

�

�

�

�

�

�

6%

�

�

�

8%

�

�

�

10%

NPV

�

�

�

MUS$

�

�

�

45

�

�

�

32

�

�

�

21

NPV/INV1

-

0.3

0.2

0.1

IRR

%

17%

17%

17%

Payback time

�

�

�

month

�

�

�

41

�

�

�

45

�

�

�

50

Table 9: Financial Results Variation of Gold Price, before taxes

Variable: Gold price

�

�

�

�

�

�

-10%

�

�

�

-5%

�

�

�

0%

�

�

�

5%

�

�

�

10%

Average Price (long term)

�

�

�

US$/oz

�

�

�

1,080

�

�

�

1,140

�

�

�

1,200

�

�

�

1,260

�

�

�

1,320

NPV (8%)

MUS$

-7

13

32

52

71

NPV/INV2

-

0.0

0.1

0.2

0.3

0.4

IRR

%

NA

13%

17%

20%

24%

Payback time

�

�

�

month

�

�

�

NA

�

�

�

56

�

�

�

45

�

�

�

38

�

�

�

34

Table 10: Financial Results of the Base Case, before Taxes, With the Variation of Gold Recovery

Variable: Gold recovery

�

�

�

�

�

�

-6%

�

�

�

-3%

�

�

�

0%

�

�

�

3%

�

�

�

6%

Average Recovery

�

�

�

%

�

�

�

66

�

�

�

68

�

�

�

70

�

�

�

72

�

�

�

74

NPV (8%)

MUS$

9

21

32

44

55

IRR

%

12%

15%

17%

19%

21%

Payback time

�

�

�

month

�

�

�

58

�

�

�

51

�

�

�

45

�

�

�

41

�

�

�

37

Table 11: Financial Results of the Base Case, before taxes, with the Variation of Capex

Variable: CAPEX

�

�

�

�

�

�

-10%

�

�

�

-5%

�

�

�

0%

�

�

�

5%

�

�

�

10%

Total CAPEX

�

�

�

MUS$

�

�

�

-172

�

�

�

-182

�

�

�

-191

�

�

�

-201

�

�

�

-210

NPV (8%)

MUS$

49

41

32

24

16

IRR

%

21%

19%

17%

15%

13%

Payback time

�

�

�

month

�

�

�

37

�

�

�

41

�

�

�

45

�

�

�

50

�

�

�

55

Table 12: Financial Results of the Base Case, before taxes, with the Variation of Mining Opex

Variable: Mining OPEX

�

�

�

�

�

�

-10%

�

�

�

-5%

�

�

�

0%

�

�

�

5%

�

�

�

10%

Mining OPEX

�

�

�

US$/t

�

�

�

0.96

�

�

�

1.02

�

�

�

1.07

�

�

�

1.12

�

�

�

1.18

NPV (8%)

MUS$

39

36

32

29

25

IRR

%

18%

17%

17%

16%

15%

Payback time

�

�

�

month

�

�

�

43

�

�

�

44

�

�

�

45

�

�

�

47

�

�

�

49

Table 13: Financial Results of the Base Case, before taxes, with the Variation of Processing Opex

Variable: Processing OPEX

�

�

�

�

�

�

-10%

�

�

�

-5%

�

�

�

0%

�

�

�

5%

�

�

�

10%

Processing OPEX

�

�

�

US$/t

�

�

�

2.58

�

�

�

2.72

�

�

�

2.87

�

�

�

3.01

�

�

�

3.15

NPV (8%)

MUS$

39

35

32

29

26

IRR

%

18%

17%

17%

16%

15%

Payback time

�

�

�

month

�

�

�

43

�

�

�

44

�

�

�

45

�

�

�

47

�

�

�

48

�

Figure 1: Spider Diagram

[Figure shown at original document]

Water Requirements

OMI announced on November 9, 2011 that the Consortium made up by OMI and the LUMAX S.A. had received a water exploration permit from the Chilean Water authority DGA for its Pantanillo Project in Chile. This latest advancement represented a significant development in the overall permitting process for the project. The consortium has since requested a proposal from Geohidrología Consultores in Chile to conduct exploration work. During the second half of fiscal 2012 geophysics and approximately 2,000 metres of RC exploration drilling will be conducted. Exploration should be done within 2 years, followed by an application for obtaining water exploitation rights, whose approval will be concomitant to obtaining the Environmental approvals required.

Environmental Permit

Given the location of the Pantanillo project, an Environmental Impact Study (‘EIS’) will have to be prepared and approved by the federal and regional authorities. Base line studies are in progress to support the EIS preparation, the last base line data collection campaign is scheduled to be undertaken during this summer.

Community Relations

In October 2010, an agreement was signed with the Colla Pai Ote Community native to the region where the Project is located. The Colla Community agreed to support OMI with required Government permits (DIA by that time).

