Ms. Jenya Meshcheryakova reports

MCEWEN MINING ANNOUNCES $60 MILLION RIGHTS OFFERING BACKSTOPPED BY ITS CHIEF OWNER, ROB MCEWEN

McEwen Mining Inc. and its wholly owned subsidiary, McEwen Mining-Minera Andes Acquisition Corp., will launch transferrable rights offerings.

They are conducting two concurrent rights offerings because they have two classes of shares -- common shares of McEwen Mining and shares of Exchange Co. that are exchangeable on a 1-for-1 basis into common shares. The rights offerings will provide that holders of common shares and exchangeable shares will participate on an equal and proportional basis with other holders of the same class of shares in purchasing additional shares of the same class of shares at a considerable discount to the current listed price.

"I believe a rights offering, versus all other forms of financing, is the most fair to our shareholders. We are giving the companies' current shareholders who have been supportive and loyal to the company the first right on this financing. I am personally backstopping this financing for $60-million because I believe McEwen Mining has a bright future," said Rob McEwen, chairman and chief owner.

Details:

• The record date/time are set at 5 p.m. (EST) on Nov. 8, 2012.
• How many shares will you be able to subscribe for? For each share you hold on the record date, you will receive one subscription right to acquire the same class of shares. For every 10 subscription rights of the same class of shares you hold, you will be able to subscribe for one share of that same class of shares (subject to applicable law).
• What will it cost to subscribe for a share? Upon the exercise of 10 subscription rights, each common share will cost $2.25 (U.S.) or $2.24 (if you reside in Canada) and each exchangeable share will cost $2.24. The price difference is reflective of the United States/Canadian exchange rate.
• Rights expiry date: The rights offerings will be open until 5 p.m. (EST) on Dec. 4, 2012. Holders of subscription rights will need to exercise their subscription rights prior to that time and date.
• How much will the rights offerings raise? Gross proceeds of approximately $60-million (U.S.).
• What will the funds raised be used for?: (1) to finance the advancement of the company's El Gallo complex; (2) to complete metallurgical studies on the company's Tonkin project and follow-up work as required; (3) to advance the permitting process and environmental impact study on the company's Gold Bar project; (4) to further explore the company's various projects and properties; and (5) for other corporate purposes.
• How many shares will be issued? The company expects to issue a total of 19,051,679 common shares and 7,798,762 exchangeable shares, representing approximately 10 per cent of its current outstanding common shares (assuming the conversion of the exchangeable shares issued in the rights offerings into common shares).
• Will this dilute your percentage share holdings? Your shareholdings will not be diluted if you exercise your rights in full. If your rights go unexercised or you sell your rights (see below), your percentage share holdings will be diluted.
• Can you sell my rights on the New York Stock Exchange or the Toronto Stock Exchange? Yes, shareholders who do not wish to exercise their subscription rights will have the option of selling their subscription rights to acquire the underlying common shares through the NYSE or the TSX, and their subscription rights to acquire the underlying exchangeable shares on the TSX (subject to the NYSE and the TSX approving the trading of the subscription rights and the listing and trading of the shares issuable upon the exercise of such subscription rights).
• Can you buy more shares? Perhaps. All shareholders of McEwen Mining and Exchange will be offered an oversubscription privilege that allows those shareholders who fully exercise their subscription rights the opportunity to acquire, on a pro rata basis, additional common shares or exchangeable shares, respectively, that remain unpurchased on the expiry date.
• When will you receive additional information? A rights certificate and a prospectus or rights offering circular will be mailed to each shareholder of McEwen Mining and Exchange shortly following the record date.
• Backstop: Mr. McEwen will be subscribing for all the subscription rights made available to him as a result of his 25-per-cent ownership in McEwen Mining (includes his exchangeable shares), but will not participate in the oversubscription privilege thereunder. In addition, he has agreed to backstop the rights offerings in their entirety. This means that if any subscription rights remain unexercised in the rights offerings (including the oversubscription privilege) on the expiry date, the unsubscribed common shares and exchangeable shares will be subscribed for by Mr. McEwen. This guarantees that the rights offerings will be fully subscribed for.

We seek Safe Harbor.