McEwen Mining Announces Record Quarterly Production at El Gallo Mine; Q2 2015 Production Results

McEwen Mining Inc.

("McEwen Mining" or the "Company") is pleased to announce record quarterly production at the El Gallo Mine in Mexico of 17,325 gold equivalent ounces(1), 15% above guidance for the quarter. On a consolidated basis, gold production for the quarter was 39,164 gold equivalent ounces(1). Highlights -- Record quarterly production at the El Gallo Mine of 17,325 gold equivalent ounces(1). -- Total Q2 2015 production of 39,164 gold equivalent ounces(1), an increase of 36% over Q2 2014. -- Year-to-date gold production of 72,598 gold equivalent ounces(1), an increase of 24% over the first six months of 2014. -- Higher average processed gold grade at El Gallo Mine of 3.7 grams per tonne (gpt) vs. 3.2 gpt last quarter. -- Current cash and precious metals of $27.3 million(2) vs. $17.3 million(2) reported on May 11th, 2015. -- Full year production guidance maintained at 96,500 gold ounces and 3.1 million silver ounces. -- Inaugural semi-annual dividend distribution of $0.005 per share will be paid August 17th, 2015 to shareowners of record on July 31st, 2015, a current yield of 1.3% annualized. El Gallo Mine, Mexico - Continued Strong Performance Production in Q2 2015 was 15% above guidance due to higher gold grade and improved processing efficiencies. The gold grade processed in the quarter was 3.7 gpt, which is higher than the average resource grade at El Gallo, and we expect that over the next six months the grade will gradually return to approximately 2 gpt. Operational performance in 2015 has been strong, with production exceeding guidance in both Q1 and Q2 by 17% and 15% respectively (see Fig. 1). Guidance for Q3 remains at 8,000 gold ounces. Q3 production is typically lower due to the adverse impact of the annual summer rainy season on mining and heap leach efficiency. Our 2015 production guidance remains 50,000 gold ounces at an all-in sustaining cost (AISC) of $750 per gold equivalent ounce(2). San Jose, Argentina (49%(3)) - Meeting Guidance, Higher Grade Our attributable production from San Jose in Q2 2015 was 11,275 gold ounces and 792,344 silver ounces, or 21,839 gold equivalent ounces(1). Compared to Q2 2014, gold and silver production was up 5% and 8% respectively (see Fig. 2). The gold equivalent grade processed in the quarter was 12.7 gpt, which is somewhat higher than the long-run average grade of approximately 11.0 gpt gold equivalent. Full year guidance for San Jose remains at 46,500 gold ounces and 3.1 million silver ounces at an all-in sustaining cost (AISC) of $1,225 per gold equivalent ounce(2).