Mr. Rob McEwen reports

MCEWEN MINING BUYS ATTRACTIVE EXPLORATION TARGET NEAR EL GALLO MINE

McEwen Mining Inc. has purchased mineral properties located approximately six miles (10 kilometres) from the El Gallo mine for $250,000 plus a 2-per-cent net smelter return royalty retained by the seller over the acquired properties.

"This is an attractive exploration target because of its proximity to the El Gallo mine, and fits with our strategy of investing in opportunities that have the possibility to extend the life of our mine," said Rob McEwen, chairman and chief owner.

The acquired properties lie on an important mineral trend over seven kilometres long, which is contained within the company's larger claim block. The acquisition completes the consolidation of the district surrounding the El Gallo mine and El Gallo silver deposit, and adds an area of considerable exploration potential. McEwen Mining has explored extensively along this trend and previously discovered two satellite mineral resources (Twin Domes and Las Milpas). The acquired properties and surrounding area are characterized by favourable alteration signatures and abundant anomalous gold and silver mineralization in surface rock and soil samples. Recent exploration adjacent to the acquired properties revealed an area of structurally controlled gold mineralization in shallow percussion drilling and in deeper core drilling. Now that this acquisition is complete, the company will expand its exploration program in the area.

The acquired properties consist of two mineral claims (totalling 1,040 acres), which were 100 per cent owned by the seller, as well as the sellers' rights to four additional mineral claims (totalling 930 acres) under an option agreement that is the subject of a legal dispute. The company will attempt to settle the litigation and obtain title to the disputed claims.

Technical information

The technical contents of this news release have been reviewed and approved by Hall Stewart, BSc, CGP, RG, consulting geologist and a qualified person as defined by Canadian Securities Administrators National Instrument 43-101 (standards of disclosure for mineral projects).

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