Next Steps

The Company is planning a new drilling campaign for this summer to target more resources that will enhance the project and is planning to deliver a more robust Pre-Feasibility Study, which expects to start in Q2 calendar 2012. The objective is for the exploration programme to run in tandem with geotechnical and metallurgical drilling planned for supporting the project development and meet the contractual obligations with Anglo-American, for OMI to drill 2,000 extra metres in Pantanillo.

Field work commenced in December 2011 to target the discovery of further satellite deposits within the Pantanillo license and around the Pantanillo Norte ore body, Pantanillo Central, Quebrada Pantanillo and Oro 52 were highlighted as main target areas for surface sampling / mapping, potentially followed by first pass RC drill campaign.

Areas were highlighted for low detection limit analysis in the surface sampling programme with up to 2,000 samples to be collected over 100 x 100 metres grid. Based on the results of surface sampling, OMI will commence a 2,000-3,000 metre RC drilling programme over a four to six week period and due to be completed by the end of February 2012.

The Aster imaging in Figure 2 shows intense hypogene alunite alteration, typically observed throughout the whole of the Maricunga belt, across Pantanillo Central, Quebrada Pantanillo and Oro 52 targets. This alteration style is typically associated with advanced argillic alteration caps potentially overlying gold bearing porphyry-type stockworks.

Figure 2: Hypogene Alunite Alteration on the Pantanillo Property

[Figure shown at original document]

A number of geotechnical drill holes are aimed at checking whether the current pit slope (37 �) could be steepened up. New core samples will also be used to undertake further metallurgical tests to continue to explore the dump leach alternative, to further optimize CAPEX and OPEX of the project. The current metallurgical results indicate a top size of 25 mm could be coarser without incurring major losses in the heap leaching recovery. Finally, the plan is to undertake Bottle Rolls Variability Tests using different ore types and locations throughout the mine blocks, to better characterize the metallurgical response of the deposit.

Qualified Person's Statement

The information presented in this press release has been reviewed Mr Luis Tondo, COO and is considered to be in compliance with NI 43-101 reporting guidelines.�Mr Tondo holds a Master of Engineering Science Degree (from the University of Queensland, Australia, is a registered fellow of the Aus IMM and has over 23 years of international operational, metallurgy and development experience.

The Qualified Person for the mineral resource estimate on Pantanillo Norte is Dr. Armando Simon, M.AIG, R.P.Geo., Principal Geologist, AMEC Santiago and Ms Maria Angelica Gonzalez, Comisión Calificadora de Competencias en recursos y Reservas Mineras, Senior Mining Engineer/Senior Resource Modeler AMEC Santiago, Mr Marcelo Hernando, Comisión Calificadora de Competencias en recursos y Reservas Mineras, Principal Mining Engineer, AMEC Santiago and Ms Joyce Maycock, P.Eng., Project Manager, AMEC Santiago are the Qualified Person for the LOM plan development and PEA preparation. All of the people cited in this paragraph are independent of the Company as within meaning of NI 43-101.

Forward Looking Statements

All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of the Company, constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. The Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.

Figures of this announcement are accessible at www.orosur.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Orosur Mining Inc.

Orosur Mining Inc. is a fully integrated gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay and Chile. The Company is quoted in Canada (TSX-Venture Exchange: OMI) and London (AIM: OMI).

¹ INV: Total capital investment discounted
² INV: Total capital investment discounted at discount rate of 8%

Orosur Mining Inc
David Fowler
CEO
or
Ignacio Salazar, + 56 2 9246800
CFO
info@orosur.ca
or
Canaccord Genuity Limited
Nominated Adviser & Broker
Bhavesh Patel/Rob Collins, +44 (0) 20 7050 6500
or
Blythe Weigh Communications
Investor Relations
Tim Blythe, +44 (0) 7816 924626
or
Ana Ribeiro, +44 (0) 7980 321505
or
Matthew Neal, +44 (0) 7917 800011

Orosur Mining Inc. Announces Results for the Second Quarter Ended November 30, 2011

Orosur Mining Inc.

Orosur Mining Inc. (“OMI” or “the Company”) (TSX VENTURE:OMI) (LSE: OMI), today announced results for the second fiscal 2012 quarter ended November 30, 2011.

Operating and Financial Summary

Key Results Summary1			�	Three Months Ended November 30			�	Six Months Ended November 30
			�	2011	�	2010	�	2011	�	2010
Operating Results			�	�	�	�	�	�	�	�
Gold produced	�	Ounces	�	11,916	�	12,576	�	24,404	�	25,513
Average cash operating cost	�	US$/oz	�	1,007	�	778	�	975	�	789
Average price received	�	US$/oz	�	1,717	�	1,332	�	1,663	�	1,268
Financial Results	�	�	�	�	�	�	�	�	�	�
Revenue	�	$US ‘000s	�	20,985	�	16,584	�	42,011	�	34,797
Net income for the period	�	$US ‘000s	�	2,565	�	2,784	�	6,977	�	6,310
Cash flow from operations2	�	$US ‘000s	�	4,651	�	5,100	�	10,223	�	10,510
Cash at the end of the period	�	$US ‘000s	�	17,054	�	13,939	�	17,054	�	13,939
Total Debt at the end of the period 3	�	$US ‘000s	�	5,067	�	25	�	5,067	�	25

1Results are based on IFRS and expressed in US dollars

2Before non-cash working capital movements

3excluding deferred Talca payment

�

David Fowler, Chief Executive Officer commented:

“Production for 2012 is expected to be on target at 57,500 to 60,000 ounces despite a delay in receiving permits to commence production from Arenal Deeps. This has affected production for the quarter, however, excellent progress is now being made in the development of Arenal Deeps.

