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Los Azules Copper Project Continues to Grow


Los Azules Copper Project Continues to Grow

Potential New Parallel Trend Emerging

Mineralization Extending to Depth & to the East

TORONTO, ONTARIO -- (Marketwire) -- 01/17/13 -- McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) today announced that its exploration efforts at the Los Azules Copper Project in San Juan Province, Argentina, continues to show significant potential to increase the size of the resource. The first ten drill holes completed and assayed have been successful in extending the mineralization both laterally to the east and to depth. In addition, the drilling appears to have identified a parallel mineralized trend to the southwest of the main part of the existing resource.

Exploration Highlights


 
--  A possible parallel mineralized trend may be emerging southwest of the
    resource. Good grades over long intervals have been intersected,
    highlights of which include 0.61% copper over 160 meters and 0.49%
    copper over 329 meters both in Hole 1291, 0.87% copper over 69 meters in
    Hole 12101 and 0.44% copper over 529 meters in Hole 1299, with each hole
    ending in mineralization. 
 
--  Drill hole 1294 successfully extended the known copper mineralization
    200 meters below the limits of the current resource. The total
    intersection of the hole assayed 0.47% copper over 610 meters meters and
    included 0.95% copper over 68 meters and 0.65% copper over 100 meters. A
    second drill hole, 1299, assayed 0.44% copper over 529 meters. This
    drill hole ended approximately 600 meters below the resource outline. 
 
--  Drill hole 1289 was designed to target new mineralization further to the
    east. It was successful and returned 0.44% copper over 147 meters. This
    hole was drilled 150 meters east of any prior drilling.  
 
--  The Company expects to release an updated resource estimate for Los
    Azules which incorporates these recent results in Mid-February. 

TABLE 1. LOS AZULES EXPLORATION HIGHLIGHTS


 
----------------------------------------------------------------------------
                        From            To         Thickness   Copper Grade 
Hole                    (m)            (m)            (m)           (%)     
----------------------------------------------------------------------------
1291                     72            232            160          0.61     
And                     562           890.5          328.5         0.49     
  including             790           890.5          100.5         0.71     
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
1294                    252           861.9          609.9         0.47     
  including             268            336            68           0.95     
  Including             560            660            100          0.65     
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
1299                    546           1074.6         528.6         0.44     
----------------------------------------------------------------------------

The Company was successful in starting drilling in October, two months earlier than prior seasons. In addition, the drilling has consistently achieved drill hole depths greater than 700 meters with Hole 1299 drilled to a depth of 1,075 meters. Significantly, all of the deeper drill holes ended in mineralization. Drilling will continue to focus on expanding the resource. This season's exploration program is on track to achieve its objective of completing 15,000 meters of drilling by the end of April.

A table of all 10 drill hole assay results is provided below in Table 2. A drill hole location map (Exhibit 1) and cross sections of the Los Azules resource (Exhibits 2, 3 and 4) are provided below.

Earlier this month, the company hired BMO Capital Markets to market Los Azules.

About the Los Azules Copper Project

Los Azules is a large copper porphyry system located in western San Juan Province within a belt of porphyry copper deposits that straddles the Chilean/Argentine border. This belt contains some of the world's largest copper deposits, including Codelco's El Teniente and Andina mines, Anglo American's Los Bronces mine, Antofagasta PLC's Los Pelambres mine and Xstrata's El Pachon project, among others. Los Azules is one of the world's largest, highest grade, undeveloped copper-porphyry deposits not owned by a major base metal company.

The mineral resources for Los Azules were calculated in June 2012 and are summarized in the table below with a cut-off grade of 0.35% copper.


 
----------------------------------------------------------------------------
                                         Contained                          
 Mineral Resource    Tonnes    Copper      Copper       Gold       Silver   
     Category      (millions)    (%)      (MM lbs)   grams/tonne grams/tonne
----------------------------------------------------------------------------
     Indicated        323       0.65        4.6         0.07         1.8    
     Inferred         948       0.52        10.8        0.06         1.8    
----------------------------------------------------------------------------

About McEwen Mining (www.mcewenmining.com)

The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by 2015 by creating a high growth, low-cost, mid-tier gold producer focused in the Americas. McEwen Mining's principal assets consist of the San Jose Mine in Santa Cruz, Argentina (49% interest); the El Gallo Complex in Sinaloa, Mexico; the Gold Bar Project in Nevada, US; the Los Azules Project in San Juan, Argentina and a large portfolio of exploration properties in Argentina, Nevada and Mexico.

McEwen Mining has 300,605,735 shares issued and outstanding. Rob McEwen, Chairman, President and Chief Owner, owns approximately 25% of the shares of the Company. As of December 31, 2012, McEwen Mining had cash and liquid assets of approximately US$70 million and is debt free.

Technical Information

James K. Duff, Senior Consultant to the Company and a Registered Member in good standing of the Society for Mining, Metallurgy and Exploration, who is a Qualified Person as defined by National Instrument 43-101 ("NI 43-101") has reviewed and approved the technical contents of this news release. Bruce Davis, PhD, FAusIMM, who is a Qualified Person as defined by NI 43-101 and responsible for the quality control for the assaying of the Los Azules drill core has reviewed the assay quality control information. All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to the laboratory of Alex Stewart International in Mendoza, Argentina for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays.

