Mr. Graham Hill reports

SILVER BEAR FILES TECHNICAL REPORT ON THE MANGAZEISKY SILVER PROJECT FEASIBILITY STUDY

Silver Bear Resources Inc. has filed the National Instrument 43-101 technical report for the feasibility study on the Mangazeisky silver project in the Republic of Sakha (Yakutia), Russian Federation. The technical report supports the company's announcement of June 9, 2016.

Key highlights from the June 9, 2016, feasibility study press release include:

• The pretax net present value at a 5-per-cent discount rate is $79.7-million (U.S.), the pretax internal rate of return is 43.6 per cent, and the payback period is 2.1 years;
• With the Far East tax incentives, the after-tax net present value at a 5-per-cent discount rate is $70.7-million (U.S.), the internal rate of return is 40.2 per cent, and the payback period is 2.2 years;
• Assumptions include a variable silver price of $16 (U.S.) per ounce, $17.25 (U.S.) per ounce and $18 (U.S.) per ounce during the first year of production, second year of production and the remaining project life, respectively, with a life-of-mine weighted average silver price of $17.74 (U.S.) per ounce; the exchange rate applied is 66 Russian rubles per U.S. dollar;
• Initial capital costs of $48.6-million (U.S.);
• Total proven and probable mineral reserves of 801,000 tonnes at a diluted average grade of 772 grams per tonne silver for 19.9 million troy ounces of silver;
• Total Vertikalny Central indicated mineral resources of 23.4 million troy ounces of silver at an average grade of 909 grams per tonne silver, in addition to inferred mineral resources of 13.4 million ounces of silver at an average grade of 615 grams per tonne silver;
• Processing an average of 110,000 tonnes of ore per year;
• Production of 16,787,000 ounces of silver over a 7.3-year life of mine;
• Average metallurgical recovery of 84.4 per cent silver.

Project execution

The company intends to take advantage of the favourable outcome of the feasibility study, as well as the positive outlook on the silver price, by implementing a fast-track execution plan to complete construction by the end of 2016, with steady-state production starting in the first quarter of 2017. In anticipation of this and in compliance with the Russian regulatory approval process, a licensed Russian design institute (EMC Mining LLC in St. Petersburg) was commissioned in 2015 to complete the detailed design of the processing facility and associated mine site infrastructure. The company procured all major equipment for delivery during the 2015/2016 winter road season and began construction. The company has proceeded with construction in advance of regulatory approval for the project and expects that all of the permits needed for construction and operation will be in place prior to the start of production.

More favourable weather between March and November will facilitate the completion of the construction of major infrastructure with specific focus on completing the buildings to provide shelter during mechanical and electrical installation and the start of commissioning planned for the fourth quarter of 2016.

The feasibility study was prepared by Tetra Tech (United Kingdom) and comprised an independent, multidisciplinary team including SRK Consulting (United Kingdom) Ltd. and Environmental Resource Management Consultants Inc. Jacques du Toit, PrEng, MSc (engineering), PMP, of Tetra Tech is a qualified person under NI 43-101 and has reviewed the scientific and technical information in this release.

We seek Safe Harbor.