TORONTO, ONTARIO--(Marketwired - July 5, 2016) - Silver Bear Resources Inc. ("Silver Bear"
or the "Company") (TSX:SBR) is pleased to announce it has filed the National Instrument 43-101 ("NI 43-101") Technical Report
("Technical Report") for the Feasibility Study on the Mangazeisky Silver Project, Republic of Sakha (Yakutia), Russian
Federation. The Technical Report supports the Company's announcement of June 9, 2016.
To view and download the Technical Report, please visit www.sedar.com under
the Company's profile. The report will also be available on the Company's website at www.silverbearresources.com.
Key Highlights from the June 9, 2016 Feasibility Study press release include:
- The pre-tax NPV at a 5% discount rate is US$79.7 million, the pre-tax IRR is 43.6%, and the payback period is 2.1
years.
- With the Far East Tax Incentives, the post-tax NPV at a 5% discount rate is US$70.7 million, the IRR is 40.2%, and the
payback period is 2.2 years.
- Assumptions include a variable silver price of US$16.00/oz, US$17.25/oz, and US$18.00/oz during the first year of
production, second year of production, and the remaining project life, respectively, with a life of mine ("LOM") weighted
average silver price of US$17.74/oz; exchange rate applied is RUB66.00/USD.
- Initial capital costs of US$48.6 million.
- Total Proven and Probable Mineral Reserves of 801,000 tonnes at a diluted average grade of 772 g/t Ag for 19.9 million
troy ounces of silver.
- Total Vertikalny Central Indicated Mineral Resources of 23.4 million troy ounces of silver at an average grade of
909 g/t Ag, in addition to Inferred Mineral Resources of 13.4 million ounces of silver at an average grade of 615 g/t
Ag.
- Processing an average of 110,000 tonnes of ore per annum.
- Production of 16,787,000 ounces of silver over a 7.3-year LOM
- Average metallurgical recovery of 84.4% silver.
Project Execution
The Company intends to take advantage of the favourable outcome of the feasibility study, and the positive outlook on the
silver price, by implementing a fast-track execution plan to complete construction by the end of 2016, with steady state
production starting in Q1 2017. In anticipation of this, and in compliance with the Russian regulatory approval process, a
licensed Russian design institute (EMC Mining LLC ("EMC") in St Petersburg) was commissioned in 2015 to complete the detailed
design of the processing facility and associated mine site infrastructure. The Company procured all major equipment for
delivery during the 2015/2016 winter road season and began construction. The Company has proceeded with construction in
advance of regulatory approval for the project and expects that all of the permits needed for construction and operation will be
in place prior to the start of production.
More favourable weather between March and November will facilitate the completion of the construction of major infrastructure
with specific focus on completing the buildings to provide shelter during mechanical and electrical installation and the start of
commissioning planned for Q4 2016.
The feasibility study was prepared by Tetra Tech (UK) and comprised of an independent, multidisciplinary team including SRK
Consulting (UK) Limited ("SRK") and Environmental Resource Management Consultants Inc. ("ERM"). Mr. Jacques du Toit, Pr.Eng.,
MSc.Eng., PMP of Tetra Tech is a Qualified Persons under National Instrument 43-101 and have reviewed the scientific and
technical information in this release.
About Silver Bear
Silver Bear (TSX:SBR) is focused on the development of its wholly-owned Mangazeisky Silver Project, covering a licence area of
approximately 570 km2 that includes the high-grade Vertikalny deposit, located 400 km north of Yakutsk in the Republic
of Sakha within the Russian Federation. The Company was granted a 20-year mining licence for the Vertikalny deposit in September
2013 and completed a Feasibility Study in Q2 2016. The Company is implementing a fast-track execution plan to complete major
construction of the Mangazeisky Silver Project by the end of 2016, with steady state production planned to start in Q1 2017.
Other information relating to Silver Bear is available on SEDAR at www.sedar.com as well as on the Company's website at www.silverbearresources.com.
Cautionary Notes
This release contains forward-looking statements and information within the meaning of applicable securities laws. Wherever
possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes" and similar expressions or
statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved,
have been used to identify these forward-looking statements.
All of the results of Study of constitute forward-looking statements and information, including estimates of internal rates of
return, net present value, future production, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal
recoveries, and estimates of capital and operating costs. Furthermore, with respect to this specific forward-looking information
concerning the development of the Mangazeisky Project, the company has based its assumptions and analysis on certain factors that
are inherently uncertain. Uncertainties include among others: (i) weather conditions; (ii) unforeseen changes in geological
characteristics; (iii) metallurgical characteristics of the mineralization; (iv) the ability to develop adequate processing and
other infrastructure; (v) the price of silver; (vi) the availability of equipment and facilities necessary to complete
development; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen technological and engineering
problems; (ix) accidents or acts of sabotage or terrorism; (x) currency fluctuations; (xi) changes in laws or regulations; (xii)
the availability and productivity of skilled labour; (xiii) the regulation of the mining industry by various governmental
agencies; and (xiv) political factors.
Although the forward-looking statements contained in this release reflect management's current beliefs based upon information
currently available to management and based upon what management believes to be reasonable assumptions, Silver Bear cannot be
certain that actual results will be consistent with these forward-looking statements or information. A number of factors could
cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such
risk factors include but are not limited to risk factors identified by Silver Bear in its continuous disclosure filings filed
from time to time on SEDAR in addition to those stated above. These factors should be considered carefully and prospective
investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve
significant known and unknown risks, assumptions and uncertainties that may cause Silver Bear's actual results, events, prospects
and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although Silver Bear
has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, prospective investors should not place undue reliance on forward-looking statements or information. These
forward-looking statements and information are made as of the date of this release, and Silver Bear assumes no obligation to
update or revise them to reflect new events or circumstances, unless otherwise required by law.
This release also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral
Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity
and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation
(including estimated future production from the Mangazeisky Project, the anticipated tonnages and grades that will be mined and
the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon
the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource
estimates may have to be re-estimated based on: (i) fluctuations in the silver price; (ii) results of drilling, (iii)
metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans
subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses.
Mineral Reserves are also disclosed in this release. Mineral Reserves are those portions of Mineral Resources that have
demonstrated economic viability after taking into account all mining factors. Mineral Reserves may, in the future, cease to be a
Mineral Reserve if economic viability can no longer be demonstrated because of, among other things, adverse changes in commodity
prices, changes in law or regulation or changes to mine plans.