Ms. Christina McCarthy reports

MCEWEN MINING Q1 2016 OPERATING & FINANCIAL RESULTS

McEwen Mining Inc. had consolidated quarterly production of 37,958 gold equivalent ounces (1) and earnings from mining operations of $19.5-million (2) for the three months ended March 31, 2016. The El Gallo mine in Mexico had an outstanding quarter, producing at total cash costs and all-in sustaining costs (AISC) per gold equivalent ounce of $432 and $532, respectively. The San Jose mine in Argentina also performed well, and as a result, the company received a dividend of $2.6-million from Minera Santa Cruz SA (3) in the quarter, compared with a $500,000 dividend received during all of 2015. All amounts are reported in United States dollars unless otherwise stated.

McEwen generated $14.7-million in free cash flow in the quarter, and ended the quarter with liquid assets (2) of $43.5-million and no debt. On May 2, 2016, the company had liquid assets of $46-million and no debt. The attached tables provide operating and financial results for Q1, comparative results for Q1 2015, and the company's production and cost guidance for full year 2016. For the company's SEC Form 10-Q financial statements and management discussion and analysis, please visit the SEC website.

                                                  Q1 2016     Q1 2015       Guidance full year 2016                                                                      
Corporate total                                                                   
Gold ounces produced                               28,975      24,696                        99,500      
Silver ounces produced                            673,767     655,339                     3,337,000   
Gold equivalent ounces produced (1)                37,958      33,434                       144,000     
Gold equivalent total cash cost ($/oz)(1)(2)          615         674                           780         
Gold equivalent co-product AISC ($/oz)(1)(2)          814         948                           935         
Gold equivalent all-in cost ($/oz)(1)(2)              903       1,044                             -           
El Gallo mine -- Mexico                                                            
Gold ounces produced                               20,015      15,243                        54,500      
Silver ounces produced                              6,448      11,084                        37,500      
Gold equivalent ounces produced (1)                20,101      15,391                        55,000      
Gold equivalent total cash cost ($/oz)(1)(2)          432         460                           780         
Gold equivalent co-product AISC ($/oz)(1)(2)          532         611                           840         
San Jose mine (3) -- Argentina                                                      
Gold ounces produced                                8,960       9,453                        45,000      
Silver ounces produced                            667,319     644,255                     3,300,000   
Gold equivalent ounces produced (1)                17,857      18,043                        89,000      
Gold equivalent total cash cost ($/oz)(1)(2)          762         888                           780         
Gold equivalent co-product AISC ($/oz)(1)(2)          936       1,127                           990         

                                                     Q1 2016    Q1 2015 
                                                                     
Gold equivalent ounces sold                           40,578     37,682 
San Jose mine                                         22,477     18,865 
El Gallo mine                                         18,101     18,817 
                                                                     
Average realized prices (2)                                           
Gold ($/oz)                                        $   1,205   $  1,213  
Silver ($/oz)                                          15.29      17.02  
                                                                     
        (in millions of U.S. dollars except per-share amounts)
                  
Earnings from mining operations (2)                $    19.5   $   17.2   
Earnings from mine operations per share                 0.07       0.06   
                                                                     
Cash flow from operations (2)                           14.7        5.6    
Cash flow from operations per share                     0.05       0.02   
                                                                     
Net income (2)                                          13.0        6.0    
Net income per share                                    0.04       0.02   
                                                                     

Operating and financial highlights

Production costs

Consolidated total cash costs, all-in sustaining costs (AISC) and all-in costs per gold equivalent ounce sold in Q1 were $615, $814 and $903, respectively. At the El Gallo mine, total cash costs and AISC were $432 and $532 per gold equivalent ounce, respectively; and at the San Jose mine, total cash costs and AISC were $762 and $936 per gold equivalent ounce, respectively. The year-over-year decrease in total cash costs per gold equivalent ounce sold is mainly due to a higher average gold grade processed at the El Gallo mine, and devaluation in both the Argentine and Mexican pesos in the quarter.

Production

Quarterly gold equivalent production has increased year over year by 14 per cent. Production in Q1 totalled 37,958 gold equivalent ounces, which includes 17,857 gold equivalent ounces attributable to the company from its 49-per-cent (3) interest in the San Jose mine, and 20,101 gold equivalent ounces from the El Gallo mine.