“A preliminary economic assessment prepared by AMEC for Pantanillo has shown a positive pre-tax NPV of US$32 million at a discount rate of 8 per cent and a gold price US$1,200. With exploration upside to define additional resources and further opportunities to improve the project, Pantanillo has the potential to develop into a high quality production asset for Orosur.”

Highlights

Production

• The Company’s target production for the year remains unchanged at 57,500 to 60,000 ounces, however, production for the quarter was 11,916 ounces of gold which was below the Company’s expectations of 12,750 to 13,250 ounces. Permission to start production at Arenal Deeps was received in December.
• Cash operating cost for the quarter was US$1,007 per ounce of gold which was above expectations due to lower production levels.
• Excellent progress has been made on development of the Arenal Deeps underground mine with 1,388 metres of decline and access development along with 446 metres of ore development completed to the end of November 2011.

Financial

• Revenue for the quarter was US$ 21.0 million (US$ 16.6 million in Q2 of 2010/11), an increase of 26 per cent with realized gold price up significantly to US$ 1,717 per ounce (US$ 1,332 per ounce in Q2 of 2010/11)
• Net profit after tax for the quarter was US$ 2.6m (US$ 2.8m in Q2 of 2010/11).
• Cash flow from operations for the quarter was US$ 4.7m (US$ 5.1m in Q2 2010/11).
• Cash balance at the quarter end of US$ 17.1m (US$ 13.9m in Q2 2010/11)

Exploration and development

• AMEC has completed an independent preliminary economic assessment of the current Pantanillo resource. The financial analysis undertaken was based on a gold price of US$1,200 per ounce. The resulting before tax NPV at an 8 per cent discount rate is US$32 million.
• A consortium made up of OMI and the LUMAX S.A. received a water exploration permit from the Chilean Water authority DGA for its Pantanillo Project in Chile.
• First pass drilling at Talca was focused on the northern section of the Metalera Fault and Niebla vein. Drilling in the central and southern sections of the Metalera which has seen the most significant historical production is planned for the third quarter of 2012. Limited drilling was completed in these sectors during the quarter as drill platforms were built.

Production and Costs

Production for the quarter was 11,916 ounces of gold which is 5.5 per cent lower than the corresponding quarter of the previous year of 12,576 ounces. This production level is below the Company�s expectations of 12,750 to 13,250 ounces for the quarter. This shortfall was mainly due to the delay in receiving the permission to commence stoping for the Arenal Deeps mine from the Uruguayan mines department DINAMIGE, which subsequently resulted in lower than planned head grade fed to the mill. The underground mine at Arenal Deeps is expected to deliver higher grade ore (average of 2.87 g/t over its LOM) compared to ore being mined from current open pits. A permit to stope the first two levels was received on December 19^th 2011, approximately six weeks behind schedule, and stoping has commenced. All requirements to receive the final permit for mining all levels have been complied with. The final inspection is scheduled for mid-January with the full permit expected by the end of January.

Excellent progress has been made at the Arenal Deeps underground mine development, with 1,388 metres of decline and access development along with 446 metres of ore development being completed to the end of November 2011. The main ventilation shaft broke through to surface in November 2011. Civil works for the main fans was completed in December 2011 and the ventilation system has been commissioned. With production commencing in the room and pillar sections and development being on schedule, the Company plans to recoup the shortfall in production in the second half of the year.

Cash operating cost for the quarter was US$1,007 per ounce of gold which was above expectations due to lower production levels. The increase when compared to the prior year cost of US$778 per ounce of gold was mainly attributable to the lower grade of ore mined as a result of lower production levels and increased costs due to inflation in Uruguay and transportation costs, as in this quarter the Company has been mining from satellite pits (Argentinita and Sobresaliente) further away from the San Gregorio plant. The grade processed for the quarter was 9 per cent lower than the corresponding quarter of the previous financial year.

As had been expected, a new law was published in Uruguay on November 4, 2011 introducing amendments to the current Mining Code. The most significant amendment was the change in the production royalty. The production royalty for metallic minerals was changed to 5 per cent (2 per cent to land owner and 3 per cent to the State) of sale value. This compares to the previous royalty rate which was 5 per cent to 8 per cent of the mouth of mine value of the ore.

