Mr. Graham Hill reports

SILVER BEAR ORDERS ADDITIONAL LONG LEAD TIME EQUIPMENT AND AWARDS PROCUREMENT CONTRACT

Silver Bear Resources Inc. has placed orders for vital long-lead process equipment items, and, in addition, the company has awarded a procurement services contract for the continuing works at its wholly owned Mangazeisky silver project in Yakutia, Russia.

Highlights:

• Placed order for three vital long-lead items, namely: electrowinning cell processing equipment, high performance filters with built-in cake-washing capability and mill used for regrinding the concentrate before intensive leaching; all items are expected to help increase silver recovery and minimize operating costs;
• Awarded procurement services contract to PT Mining of Russia, ensuring the company meets its deadlines during the tight and intensive 2015/2016 procurement window.

Long-lead processing equipment

Further to the order that was placed with CITIC Heavy Industries Co. Ltd. for a 500-kilowatt (three-metre-by-3.7-metre-diameter effective grinding length) ball mill announced in July (refer to July 16, 2015, press release for full details) the company has entered into an agreement to purchase the emew electrowinning cell processing equipment from Electrometals Group. This electrowinning processing equipment enables the company to produce high-grade (three nines) solid silver powder directly from the leach solution without an intermediate carbon stage. The anticipated delivery is in time for 2016 winter road resupply. The emew system has been available for nearly 20 years, successfully installed in over 50 industrial plants worldwide. The technology offers increased production capacity, on a reduced footprint and excellent recoveries from lower concentrations.

The company has also placed an order with Bilfinger of Italy for two high performance filters with built-in cake-washing capability. These machines constitute the essential final stage in the separation of silver-bearing solution from the barren solids; supplying clear solution to the electrowinning system. In addition, the company has placed an order with Metso for a mill used for regrinding the gravity concentrate before the intensive leaching. It is anticipated that this gravity concentration and intensive leaching will minimize cyanide consumption and improve silver recovery.

Procurement services contract

Due to a tight and intensive procurement window, the company has awarded PT Mining of Russia a contract for procurement services for the Mangazeisky silver mine development. PT Mining demonstrated the necessary experience and skills to perform the procurement service, with the added ability to maximize the use of Russian-based suppliers. It will be PT Mining's responsibility to compile packages of equipment and materials to supply complete process plant sections and take responsibility for delivery and potentially erection on site. PT Mining will work in collaboration with the company's own procurement specialists and Tetra Tech.

Silver Bear's chief executive officer, Graham Hill, commented: "Over the 2015 field season, the company has embarked on an aggressive project implementation program and the ordering of key long-lead items, such as the ball mill and the electrowinning equipment, and the award of the procurement services contract are all significant milestones in the project's development. At this time, the accelerated construction and mine plan for the Vertikalny deposit is progressing well, and we are confident that the company is in the position to meet its target of commissioning silver production by the second half of 2016."

Jacques du Toit, PrEng, MScEng, PMP, of Tetra Tech is a qualified person under National Instrument 43-101 and has reviewed the scientific and technical information in this release.

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