Mr. Graham Hill reports

SILVER BEAR ANNOUNCES SEVEN-YEAR LICENCE EXTENSION GRANTED FOR THE MANGAZEISKY SILVER PROJECT, RUSSIA

Silver Bear Resources Inc. has provided the following update. The Russian State Subsoil Agency (Rosnedra) has granted a seven-year extension to the term of the company's wholly owned exploration licence relating to the Mangazeisky silver project, Republic of Sakha (Yakutia), Russia. Prior to the extension, the company was permitted to explore on the property until Dec. 31, 2016. The extension provides that the new licence term will run to Dec. 31, 2023, allowing the company to significantly extend its exploration activities on the property.

Silver Bear's chief executive officer, Graham Hill, commented: "This extension goes further in showing the broad support of the project, as the term is for a much longer period and contains no requirements for minimum work on drilling and trenching. Our efforts to move towards being a producing company in this region are being appreciated by the granting of more favourable terms in this extension than in previous extensions. Of great significance, the licence boundaries remain intact, and the small reduction in size, now 556.45 square kilometres, is due to the exclusion of our 20-year Vertikalny mining licence. The seven-year extension allows us to maintain our exploration focus on expanding resources along the mineralized corridor, and supports our goal of increasing reserves and mine life at the Vertikalny project by establishing a multipit single-plant mining operation.

"The progress of development at Vertikalny is very encouraging. With construction work progressing well, I am pleased to report we remain on schedule and within budget for silver commissioning by late 2016. In addition, the company is in the process of incorporating the updated mineral resource at Vertikalny Central, announced on Aug. 8, 2016, in the revised mine plan and feasibility study, and expects to announce the results this quarter."

About Silver Bear Resources Inc.

Silver Bear is focused on the development of its wholly owned Mangazeisky silver project, covering a licence area of approximately 570 square kilometres that includes the high-grade Vertikalny deposit, located 400 kilometres north of Yakutsk in the Republic of Sakha (Yakutia) within the Russian Federation. The company was granted a 20-year mining licence for the Vertikalny deposit in September, 2013, and completed a feasibility study in the second quarter of 2016. The company is implementing a fast-track execution plan to complete major construction of the Mangazeisky silver project by the end of 2016, with steady-state production planned to start in the first quarter of 2017.

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