SilverCrest’s Initial Gold & Silver Production Imminent

SilverCrest Mines Inc. is pleased to report that gold and silver production at its Santa Elena Mine located in Sonora, Mexico islooking for gold ore crusher small capacity imminent, with a first metal pour scheduled for early September.

Project construction has proceeded as scheduled, and according to budget. Operation activities, such as mining, crushing and pad loading, have been underway for some time and the application of the leach solutions will commence shortly. SilverCrest forecasts that Santa Elena Mine will reach full production rates in the fourth quarter of this year.

The estimated capital cost of SilverCrest’s fully financed Santa Elena project is US$20 Million, with an estimated life of mine cash cost of less than US$375 per ounce of gold equivalent. The Company anticipates that the 2,500 tonne per day facility will produce approximately 35,000 ounces of gold and 600,000 ounces of silver per year.

Since May, SilverCrest has accomplished the following milestones at Santa Elena Mine:

• Three‐stage Crusher: fully tested, operating at 75% design capacity


• Leach Pad: initial loading underway, with approx. 25,000 tonnes of ore


• Coarse Ore Stockpile: approx. 80,000 tonnes of ore mined and hauled for crushing


• Barren, Pregnant & Emergency Ponds: fully lined, solutions complete


• Power Generators, Major Electrics: installation complete


• Merrill Crowe Recovery Unit, On‐site Laboratory: near completion


• 100% Workplace Safety Record: no lost time accidents or incidents with over 190,000 hours worked to date


• Production Staff: more than 90% employees hired, surpassed initial goal of hiring 75% locally


• Community Relations: positive response & strong support from local stakeholders

SilverCrest’s President, J. Scott Drever, states that, “We are very excited about the forthcoming metal pour at Santa Elena Mine. Going forward, our next major objectives will be achieving full production and commercial production levels. Current gold and silver prices are significantly above those of US$765 and US$11.95, respectively, used in our Prefeasibility Study base case which showed an after‐tax, internal rate of return of 70.3%. The robust economics of the project are expected to provide early, free cash flow to implement the Company’s aggressive strategy for corporate growth.”

The Company is assessing the potential for resource and future production expansion, including exploration of additional parallel zones to the Santa Elena Main Zone, and possible development of current underground resources. SilverCrest is also examining potential re‐treatment of the heaps with conventional milling, and the feasibility of processing the nearby Cruz de Mayo silver deposit at the Santa Elena facilities. The Company believes that, collectively, these developments could significantly raise annual production rates at the Santa Elena facilities and increase mine life. Further studies are required to demonstrate that SilverCrest’s additional resources are economically viable.