For additional information about the Los Azules project see the Technical Report titled "Los Azules Porphyry Copper Project, San Juan Province, Argentina" dated August 1, 2012, with an effective date of June 15, 2012, prepared by D. Ernest Winkler, P.Eng, Robert Sim, P.Geo, Bruce Davis, PhD, FAusIMM and James K. Duff, P.Geo, all of whom are qualified persons and all of whom are independent of McEwen Mining, each as defined by NI 43-101. The foregoing report is available under the Corporation's profile on SEDAR (www.sedar.com).

Cautionary Note to U.S. Investors

McEwen Mining reports its resource estimates in accordance with standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 (NI 43-101). These standards are different from the standards generally permitted in reports filed with the SEC. Under NI 43-101, McEwen Mining reports measured, indicated and inferred resources, measurements which are generally not permitted in filings made with the SEC. According to Canadian NI 43-101 criteria, the estimation of measured resources and indicated resources involve greater uncertainty as to their economic feasibility than the estimation of proven and probable reserves. Under SEC Industry Guide 7 criteria, measured, indicated and inferred resources are considered Mineralized Material. The SEC considers that in addition to greater uncertainty as to the economic feasibility of Mineralized Material compared to proven and probable reserves, there is also greater uncertainty as to the existence of Mineralized Material. U.S. investors are cautioned not to assume that measured or indicated resources will be converted into economically mineable reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.

Caution Concerning Forward-Looking Statements

This press release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as at the date of this press release, McEwen Mining Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, risks related to the cost of transferring or otherwise allocating funds between operating jurisdictions, factors associated with fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, risks associated with the construction of mining operations and commencement of production and the projected costs thereof, risks related to litigation, property title, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Mining's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and other filings with the Securities and Exchange Commission, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

Table 2 - Summary of Drill Hole Results for the First Half of the 2012/13 Drill Season