Capital expenditure commitments for Arenal Deeps remain in accordance with budget. The tailings closure and new tailings construction projects are advancing well and are expected to be completed during January 2012, slightly behind schedule due to high rainfall during the quarter, but still ahead of schedule for the expected start date to use the facility of March 2012.

The Company's forecast gold production for the 2011/2012 financial year remains in the range of 57,500 to 60,000 ounces at an operating cash cost per ounce of approximately US$810 per ounce. Production is forecast to increase in the second half of the year as Arenal Deeps starts contributing to output and planned higher grade ore is accessed from open pit sources. Variations in production and costs between quarters will occur as the mine plan draws ore from several pits at different grades and stages of stripping and the company manages its mine plans to achieve production and cost targets over the course of the year.

Financial Performance

Net profit after tax for the quarter was US$2.6 million. Higher prices, lower production and higher costs and taxes are the main variances compared to net profit of US$2.8 million in the same quarter of last year. The average price of gold sold increased from US$1,332 per ounce in the second quarter, 2010/11 to US$1,717 per ounce in the second quarter, 2011/12.

The Company generated US$4.7 million in cash flow from operations during this quarter. Capital expenditures for the quarter were US$4.5 million on exploration, including the Talca payments of US$1.3 million, and US$9.3 million in property plant and equipment mostly on Arenal Deeps development and the construction of the new tailings dam.

OMI ended the quarter with US$17.1 million in cash compared to US$14.2 million at the beginning of the financial year. Cash levels were in accordance with expectations and at 30 November 2011 the Company has US$ 5.1 million debt. A financing facility of US$ 5.5 million established with HSBC to finance Arenal Deeps equipment is expected to be fully drawn during the third quarter of 2012.

Pantanillo Chile

Exploration

Field work commenced in December 2011, focused on discovering further satellite deposits within the Pantanillo licence and around the Pantanillo Norte orebody, Pantanillo Central, Quebrada Pantanillo and Oro 52 are the main target areas where surface sampling / mapping and drilling will occur during the 2012 field season.

Areas were identified for a low detection limit geochemical soil sampling programme with up to 2,000 samples to be collected over grids of 100 x 100 metres. A 2,000-3,000 metre Reverse Circulation (RC) drill programme is planned to commence in February 2012.

Pantanillo Development

OMI contracted AMEC International Ingenieria y Construccion Limitada (AMEC) to prepare an updated NI 43-101 Technical Report on the wholly-owned Pantanillo Norte Project, located in the III Region, Northern Chile.

The Technical Report discloses a Mineral Resource estimate for the Project, which supported a Preliminary Economic Assessment. The Life of Mine (LOM) plan was based on the resources disclosed with effective date of July 9, 2010, which were reported at a commodity price of US$1,035 per ounce of gold.

Summary of Financial Parameters	�	Unit	�	LOM
Gold Mineable	�	oz 000	�	686
Total Cash Cost	�	US$/oz	�	581
Net Present Value @ 8%	�	US$ million	�	32.2
Discounted CAPEX	�	US$ million	�	167
Internal Rate of Return	�	%	�	17
Gold Production	�	Average Annual Ounces ‘000	�	96
	�		�

The financial results indicated a five-year mine life, with net present value of US$32 million (before tax) and IRR of 17 per cent. The gold price assumption for the PEA was constant at US$1,200/oz. No other metals were considered payable.

Further details of project economics is detailed in a press release on Pantanillo dated 12 January 2012.

Water Requirements

OMI announced on November 9, 2011 that the Consortium made up by OMI and the LUMAX S.A. received a water exploration permit from the Chilean Water authority DGA for its Pantanillo Project in Chile. This latest advancement represented a significant development in the overall permitting process for the project. The consortium has since requested a proposal from Geohidrología Consultores in Chile to conduct exploration work. During the second half of fiscal 2012 geophysics and approximately 2,000 metres of RC exploration drilling will be conducted.

Talca – Chile

On August 30, 2011 OMI announced that it signed a definitive acquisition agreement for 100 per cent interest in the Talca gold property (“Talca”) in Chile’s Region IV. The Company and the vendors agreed to create a new company (“SCM”) to act as a holding company for the licenses covering Talca.

Talca is located 375km north of Santiago in Region IV of northern Chile and covers 1,680 hectares. The property is located 15 km to the west of Ruta 5 along the Chilean Pacific coast line in the Coastal Cordillera. The Tello family has owned and operated the property for approximately 40 years, having produced an estimated 300,000 ounces of gold during this time. Structural and alteration mapping, completed in the second quarter by consultant Nick Oliver of Holcombe, Coughlin & Oliver Associates (HCO), has confirmed gold-bearing structures and veins associated with faulting and pre to syn-mineralization andesite and basalt dykes on the property. These mineralized structures and veins are hosted in several rock types including meta-sediments in the form of quartzites and gneisses as well as meta-igneous mafic to ultramafic foliated amphibolites.

