An anonymous director reports

MCEWEN MINING REPORTS Q1 2020 RESULTS

McEwen Mining Inc. has released its first quarter results for the period ended March 31, 2020:

• Production was 29,200 gold ounces and 553,200 silver ounces, or 35,100 gold equivalent ounces, at the average gold:silver price ratio for the quarter of 94:1.
• A non-cash impairment charge for the Gold Bar mine of $83.8-million was recorded during Q1. The writedown is necessary because a change in the geological interpretation resulted in a substantial reduction in expected gold production over the life of mine (see the Gold Bar mine section below for further details).
• A consolidated net loss of $99.2-million, or 25 cents per share, was primarily due to an $83.8-million impairment adjustment for the Gold Bar mine and $6.3-million spent on exploration and advanced projects. Before the impairment adjustment the net loss is $15.4-million.
• The Grey Fox indicated gold resource estimate has increased by 43 per cent to 888,000 gold ounces at 7.1 grams per tonne, with an additional 173,000 gold ounces at 6.6 g/t in the inferred category.
• Each of the company's mine sites is navigating the impacts of the COVID-19 pandemic. Black Fox, Gold Bar and San Jose mines were temporarily suspended at the onset of emergency measures imposed in Ontario, Nevada and Argentina. Black Fox and San Jose have now restarted operations, and Gold Bar has started to ramp-up operations with limited mining and stockpile processing during May. Production and cost guidance for 2020 has been withdrawn until the situation normalizes.
• The company's quarterly webcast will take place today at 11 a.m. Eastern Daylight Time. Details are provided below.

Operations update

COVID-19

All the company's operations have implemented rigorous health and safety measures to prevent the spread of the COVID-19 virus. Fortunately, none of the company's employees have been infected.

San Jose mine, Argentina (49-per-cent interest)

The company's attributable production from San Jose in Q1 was 9,000 gold ounces and 551,900 silver ounces, for a total of 14,900 AuEq ounces. For Q1, total cash costs and all-in sustaining costs (AISC) were $1,138 and $1,592 per AuEq ounce, respectively. Mining was temporarily suspended on March 20, 2020, due to a nationwide mandatory quarantine imposed in Argentina to combat the spread of COVID-19. Mining has restarted at San Jose around April 14, but government-imposed travel restrictions mean that it will take some time before full production is achieved. As a result, 2020 production guidance has been withdrawn until the situation stabilizes.

Black Fox mine, Canada (100-per-cent interest)

Production from Black Fox in Q1 was 8,300 AuEq ounces at a total cash costs and AISC of $838 and $1,339 per AuEq ounce, respectively. The Black Fox mine was temporarily suspended due to the COVID-19 pandemic on March 26, 2020, and resumed normal operation on April 14, 2020.

The mineral resource estimate for Grey Fox deposits has been updated with drilling completed in late 2019. The estimated indicated and inferred resources increased by 43 per cent and 30 per cent, respectively, compared with the mid-2019 update published in March, 2020. The updated resource estimate contains 888,000 gold ounces at 7.1 g/t in the indicated category, and 173,000 gold ounces at 6.6 g/t in the inferred category.

The Grey Fox resource has grown rapidly through focused exploration that the company initiated in 2018. For the first time, the Grey Fox resource update includes a resource for the Gibson area. In addition, it includes a major reinterpretation of the Grey Fox South area, with updates to the 147, 147 NE and Contact zones.

Open-pit and underground mining scenarios are being evaluated for the development of the Grey Fox deposits and environmental studies are in progress to allow access to the area for potential bulk sampling and initial open-pit mining. In addition, the company is also exploring and advancing economic studies of the Stock East gold deposit and of the recent Stock West zone discovery at the Stock property. Further information about economic development and mining scenarios will be provided later in 2020.

Development of underground access to the Froome orebody is proceeding toward production.

Gold Bar mine, United States (100-per-cent interest)

Gold Bar produced 9,100 AuEq ounces in Q1 at cash costs and AISC of $1,887 and $2,177 per AuEq ounce, respectively. Both cash cost and AISC included the impact of $4.5-million spent for prestripping at the Gold Pick West pit, or $495 per ounce, which cannot be capitalized under U.S. generally accepted accounting principles. Excluding the impact of the $4.5-million spend on prestripping, cash cost per gold equivalent ounce in Q1 was $1,392, which is 9 per cent or $111 per ounce higher than the cash cost per ounce in the fourth quarter of 2019.

