Cadillac Mining Corporation CQXFF

cqx news release

[MrC_]

2012-06-29

Vancouver, BC, June 29, 2012: Cadillac Mining Corporation (TSX-V:CQX) is pleased to announce results from four exploratory holes, representing partial analytical results from the nine-hole NQ drill program recently conducted on its 100%-held Goldstrike project in southwestern Utah. The nine holes, aggregating 1080 meters (3543 ft.) were drilled on four sections situated along the Hamburg Extension, 30, 70, 110, and 190 meters respectively, east of reverse-circulation holes GS11-02 & -03, reported on February 21, 2012.

DDH's GS12-04, -05, -06 and -07 intersected prospective gold and silver mineralization, the best of which were 1.56 g Au/tonne over 30.2 meters in GS12-07, and 0.81 g Au/tonne over 36 meters in GS12-05. Hole details and the weighted average grades of the mineralized intervals are set out below.

*Drill hole terminated before reaching targeted depth due to drilling conditions.
Note: Mineralized intervals reported above may not accurately reflect true widths or thicknesses.

Detailed features seen in core are leading to a better understanding of controls to mineralization, and are confirming earlier observations that gold mineralization at Goldstrike is controlled primarily by high-angle faults. However, current results appear to show that variations in grade are affected to a great extent by the composition of host sediments. While these relationships have yet to be fully understood, such details are likely to be of critical importance going forward. The Company awaits results from the five remaining holes of this series, that in combination with Cadillac's 2011 drilling, have tested a 230 meters of strike in the Hamburg Extension zone.

Cadillac's President & CEO, Victor Erickson, commented, "We are very pleased that these new results confirm continuity of mineralization in the Hamburg Extension. Gold and silver values are variable, but it is obvious that this is a wide and robust system containing sections of significantly elevated gold and silver grades. While ground conditions are difficult, the decision to utilize core drilling has yielded geological detail not previously recognized. Progress in the understanding of the controls to mineralization will be key as the Company expands the scope of it exploration efforts, both laterally, and to depth."

Cadillac currently has a geologist and a technician working full time compiling historical data. Chip trays from 1400 RC holes have been catalogued, and selected holes are being re-logged. Mineralized intervals from the December 2011 RC program have been submitted for silver analyses.

About the Goldstrike Property

The 4700-acre Goldstrike property is a former producer that closed in 1994 because of low gold prices and a punitive royalty schedule. Historical mining covers 12 open pits strung along the margins of a graben complex on a roughly east-west trend covering about eight kilometers of strike. The Hamburg Extension lies on the south margin of the principal graben where the favourable host sandstone was preserved at shallow to moderate depth. This unit was host to most of the Tenneco-USMX heap-leach production of about 210,000 oz, although there was gold production from the basement Paleozoic limestone-dominated strata below it. Graben structures and the complex fault systems that define them, are repeated both north and south of the Hamburg zone.

Cadillac's immediate target area, measuring approximately two kilometers long by more than 300 meters wide on average, extends outward from the Hamburg Extension. It is one of approximately fifteen near-surface targets identified on the Goldstrike property, exclusive of the potential for mineralization at depth in Paleozoic strata.

Quality Control

Andre J. Audet, P.Eng., a qualified person ("QP") under the meaning of NI 43-101, the QP and project manager at Goldstrike, has reviewed the technical information in this news release. Sawn core samples were shipped directly to SGS Minerals Services in Elko, Nevada for preparation. Reported analyses were carried out at SGS' laboratories in Vancouver, British Columbia, using industry standard analytical techniques. Samples were analyzed using fire assay of a 30g cut and atomic absorption spectroscopy ("AAS"). The same pulps were analyzed for 36 elements, including silver, using ICP-MS. Samples returning silver values greater than 10 g/t silver were analyzed separately, using by HF-HNO3-HCLO4 and HCL for complete digestion, by atomic absorption.

Blanks, were inserted into the sample stream as part of Cadillac's quality assurance and control program. Pulps from randomly selected samples will be checked by an independent laboratory.

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