Investors

Vancouver, April 12, 2017 -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) today announced its financial results for the year ended December 31, 2016, posting income from mining operations of $8.41 million and a net income of $0.32 million. Production for the year at Atico's El Roble mine totaled 18.7 million pounds (“lbs”) of copper and 11,159 ounces (“oz”) of gold in concentrates at a cash cost⁽¹⁾ of $1.10 per payable pound of copper produced⁽²⁾.

Fernando E. Ganoza, CEO and Director, commented, "We are pleased to report a very strong 2016 with important achievements in a particularly challenging period. Operationally, we had a remarkable year as we further expanded the El Roble mill while achieving and exceeding almost all goals set for 2016. This paved the way for another consecutive year of record metal production at the El Roble mine. Financially, we proved resilient to a materially lower realized copper price increasing the net profit and maintain cash generated from the previous year. This allowed us to self-fund the mill expansion, strengthen the balance sheet and drill test two of the fifteen targets on the 6,600-hectare prospective land package the Company controls. Mr. Ganoza continued, "In 2017, we will focus on organic growth at El Roble property and on the search for a second asset while continuing to look for opportunities to further optimize the El Roble mill and strengthen the balance sheet."

2016 Consolidated Financial Highlights

• Net income for the year amounted to $0.32 million, compared with a net income of $0.29 million for previous year. Net income in 2016 was positively affected by an increase in concentrate shipped and provisionally invoiced, partially offset by a lower realized copper price (a decrease of 8.7%) and increased direct mining and processing costs caused by a national transportation strike in Colombia.
• Sales for the year increased 4% to $38.3 million when compared with 2015. The increase is due to an increase in concentrate shipped and provisionally invoiced, partially offset by lower realized copper price as compared to 2015. Copper (“Cu”) accounted for 88.7% and gold (“Au”) 11.2% of total amount provisionally invoiced during 2016. The average realized price per metal on provisional invoicing was $2.21 (2015 - $2.42) per pound of copper and $1,256.11 (2015 - $1,157.97) per ounce of gold.
• Cash costs(1) for the full year 2016 were $99.10 per tonne of processed ore and $1.10 per pound of payable copper produced, a 4% and 10% increase over the 2015, respectively.
• Income from operations for 2016 was $1.56 million while cash flow from operations, before changes in working capital, was $11.51 million. Cash used for capital expenditures amounted to $8.50 million.
• At the year-end, 8,042 wet metric tonnes of non-invoiced concentrate remained at the Company’s warehouses.

2016 Consolidated Operating Highlights

• 36% increase in processed ore year-on-year;
• Copper head grade increased 14% year-on-year;
• Gold head grade decreased 22% year-on-year;
• Year-on-year concentrate production increased 45%;
• Copper metal production increased 55% year-on-year;
• Gold metal production increased 2% year-on-year.

Fourth Quarter Operating and Financial Highlights

• The Company produced 10,881 dry metric tonnes of concentrate during the quarter with a metal content of 5.1 million pounds of copper, 2,832 ounces of gold and 10,661 oz of silver.
• Sales of $10.98 million were generated during the quarter. Copper accounted for 96.8% of the total, and gold for 3.2%. The average realized price per metal on provisional invoicing was $2.38 per pound of copper and $1,206.57 per ounce of gold.
• Cash costs(1) for the quarter were $105.04 per tonne of processed ore and $1.19 per pound of payable copper produced.
• Cash flow from operations, before changes in working capital, for the quarter was $2.43 million.

2016 Consolidated Operations Review

In 2016 the Company produced 18.7 million lbs of copper, 11,159 oz of gold, and 37,820 oz of silver. When compared to 2015, production increased 33% for copper, 1.5% for gold and 5% for silver. The increase in copper produced is mainly explained by 36% more processed material and a 14% increase in the copper head grade. In the case of gold, the increase in processed material was partially offset by a 22% decrease in the gold head grade and a 4.6% decrease in the metal recovery.

Cash costs were $99.10 per tonne of processed ore and $1.10 per pound of payable copper produced, which was an increase of 4% and 10% over 2015, respectively (refer to non-GAAP Financial Measures).

Fourth Quarter Operations Review

The El Roble mine produced 5.1 million lbs of copper, 2,832 oz of gold and 10,661 oz of silver. When compared to the same period in 2015 production increased 33% for copper, decreased 18% for gold, and remained unchanged for silver. The increase in copper produced is mainly explained by 13% more processed material and a 17% increase in the copper head grade. In the case of gold, the increase in processed material was partially offset by a 17% decrease in the gold head grade and a 12% decrease in the metal recovery.

