Mr. J. Scott Drever reports

SILVERCREST ANNOUNCES Q2 PRODUCTION 139,850 OUNCES SILVER & 8,584 OUNCES GOLD

SilverCrest Mines Inc. has released production figures for the second quarter of 2012 from its 100-per-cent-owned Santa Elena mine located in Sonora, Mexico.

Second-quarter production highlights:

• Silver produced ounces: 139,850; 87-per-cent increase over second quarter of 2011;
• Gold produced ounces: 8,584; 57-per-cent increase over second quarter of 2011;
• Ore tonnes crushed: 317,958; 33-per-cent increase over second quarter of 2011;
• Silver ounces to pad: 403,264; 14-per-cent increase over second quarter of 2011;
• Gold ounces to pad; 13,764; 10-per-cent decrease over second quarter 2011.

J. Scott Drever, president, stated: "Operations at the Santa Elena mine enjoyed a robust second quarter with silver and gold production comfortably in line with our 2012 production guidance. This is the third consecutive quarter that we have operated at full, planned production rates. The crusher throughput averaged approximately 3,494 tonnes per day for Q2 2012, compared to a plan of 2,500 tonnes per day. The open-pit tonnes and grades continue to track closely with our geological block models and open-pit mine plan. Cash costs for the quarter are anticipated to be consistent with our guidance of $8.20 per silver equivalent ounce. As a result of the strong first half of the year and projected production for the second half, the company anticipates meeting or exceeding its 2012 production guidance of 435,000 ounces of silver and 33,500 ounces of gold."

            SANTA ELENA MINE OPERATING HIGHLIGHTS       

                            H1 2012    Q1 2012    Q2 2012  Q2 2011

Silver ounces produced      274,378    134,528    139,850   74,678
Gold ounces produced         17,989      9,405      8,584    5,476
Silver equivalent ounces
produced (1)              1,263,221    616,668    646,553  310,090
Silver ounces sold          264,510    139,771    124,739   44,470
Gold ounces sold             18,467      9,788      8,679    4,300
Silver equivalent ounces
sold (1)                  1,278,625    641,546    637,079  229,313
Tonnes ore mined            533,226    263,424    269,802  249,214
Tonnes waste mined        2,722,823  1,439,330  1,283,493  708,049
Waste/ore ratio                5.11       5.46       4.76     2.84
Ore tonnes crushed          582,935    264,977    317,958  238,478
Average ore tonnes
crushed per day               3,203      2,912      3,494    2,621
Average silver ore grade
(g/t) loaded on pad           41.79      44.13      39.45     44.1
Average gold ore grade
(g/t) loaded on pad            1.48       1.61       1.35     1.91
Silver ounces delivered
to pad                      779,251    375,987    403,264  352,995
Gold ounces delivered to
pad                          27,526     13,762     13,764   15,268
Ag:Au ratio (1)                51:1     51.2:1       59:1     43:1

(1) Silver equivalence is based on market spot prices per ounce of 
silver and gold at the quarter-end dates. All numbers are rounded.                 

Operations during the first quarter of 2011 were still in ramp-up mode so are not directly comparable with those quarters where steady-state production has been achieved. The strip ratio for the second quarter of 2012 remains above the target of 3.9:1 due to accelerated waste removal under a revised mine plan to accommodate additional lower-grade material in the footwall of the deposit and to assure access to higher-grade ore for the balance of the year. The average revised strip ratio for 2012 is estimated at 5:1 with projections for 2013 to be less than 2:1. The crusher throughput was higher for the second quarter due to increased operating hours, improved efficiencies with greater availability of the crushing circuit. Silver and gold grades of ore loaded on the pad were marginally lower due to lower grades from the open pit and processing of low-grade stock pile material. For the remainder of 2012, the company anticipates a lower strip ratio than the second quarter of 2012, above budget crusher throughput, and higher mine grades.

N. Eric Fier, CPG, PEng, chief operating officer for SilverCrest Mines and qualified person for this news release, has reviewed and approved its contents.

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