FORECAST FOR FISCAL YEAR 2013

Production Guidance

From the four mines at the Ying Mining Camp, production is expected to increase to 695,000 tonnes of ore at a grade of 295g/t silver, 0.5g/t gold, 5.1% lead and 1.5% zinc, yielding 5.9 million ounces of silver, 3,350 ounces of gold, and 87 million pounds of lead and zinc. The cash and total production costs are expected to be approximately $68 and $85 per tonne of ore, respectively, representing approximately a 3% and 5% increase, respectively, compared to actual production costs incurred in the nine months ended December 31, 2011.

The GC mine in Guangdong Province is expected to commence initial production in the second quarter of fiscal 2013. It is expected to mine 160,000 tonnes and to mill 153,000 tonnes of ore, yielding approximately 630,000 ounces of silver and 12 million pounds of lead and zinc. The cash and total production costs are expected to be approximately $40 and $65 per tonne of ore, respectively.

The BYP mine in Hunan Province is expected to mine and mill 175,000 tonnes of ore, yielding approximately 13,590 ounces of gold at cash and total production costs of $35 and $60 per tonne of ore, respectively.

At the newly-acquired XHP mine and XBG mine, the Company will focus on exploration during fiscal 2013, with only a minimal amount of by-product ore expected to be produced.

The Company’s Production Guidance for fiscal 2013 as well as the full press release can be found here.

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Silvercorp forecasts 20% increase in silver production for fiscal year 2013

According to data provided by the MEM, Peru’s cumulative gold production for last year was 164,013,489 grams (5,273,156 ounces), down 0.04% from 2010′s total of 164,084,389 grams (5,275,435 ounces).

The world’s second largest silver producer reported a 6.22% decline in production last year from 3,640,465 kilograms (117,043,667 troy ounces) in 2010 to 3,414,010 kilograms (109,762,970 ounces) in 2011.

Silver production for December 2011 also declined 3.95% from 312,499 kg (10,047,076 ounces) in December 2010 to 300,141 kg (9,649,757 ounces). The production decrease was attributed to lower output from Minera Ares, Minera Suymarca and Volcan Compania Minera.

Peru’s 2011 copper production also declined slightly by 0.96% from 1,247,184 metric tons in 2010 to 1,235,195 metric tons.

However, copper production increased 6.49% for December 2011 from 115,171 metric tons in December 2010 to 122,642 metric tons. The increased output is attributed to higher production from Xstrata Tintaya, Minera Milpo, and Minera Antamina.

Molybdenum production was up 12.84% in 2011 from 16,963 metric tons in 2010 to 19,141 metric tons. December 2011 moly production rose 3.5% from 1,798 metric tons in December 2010 to 1,861 metric tons. Moly is mined by Minera Antamina and Sociedad Minera Cerro Verde.

Peruvian iron ore production increased 16.2% last year for 7,010,938 long tons in 2011, up from 6,042,644 long tons in 2010. For December 2011 iron ore produced soared by 24.54% from 591,721 long tons in December 2010 to 736,944 long tons.

Meanwhile, lead production fell 12.2% in 2011 from 261,990 metric tons in 2010 to 230,019 metric tons. However, monthly lead production increased 6.67% from 19,589 metric tons in December 2010 to 20,896 metric tons in December 2011. Increased production was reported at Minera Atacocha, Pan American Silver’s Quiruvilca and Catalina Huanca.

Zinc production last year plunged 14.59% from 1,470,450 metric tons in 2010 to 1,255,899 tons in 2011. For December 2011, zinc production declined 6.26% from 190,087 metric tons in December 2010 to 102,262 metric tons.

Cumulative tin production plunged 14.67% in 2011 from 33,848 metric tons in 2010 to 28,882 metric tons. Peru’s only tin producer is Minsur, which reported December 2011 tin production declined 6.42% from 2,413 metric tons in December 2010 to 2,258 metric tons.

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Peru no longer the second major silver producer — Minister

Each unit consists of one common share and one half of one common share purchase warrant. Each whole warrant is exercisable for one common share at a price of $0.40 per common share for a period of 24 months after the closing of the private placement. If prior to the expiry date the volume weighted average trading price of the common shares on the TSX Venture Exchange is greater than $0.50 per common share during any period of 20 consecutive trading days, the expiry date shall be five (5) trading days following the last trading day of the twenty day period. The units will have a hold period of 4 months from the date of issuance.

Upon completion of the private placement, HudBay will own 9.9% of the issued and outstanding common shares of Northern Shield on a non-diluted basis and 14.2% of the shares assuming full exercise of the warrants. The proceeds of the private placement will be used to, among other things, fund Northern Shield’s exploration at its Wabassi and Storm properties.

HudBay is a Canadian integrated mining company with assets in North and South America principally focused on the discovery, production and marketing of base and precious metals.

“The investment by HudBay in Northern Shield is a very strong endorsement of the significant results attained to date from the Wabassi and Storm properties and the prospectivity thereof,” comments Northern Shield President and CEO, Ian Bliss. “Six airborne VTEM targets have been tested to date on the Wabassi and Storm properties and four of these have turned out to be VMS occurrences. That’s a very high success ratio and we look forward to getting back to drilling and testing the other targets.”