Ounces sold

Sales totalled 40,578 gold equivalent ounces in Q1, which includes 22,477 gold equivalent ounces attributable to the company from the San Jose mine, and 18,101 gold equivalent ounces from the El Gallo mine.

Earnings from mining operations

Earnings from mining operations were $19.5-million, or seven cents per share, for Q1, compared with earnings of $17.2-million, or six cents per share, for Q1 2015.

Cash flow

Net cash provided by operations was $14.7-million, or five cents per share, for Q1, compared with net cash flow generated of $5.6-million, or two cents per share, in Q1 2015.

Net income

Consolidated net income was $13-million, or four cents per share, for Q1, compared with a net income of $6-million, or two cents per share, for Q1 2015.

Average realized prices

The average realized prices of gold and silver sold during Q1 were $1,205 and $15.29 per ounce, respectively. Average realized prices are presented net of adjustments of provisionally priced sales of concentrates from the San Jose mine.

Production and cost guidance

The company increased its 2016 production guidance during the quarter to 99,500 gold ounces and 3.3 million silver ounces, or 144,000 gold equivalent ounces, at total cash costs and AISC of $780 and $935 per gold equivalent ounce, respectively.

Treasury

The company ended Q1 with $43.5-million in liquid assets and no debt. As of May 2, 2016, it had liquid assets of $46-million.

Return of capital and eligible dividend

The company paid the second semiannual return of capital instalment of 0.5 cent per share on Feb. 12, 2016, for an aggregate total of $1.5-million. For shareowners in the U.S. and Canada, return of capital is generally not taxed, however the company advises investors to obtain advice from a tax professional familiar with specific situations. Owners of the exchangeable shares of the company's publicly traded Canadian subsidiary McEwen Mining -- Minera Andes Acquisition Corp. received an eligible dividend of 0.5 cent per share with the same payment date. The eligible dividend does not qualify for the same beneficial tax treatment discussed above and the company recommends that holders of MAQ shares vote for the proposed amendment to the article of incorporation at the MAQ annual meeting, as discussed below.

Exchangeable shares

At its upcoming annual meeting on May 31, 2016, owners of MAQ exchangeable shares are being asked to vote for an amendment to the articles of incorporation allowing for the immediate redemption of all exchangeable shares. If approved, MAQ shares will be redeemed for MUX common shares. This will save administrative costs and simplify the company's capital structure. For more information on the proposed amendment, refer to pages 10 to 19 of the proxy circular dated April 20, 2016.

El Gallo mine, Mexico (100 per cent)

In Q1 the mine produced 20,101 gold equivalent ounces, compared with 15,391 gold equivalent ounces during same period in 2015. Production in Q1 set a new quarterly record as a result of processing higher grade ore stockpiled in the previous quarter. Production in subsequent quarters is expected to be lower as the influence of higher grade ore diminishes and production transitions to lower grade resources. Full-year production guidance for El Gallo in 2016 is now increased to 55,000 gold equivalent ounces.

For 2016, the company has budgeted $3.3-million for sustaining costs and capital expenditures, and $2.6-million for exploration activities. During Q1, it spent $1.1-million, primarily on the heap leach pad expansion expected to be completed early in Q2, and $800,000 in exploration activities.

On April 19, 2016, the company acquired the existing tiered net smelter return royalty on the El Gallo mine, which was paying 3.5 per cent of gross revenue less allowable deductions. The purchase price consisted of a $5.25-million payment on closing and a conditional deferred payment of $1-million to be made on June 30, 2018. The royalty ceased being payable at the end of March, 2016. In 2015 the royalty added approximately $44 per gold equivalent ounce sold to the company's cash cost. The transaction enhances the future profitability of the El Gallo mine and removes a royalty burden on existing and potentially new deposits inside the royalty's area of influence, including the El Gallo silver deposit.

On May 2, 2016, the company announced the purchase of mineral properties located approximately six miles (10 kilometres) from the El Gallo mine for $250,000, plus a 2-per-cent NSR royalty retained by the seller. The company believes there are attractive exploration targets on these properties, and it will be commencing exploration here immediately.

