Silver Bear Announces NI 43-101 Mineral Resource Update for the Vertikalny Deposit, Mangazeisky Silver Project, Russia

TORONTO, ONTARIO–(Marketwired – Aug. 8, 2016) – Silver Bear Resources Inc. (“Silver Bear” or the “Company”) (TSX:SBR) is pleased to announce a National Instrument 43-101 (“NI 43-101”) mineral resource update for Vertikalny deposit within the Mangazeisky silver project, Republic of Sakha (“Yakutia) Russia. The NI 43-101 Technical Report prepared by Tetra Tech will be filed on SEDAR within 45 days of this release.
Highlights:

• Infill drilling and trenching have converted an additional 4.3 Moz of silver resource to the Indicated from the Inferred category.
• Additional data and updated geological modelling have also resulted in a 35% increase in the Indicated resource grade, from 909 g/t to 1,227 g/t silver.
• It is expected that the resource update will significantly improve the IRR and NPV for the project with minimal change to the CAPEX.

Silver Bear’s CEO, Graham Hill commented: “Silver Bear’s infill drilling campaign completed during 2014 and 2015 has produced exceptional results – not only has it increased Indicated silver ounces at the Mangazeisky North deposit (see press release April 13, 2016), but it has also successfully converted additional high grade resources from the Inferred to Indicated category at the Vertikalny Central deposit. Most importantly the weighted average grade of the Indicated resource at Vertikalny increased by 35%, substantially improving the prospective shareholder returns for the Vertikalny silver project. The Company is in the process of including the updated mineral resource at Vertikalny Central into the revised mine plan and will announce the results when completed.”
Table 1 Vertikalny Deposits Resource Summary

Zone	Assumed Mining Method	Cut-off Grade Ag (g/t)	Indicated Resources				Inferred Resource
			Tonnes	Grade Ag (g/t)		Contained Metal	Tonnes	Grade Ag (g/t)	Contained Metal
						Ag (Troy oz)			Ag (Troy oz)
Vertikalny Central	Open Pit	200	360,000	1,482		17,100,000	4,000	496	100,000
	Underground	350	340,000	959		10,600,000	350,000	789	8,800,000
	All	–	700,000	1,227		27,700,000	350,000	786	8,900,000
Vertikalny Northwest	Open Pit	200	–	–		–	110,000	430	1,600,000
	Underground	350	–	–		–	90,000	535	1,500,000
	All	–	–	–		–	200,000	476	3,100,000
Vertikalny Deposits Total	All	–	700,000	1,227		27,700,000	550,000	672	12,000,000

Tetra Tech has adopted the definition of Mineral Resources as outlined within the CIM Definition Standards on Mineral Resources and Mineral Reserves (CIM, 2010) in order to classify the Resources.
The effective date of the Mineral Resource Estimate is 8^th July 2016.
The resource update for Vertikalny Central benefited from an additional 15 diamond holes drilled in 2014, but assayed in 2015, 6 diamond holes drilled and assayed in 2015 and 21 trenches that were excavated in 2014 but assayed in 2015. The Vertikalny Northwest resource update includes an additional 8 holes that were drilled and assayed in 2015.
A new set of wireframe models have been generated to represent both the strongly mineralised vein and the mineralisation associated wall rock alteration, along with oxidation state and lithology models.
Resource Estimation Assumptions and Methods
Key Assumptions used to estimate the Mineral Resources are:

• The Mineral Resources have been estimated into two separate three dimensional block models comprising the following parameters:
  • Vertikalny Central: 10 m x 10 m x 1 m (x, y, z), with minimum sub-block dimensions of 2.5 m x 2.5 m x 0.25 m (x, y, z).
  • Vertikalny Northwest: 10 m x 10 m x 1 m (x, y, z), with minimum sub-block dimensions of 2.5 m x 2.5 m x 0.25 m (x, y, z).
• The estimation was constrained to the mineralised zone using wireframe solid models. The wireframes were sub-domained to isolate the strongly mineralised main zone from the silver mineralisation associated with wall rock alteration.
• Grade estimates were based on 0.7 m composited assay data.
• The interpolation of the metal grades was undertaken using ordinary kriging.
• In order to demonstrate that the deposit has reasonable prospects for economic extraction a cut-off grade of 200 g/t silver has been applied for resources contained within an open pit shell at Vertikalny Central or within 80m of surface at Vertikalny Northwest. A 350 g/t silver cut-off has been applied for the underground resource.
• At Vertikalny Central, a pit shell wireframe was used to constrain the open pit resource in order to demonstrate that the resource has reasonable prospects for economic extraction. The pit shell uses the following assumptions:
  • Silver price of $19 /Troy oz.
  • Mining recovery 95%
  • Waste dilution 30%
  • Mining cost of US $2.53 /t.
  • Processing cost of US $52 /t.
  • General and administration costs of US $40.6 /t.
  • Royalty of 6.5%
  • Overall silver recovery of 88%

The revised Vertikalny Mineral Resource is presented in Table 2, along with all other Current Mineral Resources within the property.
Table 2 Total Resources for the Mangazeisky Property

Zone	Assumed Mining Method	Cut-off Grade Ag (g/t)	Indicated Resources				Inferred Resource
			Tonnes	Grade Ag (g/t)		Contained Metal	Tonnes	Grade Ag (g/t)	Contained Metal
						Ag (Troy oz)			Ag (Troy oz)
Vertikalny Central	Open Pit	200	360,000	1,482		17,100,000	4,000	496	100,000
	Underground	350	340,000	959		10,600,000	350,000	789	8,800,000
Vertikalny Northwest	Open Pit	200					110,000	430	1,600,000
	Underground	350					90,000	535	1,500,000
Nizhny Endybal	Open Pit	150					710,000	316	7,200,000
Mangazeisky North	Open Pit	150	304,000	626		6,100,000	98,000	671	2,100,000
Mangazeisky South	Open Pit	150					60,000	246	500,000
Total	All	–	1,004,000	1,046		33,800,000	1,422,000	477	21,800,000

Notes:
The effective date of the original Nizhny Endybal Resource estimate was 11th of September 2012, this resource was re-stated with a higher cut-off grade on the 10th of June 2015. The effective date of the Mangazeisky South resource is 10th of June 2015. The effective date of the Mangazeisky North Resource is 31st of March 2016.
The Mangazeisky north, Mangazeisky South and Nizhny Endybal Resources are reported above a cut-off grade of 150 g/t Ag, assuming open pit mining methods.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
Geological and Sampling Procedures
A quality assurance/quality control program is part of the drilling program on all of the deposits on the Mangazeisky Property. This program includes chain of custody protocols as well as systematic submittals of standards, duplicates and blank samples into the flow of samples produced by the drilling. Prior to 2011, analysis was carried out at Russian certified laboratories in Yakutsk and Aldan, Russia. Analysis for 2012, 2013, 2014 and 2015 campaigns were completed by ALS Chemex in Chita, Russia.
Qualified Person
The updated Indicated and Inferred Mineral Resource estimate was prepared by Mr. Robert Davies, B.Sc., European Geologist (EurGeol) and Chartered Geologist (CGeol). Mr. Davies is Senior Resource Geologist at Tetra Tech and is a “qualified person” as such term is defined in NI 43-101. Mr. Davies has reviewed the technical and scientific information in this press release relating to the Mineral Resource estimates and has approved the use of the information contained herein. The updated Mineral Resource estimates were generated using the parameters set out above under Table 1.
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 (Yakutia) 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 news 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”, “plans” 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. 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. 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.