Silver Mountain Announces Extension of Warrants

CALGARY, ALBERTA--(Marketwire - Dec. 20, 2012) - Silver Mountain Mines Inc. (TSX VENTURE:SMM) ("Silver Mountain" or the "Company") announces that it has submitted an application to extend the expiry dates of a total of 8,675,584 common share purchase warrants issued as part of a its 2008, 2009, 2010 and 2011 private placements.

A total of 1,776,100 common share purchase warrants ("2008 Warrants"), consisting of 930,000 common share purchase warrants at an exercise price of $0.25 (the "$0.25 2008 Warrants") and 846,100 common share purchase warrants at an exercise price of $0.30 (the "$0.30 2008 Warrants"), are presently scheduled to expire on December 31, 2012. The $0.25 2008 Warrants were issued in tranches as part of a private placement of 930,000 units priced at $0.25 per unit, with each unit consisting of one common share and one share purchase warrant, with a final close of December 29, 2008. The $0.30 2008 Warrants were issued in tranches as part of a private placement of 846,100 units priced at $0.30 per unit, with each unit consisting of one common share and one share purchase warrant with a final close of December 29, 2008. The expiry date of the 2008 Warrants has been requested to be extended to the maximum five-year term from the date of issuance. The exercise price for the 2008 Warrants is unchanged. No 2008 Warrants have been exercised to date.

A total of 4,763,000 common share purchase warrants ("2009 Warrants") consisting of 3,200,000 common share purchase warrants at an exercise price of $0.25 (the "$0.25 2009 Warrants") and 1,563,000 common share purchase warrants at an exercise price of $0.30 (the "$0.30 2009 Warrants"), are presently scheduled to expire on December 31, 2012. The $0.25 2009 Warrants were issued in tranches as part of a private placement of 3,200,000 units priced at $0.25 per unit, with each unit consisting of one common share and one share purchase warrant, with a final close of December 30, 2009. The $0.30 2009 Warrants were issued in tranches as part of a private placement of 1,563,000 units priced at $0.30 per unit, with each unit consisting of one common share and one share purchase warrant with a final close of December 30, 2009. The expiry date of the 2009 Warrants has been requested to be extended to the maximum five-year term from the date of issuance. The exercise price for the 2009 Warrants is unchanged. No 2009 Warrants have been exercised to date.

A total of 1,789,834 common share purchase warrants ("2010 Warrants") with an exercise price of $0.50 are presently scheduled to expire on December 31, 2012. The 2010 Warrants were issued in tranches with a final close of closed in December 7, 2010. The expiry date of the 2010 Warrants has been requested to be extended December 31, 2014. The exercise price for the 2010 Warrants is unchanged. No 2010 Warrants have been exercised to date.

A total of 346,650 common share purchase warrants ("2011 Warrants") with an exercise price of $0.50 are presently scheduled to expire on December 31, 2012. The 2011 Warrants were issued in tranches with a final close of March 7, 2011. The expiry date of the 2011 Warrants has been requested to be extended to December 31, 2014. The exercise price for the 2011 Warrants is unchanged. No 2011 Warrants have been exercised to date.

About Silver Mountain Mines Inc. (TSX VENTURE:SMM)

Silver Mountain Mines Inc. is a Canadian based exploration and development company with 100% ownership of a 9,200 ha property centered on the historical silver rich Ptarmigan Mine in south eastern, BC. The property hosts two styles of mineralization: silver rich, high-grade polymetallic epithermal veins and manto style massive / semi-massive sulphide mineralization.

For further information on Silver Mountain Mines Inc. please visit the Company's website www.silvermountainmines.com and SEDAR (www.sedar.com).

ON BEHALF OF THE BOARD

Steve Konopelky, President and CEO