The principal structural controls on the property are two NNW (320� - 350�) trending shear/fault zones, the Metalera Fault and Monica Fault, 2-4 metres wide and between 0.7 and 1.2 km apart, that can be traced from 4 to 8 kilometres along the strike. Secondary structural control is marked by multiple ESE/WNW (270� - 310�) striking quartz veins 0.3 – 2 metres wide. Gold has been historically mined on both of these structural systems to depths of up to 250 metres. Production grades between 10 – 20 g/t gold have been reported. Visible gold is common. Although significant artisan mining has been undertaken over the years at Talca, the project has never been explored with modern technology and practices.

After a program of ground, mapping, and surface and underground sampling drilling commenced at the end of September 2011 with an initial planned 22 holes for a total of 4,158 metres of combined RC (2,687 metres) and diamond (1,471 metres) drilling. This first pass campaign planned to drill test the northern portion of the Metalera Fault system and parts of the Niebla vein. The most significant results reported from 20 holes assayed to date from this preliminary drilling in 2011 are summarized as follows:

Zone

�

�

Hole ID

�

�

From (m)

�

�

To (m)

�

�

Au g/t

�

�

Interval

Metalera Central

�

�

Talca-11-03DDH

�

�

170

�

�

176

�

�

0.64

�

�

6m @ 0.64 g/t Au

Niebla

�

�

Talca-11-10RC

�

�

133

�

�

136

�

�

1.1

�

�

3m @ 1.1 g/t Au

�

�

�

�

�

�

�

�

�

�

The majority of the holes drilled were in the newly discovered northern portion of the Metalera Fault (seven holes) and easily accessible parts of the Niebla vein (ten holes) which had been mined over 120 metres of strike. Only limited drilling was done in the central and southern sectors of the property due to the need to identify and prepare drill platforms. During the current quarter the Company plans to target the down dip extent of previously worked sections of the Metalera, in the central zone, and in Sector Sur down dip of previously worked splay veins off the Metalera. Historically these two areas where reported as producing the greatest volume and highest grade gold. Historical workings in these sectors are known to go down to vertical depths of around 120 metres below surface. The stylized image, from the HCO structural report, below gives a 3-D image of the target zones in Sector Sur and Metalera Central.

[Figure showing in the original document]

The primary focus of the 2012 campaign is to continue drilling down dip of the known mineralized structures around Sector Sur and Metalera Central. The map below shows the holes drilled to date by OMI.

[Map showing at original document]

As core drill samples are obtained and as results warrant, OMI will commence a metallurgical test work programme so that data is generated to support the engineering studies on the project in a timely manner. Environmental base line data collection commenced in the second fiscal quarter 2012 to support the permitting process. The property is fully licensed from the existing operations and it may be possible to submit an upgrade of the current environmental license, rather than a full application, which OMI expects will take less than a year following submission to relevant authorities. The Company’s objective is to define the first Inferred NI-43101 resource calculation by mid calendar 2012.

Anillo – Chile

A review of the Anillo project has been completed during the quarter following the last deep RC drilling campaign in quarter one. This review has concluded that the targets generated in La Lengua and Anillo Central warrant additional testing together with Anillo West and Normandy. All of these areas show similar structural and alteration settings to Yamana’s El Peñon mine and Pampa Victoria discovery.

Yamana recently announced that they plan to invest around US$ 25 million on exploration around El Peñon and Pampa Victoria. This level of investment around the vicinity of OMIs Anillo property further highlights the need to continue working in the area.

More detailed mapping in the Anillo West will be undertaken, and by mid calendar 2012 further trenching will be completed in order to define a drill campaign. Follow up work will be completed around the sparse drilling that was undertaken in La Lengua, Anillo Central and Normandy, to define additional drill targets in each of these sectors.

Uruguay Exploration

Exploration for the quarter focused on San Gregorio, Santa María, Ombú, Picaflor and Rocha.

San Gregorio

During the quarter drilling results were compiled, all QA/QC work was completed and results were sent to Mine Development Associates (MDA) who are preparing an updated NI 43-101 compliant, Technical Report for San Gregorio to be released in the second half of fiscal 2011/2012.

The San Gregorio deposit includes the San Gregorio Main, Rieles and San Gregorio East pits and has historically produced in excess of 500,000 ounces. Infill drilling was designed to provide a resource update and allow optimization work to be completed in order to establish if the remaining ore zones should be mined by open pit, underground mining methods or a combination of both. A non compliant NI 43-101 preliminary economic analysis is in progress to assess this opportunity and will be released in the second half of this fiscal year. Feasibility work planned during the remainder of fiscal 2012 will be incorporated into an updated reserve and mine plan. The plan is to incorporate any extra reserves into the 2012 reserve disclosure.

Santa María

Drilling in the second quarter was previously reported. The last hole of the drill campaign SMRC026 intercepted 2 metres at 5.56 g/t from 37 metres. During the second half of 2012 a resource and reserve will be estimated for Santa Maria.

Ombú

The Ombú project is 100 metres west from the west end of the San Gregorio resource. It has historically produced 272,000 tonnes at 1.54 g/t for 13,500 ounces from a small open pit. Two exploration targets have been identified adjacent to the Ombu pit, Ombú East and Ombú West.

