Name and Location
Los Azules copper project, San Juan province, Argentina.

Client
McEwen Mining.

Project Description
An updated preliminary economic assessment (PEA) on the Los Azules copper project has demonstrated that the project has the potential to become one of the largest, lowest-cost copper mines in the world.

The updated PEA contemplates the construction of a mine and process plant operating over a 35-year mine life at a throughput of 120 000 t/d, for average copper production of 171 000 t/y. The mine will produce a copper cathode through a pressure oxidative leach process, in addition to heap leaching the lower-grade mineralised material.

Two significant improvements have been made to the project in terms of resource size and process methodology.

Indicated and inferred resources have increased by 184% and 55% respectively, which have been slightly offset with decreases in respective grades of 14% and 12%. Overall, this has led to a 37% increase in mine life and 44% increase in total copper production.

Los Azules has indicated resources of 5.4-billion pounds of copper and 800 000 ounces of gold, and inferred resources of 14.3-billion pounds of copper and 2.6-million ounces of gold.

The current PEA plans to produce copper cathode at site, whereas the 2010 PEA contemplated producing copper concentrate and transporting it by pipeline through Chile. The main advantages of producing copper cathode at site are that it eliminates this previously planned pipeline through Chile, which was a substantial risk for the project, and an overall increase in recovered metal.

Additional benefits include a reduction in export taxes (5% payable on cathode versus 10% on concentrate) and the removal of treatment and refining charges from the smelting process.

Value
Initial capital expenditure is estimated at $3.92-billion.

Duration
Not stated.

Latest Developments
Not stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
McEwen Mining investor relations, Sheena Scotland, tel +1 647 258 0395 ext 410, fax +1 647 258 0408 or
email info@mcewenmining.com.