Concurrent with the closing of HudBay’s subscription, Northern Shield expects to raise an additional $450,000 as part of a larger non-brokered private placement.

Northern Shield is an innovative, results-driven Canadian company focused on PGE exploration in Canada and Cu-Zn-Ag VMS on its Wabassi and Storm properties. Its mission is to create a successful mineral exploration company through technical excellence and efficient management, where success is measured by the identification and development of high-quality mineral exploration projects, which may ultimately be optioned, sold or developed for maximum return on investment.

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HudBay to Purchase 9.9% of Northern Shield

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 31, 2012) - Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX:SVM)(NYSE:SVM) is pleased to announce it has received a positive Pre-Feasibility Study (“PFS”) for its 95%-owned GC Project in Guangdong Province, China. The PFS was prepared by independent consulting firm AMC Mining Consultants (Canada) Ltd. (“AMC”).

“The Company has already commenced construction at the GC Project and initial production is expected to commence in the 3^rd quarter of calendar year 2012,” said Rui Feng, Silvercorp’s Chairman & CEO. “We are pleased that Proven and Probable Reserves at the GC Project have been established for the first time, and the PFS also reconfirms the project’s robust economics.”

Highlights of the Pre-Feasibility Study

• Defined mineral reserves of 4.8 million tonnes in the Proven and Probable categories grading 121 grams per tonne (g/t) silver (Ag), 1.31% lead (Pb), and 2.95% zinc (Zn), containing approximately 18.5 million ounces (oz) silver, 62,100 tonnes of lead, and 140,200 tonnes of zinc, supporting a project life of 12 years.

• Net Present Value (“NPV”) was estimated to be $73.7 million (at an 8% discount rate) with an IRR of 33% and payback in 2.4 years; and,

• An initial capital cost of $67.4 million and total operating cost of $40.60/ per tonne milled.

In preparation for production, a 1,500 tonne per day (tpd) (rising to 1,570 tpd after five years) mining capacity and 1,600 tpd flotation milling capacity facilities are under construction. The flotation mill is designed to generate silver-lead, zinc, and pyrite concentrates. The optional gravity tin recovery circuit can be appended to the main circuit to recover tin from tailings.

Read the full news release

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Silvercorp Announces Positive Pre-Feasibility Study for the GC Silver-Lead-Zinc Project in Guangdong Province, China

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 31, 2012) - Endeavour Silver Corp. (TSX:EDR)(NYSE:EXK)(FRANKFURT:EJD) announced today that it is forecasting its eighth consecutive year of production growth for 2012. The Company owns and operates two high grade, underground, silver-gold mines in Mexico, the Guanacevi Mine in Durango State and the Guanajuato Mine in Guanajuato State.

Endeavour’s silver production is forecast to rise 16% in 2012 to 4.3 million ounces (oz) and gold production is anticipated to increase 24% to 26,000 oz (5.6 million oz of silver equivalent production at the current silver:gold ratio of approximately 50:1) as shown in the table below.

Read the full news release

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Endeavour Silver Forecasts Eighth Consecutive Year of Production Growth, 60% Mine Expansion Now Underway to Fill Plant to Capacity at Guanajuato

TORONTO, Jan. 30, 2012 /CNW/ – Scorpio Mining Corporation (TSX: SPM) (“Scorpio” or the “Corporation”) is pleased to announce that the proposal to expand its 100% owned Nuestra Señora processing plant, located in Sinaloa, Mexico has been approved by its Board of Directors.

Parviz Farsangi, President & CEO, comments, “Our continued improvements and success in the areas of production, processing and financial strength have allowed us to focus on a major expansion project that is expected to increase our current production capacity by over 80%. Scorpio Mining has a strong resource base from which to build on and significant exploration upside in the Cosalá and Parral districts, providing excellent opportunity to grow substantially in the near term through advancing our 100% owned assets.”

Over the past four months, the Corporation carried out internal engineering and scoping studies to determine the optimum size of the Nuestra Señora plant expansion from its current capacity of 1,500 tonnes per day (tpd). Scorpio is pleased to report that the planned expansion is expected to result in a daily processing capacity of approximately 2,750 tpd, reflecting an increase of over 80% from current processing capacity. Additional tonnage to support the increased processing capacity may be delivered from several sources, including additional production from the Nuestra Señora Mine, the refurbished La Verde Mine, and new production from the San Rafael and El Cajón deposits. Further evaluation will determine the best feed combination according to potential production schedules and permitting status.

The La Verde Mine has been in continuous production since 1988 and is located 23 km by road from the Nuestra Señora processing facility. Since being acquired by Minera Platte River Gold in 2008, mine production was leased to a private contract mining company. Production at La Verde during 2010 by non-mechanized methods totalled 121,000 tonnes grading 114 g/t silver and 0.44% copper, with silver and copper recoveries of 78% and 82%, respectively. Scorpio assumed control of the operation in early 2011 and commenced refurbishment for improved safety and future production. In addition, over 8,000 tonnes of La Verde ore were processed at the Nuestra Señora plant during 2011 to determine metallurgical performance.

