Mcewen Mining (MUX) Reports 22% Increase in Production for FY15; Offers FY16 Outlook

McEwen Mining Inc. (NYSE: MUX) announces record annual production in 2015, solid fourth quarter production results, and the outlook for 2016.

Highlights

• 22% increase in production year-over-year to 154,529 gold equivalent ounces(1) in 2015.
• New pro-business government elected in Argentina, positive policy changes already enacted.
• 4.2 grams per tonne (gpt) average crushed gold grade at El Gallo Mine in Q4 2015 vs. 2.3 gpt in Q3 2015.
• Production guidance of 141,000 gold equivalent ounces in 2016.
• No debt(2), $5.2 million line of credit repaid in full.
• $32 million(2) in cash, cash equivalents and precious metals.
• 2nd semi-annual return of capital of $0.005 per common share will be paid on February 12th, 2016 to shareholders of record at the close of business on February 3rd, 2016.

El Gallo Mine, Mexico – A Record Year

Production in 2015 was 64% higher year-over-year at 63,366 gold equivalent ounces, compared to 38,556 gold equivalent ounces in 2014. Our revised guidance for the year was slightly exceeded. Higher production was the result of higher-grade ore being mined and placed on the leach pad, better metallurgical recovery, reduced downtime, and continued strong operational performance from our team in Mexico.

In Q4, the mine produced 11,092 gold equivalent ounces, compared to 14,236 gold equivalent ounces during same period in 2014. Production in Q4 was deliberately slowed as part of the optimized mine plan, and will accelerate significantly next quarter as a result of higher average ore grade (4.2 gpt Au) crushed in Q4. Full year guidance for El Gallo in 2016 is 52,000 gold equivalent ounces.

San José Mine, Argentina (49%(3)) – Lower Taxes and Costs in 2016

Our attributable production from San José in 2015 was 47,353 gold ounces and 3,285,751 silver ounces, for a total of 91,163 gold equivalent ounces. Compared to 2014, gold and silver production was up 3% and 4% respectively. In Q4, attributable production was 14,424 gold ounces and 976,879 silver ounces, for a total of 27,449 gold equivalent ounces.

The newly elected government in Argentina has taken several steps that improve operating conditions for mining companies by eliminating the 5% export taxes on gold in doré, and by officially revaluing the Argentine Peso lower. These measures are welcome steps in the right direction that should enable San José to generate distributable cash in 2016. Full year production guidance for San José in 2016 is 45,000 gold ounces and 3.3 million silver ounces, for a total of 89,000 gold equivalent ounces.

Return of Capital & Eligible Dividend

Our second semi-annual return of capital of $0.005 per share will be paid on February 12th, 2016 to shareholders of record at the close of business on February 3rd, 2016. It will be paid to common shareholders of McEwen Mining Inc. from additional paid-in capital. For shareholders in the US & Canada, return of capital is generally not taxed, however we advise you to obtain advice from a tax professional familiar with your specific situation.

Holders of the exchangeable shares of our publicly traded Canadian subsidiary McEwen Mining - Minera Andes Acquisition Corp. (TSX:MAQ) will receive an eligible dividend of $0.005 per share with the same record and payment dates. The eligible dividend will not qualify for the same beneficial tax treatment discussed above and we recommend that holders of MAQ shares examine the potential benefits of exchanging them for common shares.

The Board of Directors has approved both the return of capital and eligible dividend.

Financial Results

Operating costs for the year and quarter ended Dec 31st, 2015 will be released with the Annual Financial Statements on March 14th, 2015.

Footnotes:

(1) 'Gold Equivalent Ounces' are calculated based on a 75:1 gold to silver ratio.

(2) Figures updated as of January 12, 2016.

(3) The San José Mine is 49% owned by McEwen Mining Inc. and 51% owned and operated by Hochschild Mining plc.

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