Yellowhead Mining Inc. Reports Financial and Operating Results for Fourteen Months Ended December 31, 2012

Yellowhead Mining Inc. Reports Financial and Operating Results for Fourteen 
Months Ended December 31, 2012 
VANCOUVER, March 28, 2013 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the 
"Company") (TSX: YMI, OTCQX: YHMGF) is pleased to report its results of 
operations for the fourteen months ended December 31, 2012. 
For the full consolidated Financial Statements and Management Discussion & 
Analysis, please visit SEDAR at or the Company's web site, 
Key highlights for the fourteen months ended December 31, 2012 and subsequent 
weeks include: 

    --  Detailed NI 43-101 compliant amended feasibility study was
        completed and filed on March 29, 2012 and restated and amended
        as of January 25, 2013 (the "Feasibility Study").
    --  Released an updated Resource estimate with Measured and
        Indicated Resources at a 0.2% copper cut-off grade are
        estimated as: Copper - 5.3 Billion pounds, Gold - 838,600
        ounces and Silver - 34 Million ounces.
    --  Purchased a former Weyerhaeuser Company Ltd. sawmill property
        which has a 1,880m rail siding connecting to the Canada
        National Railway's transcontinental mainline.  This property
        will be used for a rail load-out facility located 25km by road
        from the Harper Creek project mill site, as a staging area
        during construction and for a mine administration office.
    --  The Environmental Assessment study at Harper Creek was advanced
        with the completion of a comprehensive baseline study program. 
        The application will be filed in the second quarter of 2013.
    --  Changed the financial year end from October 31 to December 31
        effective for the 2012 financial year.
    --  Adopted a shareholder rights plan to ensure the fair treatment
        of all shareholders in the event of a takeover bid or change of
    --  Common shares began trading on the Toronto Stock Exchange
        ("TSX") main board, previously listed on the TSX Venture board.
    --  Common shares began trading on the OTCQX International
        marketplace ("OTCQX").
    --  Completed a non-brokered private placement of 8,032,307 common
        shares of the Company at an issue price of $0.65 per common
        share for gross proceeds of $5,221,000 and 2,141,403
        flow-through common shares of the Company at an issue price of
        $0.70 per flow-through common shares for gross proceeds of
    --  Engaged Evercore Group L.L.C. to provide financing advisory
        services and to assist in the evaluation of strategic
        partnership and financing alternatives for Harper Creek.


The Company's plans for 2013 and beyond are to:
    --  Explore financing options in order to finance the development
        of Harper Creek, including but not limited to: strategic
        investors and/or partnerships, project and equipment financing,
        stock offerings and off-take agreements.
    --  Continue the process of environmental permitting through 2013
        following the submission of the Environmental Assessment
        application in the second quarter of 2013.
    --  Prepare and submit the Company's applications for a British
        Columbia Mines Act Permit for Harper Creek.
    --  Continue consultation with the First Nations and local
        communities to address any potential environmental and
        socio-economic impacts of Harper Creek and the Company's
        mitigation strategies.
    --  Continue negotiations with the local First Nations working
        towards conclusion of a long term Benefits Agreement.
    --  Continue exploration activities to better define the
        resource/reserve at Harper Creek.

Summary of Key Financial Highlights

Yellowhead has no revenue from operations. Results can fluctuate 
significantly from period to period due to the level of engineering and 
environmental study effort and resource drilling.

The Company's expenditures on the Harper Creek project for the fourteen months 
ended December 31, 2012, were as follows:
                           Capitalized   Evaluation and   expenditures
                             Mineral      exploration      on Harper
                            interests       expenses         Creek

Balance, October 31, 2011  $   834,026   $   19,704,383   $ 20,538,409

Net Additions                   51,209        9,593,257      9,644,466

Balance, December 31, 2012 $   885,235   $   29,297,640   $ 30,182,875

The Company's net loss for the three months ended December 31, 2012, three 
months ended September 30, 2012, three months ended June 30, 2012, three 
months ended March 31, 2012, two months ended December 31, 2011 and the 
quarterly periods from the prior fiscal year are as follows:
                                                    2011 (
                                      2012            (1))                       2011

Quarter Ended    31-Dec    30-Sep   30-Jun  31-Mar  31-Dec    31-Oct  31-Jul  30-Apr  31-Jan

expenses       $  1,881  $    908 $  1,139 $   994 $   691   $   878 $ 1,423 $ 1,816 $   679

