Sunset Cove Acquires Graphite Property in Quebec and Updates Board Election By-law

Toronto, Ontario--(Newsfile Corp. - May 28, 2013) - Sunset Cove Mining (TSXV: SSM) (BVL: SSM) today announces that it has signed a Mineral Option Agreement with a group of Quebec prospectors to purchase, by way of an option agreement, 100% of the Lac Guéret West Graphite Property in north-eastern Quebec.

The Lac Guéret West Property is located in an exciting new graphite exploration camp, roughly 300 km north of Baie Comeau and 660 km north of Montreal. The property is road accessible and within the Grenville province.

"The Lac Guéret West Property is an opportunity that was too good to say no to," said Lorne Woods, Sunset Cove Mining President and CEO. "Given graphite demand is predicted to double by 2020."

The 10,800 hectare Lac Guéret West property lies to the direct west of Mason Graphite's 11,630 hectare Lac Guéret Graphite Project which has already filed a NI 43-101 compliant report and a PEA showing a pre-tax NPV of $364 million, a 33.7% pre-tax IRR, a two and a half year payback period and a mine life of 22 years based on only a partial exploration of the property.

"The same major northeast geological structures which control graphite mineralization at Mason Graphite's Lac Guéret project are evident at our Lac Guéret West property," said Woods.

The Lac Guéret West Graphite Property lies within the same prospective geological environment as Mason Graphite's Lac Guéret Property, in the Paleoproterozoic Gagnon Terrane, which is considered a para-autochthonous unit fertile for graphite in the Grenville Province of Quebec and includes biotite/garnet/sillimanite/graphite paragneisses, dolomitic marbles and intrusive rocks.

Graphite in the area is present in marbles and in contact with or within paragneisses and ranges from 3% to 40% Cg (Carbon Graphite) exhibiting flakes up to 5 mm in diameter. Large flake graphite is generally considered as 0.2 mm and above. The Lac Guéret West Graphite Property is easily accessible and is approximately three hours from Baie-Comeau by road. Sunset has made property maps and details available on our website.

To the direct east of Mason Graphite, Berkwood Resources are exploring Lac Guéret East. Further north in Lac Knife, Focus Metals has released a PEA on its Lac Knife Property, which shows a mine life of 20 years.

"When we saw the numbers," said Sunset COO Marc Blais, "we had to say yes. Opportunities like this don't come around that often. I see it as a strategic acquisition for Sunset."

Sunset intends to plan for an exploration campaign on the property this summer to take advantage of the full access the seasons allow.

The exploration program will be under the supervision of Apex Geoscience who are Sunset's independent technical team. A full description of the exploration programme for 2013 will be released shortly.

This option agreement is subject to Board and TSX-V approval. The terms of the option require a payment of $15,000 and the issuance of 1,500,000 Units of Sunset Cove with each Unit consisting of one common share of Sunset Cove and one common share purchase warrant (each warrant entitles the holder thereof to acquire one additional common share of Sunset Cove for twenty four months following the approval by the regulatory authorities at a price of $0.10 per share), Sunset Cove must have made $200,000 (two hundred thousand) in exploration and/or development work on the Property within 12 months after regulatory approval. Sunset Cove shall pay a net smelter royalty ("NSR") of 2% on all metals produced from the Property and at any time have the right to buy back one per cent (1%) of the NSR by paying one million dollars ($1,000,000) to the vendors.

The President also announces that the Board of Directors has also approved the adoption of an advance-notice policy for the purpose of providing shareholders, directors and management of Sunset Cove with a clear framework for nominating directors. The policy is meant to: (i) facilitate an orderly and efficient process for annual general meetings or, where the need arises, special meetings of shareholders; (ii) ensure all shareholders receive adequate notice of the director nominations and sufficient information with respect to all nominees; and (iii) allow shareholders to register an informed vote with respect to director nominations, having been afforded reasonable time for appropriate deliberation.

The policy contains a provision that requires advance notice to Sunset Cove in circumstances where nominations of persons for election to the board of directors are made by shareholders of Sunset Cove . The policy fixes deadlines by which holders of record of common shares of Sunset Cove must submit director nominations to Sunset Cove prior to any annual or special meeting of shareholders and sets forth the information that a shareholder must include in the notice to Sunset Cove for an effective nomination to occur. No person will be eligible for election as a director of Sunset Cove unless nominated in accordance with the provisions of the policy.

The deadline for notice to Sunset Cove in the case of an annual meeting of shareholders is not less than 65 days prior to the date of the annual meeting of shareholders, provided, however, that in the event that the annual meeting of shareholders is to be held on a date that is less than 75 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.

In the case of a special meeting (which is not also an annual meeting) of shareholders called for the purpose of electing directors (whether or not called for any other purposes), the deadline for notice to Sunset Cove is no later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.

At the next annual and special meeting of the company, the shareholders of the company will be asked to ratify and confirm the adoption of the policy. The board has determined that the policy is effective and in full force and effect as of May 24, 2013.

Sunset Cove has a highly prospective silver property in Peru that it has been exploring for the past three years. Sunset expects to have a NI 43-101 resource calculation on its Carolay property by the end of 2013.

About Sunset Cove - Sunset Cove Mining Inc., is a dynamic Canadian junior mineral exploration and development company dedicated to driving shareholder value through the economical acquisition, exploration and development of precious metals properties in proven Latin American locations to the point where they become attractive joint venture or acquisition targets. Sunset Cove is in Peru and has a wholly owned Peruvian subsidiary, Minera Sunset Del Peru S.A.C based in Lima, and is building a Peruvian mining portfolio in precious metals.

Forward-Looking Statements

Some of the statements contained herein may be forward-looking statements that involve known and unknown risks and uncertainties. Results presented in this press release are exploratory in nature. Historical data, if mentioned, should not be relied upon, as they are not admissible under NI 43-101 rules and the Company has not conducted sufficient testing to verify this type of information. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward-looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world-wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability, and the uncertainty of access to additional capital. Sunset Cove disclaims any obligation to update any such forward-looking statements.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

For further information, please contact:

Lorne Woods, President, Sunset Cove Mining
(877) 234-0692; ext. 250
lwoods@sunsetcovemining.com
www.sunsetcovemining.com