Mr. William Faust reports

MCEWEN MINING Q2 OPERATIONAL RESULTS, RECORD PRODUCTION AT LOWER COSTS

McEwen Mining Inc. is providing a summary of the company's second quarter operating results (all amounts are in U.S. dollars unless otherwise stated). During the quarter, the company delivered record production at lower costs.

Second quarter summary highlights:

• Gold equivalent production increased to 35,955 ounces (20,988 gold ounces and 778,308 silver ounces). This is approximately 44 per cent higher than second quarter 2012 and 20 per cent higher than first quarter 2013.
• The company is on target to produce 130,000 gold equivalent (i) ounces in 2013.
• Total cash costs and all-in sustaining costs were $744 and $1,108 per gold equivalent ounce. Total cash costs were 9 per cent lower than second quarter 2012 and 22 per cent lower than first quarter 2013. All-in sustaining costs were 33 per cent lower than first quarter 2013.
• El Gallo 1 and 2 measured and indicated gold equivalent resources increased by 34 per cent to 2.1 million ounces (48.2 million tonnes at 1.37 grams per tonne gold equivalent).
• At June 30, 2013, the company had $39.3-million in liquid assets and no debt.
• The company recorded a non-cash impairment charge of $123.6-million related to the decline in metal prices and an associated tax being proposed in Argentina.

"Our two mines performed well in second quarter. Production was up, and costs were down. We are expecting similar performance during the second half of the year and remain on target to reach our 2013 production goals. All of our permits for El Gallo 2 have been submitted (for the mill scenario outlined in the El Gallo 2 section herein), and we expect approval by the end of 2013. In addition, our exploration in Mexico continues to grow the size of the resource with a 34-per-cent increase in the measured and indicated categories at El Gallo 1 and 2," stated Rob McEwen, chief owner.

Balance sheet

At June 30, 2013, McEwen Mining had cash and liquid assets of $39.3-million, composed of cash totalling $34.8-million, with gold and silver bullion valued at $4.5-million. The company remains debt-free. In addition, McEwen Mining is owed $9.0-million from the Mexican government in the form of a tax refund. It is anticipated that a majority of this amount will be received by fourth quarter.

The company did not receive any dividends from its 49-per-cent-owned San Jose mine in Argentina due to low precious metal prices. The El Gallo 1 mine generated $2.4-million in operating cash flow, after sustaining capital expenses.

The decline in metal prices and potential costs associated with a proposed mineral reserve tax in the Santa Cruz province in Argentina has caused the company to perform an impairment test on its 49-per-cent interest in the San Jose mine and other mineral property interests in Argentina. As a result, the company recorded an after-tax non-cash charge of $123.6-million. Of that amount, $95.9-million and $27.7-million were related to the carrying value of the San Jose mine and mineral property interests in Santa Cruz province, Argentina, respectively.

San Jose mine, Argentina (49 per cent)

Production results for McEwen Mining's share in San Jose during second quarter were 12,549 gold ounces and 771,967 silver ounces, representing 27,394 gold equivalent ounces (converting silver into gold using a 52 to 1 ratio). During the first six months of 2013, San Jose produced 50,452 gold equivalent ounces. Production during the second half of 2013 is forecasted to be slightly higher than in the first half of 2013. The mine is on track to meet its 2013 production guidance of 102,700 gold equivalent ounces.

Gold equivalent total cash costs equalled $751 per ounce. This is 9 per cent less than second quarter 2012 and 29 per cent lower than first quarter 2013. Total cash costs were lower for several reasons: (1) it was the first full quarter operating the mill at its expanded rate of 1,650 tonnes per day (versus 1,500 tonnes) and (2) cost savings initiatives being deployed at the mine. Total cash costs for second quarter were in line with full-year guidance of between $725 and $825 per gold equivalent ounce.

All-in sustaining costs were lower than first quarter 2013 by 35 per cent at $972 per gold equivalent ounce. All-in sustaining costs were lower due to lower total cash costs (outlined herein), more ounces sold during the quarter than produced, which reduced the cost on a per-ounce basis and is the opposite to what occurred in first quarter (development costs in a quarter are expensed against ounces sold and not produced), and reduced exploration drilling.

