Bear Creek Provides Corporate Update; Corani Feasibility Study On Schedule, Tassa Drilling To Commence; Peru

VANCOUVER, Oct. 11, 2011 /PRNewswire/ - Bear Creek Mining (TSX Venture: BCM / BVL: BCM) ("Bear Creek" or the "Company") is pleased to provide updates on its development and exploration programs in Peru.  The Company maintains an aggressive generative exploration program while advancing the development of the Corani silver-lead-zinc mine with a nearly completed feasibility study for a mine capable of producing up to 15 million ounces of silver per year. The three exploration prospects described in this update range from advanced Phase II drilling programs at the Tassa silver/gold prospect and at the La Yegua copper prospect to new acquisitions and discoveries. (To view location map of new projects please refer to: http://www.bearcreekmining.com/i/pdf/BearCreekMiningProjectLocationMapOct11-2011.pdf)

Corani Silver-Lead-Zinc Deposit- The feasibility study is scheduled for completion in early November and is expected to describe a robust project in line with previous guidance at an expanded throughput rate (22,500 tpd, or approximately 15M ounces Ag/year).

Drilling continues with three rigs principally focusing on condemnation and geotechnical drilling at the tailings and waste rock sites.  Interestingly, drilling has encountered mineralization in the vicinities of the planned waste rock and tailings dam facilities.  The first condemnation drill hole (CS-01) located in the upper part of the tailings storage facility 2.8 kilometers south of the current pit limit intersected 16 meters averaging 0.55 g/t Au, 23.95 g/t Ag, 1.26% Pb, and 0.45% Zn. The mineralization intersected to date is not expected to significantly alter the project design pending further drilling results; however, the tailings storage facility may require minor modification if offset drilling demonstrates that the mineralization warrants inclusion in the reserve/resource models.  Furthermore, two engineering holes (MS02 and MS03) drilled in waste rock sites intersected altered and fractured sedimentary basement rock containing highly anomalous Zn and weakly to moderately anomalous Pb, Cu, Ag and Au. Four of the initially planned fourteen condemnation drill holes have been completed.  Results of additional drilling and potential impacts on the project infrastructure will be reported as information is received and evaluated.  Importantly, the intersection of potentially economic mineralization during the condemnation and engineering drilling demonstrates that further exploration potential is significant in this under-explored district. (To view Corani drill hole location map please refer to: http://www.bearcreekmining.com/i/pdf/CoraniDrillHoleOctober11-2011.pdf)

Santa Ana Silver Deposit - The status of Santa Ana remains under the conditions of the Supreme Decree issued on June 25, 2011 by the previous Peruvian administration (see news release dated June 25, 2011).  The Company maintains its firm position that any modification or annulment to the Supreme Decree, granted in 2007 in full accordance with Peruvian law and confirming Bear Creek´s titles to its mineral concessions located within 50 kilometers of the territorial border, is illegal and without basis.  The Company is hopeful that a negotiated settlement which remains the preferred outcome for the Santa Ana silver project despite the legal actions taken by the Company to counter the Supreme Decree issued by the Garcia government can be reached in order to achieve a mutually acceptable resolution. Management is confident that a resolution can be reached with the new government which will place this important investment for Peru back on the development track as Santa Ana is supported by local communities and will provide significant revenues, growth and local employment that will assist in reducing poverty in over eighteen communities located in the department of Puno, Peru.

Related to the issuance of the Supreme Decree in June 2011, the Company was recently notified of a civil lawsuit lodged by the Ministry of Energy and Mines´ former administration against the Company claiming that the Santa Ana titles were not acquired by the Company in accordance with the law.  Similar to the action taken under the Supreme Decree, the Company and its Peruvian legal counsel strongly maintain that the grounds of this action are without merit.

Tassa silver-gold (100% BCM) - Phase II drilling is scheduled to commence by October 25th with an estimated 4,000 meters in approximately 9 drill holes. As reported, Phase I drilling encountered numerous mineralized intercepts including 60 meters averaging 224.2 g/t Ag from 24 to 84 meters depth and 40 meters averaging 110.7 g/t Ag from 2 to 42 meters depth as well as scattered anomalous gold intercepts with up to 1.24 g/t Au over 2 meters (see news release dated 6 December, 2010). Phase I drilling tested a 1.5 km by 800 meter anomaly where 852 rock chip samples averaged 30.71 g/t silver.  Silver (and gold) mineralization was intersected within multiple phases of breccias which are part of a diatreme breccia complex, strongly fractured rhyolitic volcanics, and brecciated sediments.

Phase II drilling will focus on new target areas defined within a 4 kilometer by 1 kilometer area where two-meter wide surface sampling has identified anomalous outcrops containing up to 2.51 g/t Au in silicified outcrops and 5.36 g/t Au in structures  (assay values range from <5ppb to 5.36 g/t Au) and up to 203 g/t Ag in strongly fractured rhyolite and 8,160 g/t Ag in selected structures (assay values range from <0.2 g/t to 8,160 g/t Ag ). The anomalies occur within the hydrothermal breccia complex and the Mesozoic sedimentary contact zone and overlie strong IP anomalies indicating sulfide mineralization at depths between 100 and 400 meters.