Mr. Graham Hill reports

SILVER BEAR ANNOUNCES RENEGOTIATION OF EXISTING CONVERTIBLE NOTES

Silver Bear Resources Inc.'s major shareholders, A.B. Aterra Resources Ltd. and Inflection Management Corp., have entered into negotiations with the company to undertake a restructuring of their outstanding convertible notes and a new financing process with the objective of reducing dilution and mitigating the possible impact on liquidity, which the full conversion of the notes by Dec. 31, 2016, would entail. Aterra currently holds convertible notes with a principal amount of $4,505,000 and Inflection holds a principal amount of $13.51-million, all of which were initially issued in December, 2015.

The discussions revolve around Aterra and Inflection converting a to-be-agreed portion of the principal amount of the existing convertible notes into common shares, such that their combined common share ownership would not exceed 65 per cent on completion of the restructuring. In addition, Aterra and Inflection would agree to exchange the remaining principal amount for new convertible notes to be priced in the context of the market, and also placed with new institutional investors.

If necessary, Aterra and Inflection have indicated that they would be willing to extend the term of their existing convertible notes from Dec. 31, 2016, until March 31, 2017, to facilitate the negotiations.

The note extension, if agreed, will be subject to the approval of the board of the company and the Toronto Stock Exchange.

Discussions regarding the restructuring and new convertible note financing are at an early stage, and no assurance can be provided that either will be completed, and accordingly, whether an extension of the existing convertible notes will be forthcoming.

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 within the Russian Federation. The company was granted a 20-year mining licence for the Vertikalny deposit in September, 2013, and recently updated its feasibility study in the fourth quarter of 2016.

We seek Safe Harbor.