HispanicBusiness

The company has completed a Preliminary Economic Assessment in 2011 (see September 28, 2011 announcement). Highlights of the PEA include:

--  Cash Costs    --  Base Case - U.S. $9.34/ounce of silver    --  Alternate Case - U.S. $7.90/ounce of silver    --  Alternate Case focuses on reducing operating costs by using lower        cost hydroelectric power versus that of diesel power generators--  Production base of 1,000 tonnes per day of silver ore at a mined grade    of 419 grams of silver per tonne of ore, (13.5 ounces per tonne of ore)--  Full annual production rate of 4.1 million ounces per year of    recoverable silver, 3.9 million ounces per year payable silver; mine    life of 8.4 years--  Initial Capital    --  Base Case - U.S. $111.1 million    --  Alternate Case - U.S. $129.1 million--  All ore is sourced from Silver Bear's Vertikalny deposit which is part    of Silver Bear's Mangazeisky exploration lease in Yakutia, Russia.--  Note that at the time of this assessment the Nizhny Endybal resource    (see announcement September 20,2012 and resource in Table 1 below) was    not yet discovered. Any potential feed from this resource would    supplement mine life.--  Silver Bear expects construction of the facility to take approximately    18 to 24 months after the Company completes a Feasibility Study and    Permitting.Economic Highlights of the PEA:                                                            Alternate                                          Base Case    Scenario Hydro                                                        Power Station----------------------------------------------------------------------Silver Price at $32/ounce (Approximate Spot Price)NPV 8%                              $   303,000,000   $   317,000,000NPV 10%                             $   264,000,000   $   276,000,000Internal Rate of Return %                     46.30%            44.80%--------------------------------------------------------------------------------------------------------------------------------------------Silver Price at $22.74/ounce (Long term Price in Study)NPV 8%                              $   122,000,000   $   136,000,000NPV 10%                             $    99,700,000   $   111,000,000Internal Rate of Return %                     25.70%            25.90%--------------------------------------------------------------------------------------------------------------------------------------------Initial Capital                     $   111,110,000   $   129,110,000Sustaining Capital                  $    19,750,000   $    19,750,000Op Cost (U.S. $/ounce)  Recoverable Silver                $          8.87   $          7.51  Payable Silver                    $          9.34   $          7.90----------------------------------------------------------------------

As shown in Figure 1, the exploration licence covers an area of approximately 570 square kilometres. The property hosts more than 100 silver occurrences in a major north-northwest trending mineralized structure that stretches along a 35 kilometre corridor. The Company's estimated total NI 43-101 compliant mineral resource estimates on its Mangazeisky property are 1.1 million tonnes containing 17.9 million ounces silver at 518 Ag/t of Indicated mineralization and 4.9 million tonnes containing 43.9 million ounces silver at 282 g/t Ag of total Inferred mineralization (see table 2). Figure 1 highlights that the area containing Silver Bear's NI 43-101 mineral resource estimate (Vertikalny + Nizhny Endybal) represents a very small piece of the total licence area.