The latest updated feasibility study for the Gold Bar mine was published in February, 2018 (2018 FS). The study estimated that 485,000 gold ounces were contained in the reserve pits designed at that time. In November, 2018, permits to build the mine were received and construction commenced based on the 2018 FS. At year-end 2018, the resource and reserve estimates were updated, which at that time had increased primarily because of additional drilling to 524,000 gold ounces contained in the reserve pits (2018 reserve estimate). Precommercial mining commenced in December, 2018, the first gold was poured in February, 2019, and commercial production was declared in May, 2019. The majority of material mined at Gold Bar between December, 2018, and the end of 2019 was from the Cabin Creek orebody, which exhibited positive overall gold reconciliation to the 2018 reserve estimate.

After transitioning to mining the upper benches of the Gold Pick West orebody, the company started to experience poor reconciliation, contrary to its experience to this point. The company's mining returned lower ore tons, gold grade and contained ounces compared with the block model. This is interpreted to occur because of greater structural control and less bedding control of the mineralization than was previously modelled by the company's external consultant, SRK Consulting (U.S.), in the 2018 FS and 2018 reserve estimate. In light of the change in geologic interpretation, and control and distribution of the gold mineralization, supported by the company's observations while mining, the future mine plan is currently being re-evaluated. Preliminary updated resource estimates for the Gold Pick deposit were completed in Q1 and in-pit and near-pit drilling is currently taking place to further validate the results. Preliminary revised mine plans indicate that a reduction in contained ounces at the Gold Pick deposit in the order of 25 to 35 per cent relative to the 2018 reserve estimate is likely.

As a result, during Q1, the company recorded an impairment charge of $83.8-million, reducing the carrying value of the Gold Bar mine mineral property interests and plant and equipment. The impairment calculation was primarily based on the discounted cash flow technique, using a long-term gold price of $1,430 per ounce, a discount rate of 9 per cent and U.S. inflation index of 2 per cent.

Evaluation of the resource estimate is continuing with a drilling program initiated in late-March, 2020, and extending into the second quarter of 2020. This new drilling information will be incorporated into a revised resource model and a new mine plan is expected to be completed for implementation by the end of the second quarter or early in the third quarter of 2020.

On March 26, 2020, the company made the decision to temporary scale back operations at the Gold Bar mine due to concerns related to COVID-19 and maintaining social distancing requirements. Mining was suspended on April 1, 2020, with downstream activities continuing, such as heap leaching and process plant operation.

The company has recently resumed stripping to access the next ore benches in the Gold Pick West deposit and processing of stockpiled mineralized material. The company continues evaluating the next stages to resume normal operating capacity. Two thousand twenty production guidance has been withdrawn until the situation stabilizes.

El Gallo project, Mexico (100-per-cent interest)

Production from El Gallo in 2019 was 2,700 AuEq ounces from residual leaching of the heap leach pad. Beginning with Q4 2019, the company has ceased relying on, and disclosing, cash costs and AISC per AuEq ounce as key metrics for El Gallo because those measures include the expensing of accumulated heap leach pad inventory costs, which are not informative when assessing the current economics of residual leaching. The company estimates that residual leaching will continue for as long as incremental revenue exceeds incremental costs. Incremental residual leaching costs for Q1 was $2.8-million, or $1,025 per AuEq ounce.

On April 1, 2020, the Mexican government ordered the temporary closure of all non-essential businesses, including mining, to combat the spread of COVID-19. While this order limits some activities at El Gallo, it is not expected to have a significant effect on residual leaching.

New York Stock Exchange listing

The company previously reported that notice from the NYSE was received on March 24, 2020, regarding the $1 minimum share price listing standard. Effective April 21, 2020, the Securities and Exchange Commission and NYSE has provided temporary relief from the $1 minimum share price standard, providing the company until Dec. 3, 2020, to regain compliance.

          PRODUCTION AND COST RESULTS FOR Q1 2020 AND 2019
                                                               Q1      
                                            2019             2020
Consolidated production
Gold (oz)                                 26,900           29,200
Silver (oz)                              703,200          553,200
GEO                                       36,300           35,100
Gold Bar mine, Nevada
GEO (loss)                                                  9,100
Cash costs ($/GEO)                             -            1,887
AISC ($/GEO)                                   -            2,177
Black Fox mine, Canada
GEO                                        8,900            8,300
Cash costs ($/GEO)                           805              838
AISC ($/GEO)                               1,454            1,339
El Gallo mine, Mexico
GEO                                        5,400            2,700
Cash costs ($/GEO)                           967
AISC ($/GEO)                                 989
San Jose mine, Argentina (49%)
Gold production (oz)                      10,600            9,000
Silver production (oz)                   701,300          551,900
GEO                                       19,900           14,900
Cash costs ($/GEO)                           749            1,138
AISC ($/GEO)                               1,115            1,592

Conference call and webcast

The company invites you to join its conference call, where management will discuss the company's Q1 2020 financial results and project developments and follow with a question-and-answer session. Questions can be asked directly by participants during the webcast. The webcast will be archived on McEwen Mining's website following the call.

