Mr. Graham Hill reports

SILVER BEAR PROVIDES DEVELOPMENT UPDATE FOR THE MANGAZEISKY SILVER PROJECT AND FILES THE NI 43-101 UPDATED FEASIBILITY STUDY TECHNICAL REPORT

Silver Bear Resources Inc. has provided a development and construction update for its Vertikalny mine at the Mangazeisky silver project in the Republic of Sakha (Yakutia), Russia.

Mangazeisky project update

Mine development is well advanced at the Vertikalny Central deposit, with construction now approximately 60 per cent complete. Project expenditure to date is approximately $30-million (U.S.) of the proposed $49.9-million (U.S.) budget with the project expected to come in under the feasibility study budget. Due to an unusually early winter, the summer overland supply route has been curtailed until the winter road is fully frozen, which has resulting in a short delay in starting production ramp-up from early in the first quarter of 2017 to the end of the first quarter of 2017.

During and subsequent to the third quarter of 2016 the following milestones were achieved:

1. Project financing completed, with first tranche drawdown of $42.9-million (U.S.) in September;
2. Ball mill installed and set into place, mechanical assembly close to completion;
3. Process plant weather shield completed and boiler heating system commissioned;
4. Open-pit prestripping completed; ore stockpile and implementation of detailed mine plan to begin in the fourth quarter of 2016;
5. Updated feasibility study resulting in significant improvements in internal rate of return (before tax/after tax) from 43.6 per cent to 86.1 per cent/40.2 per cent to 81.9 per cent and net present value (before tax/after tax) at 5-per-cent discount from $79.6-million (U.S.) to $132.6-million (U.S.)/$70.7-million (U.S.) to $123.1-million (U.S.) with minimal impact on capex and opex;
6. Detailed mining plans in line with the updated feasibility study being developed and additional mining equipment required secured through new lease agreements with Caterpillar Finance and Scania.

Silver Bear's chief executive officer, Graham Hill, commented: "I am very proud of our team and our contractors for the development progress they have accomplished since 2015, and I would like to thank them for their dedication and excellent work. As a company, we have accomplished many milestones over 2016, and the energy at site continues to be focused and motivated as we push towards commissioning and production. We are building up the operational team, with senior operating heads recruited and on site. I am very happy that we have been able to secure the services of some excellent professionals so that our operations will be to the highest standards. At this time, our team is actively preparing systems, procedures and detailed operational readiness plans in preparation for commissioning.

"In addition to the mine development at Mangazeisky silver project, the company has also successfully expanded its mineral resource base in all categories. These improvements have resulted in the company updating its feasibility study for the Vertikalny deposit in October resulting in significant benefits and in the initiation of a preliminary economic assessment (PEA) at its Mangazeisky North deposit, which assessment is scheduled for completion early in [the first quarter of] 2017."

The following important construction and development milestones were completed in 2016 to date:

• Remaining materials and equipment required for construction and commissioning are either now on site or being prepared for transport from Yakutsk to site;
• Mangazeisky mine camp is near completion, including the engineers' quarters and crew dormitory, technical and medical offices, Wi-Fi and communications centre, and cafeteria;
• The diesel power station has been installed and in the process of being connected to fuel supply and power cables with commissioning works planned for late November;
• Foundations and installation of fuel tanks and boiler system; installed the first phase of the main process building and adjacent garage heating system and completed the precommissioning testing of the heating system; the system is now in operation;
• Tailings storage facility design updates are being reviewed and detailed final design being completed to allow construction work to commence;
• Water supply borehole No. 2 is being drilled, water continues to be pumped from borehole No. 1; water testing is continuing for quality, and further testing of water volumes will be done when borehole No. 2 is completed;
• Construction and weather sheeting of the main processing plant have been completed; the foundation and installation of ball mill within the plant have been completed, and the mechanical assembly is close to completion;
• Completed the cyanidation tanks foundation and installed tanks, now working on completing the piping installation across the processing facility, as well as continuing with the installation of electrical cabling;
• The workshop, warehouse and reagent storage facilities are near completion and are being fitted for heating and electrical systems.

Filing of updated feasibility study technical report

The company is also pleased to announce that on Nov. 17, 2016, it filed the NI 43-101 technical report for the updated feasibility study on the Mangazeisky silver project, Republic of Sakha (Yakutia), Russian Federation. The technical report supports the company's announcement of Oct. 4, 2016. To view and download the technical report, please visit the company's profile on SEDAR. The technical report will also be available on the company's website.

Amendment to the Oct. 4, 2016, press release

Due to a typographical error, the company would also want to apologize to Michael Beare of SRK Consulting (United Kingdom), whose name was inadvertently listed under the qualified person list for the updated feasibility study. Mr. Beare was one of the qualified person responsible for the June, 2016, NI 43-101 feasibility study. The following is the revised qualified person list for the Oct. 4, 2016, press release.

• Tetra Tech:
  • Anton von Wielligh, BSc (honours), PrEng, SAIMM;
  • Dr. Arunasalam Vathavooran, PhD, CEng, MIMMM;
  • Damian Hicks, MIEAust, CPEng;
  • Guy Roemer, PE;
  • Jacques du Toit, CEng, PrEng, MScEng, PMP;
  • Laszlo Bodi, MSc, CEng, PEng;
  • Rene Gharapetian, PEng;
  • Robert Davies, BSc (honours), CGeol, EurGeol, FGS;
  • Dr. Sabry Abdel Hafez, PhD, PEng;
  • Saunjay Duggal, MSc, Peng;
• SRK (United Kingdom):
  • Dr. Houcyne El Idrysy, PhD, CGeol, FGS;
  • Krysztof Czajewski, BSc, PEng;
  • Max Brown, BSc, MSc, CEng, MIMMM;
• ERM:
  • Derek Chubb, PEng.

About Silver Bear

Silver Bear is focused on the development of its wholly owned Mangazeisky silver project, covering a licence area of approximately 570 square kilometres, which includes the high-grade Vertikalny deposit (amongst the highest-grade silver deposits in the world), 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.