Mr. Rob McEwen reports

MCEWEN MINING RECEIVES FINAL ENVIRONMENTAL PERMIT FOR CONSTRUCTION AND OPERATION OF EL GALLO 2 PROJECT

The Secretariat of Environment and Natural Resources (SEMARNAT) for the state of Sinaloa, Mexico, has approved McEwen Mining Inc.'s change of land use application for El Gallo 2. This final environmental permit allows for the construction and operation of the proposed mine. El Gallo 2 is projected to produce an average of 95,000 gold-equivalent ounces per year (5.2 million ounces of silver and 6,100 ounces of gold) at an approximate cash cost of $750 per AuEq ounce (including all prestrip and Mexican royalties). All-in sustaining costs have been estimated at approximately $800 per AuEq ounce (including an estimated $5-million per year on exploration). AuEq ounces are calculated by converting silver into gold using a 60-to-1 exchange ratio.

McEwen Mining and its engineering contractors are conducting continuing studies in order to reduce the estimated capital expenditures associated with El Gallo 2. The company believes that approximately $20-million in capital costs can be reduced from previous estimates with minimal impact on production by: reducing the number of leach tanks; building a smaller Merrill Crowe process plant/refinery; using modular crushers; and reducing the number of transformers. To date, $10-million of the estimated final construction cost has been spent. With these projected savings and taking into account the funds spent to date, approximately $150-million would be required in order to complete the mine.

"We would like to congratulate our teams in Toronto and Mexico for their dedication and hard work. In addition, McEwen Mining wishes to extend its sincere gratitude and thanks to the SEMARNAT offices in Sinaloa state and Mexico City. This process took five months from start to finish and shows what is possible when the public and private sectors work together to achieve a common goal," stated Rob McEwen, chairman and chief owner, and Ian Ball, president.

A final decision to proceed with the construction of El Gallo 2 has not been made. The company plans to complete its cost savings studies and review financing alternatives. Although the company believes this is an ideal environment to build El Gallo 2 due to the abundance of skilled labour and supplies, any decision to proceed would be based on securing financing on more attractive terms than those currently available. The company believes receiving the final permit for El Gallo 2 will help facilitate this process. The company will provide an update during its fourth quarter financial update, which is scheduled for early March. At Dec. 31, 2013, McEwen had cash and gold/silver bullion totalling $26-million, and was debt free.

Two additional permits associated with El Gallo 2 will be submitted in first quarter 2014. These permits will not prevent construction from proceeding. One of these permits is to allow for the mining of a satellite deposit, Palmarito, in 2016. The second permit is for a right-of-way for electrical power to connect to the process plant. Construction of the mine could begin with power provided by generators with the option of later connecting to the electrical grid.

Technical information

This news release has been reviewed and approved by William Faust, PE, McEwen Mining's chief operating officer, who is a qualified person as defined by National Instrument 43-101. For additional information about the El Gallo complex, see the technical report titled "Resource Estimate for the El Gallo Complex, Sinaloa State, Mexico," dated Aug. 30, 2013, with an effective date of June 30, 2013, prepared by John Read, CPG, and Luke Willis, PGeo. Mr. Read and Mr. Willis are not considered independent of the company as defined by NI 43-101.

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