Tuesday, May 19, 2020, at 11 a.m. Eastern Daylight Time

Toll-free (U.S. and Canada):  1-833-579-0918

Outside U.S. and Canada:  778-560-2801

Conference ID:  6339787

An archived replay of the webcast will be available approximately two hours following the conclusion of the live event. Access the replay on the company's media page.

Grey Fox resource update

The new Grey Fox resource is updated as of April 30, 2020, and was based on the results of the company's 2019 exploration drilling campaign (referenced by the press releases from Dec. 3, 2019, Feb. 5, 2020, and Feb. 12, 2020), generated from mid-November, 2019, to the end of Q1 2020, and on the global remodelling of all diamond drill hole data supported by updated geological and structural interpretation over the Grey Fox area.

The increases are mostly due to: the addition of the Gibson deposit for the first time; the better-defined structural controls in the northwest-dipping cross-structures leading to improved continuity and increased confidence; and the strike and downdip extensions of existing resources through the recent drill campaign.

Since the previous resource estimate, an additional 138 diamond drill holes for 52,456 metres of NQ core were added to the Grey Fox resource database, that now consists of 1,394 holes representing 513,250 metres of diamond drill core. The database includes a total of 249,827 sample intervals assayed for gold, of which 21,420 samples were added to the database since the Dec. 31, 2019, resource estimation.

The Grey Fox area consists of five mineralized zones over a 2.25-square-kilometre area (1.5 km by 1.5 km): 147, 147 NE, Contact-Whiskey Jack, Gibson and South. For all but the Gibson zone, gold mineralization is hosted mainly in mafic volcanic rock types, extending into sediments in the Contact deposit and into syenite intrusive rock types at the Gibson deposit.

The structural controls and continuity of grades were confirmed during the 2019 exploration program, which targeted northwest-dipping quartz-carbonate and breccia vein structures that were partially tested by historical drilling on a predominantly east-to-west azimuth. McEwen Mining drilled these structures perpendicular to strike (from northwest to southeast), the results of which provided the basis for an improved geological interpretation and revised geological model of the Grey Fox area. The growth potential recognized through the early stages of the drilling program has now been confirmed by the 2019 drill results and the current resource estimate update. McEwen Mining considers the potential to continue to grow the Grey Fox resource remains excellent and follow-up drilling is being designed to test priority targets.

The mineral resource estimate for the Grey Fox area was carried out by McEwen Mining and will be audited by a third party engineer during Q2 2020. The following statements apply to information contained in the resource tables:

• Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that any part of the mineral resources estimated will be converted into a mineral reserves estimate.
• Numbers in the tables have been rounded to reflect the accuracy of the estimates and may not sum due to rounding.
• The inferred mineral resource in these estimates has a lower level of confidence than that applied to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that the majority of the inferred mineral resource could be upgraded to an indicated mineral resource with continued exploration.
• Quantity and grade of reported inferred resources are uncertain in nature and there has been insufficient exploration to classify these inferred resources as measured or indicated.
• Mineral resources were estimated using the guidelines set out in the CIM Definition Standards for Mineral Resources.

            GREY FOX PROPERTY -- MINERAL RESOURCE ESTIMATE, APRIL 30, 2020
 
Classification                   Quantity        Grade gold           Contained gold
                                  (000 t)             (g/t)                 (000 oz)

Indicated mineral resource          3,917              7.05                      888
Inferred mineral resource             818              6.58                      173

All figures rounded to reflect the relative accuracy of the estimates. 
Composites were capped where appropriate. Mineral resources reported 
at a cut-off grade of 3.6 g/t Au.            

Reliability of information regarding San Jose

Minera Santa Cruz SA, 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 PLC, 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 G. Peter Mah, PEng, chief operating officer of McEwen Mining and a qualified person as defined by Canadian Securities Administrators National Instrument 43-101 Standards of Disclosure for Mineral Projects.

The technical information in this news release related to resource and reserve estimates has been reviewed and approved by Luke Willis, PGeo, McEwen Mining's director of resource modelling and qualified person as defined by Canadian Securities Administrators National Instrument 43-101 Standards of Disclosure for Mineral Projects.

About McEwen Mining Inc.

McEwen Mining is a diversified gold and silver producer and explorer with operating mines in Nevada, Canada, Mexico and Argentina.

We seek Safe Harbor.