Mr. Rob McEwen reports

MCEWEN MINING REPORTS Q2 PRODUCTION RESULTS, CASH AND BULLION INCREASE TO $57 MILLION

McEwen Mining Inc. had total production for the second quarter of 39,555 gold-equivalent ounces(1) using a gold-to-silver ratio of 75 to 1, or 27,888 gold ounces and 875,006 silver ounces. Production is on target to achieve 2016 guidance of 144,000 gold-equivalent ounces, or 99,500 gold ounces and 3,337,000 silver ounces.

Strong balance sheet

The company has cash and bullion of approximately $57-million(2), and remains debt-free. The company's balance sheet continues to strengthen with the higher gold and silver prices. This positive impact is reflected in the company's net sales, bullion inventory and increased dividends received from the San Jose mine. During Q2, the company purchased for $5.25-million the existing net-smelter-return royalty on the El Gallo property, which includes both the El Gallo mine and its permitted silver project. In addition, the company currently holds in excess of $4-million in marketable securities as investments.

"We have strived to ensure that our share owners enjoy the full benefit of higher gold, silver and copper prices. We have not sold any royalties or metal streams, and we do not hedge our precious metal sales. I am pleased with our progress of building a strong balance sheet, which will allow us to fund the future development of our Gold Bar mine and El Gallo silver mine with reduced financing requirements," stated Rob McEwen, chairman and chief owner.

El Gallo mine, Mexico (100 per cent)

The El Gallo mine continued to deliver solid results in Q2, producing 15,640 gold-equivalent ounces, compared with 17,325 gold-equivalent ounces during the same period in 2015. Production in Q2 was lower than the prior quarter due to lower ore grades, as the company previously forecasted (2.3 grams per tonne in Q2 2016 versus 3.6 g/t in first quarter 2016). The company's full-year guidance for El Gallo remains 55,000 gold-equivalent ounces; as such, the rate of production will be reduced in the second half of the year. The 2016 exploration budget for Mexico is $4-million, focusing on drilling and ground geophysics on several priority targets.

San Jose mine, Argentina (49 per cent)(3)

The San Jose mine increased production 10 per cent quarter over quarter. Attributable production from San Jose in Q2 was 12,352 gold ounces and 867,191 silver ounces, for a total of 23,915 gold-equivalent ounces. Full-year production guidance for San Jose in 2016 is 45,000 gold ounces and 3.3 million silver ounces, for a total of 89,000 gold-equivalent ounces attributable to the company. The 2016 exploration budget at San Jose on a 100-per-cent basis has been increased to $6.5-million.

Redemption of exchangeable shares

At the company's annual meeting held on June 6, 2016, shareholders of the outstanding shares of McEwen Mining -- Minera Andes Acquisition Corp. voted to allow the early redemption of their shares. On Aug. 22, 2016, the company will cause each remaining exchangeable share to be redeemed in exchange for one common share of McEwen Mining. Notice will be mailed to holders of exchangeable shares, and copies of these documents will be filed on SEDAR. Holders of exchangeable shares may continue to exercise their normal retraction rights at any time before Aug. 22, 2016.

Financial results

Operating costs for the quarter ended June 30, 2016, will be released with the company's quarterly financial statements in early August.

Footnotes

(1) Gold-equivalent ounces are calculated based on gold-to-silver ratio of 75 to 1.

(2) Figure updated as of July 18, 2016, includes cash, cash equivalents and precious metals at market.

(3) The San Jose mine is owned by Minera Santa Cruz SA, which is a joint venture 49 per cent owned by McEwen Mining and 51 per cent owned and operated by Hochschild Mining PLC.

Reliability of information regarding the San Jose mine

Minera Santa Cruz, 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, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release.

Technical information

The technical contents of this news release have been reviewed and approved by Dr. Nathan M. Stubina, PhD, PEng, FCIM, managing director, a qualified person as defined by National Instrument 43-101.

We seek Safe Harbor.