McEwen Mining Inc.: Los Azules Lawsuit Settled

Mon Nov 12, 2012 1:37pm EST

* Reuters is not responsible for the content in this press release.

McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) is very pleased to announce that
TNR Gold Corp. ("TNR") and McEwen Mining have resolved their differences
and settled all outstanding litigation with respect to the Los Azules
Copper project located in San Juan Province, Argentina ("Los Azules").

    The settlement of this litigation is beneficial in that it provides
certainty on the ownership of Los Azules. This allows McEwen Mining to
explore areas of the property that were previously contested; as well,
evaluate strategic alternatives with respect to the project as a whole.

    "This is a very positive development for McEwen Mining, TNR Gold and the
Province of San Juan, Argentina. It allows us to accelerate and expand
the magnitude of our exploration effort. With this legal obstacle behind
us, we are now embarking on the largest drill program in the project's
history. We are excited by the potential of growing the size of this
world-class copper asset", said Rob McEwen, Chief Owner

    The highlights of the settlement:

    1. All Litigation has been settled. 

    2. McEwen Mining has clear title to the Escorpio IV claim. 

    3. TNR retains a Back-In Right. 

    4. TNR receives 1,000,000 shares of McEwen Mining.

    Details of the Settlement:

    1. Litigation Over:

    All of the claims and counterclaims brought by TNR and McEwen Mining will
either be discontinued or resolved by way of a consent dismissal order.

    2. McEwen Mining owns 100% of the Escorpio IV Claim:

    TNR will transfer the contested Escorpio IV claim (a mineral claim
situated to the west of the deposit) to McEwen Mining. While no
mineralization has been found on this property it is best suited for
locating all processing and administrative facilities of any future mine

    3. TNR's Back-In Right:

    TNR will retain their Back-in Right for up to 25% of the equity in
certain claims comprising the northern portions of Los Azules. These
northern claims currently represent approximately 62% of the known
resource at Los Azules. This 25% interest, when taken in the context of
the whole property, would be currently equivalent to approximately a 15%
interest of the total estimated resources at Los Azules (Canadian NI
43-101). This interest could increase or decrease depending on the
location and size of future exploration results. The Back-in Right is
exercisable after the completion of a bankable feasibility study. To
exercise TNR must pay two (2) times the expenses attributable to the
back-in percentage (ie. paying 2 x 25% all of the costs attributable to
the claims comprising the northern portion of the property). Upon
backing-in, TNR may elect to continue to participate in the project or be
diluted down to a 0.6% NSR on the same claims comprising the northern
portion of the project.

    4. TNR to receive 1,000,000 shares of McEwen Mining

    As noted in our November 7th news release, drilling began at Los Azules
on October 12th. Los Azules is one of the world's largest and highest
grade undeveloped copper porphyry deposits. A total of seven drills are
operating at the property. The drills are considerably more powerful than
the ones used during past field seasons. The Company believes this will
increase the likelihood of reaching target depths (+700 meters), where
high-grade copper mineralization has been discovered. Initial drill assay
results are expected to be released early in 2013. The Company plans to
drill approximately 15,000 meters this season.


    The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by
2015 by creating a high quality, 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 Copper project in San Juan, Argentina and a large
portfolio of exploration properties in Argentina, Nevada and Mexico.

    McEwen Mining has 268,495,751 shares issued and outstanding (comprised of
190,516,797 Common Shares and 77,987,621 Exchangeable Shares). Rob
McEwen, Chairman and Chief Owner, owns approximately 25% of the shares of
McEwen Mining (assuming all outstanding Exchangeable Shares are exchanged
for an equivalent amount of Common Shares). As of September 30, 2012,
McEwen Mining had cash and liquid assets of $20.6 million.

    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, PE, Robert Sim, PGeo, Bruce Davis, PHD,
FAUSIMM and James K. Duff, PGeo, all of whom are qualified persons and
all of whom but James K. Duff are independent of McEwen Mining, each as
defined by NI 43-101. The foregoing report is available under the
Corporation's profile on SEDAR (


    McEwen Mining prepares 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. The estimation of measured
resources and indicated resources involve greater uncertainty as to their
existence and economic feasibility than the estimation of proven and
probable reserves. U.S. investors are cautioned not to assume that any
part of measured or indicated resources will ever 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.


    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 business integration as a result of the business
combination between the Company and Minera Andes, 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.

    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.

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

McEwen Mining Inc.
Mailing Address
181 Bay Street Suite 4750
Toronto, ON M5J 2T3, PO box 792


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