Evaluation and
expenses          2,845     2,093      913   1,520   2,222     3,091   3,822   1,367   1,362

(income)           (11)      (14)        6    (13)    (25)      (62)    (55)    (21)   1,177

Net loss and
loss for the
period            4,715     2,987    2,058   2,501   2,888     3,907   5,190   3,162   3,218

Basic and
diluted loss                                                
per share for
the period     $   0.08  $   0.06 $   0.04 $  0.05 $  0.05   $  0.07 $  0.13 $  0.09 $  0.10

(1) Due to the Company's prospective change in fiscal year end from
    October 31, 2012 to December 31, 2012, the period ended
    December 31, 2011 is two months long and all other disclosed
    periods are three months long.

The Company's administrative expenses for the three months ended December 31, 
2012, were approximately $973K higher than for the three months ended 
September 30, 2012. This increase was due to three major expenses that were 
incurred in the three months ended December 31, 2012 and not incurred in other 
periods. These three major expenses were: (1) the Company incurred 
approximately $284K related to severance payments to the former CEO; (2) the 
Company accrued approximately $202K related to annual bonuses for employees; 
and (3) the Company paid approximately $400K to BC Hydro for an Identification 
Phase study which is being partially funded by the Company and is studying an 
upgrade to the power infrastructure in the North Thompson Valley.

Exploration costs were $752K higher for the three months ended December 31, 
2012 compared to the three months ended September 30, 2012. This increase is 
due to three main factors: (1) The Company recognized an adjustment of 
approximately $652K in the three months ended December 31, 2012 as a result of 
an audit of its Mineral Exploration Tax Credit by the Canada Revenue Agency; 
(2) The Company spent approximately $717K related to an in-fill drilling 
program which started in November; and (3) The Company incurred $596K less in 
mine permitting costs in the three months ended December 31, 2012 as compared 
to the three months ended September 30, 2012.

Other expenses/(income) for the three months ended December 31, 2012, were in 
line with the three months ended September 30, 2012.

Cash and Cash Equivalents

The Company had cash and cash equivalents of $7.06M as at December 31, 2012 
compared to cash and cash equivalents of $15.67M as at October 31, 2011.

The Company's focus, going forward, is expediting the development of the 
Harper Creek project. Major activities include completing the Environmental 
Assessment process, advancing the Mine Permitting process and pursuing funding 
activities to develop the Harper Creek project. Following the completion of 
the private placement announced by the Company on October 31, 2012, the 
Company believes its current working capital is sufficient to keep advancing 
its Harper Creek project in the permitting process. However, additional 
funding will be required by the Company to finance the development of Harper 

International Financial Reporting Standards ("IFRS")

The Company has completed its transition to IFRS with a transition date of 
November 1, 2010. Details of the adjustments under IFRS and reconciliations 
between previously reported numbers under Canadian GAAP and IFRS are provided 
in Note 22 of the Company's consolidated financial statements for the fourteen 
months ended December 31, 2012.

Fiscal year end change

The Company has prospectively changed its fiscal year end date from October 
31(st) to December 31(st). In accordance with relevant legislation the 
Company prepared condensed consolidated interim financial statements for the 
periods ending and as at December 31, 2011, March 31, 2012, June 30, 2012 and 
September 30, 2012 for the current fiscal year. The Company's annual 
financial statements are for the fourteen months ended December 31, 2012.

About Yellowhead Mining Inc.

Yellowhead's Harper Creek Project is a copper-gold-silver volcanogenic 
sulphide deposit located in south-central British Columbia, approximately 150 
kilometers by highway north of Kamloops. The Feasibility Study, dated and 
filed on SEDAR on March 29, 2012 and restated and amended as of January 25, 
2013 (and available for review on SEDAR and Yellowhead's website) shows an 
after-tax NPV(8) of US$465.3 million with an IRR of 17.0% based on long-term 
metal price projections of US$2.50/lb Cu, US$1,250/oz Au and US$20/oz Ag, and 
a US$:Cdn$ exchange rate of 0.86:1. The Feasibility Study demonstrated a 28 
year project life at a milling rate of 70,000 tpd (25.55Mt/y). The project as 
designed is expected to produce a total of 3.63 billion pounds of copper, 
372,000 ounces of gold and 14 million ounces of silver contained in 

At a 0.14% Cu cutoff, Proven Reserves are estimated at 401.18Mt @ 0.272% Cu, 
0.031g/t Au and 1.15g/t Ag; Probable Reserves 303.22Mt @ 0.248% Cu, 0.027g/t 
Au and 1.13g/t for a total Proven and Probable Reserve of 704.4Mt @ 0.262% Cu, 
0.029g/t Au and 1.14g/t Ag.

