Peruvian Metals Corp. provide an update regarding the mineral processing at its 80% owned fully permitted Aguila Norte Processing Plant located in Northern Peru. During fourth quarter of 2018, Peruvian Metals continued to upgrade and reconfigure the Aguila Norte mineral processing plant to enable the processing of a wider range of minerals within a mineral concentrate. With the upgrades Peruvian Metals can now produce three different concentrates from the same mineral supplier. More specifically, modifications allow for Lead grades higher than 5%. These upgrades not only provide better flexibility for mineral processing clients but also provide better concentrate grades. Due to the increased flexibility and performance several clients extended existing contracts. Further modifications and improvements will continue during the first quarter of 2019 to improve on processing flexibility and increased recoveries for clients. The Company believes that these improvements and enhanced performance of the Aguila Norte processing facility in Northern Peru is a competitive advantage. The Aguila Norte Plant processing plant has an environmental permit ("IGAC") from the Peruvian government which provides the Company the ability to expand operations past the current 100 tonnes per day level. The Company is pleased with the recoveries being achieved during the commissioning phase.