Ombú East is a 75 metres wide by 100 metres deep zone of mineralization to the east of the main mineralized body mined in the Ombú pit and is probably connected to it. Even though this is referred to as a lens, it is connected and continuous along strike of the Ombú pit and Ombú West mineralization. An RC drill programme of 600 metres in 5 holes at Ombú East was successfully completed in September 2011 testing the East zone continuity and defined the mineralized limits.

The Ombú West zone is the down dip and along strike extension of the Ombú Pit mineralization. An RC drill programme of 630 metres in 4 holes tested this west zone and another drill campaign is required to define the limits of the mineralization. There is potential for more high grade intersections as the mineralization is open both at depth and further to the west.

An In-house resource model is being developed for both targets combining previous drill results with the latest campaign.

Notable Results from this drill campaign are reported in the following table:

RC drilling	�	�
Zone	�	Hole id	�	From (m)	�	Intercept (metres @ Au g/t)	�	Notes
Ombu East	�	OZRC023	�	114	�	3 @ 2.13	�	incl. 1m @ 5.87g/t
Ombu East	�	OZRC024	�	73	�	3 @ 1.14	�	�
Ombu East	�	OZRC025	�	29	�	5 @ 1.72	�	incl. 1m @ 5.47g/t
Ombu East	�	OZRC026	�	87	�	4 @ 4.89	�	incl. 1m @ 3.26g/t
Ombu East	�	OZRC026	�	�	�	�	�	incl. 1m @ 5.20g/t
Ombu East	�	OZRC026	�	100	�	7 @ 2.06	�	incl. 1m @ 13.70g/t
Ombu West	�	OZRC028	�	140	�	11 @ 0.64	�	incl. 1m @ 2.31g/t
Ombu West	�	OZRC030	�	90	�	4 @ 2.65	�	incl. 1m @ 3.63g/t
Ombu West	�	OZRC031	�	103	�	3 @ 12.62	�	incl. 1m @ 3.82g/t
Ombu West	�	OZRC031	�	�	�	�	�	incl. 1m @ 31.89g/t
* intercepts consider a cut-off grade of 0.4 g/t and may include up-to 2 metres of low grade							�

Picaflor

The Picaflor project is located 2.2km southeast of the town of Minas de Corrales and about 4.2 km east of the San Gregorio Plant. This mineralized zone comprises lensoid veins of quartz-pyrite developed along a sheared and brecciated contact between granite and metasediments.

An RC drill programme, completed in September 2011, better defined the continuity of the known mineralization and expanded the zone along strike. Individual mineralized lenses vary from 2 metres to 10 metres wide and dip60-70˚, and the vein system has been traced for 300 metres to the southwest. A total of 777 metres in 17 RC holes were completed in September and best intercepts are listed below:

RC Drilling	�	�
Zone	�	Hole id	�	From (m)	�	Intercept (metres @ Au g/t)	�	Notes
East Pit	�	PIRC042	�	14	�	2 @ 1.85	�	Incl. 1m@ 3.00g/t
East Pit	�	PIRC044	�	27	�	9 @ 3.36	�	incl. 1m @ 5.20g/t
�	�	�	�	�	�	�	�	incl. 3m @ 6.437g/t
East Pit	�	PIRC049	�	19	�	3 @ 2.67	�	Incl. 1m @ 5.93g/t
West Pit	�	PIRC053	�	40	�	7 @ 1.39	�	incl. 1m @ 6.07g/t
West Pit	�	PIRC057	�	11	�	2 @ 3.44	�	incl. 1m @ 5.14g/t
* intercepts consider a cut-off grade of 0.4 g/t and may include up-to 2 metres of low grade

Qualified Person's Statement

The information presented in this press release has been reviewed by William F. Lindqvist, Director of OMI, Mr Luis Tondo, COO and Mr. Randall Corbett, General Manager, San Gregorio, and is considered to be in compliance with NI 43-101 reporting guidelines.�Dr. Lindqvist holds a Ph.D. in Applied Geology from Imperial College, London, has been a member of the AusIMM for 46 years, and has had 40 years of experience in international minerals exploration and property evaluation. Mr Tondo holds a Master of Engineering Science Degree (from the University of Queensland, Australia, is a registered fellow of the Aus IMM and has over 23 years of international operational, metallurgy and development experience. Mr. Corbett has a Bachelor of Engineering (Mining) Degree from Technical University of Nova Scotia (T.U.N.S.), is a Professional Engineer (P. Eng.) registered in the Province of Ontario and has more than 30 years operational, engineering and development experience.

The Qualified Person for the mineral resource estimate on Pantanillo Norte is Dr. Armando Simon, M.AIG, R.P.Geo., Principal Geologist, AMEC Santiago and Ms Maria Angelica Gonzalez, Comisión Minera, Senior Mining Engineer/Senior Resource Modeler AMEC Santiago, Mr Marcelo Hernando, Comisión Minera, Principal Mining Engineer, AMEC Santiago and Ms Joyce Maycock, P.Eng., Project Manager, AMEC Santiago are the Qualified Person for the LOM plan development and PEA preparation. All of the people cited in this paragraph are independent of the Company as within meaning of NI 43-101.