Cash costs were $105.04 per tonne of processed ore and $1.19 per pound of payable copper produced for the three months ended December 31, 2016 (“Q4-2016”), which was an increase of 31% and 47% over the comparative period in 2015 (“Q4-2015”), respectively (refer to non-GAAP Financial Measures). The increase in the cash cost per pound of payable copper net of by products is mainly explained by a negative impact in the cost per processed tonne caused by the 40-day national transportation strike and a lower gold credit driven by less ounces produced and sold.

Consolidated Operational Details

Subject to adjustments due to final settlement

The financial statements and MD&A are available on SEDAR and have also been posted on the company's website at http://www.aticomining.com/s/FinancialStatements.asp

Annual General Meeting

Atico Mining cordially invites all shareholders to its Annual General and Special Meeting of Shareholders, at 10:00 am, Tuesday, May 23, 2017, at Suite 501 - 543 Granville Street Vancouver, British Columbia.

El Roble Mine

The El Roble mine is a high grade underground copper and gold mine with nominal processing plant capacity of 800 tonnes per day, located in the Department of Choco in Colombia. Its commercial product is a copper-gold concentrate.

Since obtaining control of the mine on November 22, 2013, Atico has upgraded the operation from a nominal capacity of 400 tonnes per day. The mine has a continuous operating history of twenty-two years, with recorded production of 1.5 million tonnes of ore at an average head grade of 2.6% copper and an estimated gold grade of 2.5 g/t. Copper and gold mineralization at the El Roble property occurs in volcanogenic massive sulfide (“VMS”) lenses.

Since entering into the option agreement in January 2011 to acquire 90% of El Roble, Atico has aggressively explored the mine and surrounding claims. The Company has completed 31,377 meters of diamond drilling and identified numerous prospective targets for VMS deposits on the 6,679-hectare property. This exploration led to the discovery of high-grade copper and gold mineralization below the 2000 level, the lowest production level of the El Roble mine. Atico has developed a new adit access from the 1880 elevation to develop these new resources.

El Roble has a measured and indicated resource of 1.87 million tonnes grading 3.46% copper and 2.27 g/t gold, at a cut-off grade of 0.93% copper equivalent. Mineralization is open at depth and along strike and the Company plans to further test the limits of the resource.

On the larger land package, the Company has identified a prospective stratigraphic contact between volcanic rocks and black and grey cherts that has been traced by Atico geologists for ten kilometers. This contact has been determined to be an important control on VMS mineralization on which Atico has identified 15 prospective target areas for VMS type mineralization occurrence, which is the focus of the surface drill program at El Roble.

Qualified Person

Mr. Thomas Kelly (SME Registered Member 1696580), advisor to the Company and a qualified person under National Instrument 43-101 standards, is responsible for ensuring that the technical information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico.

About Atico Mining Corporation

Atico is a growth-oriented Company, focused on exploring, developing and mining copper and gold projects in Latin America. The Company operates the El Roble mine and is pursuing additional acquisition opportunities. For more information, please visit www.aticomining.com.

ON BEHALF OF THE BOARD

Fernando E. Ganoza
CEO and Director
Atico Mining Corporation

Trading symbols: TSX.V: ATY | OTC: ATCMF

Investor Relations
Igor Dutina
Tel: +1.604.633.9022

Neither the 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.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the ‘‘U.S. Securities Act’’), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.

Cautionary Note Regarding Forward Looking Statements

This announcement includes certain “forward-looking statements” within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation the use of net proceeds, are forward-looking statements. Forward- looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs; the need to obtain additional financing to maintain its interest in and/or explore and develop the Company’s mineral projects; uncertainty of meeting anticipated program milestones for the Company’s mineral projects; and other risks and uncertainties disclosed under the heading “Risk Factors” in the prospectus of the Company dated March 2, 2012 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com

The Company has not based its production decisions and ongoing mine production on mineral reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Non-GAAP Financial Measures

The items marked with a "(1)" are alternative performance measures and readers should refer to Non-GAAP Financial Measures in the Company's Management's Discussion and Analysis for the nine months ended September 30, 2016 as filed on SEDAR and as available on the Company's website for further details.