McEwen Mining Cautions Shareholders at Annual General Meeting

TORONTO, ONTARIO--(Marketwire - May 18, 2012) - McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) announces that at its Annual General Meeting in Toronto on May 17, 2012, Mr. Robert McEwen, Chairman, President and Chief Executive Officer, provided an overview of the company's current development plans and outlook for the price of gold.

The corporation announced that El Gallo Phase 1 remains on schedule and budget for the first gold pour during the third quarter. In addition, the San José mine remains on track to meet full year production guidance of 85,000 oz. of gold and 5.7 million oz. of silver (192,500 oz. gold equivalent, 49% of which is attributable to the company).

Mr. McEwen provided an overview of recent decrees announced by the government of Argentina and the possible adverse impact also on the mining industry. In particular, Mr. McEwen informed shareholders that the uncertainty related to the repatriation of funds from the San José mine could impair the company's ability to internally finance its projects. If these uncertainties persist, the company will need to seek external financing alternatives for the development of El Gallo Phase 2.

Despite current weakness in precious metals prices, Mr. McEwen also re-affirmed his view of the price of gold, which includes an ultimate target price of $5,000 oz by the end of this cycle.

To read the entire news release follow the link below:

May 18, 2012 (Source: Marketwire)

http://www.marketwire.com/press-release/mcewen-mining-cautions-shareholders-at-annual-general-meeting-nyse-mux-1659090.htm