Forward Looking Statements

All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of the Company, constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. The Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.

Figures and maps of this press release are accessible at www.orosur.ca

ENDS

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Orosur Mining Inc.

Orosur Mining Inc. is a fully integrated gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay and Chile. The Company is quoted in Canada (TSX-Venture Exchange: OMI) and London (AIM: OMI).

Orosur Mining Inc.
Condensed Interim Consolidated Statement of Financial Position
(Unaudited)
(Thousands of United States Dollars, except where indicated)
	�
		As at
�	�	November 30, 2011 �	�	May 31, 2011 (Restated Note 18) �
		$	�	$
Assets
				�
Current assets
Cash		17,054		14,178
Amounts receivable (Note 5)		2,099		2,473
Inventories (Note 6)		17,509		17,363
Prepaid expenses		1,144		1,074
Debenture receivable (Note 5)		1,000		0
Short term investments		90	�	90
Total current assets		38,896		35,178
				�
Property plant and equipment and mineral properties (Note 7)		47,656		29,836
Deferred exploration (Note 8)		30,114		23,888
Deferred income tax assets (Note 15)		5,525		5,148
Restricted cash		269	�	223
Total non-current assets		83,564		59,095
		�	�	�
Total Assets		122,460	�	94,273
				�
�	�	�	�	�
				�
Liabilities and Shareholders’ Equity
				�
Current liabilities
Accounts payable and accrued liabilities (Note 5)		15,432		12,362
Current portion of long term debt (Note 11)		728	�	14
Total current liabilities		16,160		12,376
				�
Long term debt (Note 11)		5,221		0
Rehabilitation provisions (Note 9)		2,833	�	3,474
Total non-current liabilities		8,054		3,474
		�	�	�
Total liabilities		24,214	�	15,850
				�
Capital stock (Note 12)		55,048		42,692
Broker warrants		276		0
Contributed surplus		5,352		5,138
Retained earnings		37,570	�	30,593
Total shareholders’ equity		98,246	�	78,423
				�
Total liabilities and shareholders’ equity		122,460	�	94,273
				�

Approved by the Board of Directors

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“Mario Caron”

Director

“Julio Porteiro”

Director

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Orosur Mining Inc.
Condensed Interim Consolidated Statements of Income and comprehensive income
(Unaudited)
(Thousands of United States Dollars, except for earnings per share and weighted average number of shares outstanding)
	�				�
		Three months ended November 30				Six months ended November 30
�	�	2011	�	2010 Restated Note 18	�	2011	�	2010 Restated Note 18
		$	�	$		$	�	$
									�
Sales		20,985		16,584		42,011		34,797
Cost of sales		(15,753)	�	(11,948)	�	(30,737)	�	(25,121)
		5,232		4,636		11,274		9,676
									�
Other income (expenses)
Derivative loss		0		0		0		(212)
Exploration expenses (Note 8)		(260)		(84)		(722)		(592)
General and administrative expense		(1,296)		(1,388)		(2,477)		(2,178)
Interest expense and rehabilitation accretion		(60)		(4)		(90)		(10)
Foreign exchange gain		95		(109)		138		151
Other income		624	�	131	�	742	�	406
		(897)		(1,454)		(2,409)		(2,435)
									�
Income before taxes		4,335		3,182		8,865		7,241
Provision for income taxes (Note 15)		(1,770)	�	(398)	�	(1,888)	�	(931)
Net and comprehensive income for the period attributable to parent		2,565	�	2,784	�	6,977	�	6,310
									�
									�
									�
									�
Earnings per common share attributable to parent
Basic and diluted (Note 13)		0.03		0.04		0.09		0.10
									�
Weighted average shares outstanding
Basic		77,820,595		64,945,192		77,780,792		64,870,309
Diluted		78,684,014		65,068,321		78,776,633		64,953,339
									�

