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Silver Standard Resources: Silver Standard Provides Q1 2016 Production Results

The following excerpt is from the company's SEC filing.

VANCOUVER, B.C. -- Silver Standard Resources Inc. (NASDAQ: SSRI) (TSX: SSO) (“Silver Standard”) provides its first quarter 2016 operational results for its Marigold and Pirquitas mines.

Operating Highlights:

Delivered gold production to plan at Marigold:

Produced 50,520 ounces of gold during the first quarter of 2016.

Increased ore tonnes to leach pads at Marigold:

Stacked ore increased to 5.7 million tonnes containing approximately 60,000 recoverable ounces loaded to the leach pads and strip ratio declined to 2.0:1 in the first quarter.

Commissioned haul trucks at Mari gold:

Three additional 300-tonne class haul trucks were purchased in the first quarter and commenced operating ahead of schedule early in the second quarter.

Continued strong production at Pirquitas:

Produced 2.6 million ounces of silver, slightly above fourth quarter 2015 production.

Strong mine fundamentals at Pirquitas

: Achieved record quarterly milling rate of 4,590 tonnes per day in the first quarter. Record monthly production of more than one million ounces of silver produced in March 2016 due to higher silver mill feed grade and sustained higher silver recoveries.

Paul Benson, President and CEO said, “Once again we delivered strong operating results at both mines with slightly higher quarter-on-quarter production at Pirquitas and increased ore tonnes stacked at Marigold, setting up the mine for solid production in the second quarter. The three haul trucks we purchased to expand the Marigold fleet entered service ahead of schedule, supporting our improved guidance and increased efficiency. With our announced acquisition of Claude Resources, combined with strong production at our existing assets, we continue to pursue our goal of creating value for shareholders through operating excellence and disciplined growth.”

Page 1

Marigold mine, U.S.

Q1 2016

Q4 2015

% Change

Total material mined

17,291

18,560

(6.8%)

Waste removed

11,611

13,788

(15.8%)

Ore to leach pad

Strip ratio

(31.0%)

Gold grade to leach pad

(2.1%)

Gold recovery

Gold produced

61,461

(17.8%)

Gold sold

48,605

62,827

(22.6%)

Percent changes are calculated using rounded numbers presented in the table.

The Marigold mine produced 50,520 ounces of gold in the first quarter of 2016, as expected and on target to meet revised guidance. Quarterly gold production generally reflects the quantity of recoverable gold stacked on leach pads in the preceding months. First quarter gold production reflects lower fourth quarter 2015 recoverable gold ounces stacked as compared to the record recoverable gold ounces stacked in the third quarter of 2015. We recognized sales of 48,605 ounces of gold in the first quarter of 2016.

A total of 17.3 million tonnes was mined in the first quarter, slightly lower than the fourth quarter of 2015 due to moving more ore to the leach pads, our longest haul distance, and due to higher precipitation. Approximately 5.7 million tonnes of ore were delivered to the leach pads at a gold grade of 0.47 g/t, containing approximately 60,000 recoverable ounces of gold stacked during the quarter. The three haul trucks, purchased early in the first quarter, were commissioned ahead of schedule and began operating at the beginning of the second quarter. The strip ratio declined to 2.0:1 in the first quarter, a 31% reduction compared to the previous quarter, and ore tonnes reconciliation continued to be positive. Gold recovery was 70% in the first quarter of 2016, in line with the fourth quarter of 2015. The additional haul trucks, combined with the recoverable ounces of gold stacked during the quarter, will lead to increased production in the second quarter.

The construction of a new leach pad, budgeted for 2016, is underway and once completed in the third quarter is anticipated to benefit production later in the year.

Page 2

Pirquitas mine, Argentina

Ore mined

Silver mined grade

Zinc mined grade

Ore milled

Zinc mill feed grade

Silver recovery

Zinc recovery

Silver produced

‘000 oz

Zinc produced

‘000 lb

Silver sold

Zinc sold

(100.0

Percent changes are calculated using rounded numbers presented in the table.

Data for zinc production and sales relate only to zinc in zinc concentrate as any zinc metal within our silver concentrate does not generate revenue. Data reflects the 21-day period of zinc concentrate production during the first quarter of 2016.

The Pirquitas mine produced 2.6 million ounces of silver during the first quarter of 2016, slightly higher than production in the fourth quarter of 2015, due to higher silver mill feed grade. The lower zinc production is in line with our previously stated strategy to maximize payable silver recovery. We recognized sales of 3.2 million ounces of silver, higher than the fourth quarter as concentrate shipments that were delayed in December 2015 were recognized in the first quarter of 2016.

Ore was milled at an average rate of 4,590 tonnes per day in the first quarter of 2016, a quarterly record for the mine since it began operating. Ore milled contained an average silver grade of 247 g/t, 4% higher than the 237 g/t reported in the fourth quarter, as the improvement in ore tonnes mined enabled higher grade tonnes to be milled selectively and lower grade tonnes to be stockpiled for processing at...


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