The Feasibility Study is based on an updated resource. At a 0.20% Cu cutoff 
Measured Resources are estimated at 348.5Mt at 0.31 % Cu, 0.034g/t Au, 1.3g/t 
Ag; Indicated Resources at 466.5Mt at 0.28% Cu, 0.03g/t Au, 1.3g/t Ag for a 
total Measured and Indicated Resource of 815Mt at 0.29% Cu, 0.032g/t Au and 
1.3g/t Ag (5.26 billion pounds of copper contained). A further 80.17Mt at 
0.30% Cu, 0.033g/t Au, and 1.4g/t Ag are estimated in the Inferred Resource 
category (0.53 billion pounds of copper contained) and are reported as waste 
in the mine production schedule until they can be upgraded by additional 
infill drilling.

Yellowhead has a 100% interest in the Harper Creek Project (subject to the 
payment of a 3% NSR royalty capped at $2.5 million, adjusted for inflation and 
an additional 2.5% NSR royalty on an estimated 1.5 Mt of ore which is expected 
to be mined beginning in year 16 of the Feasibility Study mine plan).

T. Gregory Hawkins, Interim Chief Executive Officer of the Company and a 
Qualified Person under NI 43-101, has reviewed and approved the technical 
content of this press release other than the analytical results of the Harper 
Creek drill program disclosed in this release.

Forward Looking Statements

Except for statements of historical fact, this news release contains certain 
"forward-looking information" within the meaning of applicable securities 
laws. Forward-looking information is frequently characterized by words such as 
"plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and 
other similar words, or statements that certain events or conditions "may" or 
"will" occur. Forward-looking statements are based on the opinions and 
estimates of management at the date the statements are made, and are subject 
to a variety of risks and uncertainties and other factors that could cause 
actual events or results to differ materially from those anticipated in the 
forward-looking statements, including, among others, the accuracy of mineral 
grades and related assumptions, inherent operating risks, planned 
expenditures, proposed exploration and development at the Harper Creek 
Project, operating and economic aspects of the Harper Creek Project, as well 
as those risk factors identified in the Company's Annual Information Form 
filed under the Company's SEDAR profile. Yellowhead undertakes no obligation 
to update forward-looking information if circumstances or management's 
estimates or opinions should change except as required by law. The reader is 
cautioned not to place undue reliance on forward-looking statements. More 
detailed information about potential factors that could affect projected 
results is included in the documents filed from time to time with the Canadian 
securities regulatory authorities by Yellowhead.

This news release includes disclosure of scientific and technical information, 
as well as information in relation to the calculation of mineral resources and 
reserves, with respect to the Harper Creek Project. Yellowhead's disclosure of 
mineral resource and reserve information is governed by National Instrument 
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") under the 
guidelines set out in the Canadian Institute of Mining, Metallurgy and 
Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, 
adopted by the CIM Council, as may be amended from time to time by the CIM 
("CIM Standards"). There can be no assurance that mineral resources will 
ultimately be converted into mineral reserves. Mineral resources are not 
mineral reserves and do not have demonstrated economic viability. This news 
release uses the terms "measured", "indicated" and "inferred" resources. U.S. 
persons are advised that while such terms are recognized and required by 
Canadian regulations, the U.S. Securities and Exchange Commission does not 
recognize them. "Inferred Resources" have a great amount of uncertainty as to 
their existence and as to their economic and legal feasibility. It cannot be 
assumed that all or any part of an inferred resource will ever be upgraded to 
a higher category. Under Canadian rules, estimates of inferred resources may 
not form the basis of feasibility or other economic studies. U.S. persons are 
cautioned not to assume that all or any part of measured or indicated 
resources will ever be converted into reserves. U.S. persons are also 
cautioned not to assume that all or any part of an inferred mineral resource 
exists, or is economically or legally mineable.

Ronald Handford, Executive Vice President, Corporate Development 
604.681.1709 Ext. 204 Twitter:!/YMI_Mining

SOURCE: Yellowhead Mining Inc.

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CO: Yellowhead Mining Inc.
ST: British Columbia

-0- Mar/28/2013 22:30 GMT

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