McEwen Mining Inc. (NYSE: MUX - News)(TSX: MUX.TO - News) is pleased to announce production results for the First Quarter of 2012 from its 49% owned San Jose mine in Santa Cruz Province, Argentina. Production costs will be announced with the First Quarter financial results, which will be released in early May of 2012.

Production at the San Jose mine during the quarter was 1,355,678 ounces silver and 20,357 ounces gold (100% basis), and remains on target to meet full-year production guidance of 5.7 million ounces of silver and 85,000 ounces of gold. The average grade mined during the quarter was 416 gpt silver and 5.98 gpt gold. Silver and gold recoveries averaged 87.8% and 91.6%, respectively. Grades mined and recoveries were both in line with the Company's expectations.

During the First Quarter approximately 30% of total sales were delayed due to the renegotiation of refinery contracts. Subsequent to the end of the quarter, a new contract was finalized and full dore sales resumed.

 

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SAN JOSE MINE PRODUCTION COMPARISION              Q1          Q4          Q1
 (100% BASIS)(i)                                2012        2011        2011
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Ore production (tonnes)                      115,531     126,675     113,696
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Average head silver (gpt)                        416         412         459
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Average grade gold (gpt)                        5.98        5.68        6.08
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Average silver recovery (%)                     87.8        86.6        90.8
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Average gold recovery (%)                       91.6        90.5        96.4
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Silver produced (k oz)                         1,356       1,454       1,522
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Gold produced (k oz)                           20.36       20.93       21.41
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Silver sold (k oz)                             1,032       1,750       1,342
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Gold sold (k oz)                               14.34       24.95       17.63
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(i)McEwen Mining holds a 49% attributable interest in the San Jose mine.

The board of directors of McEwen Mining are also pleased to announce that effective immediately Andrew Elinesky and Simon Quick have been appointed Vice President - Argentina and Vice President - Projects, respectively.

Andrew Elinesky is currently the Director - Projects (Argentina), where he is responsible for exploration, development and administrative oversight of our Argentine assets. An accountant by training, Mr. Elinesky was previously the corporate controller for Minera Andes Inc., which combined with McEwen Mining in January 2012. Andrew originally joined the McEwen group of companies in 2008.

Simon Quick, currently Director - Projects (Mexico), joined McEwen Mining in 2009 and as since been an integral part of the team that has taken the company's El Gallo project in Mexico from a grassroots exploration effort into the advanced development and construction phase, with production expected in July 2012. Going forward he is expected to play a significant role in the Gold Bar permitting process.

Mr. Quick replaces Stefan Spears, current Vice President - Projects. This past week the company received and accepted the resignation of Mr. Spears effective May 17, 2012. Stefan Spears joined McEwen Mining (then known as US Gold Corporation) in 2005 and has played an important role, through both the development of our projects and as part of numerous corporate development activities, in helping build McEwen Mining. Stefan has indicated that following a brief break he will be pursuing a number of new ventures.

About McEwen Mining (www.mcewenmining.com)

The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by 2015 by creating a high growth, low-cost, mid-tier silver and gold producer focused in the Americas. McEwen Mining's principal assets consist of the San Jose mine in Santa Cruz, Argentina (49%interest); the El Gallo Complex in Sinaloa, Mexico; the Gold Bar Project in Nevada, US; the Los Azules Project in San Juan, Argentina and a large portfolio of exploration properties in Argentina, Nevada and Mexico. In 2012, McEwen Mining is planning to spend approximately US$40 million on exploration.

McEwen Mining has 267,084,203 shares issued and outstanding. Rob McEwen, Chairman, President and CEO, owns 25% of the shares of the Company. As of February 29, 2012, McEwen Mining had cash and liquid assets of US$78.8 million, comprised of cash of US$51.5 million, marketable securities of US$1.4 million, and silver and gold bullion at market value of US$25.9 million. The Company continues to hold a significant portion of its treasury in bullion with the belief that prices will continue to rise.

Reliability of Information

Minera Santa Cruz S.A., the owner of the San Jose mine, is responsible for and has supplied to the Company all reported results from the San Jose mine. This press release is based entirely on information provided to McEwen Mining by Minera Santa Cruz S.A. (MSC). McEwen Mining's joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release. As the Company is not the operator of the San Jose mine, there can be no assurance that production information reported to the Company by MSC is accurate, the Company has not independently verified such information and readers are therefore cautioned regarding the extent to which they should rely upon such information.

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