Orosur Mining Inc.
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited)
(Thousands of United States Dollars, except where indicated)
	�				�
�		Three months ended November 30,				Six months ended November 30,
	�	2011	�	2010	�	2011	�	2010
		$	�	$		$	�	$
� Operating activities
Net income for the period		2,565		2,784		6,977		6,310
Adjustments for:
Depreciation		1,990		2,135		3,990		3,615
Accretion of rehabilitation provision		13		13		26		27
Deferred Income taxes		597		(150)		(377)		266
Stock based compensation		90		313		216		365
Assets sales		(562)		0		(562)		0
Others		(42)	�	5	�	(47)	�	(73)
		4,651		5,100		10,223		10,510
Net change in non-cash working capital balances (Note 10)		4,674	�	1,426	�	3,228	�	1,323
		9,325	�	6,526	�	13,451	�	11,833
									�
Financing activities
Proceeds from the issue of share capital		4		127		12,380		127
Loans granted		0		0		(1,000)		0
Loans received		1,235		0		5,080		0
Debt payment		(15)	�	(6)	�	(27)	�	(9)
		1,224	�	121	�	16,433	�	118
									�
Investing activities
Purchase of property, plant and equipment and development costs		(10,632)		(1,592)		(19,543)		(2,586)
Assets sales		1,366		0		1,366		0
Exploration expenditure		(4,515)	�	(1,862)	�	(8,831)	�	(4,117)
		(13,781)	�	(3,454)	�	(27,008)	�	(6,703)
									�
Increase (Decrease) in cash		(3,232)		3,193		2,876		5,248
									�
Cash at the beginning of period		20,286	�	10,746	�	14,178	�	8,691
									�
Cash at the end of period		17,054	�	13,939	�	17,054	�	13,939
									�

Orosur Mining Inc.
Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
(Thousands of United States Dollars, except where indicated)
	�				�
		Three months ended November 30,				Six months ended November 30,
�	�	2011	�	2010 Restated Note 18 �	�	2011	�	2010 Restated Note 18 �
		$	�	$		$	�	$
Common shares
Balance at beginning of period		55,068		42,344		42,692		42,344
Private placement (Note 12)		(276)		0		12,085		0
Finder’s fee for Talca acquisition (Note 12)		250		0		250		0
Exercise of stock options		6	�	208	�	21	�	208
Balance at end of period		55,048	�	42,552	�	55,048	�	42,552
									�
Broker Warrants
Balance at beginning of period		0		0		0		0
Commission on private placement (Note 12)		276	�	0	�	276	�	0
Balance at end of period		276	�	0	�	276	�	0
									�
Contributed surplus
Balance at beginning of period		5,264		4,684		5,138		4,632
Transfer to common shares		(2)		0		(2)		0
Employee stock based compensation recognized		90	�	232	�	216	�	284
Balance at end of period		5,352	�	4,916	�	5,352	�	4,916
									�
Retained earnings
Balance at beginning of period		35,005		18,020		30,593		14,494
Net income for the period		2,565	�	2,784	�	6,977	�	6,310
Balance at end of period		37,570	�	20,804	�	37,570	�	20,804
									�
Shareholders’ equity at end of period		98,246	�	68,272	�	98,246	�	68,272
									�

Orosur Mining Inc
David Fowler, CEO:
Ignacio Salazar, CFO
+ 56 2 9246800
info@orosur.ca
or
Canaccord Genuity Limited (Nominated Adviser & Broker)
Rob Collins
Bhavesh Patel
+44 (0) 20 7050 6500
or
Blythe Weigh Communications (Investor Relations)
Tim Blythe: +44 (0) 7816 924626
Ana Ribeiro: +44 (0) 7980 321505
Matthew Neal: +44 (0) 7917 800011

8:00 AM Eastern and 13:00 UK time,

Thursday January 12, 2012

Orosur Mining Inc. Announces 2012 Second Quarter and Half Year Conference Call and Web Cast

Orosur Mining Inc.

Orosur Mining Inc. ("OMI" or the "Company") (TSX VENTURE:OMI) (LSE: OMI) announces that it will hold its fiscal 2012 second quarter and half year earnings and investor update conference call and webcast on Thursday January 12, 2012 at 8:00 Eastern Time, 13:00 UK time.

The Company’s CEO, David Fowler, will brief investors on operating results and development plans, and answer questions from call participants. Web cast participants may submit questions in advance by email at info@orosur.ca.

The earnings release for the second quarter and half year ended November 30, 2011 will be issued on Thursday January 12, 2012 at 7:00 UK time.

The conference call can be accessed by dialing 1-800-319-4610 (US/Canada toll free) or 0808-101-2791�(UK toll free) or 1-604-638-5340 (International toll). All participants will be required to register with the operator.

A simultaneous web cast of the conference call and replay will be available at http://www.orosur.ca . You will need to have Windows Media Player or Flash Player installed on your computer and you will also be required to complete a registration page in order to log on to the webcast.

A slide presentation will also be available prior to the call / web cast for download from the investor relations section of Orosur Mining Inc.’s corporate website at http://www.orosur.ca/investors/presentations/.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Orosur Mining Inc.

Orosur Mining Inc. is a fully integrated gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay and Chile.

The Company is quoted in Canada (TSX Venture Exchange: OMI) and London (AIM: OMI).

Orosur Mining Inc

David Fowler, CEO

Ignacio Salazar, CFO + 56 2 9246800

info@orosur.ca

or

Canaccord Genuity Limited (Nominated Adviser & Broker)

+44 (0) 20 7050 6500

Bhavesh Patel

Rob Collins

or

Blythe Weigh Communications

Tim Blythe: +44 (0) 7816 924626

Ana Ribeiro: +44 (0) 7980 321505

Matthew Neal: +44 (0) 7917 800011