 
----------------------------------------------------------------------------
                              
                                              
                                  From  To  Thickness Cu                    
 Hole Northing Easting     Dip    (m)   (m)    (m)    (%)        Zone       
----------------------------------------------------------------------------
 1284 6558652  2383287 90 degrees 0    52      52     -      Overburden    
----------------------------------------------------------------------------
                                                           Mixed oxide and  
                                                            weak secondary  
                                   52   74      22   0.19     enrichment    
                                 -------------------------------------------
                                                               Primary      
                                                           chalcopyrite in  
                                                            fractures with  
                                   74   380    306   0.19   minor bornite   
                                 -------------------------------------------
                                                               Primary      
                                                           chalcopyrite and 
                                                              bornite in    
                                  380   464     84   0.38     fractures     
                                 -------------------------------------------
                                                               Primary      
                                                           chalcopyrite and 
                                                              bornite in    
                                  464   580    116   0.25     fractures     
                                 -------------------------------------------
                                                               Primary      
                                                           chalcopyrite and 
                                                              bornite in    
                                  580 1022.5  442.5  0.37     fractures     
                                 -------------------------------------------
                                 Infill hole completed to target depth.     
                                 Average core recovery was 96%.             
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
 1285 6558327  2383437 90 degrees 0   41.5    41.5    -      Overburden    
----------------------------------------------------------------------------
                                  41.5  60     18.5  0.05    Leached cap    
                                 -------------------------------------------
                                   60   162    102   0.18  Transition zone  
                                 -------------------------------------------
                                                               Primary      
                                                             chalcopyrite   
                                                            greater than  
                                                            greater than  
                                                              bornite in    
                                  162   430    268   0.14     fractures     
                                 -------------------------------------------
                                                               Primary      
                                                             chalcopyrite   
                                                            greater than  
                                                            greater than  
                                                              bornite in    
                                  430   484     54   0.45     fractures     
                                 -------------------------------------------
                                                               Primary      
                                                             chalcopyrite   
                                                            greater than  
                                                            greater than  
                                                              bornite in    
                                  484   666    182   0.23     fractures     
                                 -------------------------------------------
                                                               Primary      
                                                             chalcopyrite   
                                                            greater than  
                                                            greater than  
                                                              bornite in    
                                  666   736     70   0.35     fractures     
                                 -------------------------------------------
                                 Infill hole completed to target depth.     
                                 Average core recovery was 89%.             
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
 1286 6558138  2383470 90 degrees 0    40      40     -      Overbur
den    
----------------------------------------------------------------------------
                                   40   106     66   0.05    Leached cap    
                                 -------------------------------------------
                                                          Partially enriched
                                                             chalcopyrite   
                                                            greater than  
                                  106   264    158   0.22     chalcocite    
                                 -------------------------------------------
                                                               Primary      
                                                           chalcopyrite in  
                                                          fractures greater 
                                                          than greater than 
                                  264  335.5   71.5  0.12   disseminations  
                                 -------------------------------------------
                                 Infill hole lost at 335.5 m before reaching
                                 target depth. Average core recovery was    
                                 86%.                                       
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
 1287 6558148  2383002 90 degrees 0     8      8      -      Overburden    
----------------------------------------------------------------------------
                                   8    76      68   0.06    Leached cap    
                                 -------------------------------------------
                                                               Primary      
                                                             chalcopyrite   
                                                            greater than  
                                                            greater than  
                                                              bornite in    
                                   76  618.1  542.1  0.11     fractures     
                                 -------------------------------------------
                                 Step-out hole completed to target depth.   
                                 Average core recovery was 94%.             
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
 1288 6558378  2382797 90 degrees 0   13.5    13.5    -      Overburden    
----------------------------------------------------------------------------
                                  13.5  126   112.5  0.05    Leached cap    
                                 -------------------------------------------
                                                               Primary      
                                                             chalcopyrite   
                                                            greater than  
                                                            greater than  
                                                              bornite in    
                                  126   740    614   0.11     fractures     
                                 -------------------------------------------
                                                               Primary      
                                                             chalcopyrite   
                                                            greater than  
                                                            greater than  
                                                              bornite in    
                                  740  823.2   83.2  0.33     fractures     
                                 -------------------------------------------
                                 Step-out hole completed to target depth.   
                                 Average core recovery was 96%.             
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
 1289 6559201  2383700 90 degrees 0    40      40     -      Overburden    
----------------------------------------------------------------------------
                                   40   166    126   0.02    Leached cap    
                                 -------------------------------------------
                                                          Chalcopyrite with 
                                                              minor weak    
                                                              secondary     
                                  166   220     54   0.28     enrichment    
                                 -------------------------------------------
                                                               Primary      
                                                          chalcopyrite with 
                                  220   367    147   0.44  minor chalcocite 
                                 -------------------------------------------
                                 Step-out hole lost at 367 m before reaching
                                 target zone. Average core recovery was 81%.
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
 1291 6558852  2382903 90 degrees 0    55      55     -      Overburden    
----------------------------------------------------------------------------
                                   55   72      17   0.03    Leached cap    
                                 -------------------------------------------
                                                         Enriched chalcocite
                                                            greater than  
                                   72   232    160   0.61    chalcopyrite   
                                 --------------------------
-----------------
                                                               Primary      
                                                             chalcopyrite   
                                                            greater than  
                                                            greater than  
                                                           greater than   
                                  232   562    330   0.18      bornite      
                                 -------------------------------------------
                                                               Primary      
                                                           chalcopyrite and 
                                                           bornite greater  
                                  562   790    228   0.40  than chalcocite  
                                 -------------------------------------------
                                                               Primary      
                                                           chalcopyrite and 
                                                           bornite greater  
                                  790  890.5  100.5  0.71  than chalcocite  
                                 -------------------------------------------
                                 Step-out hole completed to target depth.   
                                 Average core recovery was 97%.             
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
 1294 6558292  2383212 90 degrees 0   62.2    62.2    -      Overburden    
----------------------------------------------------------------------------
                                                           Mixed chalcocite 
                                                         and chalcopyrite in
                                  62.2  74     11.8  0.53  transition zone  
                                 -------------------------------------------
                                                           Weak chalcocite  
                                                          enrichment greater
                                                          than greater than 
                                                            greater than  
                                   74   252    178   0.12    chalcopyrite   
                                 -------------------------------------------
                                                               Primary      
                                                             chalcopyrite   
                                                            greater than  
                                                         bornite and primary
                                  252  861.9  609.9  0.47     chalcocite    
                                 -------------------------------------------
                                 Hole completed to target depth. Average    
                                 core recovery was 88%.                     
                                 Twin of hole 1279 from prior season.       
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
 1299 6558984  2383001 90 degrees 0    60      60     -      Overburden    
----------------------------------------------------------------------------
                                   60   78      18   0.08    Leached cap    
                                 -------------------------------------------
                                                           Transition zone  
                                                          with chalcopyrite 
                                                            greater than  
                                                            greater than  
                                   78   94      16   0.55     chalcocite    
                                 -------------------------------------------
                                                               Primary      
                                                           chalcopyrite and 
                                   94   546    452   0.25      bornite      
                                 -------------------------------------------
                                                               Primary      
                                                           chalcopyrite in  
                                                             veinlets and   
                                  546 1074.6  528.6  0.44     fractures     
                                 -------------------------------------------
                                 Step-out hole completed to target depth.   
                                 Average core recovery was 92%.             
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                         Reverse circulation
12101 6558167  2383218 90 degrees 0    168    168     -      pre-collar    
----------------------------------------------------------------------------
                                                              Secondary     
                                                              chalcocite    
                                  168   237     69   0.87     enrichment    
                                 -------------------------------------------
                                 Step-out hole lost at 237 m before reaching
                                 target zone. Average core recovery was 75%.
----------------------------------------------------------------------------

To view the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/mcewlink1.pdf

The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management of McEwen Mining Inc.

Contacts: McEwen Mining Inc. Jenya Meshcheryakova Investor Relations (647) 258-0395 ext 410 or Toll Free: (866) 441-0690 (647) 258-0408 (FAX) info@mcewenmining.com www.mcewenmining.com

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