Oro Verde : Initial 1,650m Drilling Program Planned at Topacio 2016

ASX Announcement 19 January 2017 INITIAL 1,650M DRILLING PROGRAM PLANNED AT TOPACIO

HIGHLIGHTS

• Newcrest to fund an initial 1,650 metre program of seven diamond drill holes
• Initial drilling to target the fertile Rebeca-Sahino Zone at Topacio
• Newcrest and Oro Verde aiming for new discovery of a buried epithermal gold system focused on the Rebeca Vein
• Drilling expected to commence in first quarter 2017 following final approvals

Oro Verde Limited (ASX: OVL) ("Oro Verde" or "the Company") is pleased to announce that planning is advanced for initial drilling of priority targets at the Rebeca-Sahino Zone at the Topacio Gold Project, located in southeastern Nicaragua (Figure 3).

The fertile Rebeca-Sahino Zone (Figure 1) has been identified, on the basis of strong epithermal vein textures and coincident geophysical and geochemical anomalies, as a high priority target area with the potential to host a multi-million ounce gold resource.

The drilling is part of the second year of the Farm-In Agreement between Newcrest International Pty Ltd, a wholly owned subsidiary of Newcrest Mining Limited (ASX: NCM) ("Newcrest"), and Oro Verde that was executed at the end of November 20151.

The first phase of drilling will focus on a number of key locations along the Rebeca vein, which has an interpreted strike length of at least 3 kilometres (Figure 2). The initial program will incorporate approximately 1,650 metres of diamond core drilling within seven drill holes and is expected to commence in the first quarter of 2017.

Targets will include epithermal veins in the northwestern section of the Rebeca vein, as well as areas where the veins are covered by the Sahino silica-clay cap further to the southeast. Encouraging gold-thallium- arsenic-antimony-tungsten geochemistry is consistent with the view that a gold-bearing system may be concealed beneath the cap.

Oro Verde's Managing Director, Mr. Trevor Woolfe, commented "We are extremely excited that Oro Verde's first drilling at the Topacio Project will be on the prospective Rebeca Vein. Results over the past year have highlighted the Rebeca Vein as a priority target for discovery of a new epithermal gold system buried beneath the silica cap. Drilling success will represent a new discovery and will pave the way for a potential increase to the existing resource base estimated at 340,000 ounces of gold."

Oro Verde Limited (ASX code: OVL)

Level 1, 34 Colin St, West Perth, WA 6005 Phone: [phone] Fax: [phone] Email: [e-mail]

1 Refer to ASX announcement dated 30 November 2015 "Newcrest Signs A$11M Farm-in Agreement with Oro Verde"

REBECA DRILLING PROGRAM

Planning is advanced for the first phase of drilling within the Rebeca-Sahino Zone (Figure 1), expected in early 2017. Oro Verde holds a current environmental permit allowing drilling on the concession. Drill contractors, program logistics and water sources for drilling are currently being finalised.

Topacio Resource Area

Drill hole map - see Fig 2

Figure 1 Topacio: Target zone - Rebeca Zone and Sahino Silica Cap

The drilling will focus on a vein that cuts through the Rebeca-Sahino Zone, which incorporates a number of exposed veins as well as an extensive silica cap zone, masking the underlying geology. Historically, three veins named Isabella, Rebeca and Jose Hernandez were mapped, however recent work has indicated that the three veins are likely to be connected along strike, resulting in a continuous strike length of approximately 3 kilometres, trending NW-SE (Figure 2). This vein will now be referred to as the Rebeca Vein.

Rebeca Vein

Figure 2 Rebeca Vein: Proposed drill hole locations and section orientations

The seven proposed drill holes are located astride the Rebeca Vein over a 2.5 kilometre strike length and are angled to intersect the interpreted epithermal vein system at depth below the surface expression of the vein and also below the silica cap (Figure 2). The details of each hole are presented in Table 1 (below) as well as in Figure 2).

Table 1 Rebeca Vein: Proposed drill hole details

Diamond Hole	Easting (m)	Northing (m)	Azimuth (deg)	Dip (deg)	Depth (m)
BEC-001	782,388	1,338,023	205	-55	250
BEC-002	781,903	1,338,407	205	-55	200
BEC-003	782,564	1,337,756	45	-55	300
BEC-004	782,105	1,338,175	45	-50	150
BEC-005	784,289	1,336,995	230	-60	300
BEC-006	783,361	1,337,416	205	-50	250
BEC-007	782,756	1,337,595	25	-55	200

Co-ordinate system UTM Zone 16 and datum NAD27 Central

TOPACIO PROJECT BACKGROUND

Oro Verde holds an Option to Purchase Agreement over the high grade Topacio Gold Project, located in southeastern Nicaragua (Figure 3). Details can be found in the announcement to the ASX dated 27 February 20152. The project contains a historical NI 43-101 (Canadian standard, similar to JORC) compliant Inferred Resource of:

2,716,176 tonnes at 3.9 g/t gold, containing 340,345 ounces of gold, at a 1.5 g/t gold cut-off

National Instrument 43-101 ("NI 43-101") is a national instrument for the Standards of Disclosure for Mineral Projects within Canada and as such this estimate is a foreign estimate and is not reported in accordance with the JORC code (Australia). A competent person has not done sufficient work to classify the foreign estimate as mineral resources in accordance with the JORC code and it is uncertain that following evaluation and/or further exploration work that the foreign estimate will be able to be reported as mineral resources in accordance with the JORC code.

For enquiries contact:

Mr Trevor Woolfe Mr Brett Dickson

Managing Director Company Secretary

[phone] [phone]

2 Refer to ASX announcement dated 27 February 2015 "Oro Verde Proceeds to Acquire Topacio Gold Project"

Figure 3 Major Nicaraguan gold deposits and the Topacio Gold Project

About Oro Verde Limited: Oro Verde Ltd is a mineral exploration company focused on identifying and developing significant gold projects in Central America, particularly Nicaragua. Oro Verde holds an Option to Purchase Agreement to acquire 100% of the Topacio Gold Project in Nicaragua that contains a NI43-101 compliant Inferred Mineral Resource of 340,000 ounces of gold. A US$7.9 million 5 year farm-in agreement was signed on November 25, 2015 with a subsidiary of global gold major - Newcrest Mining Limited (ASX: NCM) - to jointly explore for multi-million ounce gold deposits at Topacio. Oro Verde also holds 100% of the early stage San Isidro Gold Project, also in Nicaragua, located adjacent to the 2.3 million ounce La India gold project.

COMPETENT PERSON STATEMENTS

The information in this document that relates to Exploration Results is based on information compiled by Mr Trevor Woolfe BSc Hons (Geol), who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Woolfe is the Managing Director and a shareholder of the Company, and is employed through consultancy Shordean Pty Ltd. Mr Woolfe has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Woolfe consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this document that relates to Historical Mineral Resources is extracted from the report entitled "Acquisition of High Grade Gold Project" created on 11 November 2014 and available to view on www.asx.com. The Company confirms that it is not in possession of any new information or data that materially impacts on the reliability of the estimates in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.