Market Overview

Trecora Resources Provides Update on Improved Operations at Al Masane Al Kobra Mining Company

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Trecora Resources (NYSE: TREC) a leading provider of high purity specialty chemicals and waxes, and a
35% minority owner of Al Masane Al Kobra Mining Co. ("AMAK"), provided an
update on several key initiatives undertaken to enhance the production and
operations at AMAK.

Earlier this year, AMAK put in place a new, experienced management team
including a CEO, mine manager, and mill manager, with a directive to develop
cost control measures and operational efficiencies that would increase outputs
while reducing waste and dilution. In line with this directive, AMAK also
recently commissioned a Precious Metals Circuit which is now fully activated
and expected to recover significant amounts of gold and silver that was
previously lost as part of tailings. The tailings typically have shown .5
grams/mt of gold and 10.5 grams/mt of silver. The Precious Metal Circuit is
designed to recover approximately 50% of the contained metals and has
exhibited good results so far.

Overall, metal recoveries have begun to improve including recovery rate
increases of approximately 5% for zinc and 1% for copper in recent months
compared with the first half of the year.

In addition, AMAK successfully renegotiated contract terms with its labor
supplier, resulting in reduced costs due to operational efficiencies while
also aligning the contractor's and AMAK's interests.

Trecora Resources' President and CEO Nick Carter commented, "We are pleased to
see steady improvements in AMAK operations including more efficient zinc and
copper production and initial gold and silver recovery. Our new management
team anticipates further growth and operating efficiencies with a goal of
achieving sustained profitability. We have developed a laundry list of ways
to improve the economics of the operation including extended use of the
precious metals recovery capability with feed from other areas of our lease.

"We do not anticipate the recent changes at AMAK to be reflected in our fourth
quarter 2014 financial results. However, we do look forward to these
improvements contributing positively to Trecora's financial results beginning
in 2015."

 

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