Ms. Mihaela Iancu reports

MCEWEN MINING REPORTS Q1 PRODUCTION RESULTS, ROYALTY ACQUISITION

McEwen Mining Inc. has released production highlights of the first quarter of 2016 and has acquired one royalty on the El Gallo mine.

Highlights:

• Total production in the first quarter was 37,958 gold equivalent ounces (calculated based on a 75:1 silver-to-gold ratio), a 14-per-cent increase over the first quarter of 2015;
• Increased production guidance for 2016 to 144,000 gold equivalent ounces;
• Acquired the net smelter return royalty on the company's El Gallo mine and El Gallo silver deposit;
• Strong balance sheet -- $43-million (updated as of April 18, 2016, includes cash, cash equivalents and previous metals at market, net of royalty and property acquisions mentioned herein) in liquid assets and no debt.

El Gallo mine, Mexico, a record quarter

In the first quarter, the mine produced 20,101 gold equivalent ounces, compared with 15,391 gold equivalent ounces during same period in 2015. Production in the first quarter set a new quarterly record as a result of processing higher-grade ore stockpiled in the previous quarter. Production in subsequent quarters is expected to be lower as the influence of higher-grade ore diminishes during the year. Full-year guidance for El Gallo in 2016 is now increased to 55,000 gold equivalent ounces. The 2016 exploration budget for Mexico is $4-million.

Today, the company acquired the existing tiered NSR royalty on the El Gallo mine, currently paying 3.5 per cent of gross revenue, less allowable deductions. The purchase price consisted of a $5.25-million payment on closing and a conditional deferred payment of $1-million to be made on June 30, 2018. The royalty ceased being payable at the end of February, 2016. This transaction will enhance the future profitability of the El Gallo mine, and removes a royalty burden on existing and potentially new deposits inside the royalty's area of influence, including the El Gallo silver deposit.

San Jose mine, Argentina (owned by Minera Santa Cruz SA, which is a joint venture 49 per cent owned by McEwen Mining, and 51 per cent owned and operated by Hochschild Mining PLC)

The company's attributable production from San Jose in the first quarter was 8,960 gold ounces and 667,319 silver ounces, for a total of 17,857 gold equivalent ounces. Compared with the first quarter of 2015, gold and silver production was down 5 per cent and up 4 per cent, respectively. First quarter production is typically lower than other quarters due to mill shutdown and maintenance over the holidays.

Full-year production guidance for San Jose in 2016 is 45,000 gold ounces and 3.3 million silver ounces, for a total of 89,000 gold equivalent ounces attributable to the company. The 2016 exploration budget is $4.5-million.

Nevada exploration

Exploration drilling is planned to begin on the newly acquired Afgan-Kobeh property in mid-May. The primary objective of this drilling is to expand the size of the existing resource.

Financial results

Operating costs for the quarter ended March 31, 2016, will be released with the company's quarterly financial statements in early May.

Reliability of information regarding the San Jose mine

Minera Santa Cruz, the owner of the San Jose mine, is responsible for, and has supplied to the company, all reported results from the San Jose mine. McEwen Mining's joint venture partner, a subsidiary of Hochschild Mining, and its affiliates other than MSC do not accept responsibility for the use of project data, or the adequacy or accuracy of this release.

Technical information

The technical contents of this news release has been reviewed and approved by Dr. Nathan M. Stubina, PhD, PEng, FCIM, managing director and a qualified person as defined by Canadian Securities Administrator National Instrument 43-101, standards of disclosure for mineral projects.

We seek Safe Harbor.