San Jose mine, Argentina (49 per cent)

The company's attributable production from San Jose in Q1 was 8,960 gold ounces and 667,319 silver ounces, for a total of 17,857 gold equivalent ounces. Compared with Q1 2015, gold production was down 5 per cent and silver production was up 4 per cent. Q1 production is typically lower than other quarters due to mill shutdown and maintenance over the holidays.

Tax reforms and other macroeconomic developments in Argentina have significantly improved the cash flows at San Jose. As a consequence the company received $2.6-million in dividends from MSC (3) in Q1, and expects to receive additional dividends throughout the year.

The 2016 exploration budget for drilling on targets near the mine is $4.5-million. This is the first time in several years that a significant budget has been allocated to exploration with the goal of defining new economic deposits on the San Jose property.

Gold Bar advanced-stage project (4), Nevada, U.S. (100 per cent)

For 2016, the company has budgeted approximately $8.3-million for its Nevada properties. The budget for Gold Bar development is $3.5-million, of which $600,000 was spent in Q1. The exploration budget is $1.6-million for a total of 16,000 feet (4,900 metres) of drilling. Exploration drilling on two Nevada projects begins this month, including on the new Afgan project acquired in January.

The company continues to advance the permitting process for construction and production at Gold Bar. Formal notice from the Bureau of Land Management states the company's record of decision (ROD) for the Gold Bar environmental impact statement (EIS) is expected in January, 2017. The company expects that all other applicable state and local permits will also be acquired within this time frame. Once the ROD and permits are received, the company can begin mine construction, which is expected to take approximately 10 to 12 months to complete.

El Gallo silver advanced-stage project (4), Mexico (100 per cent)

Work with the company's engineering consultants on revised development plans and trade-off studies for El Gallo silver is continuing. The company intends to present its results this summer and produce a new feasibility study when prevailing silver prices justify development.

Los Azules exploration project, Argentina (100 per cent)

For 2016, the company has budgeted $1-million for Los Azules to advance the project with baseline environmental studies, optimization studies and geological work. Planning for the next field season in Q1 2017 is also in progress.

Q1 2016 conference call details

McEwen Mining will be hosting a conference call to discuss the Q1 2016 results and project developments on Thursday, May 5, 2016, at 11 a.m. ET.

Webcast:  available on-line

Telephone:  participant dial-in numbers 877-291-4570 (North America)/647-788-4922 (international); conference ID is 6262391

Replay:  dial-in numbers 800-585-8367 (North America)/416-621-4642 (international); conference ID is 6262391; from May 5 at 2 p.m. ET to May 12 at midnight ET

Footnotes

(1) Silver production is presented as a gold equivalent. Gold equivalent calculations are based on prevailing spot prices at the beginning of the year. The silver-to-gold ratio used for 2015 to 2016 is 75 to one.

(2) Earnings from mining operations, total cash costs, all-in sustaining costs (AISC), all-in costs, average realized prices and liquid assets, are non-GAAP financial performance measures with no standardized definition under U.S. GAAP. See cautionary note regarding non-GAAP measures for additional information, including definitions of these terms.

(3) The San Jose mine is owned by Minera Santa Cruz SA (MSC), which is a joint venture 49 per cent owned by McEwen Mining Inc. and 51 per cent owned and operated by Hochschild Mining PLC. Figures include only the portion attributable to the company from its 49-per-cent interest in MSC.

(4) See cautionary note regarding non-GAAP measures for additional information about advanced-stage projects.

Technical information

The technical contents of this news release have been reviewed and approved by Nathan Stubina, PhD, PEng, FCIM, managing director and a qualified person as defined by Canadian Securities Administrators National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Reliability of information regarding the San Jose mine

Minera Santa Cruz SA, the owner of the San Jose mine, is responsible for and has supplied to the company all reported results from the San Jose mine. 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.

Cautionary note regarding non-GAAP measures

In this report, the company has provided information prepared or calculated according to U.S. GAAP, as well as provided some non-U.S. GAAP performance measures. Because the non-GAAP performance measures do not have any standardized meaning prescribed by U.S. GAAP, they may not be comparable with similar measures presented by other companies.