Work completed to date and currently in progress to prepare the La Verde Mine for mechanized mining production includes:

• Refurbishment of all services (mostly completed).
• Upgrading electrical network in preparation for mechanized mining methods (completed).
• Installing roof bolts and developing safer accesses (in progress).
• Formalizing access and employment agreements with the local community (completed).
• Exploration and definition drilling to support a NI 43-101 reserve and resource estimate (in progress).

Presently, 3,200 metres of the initial drilling program of 4,000 metres have been completed on the La Verde Phase I Program; results will be released on a timely basis as received and compiled. Completion of a NI 43-101 compliant mineral reserve and resource estimate for La Verde is expected by early Q2-2012.

The San Rafael and El Cajón deposits are located approximately 15 km by road from the Nuestra Señora processing facility. NI 43-101 compliant mineral resources have been defined for both deposits (see News Release datedOctober 15, 2009). Diamond drilling to increase the resource base and support an upgrade to reserve category is in progress. Completion of the drilling program is expected by the end of Q1-2012; results will be released on a timely basis as received and compiled. Updated NI 43-101 compliant mineral reserve and resource estimates for the San Rafael and El Cajón deposits are expected in Q2-2012.

Key elements included in the Nuestra Señora plant expansion studies were capital cost and construction schedule estimation supported by performance guarantees, the identification of major component requirements, and used equipment sourcing. With the increase in plant capacity from the original plan of 2,250 tpd (see News Release datedJune 27, 2011) to 2,750 tpd, completion of the plant expansion is now scheduled for the fourth quarter 2012, providing for full operation at 2750 tpd throughout 2013.

The cost of expansion is estimated at US$20 million and includes detailed engineering, procurement and construction, as well as associated mine capital to support the increased capacity. All required capital for this expansion project will be funded internally from operational cash flows.

The plant expansion project is subject to granting of permits by Mexico’s Ministry of Environment and Natural Resources (SEMARNAT). Reaching a processing rate of 2750 tpd by January 2013 is contingent on a successful drilling program at La Verde to confirm mineral resources and a reliable source of ore feed to the plant. La Verde, by virtue of its recent operating status, is positioned as the earliest source of ore feed amongst the advanced deposits in the Cosalá District.

About Us

Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100% owned Nuestra Señora Mine and plant located in the Cosalá district of Sinaloa State, Mexico, has proven to be a low-cost operation with the benefit of flexible mining methods and diversified metal production. It boasts a fully mechanized underground operation and a processing facility built for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates; with a significant silver component in the copper and lead concentrates. In addition, the company has over 40 exploration targets mostly in the vicinity of its current operations. The Corporation also holds a 100% interest in the La Revancha silver and Tepozán silver-gold exploration properties in the Parral District of Chihuahua State, Mexico.The Corporation’s strategy focuses on exploring and developing its existing mineral properties.

Scorpio Mining’s President and CEO, Parviz Farsangi, MEng, MBA, PhD, PEng, is a Qualified Person for the Corporation’s Mexico projects and has reviewed the content of this release.

ON BEHALF OF SCORPIO MINING CORPORATION

Parviz Farsangi
President & CEO

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Scorpio Mining Advances Expansion Planning to Increase Production Capacity at Nuestra Señora Processing Plant by Over 80%

The Canadian junior (CVE:HMG) said it encountered some of its best intercepts from 13 drill holes at the Banana Zone of the Ghanzi copper-silver project.

The drill results are the second set of results from a 2011 infill drilling program designed to convert NI 43101-compliant resources from inferred to indicated.

“The results represent probably  some the best intersections of copper-silver mineralization yet at the Banana Zone. Not only are we hitting exceptionally high-grades, but we are also getting significant widths of mineralization. I was also pleasantly surprised with the discovery of high-grade copper-silver mineralization at depth as this represents a new mineralized setting which we will continue to investigate,” Hana Mining CEO Marek Kreczmer said in a statement.

The Banana Zone has indicated resources of 762.3 million million pounds of copper and 16.1 million ounces of silver from 37.4 million tonnes of ore, Hana says on its website.

A preliminary economic assessment on the property is expected in the second quarter.

Read the full news release

Image of RC drilling by Hana Mining Ltd.

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Hana Mining pops 4% on good intercepts

Silver production increased 21%, mine output increased 66% and mill throughput increased 5% compared to the prior (third) quarter of calendar 2011. Total production during 2011, which was Alexco’s first full year of mine operations, was 2,020,695 ounces of silver, 16,454,395 pounds of lead and 7,219,740 pounds of zinc.

Alexco anticipates further increasing silver and base metal production in 2012 with the development and commissioning of two additional underground mines in the Keno Hill Silver District. The Company is also planning an approximate 25% expansion of surface and underground exploration drilling programs during 2012.

Read the full news release

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Alexco Silver Production Increases 21% to More Than 600,000 Ounces in Fourth Quarter 2011