Additional Gold at El Gallo Phase 1 Production Area

TORONTO - McEwen Mining Inc. reported exploration drill results from its 100% owned El Gallo Complex, in Sinaloa State, Mexico. Drilling has extended the known mineralized zones within the Phase 1 production area, where mine commissioning is underway. The most impressive hole returned 1.1 gpt gold over 71.3 m, including 6.6 gpt gold over 4.9 m, which is believed to be the widest intersection of +1 gpt gold recorded at the property.

"One of the best ways to stagnate in the mining industry is to stop exploration. We have no intention of doing so. Our properties continue to yield intriguing discoveries," stated Rob McEwen, Chief Owner.

Drilling within the El Gallo Phase 1 area commenced during the Second Quarter with the objective of expanding the size of the overall gold resources (M&I: 566,508 gold ounces; Inferred: 271,081 gold ounces) in order to increase the current mine life (approximately 6-7 yrs). The majority of the drilling has focused on extending the limits of the Lupita vein, to the southwest and at depth. Five of the seven holes were successful. The most important hole is MLX-013. This hole is located approximately 200 m southwest of the planned Lupita open pit, in an area that has seen limited exploration. The mineralization remains open in several directions.

Holes MLX-012 and MLX-009 were completed approximately 30 meters below the previous drilling in order to extend the known mineralization. These holes demonstrate that the zone remains open for possible expansion at depth. Hole MLX-010 was drilled in order to extend the mineralization near surface.

Drilling to follow-up on these results is underway. Three core drills are currently focused within in the Phase 1 area and two holes to expand the mineralization encountered in MLX-013 have already been completed.