                     SAN JOSE MINE PRODUCTION COMPARISON                    

                                      Q2 2013   Q1 2013   Q2 2012 Total YTD
                                                                       2013      
San Jose -- 100% (i)
Ore production (tonnes)               140,816   108,379   128,803   249,195 
Average grade gold (gpt)                 6.34      6.87      5.98      6.57   
Average head silver (gpt)                 407       459       430       430   
Average gold recovery (%)                89.3      88.1      88.6      88.7   
Average silver recovery (%)              85.5      84.4      84.2      85.0   
Gold produced (ounces)                 25,610    21,078    21,946    46,688  
Silver produced (ounces)            1,575,442 1,350,847 1,499,580 2,926,289
Gold sold (ounces)                     31,974    12,817    17,661    44,791  
Silver sold (ounces)                1,991,030   889,078 1,146,187 2,880,108
Co-product total cash cost Au             878     1,089       887       936   
(U.S.$) (ii)                                                                  
Co-product total cash cost Ag           12.40     19.82     14.81     14.73  
(U.S.$) (ii)                                                                  
Gold equivalent total cash cost           751     1,055       822       842   
(U.S.$) (ii)                                                                  
Co-product all-in sustaining cash       1,137     1,550     1,341     1,257  
cost Au (U.S.$) (iii)                                                         
Co-product all-in sustaining cash       16.06     28.21     22.40     19.79  
cost Ag (U.S.$) (iii)                                                         
Gold equivalent co-product all-in         972     1,502     1,243     1,131  
sustaining cash cost (U.S.$) (iii)                                            
McEwen Mining -- 49% share                                                   
Gold produced (ounces)                 12,549    10,328    10,754    22,877  
Silver produced (ounces)              771,967   661,915   735,000 1,433,882
Gold equivalent (i) produced (ounces)  27,394    23,057    24,888    50,452  

(i) McEwen Mining holds a 49-per-cent attributable interest in the San
Jose mine.   
(ii) In the second quarter of 2013, the company revised its allocation of   
general and administrative expenses to total cash costs to conform to the   
Gold Institute production cost standard. Prior-period figures have been     
adjusted to conform to the current methodology.                             
(iii) In the second quarter of 2013, the company adopted the new guidance
on all-in sustaining and all-in costs published by the World Gold Council
on June 27, 2013. Prior-period figures have been adjusted to conform to
the current methodology.                                                        

El Gallo 1 mine, Mexico (100 per cent)

On Jan. 1, 2013, El Gallo 1 declared commercial production. In second quarter, the mine produced 8,439 gold ounces and 6,341 silver ounces, representing 8,561 gold equivalent ounces. During the first six months of 2013, El Gallo 1 produced 15,342 gold equivalent ounces. The mine remains on track to produce 27,300 gold equivalent ounces in 2013.

Gold equivalent total cash costs equalled $713 per ounce. Total cash costs were lower than full-year guidance of $750 to $850 per ounce and 7 per cent lower than first quarter 2013.

All-in sustaining costs totalled $1,183 per gold equivalent ounce in second quarter, which was 19 per cent lower than first quarter. All-in sustaining costs were lower due to lower total cash costs (outlined herein) and lower prestripping during the quarter.

During second quarter, the company continued with its optimization program at El Gallo 1, designed to maximize the mines profitability. Lower prices for cyanide (30 per cent less), explosives (20 per cent less) and exploration drilling (10 per cent less) were negotiated. The full benefit of these lower prices will not be realized until the second half of the year due to existing inventory that was purchased at higher prices. In addition, ore tonnes processed and gold grades improved 18 per cent and 22 per cent, respectively, versus first quarter. Waste tonnes were also reduced by 12 per cent.

El Gallo 1 is currently being expanded from 3,000 to 4,500 tonnes per day for a nominal expenditure of $5-million. The increased capacity, combined with higher grades, is expected to expand production from 27,300 gold equivalent ounces in 2013 to 75,000 gold equivalent ounces by 2015. Preliminary engineering drawings have been completed, and the expansion is expected to be operational by mid-2014.

                EL GALLO PHASE 1 MINE PRODUCTION RESULTS                  
                                                              Q2        Q1    
                                                            2013      2013   

Ore production (tonnes)                                  346,896   295,173 
Average grade gold (gpt)                                    1.34      1.10   
Gold produced (ounces)                                     8,439     6,673  
Silver produced (ounces)                                   6,341     5,640  
Gold equivalent produced (ounces)                          8,561     6,781  
Gold sold (ounces)                                         7,897     8,085  
Silver sold (ounces)                                       6,400     7,800  
Gold equivalent total cash cost (U.S.$) (i)                  713       770   
Gold equivalent co-product all-in sustaining cash cost     1,183     1,465  
(U.S.$) (ii)                                                                

(i) In the second quarter of 2013, the company revised its allocation of   
general and administrative expenses to total cash costs to conform to the   
Gold Institute production cost standard. Prior-period figures have been     
adjusted to conform to the current methodology.                         
(ii) In the second quarter of 2013, the company adopted the new guidance 
on all-in sustaining and all-in costs published by the World Gold Council 
on June 27, 2013. Prior-period figures have been adjusted to conform to 
the current methodology.                                                        

El Gallo 2, Mexico (100 per cent)

To lower capital costs associated with construction, McEwen Mining began follow-up tests to help determine if heap leaching is a viable process alternative for silver at El Gallo 2. Heap leaching would substantially reduce the estimated initial capital to approximately $30-million from $180-million under a milling scenario. Though capital costs would be reduced, it would also decrease production from an estimated 105,000 gold equivalent ounces to approximately 60,000 gold equivalent ounces. Test results are expected during fourth quarter.

The company has continued to advance the construction of the El Gallo 2 ball mill to ensure both process alternatives remain viable without incurring significant costs or delays.