Total cash costs and all-in sustaining costs

Total cash costs consist of mining, processing, on-site general and administrative costs, community and permitting costs related to current explorations, royalty costs, refining and treatment charges (for both dore and concentrate products), sales costs, export taxes, and operational stripping costs. All-in sustaining cash costs consist of total cash costs (as described above), plus environmental rehabilitation costs, amortization of the asset retirement costs related to operating sites, sustaining exploration and development costs, and sustaining capital expenditures. In order to arrive at the company's consolidated all-in sustaining costs, the company also included corporate general and administrative expenses. Depreciation is excluded from both total cash costs and all-in sustaining cash costs. For both total cash costs and all-in sustaining costs, the company included its attributable share of total cash costs from operations where it holds less than a 100-per-cent economic share in the production, such as MSC, where it holds a 49-per-cent interest. Total cash cost and all-in sustaining cash cost per ounce sold are calculated on a co-product basis by dividing the respective proportionate share of the total cash costs and all-in sustaining cash costs for the period attributable to each metal by the ounces of each respective metal sold. The company used and reported these measures to provide additional information regarding operational efficiencies both on a consolidated and an individual mine basis, and believes that these measures provide investors and analysts with useful information about its underlying costs of operations. A reconciliation to the nearest U.S. GAAP measure is provided in McEwen Mining's quarterly report on Form 10-Q for the quarter ended March 31, 2016.

Earnings from mining operations

The term earnings from mining operations used in this report is a non-GAAP financial measure. The company used and reported this measure because the company believes it provides investors and analysts with a useful measure of the underlying earnings from its mining operations. The company defines earnings from mining operations as gold and silver revenues from its El Gallo 1 mine and its 49-per-cent attributable share of the San Jose mine's net sales, less their respective production costs applicable to sales. To the extent that production costs applicable to sales may include depreciation and amortization expense related to the fair value increments on historical business acquisitions (fair value paid in excess of the carrying value of the underlying assets and liabilities assumed on the date of acquisition), the company deducted this expense in order to arrive at production costs applicable to sales that only include depreciation and amortization expense incurred at the mine-site level. The San Jose mine net sales and production costs applicable to sales are presented, on a 100-per-cent basis, in note five of McEwen Mining's quarterly report on Form 10-Q for the quarter ended March 31, 2016.

Average realized prices

The term average realized price per ounce used in this report is also a non-GAAP financial measure. The company reported this measure to better understand the price realized in each reporting period for gold and silver. Average realized price is calculated as sales of gold and silver (excluding commercial deductions) over the number of ounces sold in the period.

Liquid assets

Liquid assets corresponds to cash, investments and precious metals, which is also a non-GAAP financial measure. The company reported this measure to better understand its liquidity in each reporting period. Cash, investments and precious metals is calculated as the sum of cash, investments and ounces of dore held in inventories with precious metals, valued at the London PM fix-spot price at the corresponding period. A reconciliation between precious metals valued at cost and precious metals valued at market value is provided in McEwen Mining's quarterly report on Form 10-Q for the quarter ended March 31, 2016.

Advanced-stage projects

Advanced-stage properties consist of properties for which a feasibility study has been completed indicating the presence of mineralized material, and that have obtained or are in the process of obtaining, the required permitting for construction and operation. The company's designation of certain properties as advanced-stage properties should not suggest that the company has proven or probable reserves at those properties as defined by the SEC Industry Guide 7. In addition, as described under critical accounting policies section contained in the annual report on Form 10-K for the year ended Dec. 31, 2015, the company defines mine development costs as the costs incurred to design and construct mining and processing facilities, including engineering and metallurgical studies, drilling, and other related costs to delineate an ore body, and the removal of overburden to initially expose an ore body at open pit surface or underground mines. Since no proven and probable reserves have been established on any of its properties except for the company's 49-per-cent interest in the San Jose mine, mine development costs are not capitalized at any of the company's properties, but rather are expensed as incurred, and allocated within mine development costs in the consolidated statement of operations and comprehensive income.

We seek Safe Harbor.