The three remaining permits to begin construction and operations under the mill process have been submitted to the applicable Mexican authorities. Although approval and timing are outside of McEwen Mining's control, the company is targeting between third quarter and year-end for approval. Should the company decide that the heap leach scenario is the preferred process alternative, modifications to the permits will be required.

Los Azules copper project, Argentina (100 per cent)

Los Azules is one of the world's largest and highest-grade undeveloped copper porphyry deposits. McEwen Mining is working on an updated preliminary economic assessment, which is expected to be completed in third quarter this year. The updated PEA will be based on a significantly larger mineral resource. It will evaluate the possibility of: (1) increasing the daily throughput; (2) producing copper cathode instead of a concentrate and (3) processing low-grade mineralized material not previously considered, through a heap leach. The advantage of being able to produce a copper cathode is that it would eliminate the contemplated slurry pipeline through Chile and would reduce Argentina's current export tax on concentrate.

Gold Bar project, Nevada (100 per cent)

McEwen Mining continues to advance the Gold Bar permitting process to begin construction and production. Gold Bar is forecasted to produce 50,000 ounces gold per year. The project is located primarily on public lands managed by the Bureau of Land Management. The BLM and the Nevada Division of Environmental Protection are the primary government agencies responsible for approving the permits that would allow the company to begin construction. The company expects to submit its plan of operations report in the second half of 2013.

Second quarter conference call details

McEwen Mining will be hosting a conference call to discuss the second quarter results and project developments on Aug. 12, 2013, at 2 p.m. EST.

Telephone:

Participant dial-in number(s):  416-695-6616/800-446-4472

Replay:

Dial-in number(s):  905-694-9451/800-408-3053

Passcode:  2278899

Technical information

This news release has been reviewed and approved by William Faust, PE, McEwen Mining's chief operating officer, who is a qualified person as defined by National Instrument 43-101.

El Gallo

For additional information about the El Gallo complex, see the technical report titled, "El Gallo complex phase 2 project, NI 43-101 technical report feasibility study, Mocorito municipality, Sinaloa, Mexico," with an effective date of Sept. 10, 2012, prepared by M3 Engineering, along with a team of associates. The authors of the phase 2 report, Stan Timler (M3 Engineering), Mike Hester (Independent Mining Consultants (reserves)), Dawn Garcia (SRK Consulting (environmental)), Richard Kehmeier and Brian Hartman (Pincock Allen & Holt (El Gallo deposit resource)), John Read (McEwen Mining consultant (Palmarito in situ, historical waste dumps and historical tailings resource)), are each qualified persons, all of whom but Mr. Read are independent of McEwen Mining, each as defined by NI 43-101.

Los Azules

For information about the current Los Azules mineral resource, see the company's news release titled, "McEwen Mining continues to expand Los Azules's large, high-grade, mineral resource," dated Feb. 5, 2013. The mineral resource estimate referenced in this news release was prepared in January, 2013, by Robert Sim, PGeo, and Bruce Davis, PhD, FAusIMM, each a qualified person and independent of McEwen Mining, each as defined by NI 43-101. For additional information about the Los Azules project, see the technical report titled, "Los Azules porphyry copper project, San Juan province, Argentina," dated Aug. 1, 2012, with an effective date of June 15, 2012, prepared by D. Ernest Winkler, PE, Mr. Sim, PGeo, Mr. Davis, PHD, FAusIMM, and James K. Duff, PGeo, all of whom are qualified persons and all of whom but Mr. Duff are independent of McEwen Mining, each as defined by NI 43-101.

Tonkin project

For information about the Tonkin project, see the technical report titled, "Technical report on Tonkin project," dated and with an effective date of May 16, 2008. The report was prepared by Alan C. Noble, PE, of Ore Reserves Engineering, Richard Gowans of Micon International and Steven Brown (then U.S. Gold Corp.), all of whom are qualified persons and all of whom but Mr. Brown are independent of McEwen Mining, each as defined by NI 43-101.

Gold Bar

For information about the Gold Bar project, see the technical report titled, "NI 43-101 technical report on resources and reserves, Gold Bar project, Eureka county, Nevada," dated Feb. 24, 2012, with an effective date of Nov. 28, 2011, prepared by J. Pennington, CPG, MSc, Frank Daviess, MAusIMM, registered SME, Eric Olin, MBA, RM-SME, MSc, Herb Osborn, PE, Joanna Poeck, MMSA, BEng, Kent Hartley, PE (mining), SME, BSc, Mike Levy, PE, PG, MSc, Evan Nikirk, PE, Mark Allan Willow, MSc, CEM, and Neal Rigby, CEng, MIMMM, PhD, all of whom are qualified persons and all of whom are independent of McEwen Mining, each as defined by NI 43-101.

(i) Gold equivalent calculated by converting silver into gold using a 52 to 1 exchange ratio. This ratio was established on Jan. 30, 2013, and was used to budget the company's 2013 gold equivalent production. The silver/gold ratio does not take into account metallurgical recoveries.

We seek Safe Harbor.