Bear Creek Announces Lisa May As Director Of Investor Relations And SEDAR Filing Of Corani Feasibility Study 43-101; Peru

VANCOUVER, Jan. 4, 2012 /PRNewswire/ - Bear Creek Mining (TSX Venture: BCM / BVL: BCM) ("Bear Creek" or the "Company") is pleased to announce that Lisa May will become Director of Investor Relations for the Company, effective January 3.  Ms. May previously held positions with Rimfire Minerals Corporation and Indicator Minerals Inc., before creating Lisa D. May & Associates, an IR consulting firm.  Most recently, Ms. May was the Director of Investor Relations for Plutonic Power Corporation (an alternative energy company) that merged with Magma Energy Corp. to form Alterra Power Corp. In conjunction with the hiring, 75,000 stock options at an exercise price of $3.67 per share, exercisable on or before January 4, 2017, have been awarded in accordance with provisions of the Company's Stock Option Plan.

Andrew Swarthout, CEO, states "Lisa brings strong experience in the junior mining sector, including expertise with resource companies having projects on the development path.  Lisa will continue the important liaison with our investors and will strengthen our management team as Bear Creek moves the Corani and Santa Ana projects through development.  We thank Patrick De Witt, who is leaving to concentrate his efforts on his securities advisory firm, for his significant contributions over the past 7 years towards making Bear Creek one of the premier silver companies in today's mining sector."

Also, on December 22, 2011, the Company SEDAR filed the 43-101 report entitled "Corani Project, Form 43-101F1 Technical Report, Feasibility Study" (the " FS" or " Feasibility Study") following the completion of the Corani Silver-Lead-Zinc deposit Feasibility Study (see news release dated November 9, 2011).  The 43-101 report describes an optimized mine plan with robust economics for one of the world's largest, undeveloped silver and base metals deposits.  Highlights of the 43-101 report are (all figures in US dollars):

• Defines a significant undeveloped silver deposit containing proven and probable mineral reserves of 270 million ounces of silver, 3.1 billion pounds of lead and 1.7 billion pounds of zinc (156 million tonnes grading 53.8 g/t silver, 0.90% lead and 0.49% zinc).
• The base case after-tax net present value (" NPV" ) is $463 million at a 5% discount rate with an internal rate of return (" IRR" ) of 17.6% ( $18/oz silver, $0.85/lb lead and $0.85/lb zinc). On a pre-tax basis, the base case NPV at a 5% discount rate is $907 million with an IRR of 29.7%.
• At spot metals prices ( $29.30/oz silver, $0.83/lb zinc, $0.90/lb lead on December 22, 2011, the date the FS was filed on SEDAR), Corani has an after-tax NPV of approximately $1.2 billion at a 5% discount rate and a 32% IRR ( $2.1 billion NPV and 51% IRR on a pre-tax basis).  The December 22, 2011 spot metal prices were used in the economic model contained in the FS to calculate the NPV and IRR, without adjusting any of the other inputs.  Readers are cautioned that this information is supplementary only and although the FS does contain some sensitivity analysis, this information should not be considered in isolation or as a substitute for the net present values and internal rates of return contained in the FS.
• Average annual payable silver production is 13.4 million ounces per year for the first five years and 8 million ounces per year over the life-of-mine ("LOM").  On a silver equivalent ounce basis, average annual payable production is 23.0 million ounces per year for the first five years and 14.7 million ounces per year over the LOM.
• Total cash cost is a negative $(0.45) per ounce of silver for the first five years, with a LOM total cash cost of $3.40 per ounce of silver (net of base metal credits at $0.85/lb lead and $0.85/lb zinc).
• Project produces marketable lead and zinc concentrates. Metallurgical testing has established conventional flotation recoveries.
• Initial capital cost is $574 million with capital payback of 3.8 years at base case metal prices, and 2.4 years at metal prices on December 22, 2011, the date the FS was filed on SEDAR. The capital payback period using December 22, 2011 spot metal prices ( $29.30 silver, $0.83 zinc and $0.90 lead) was calculated using the economic model contained in the FS, without adjusting any of the other inputs.   Readers are cautioned that this information is supplementary only and although the FS does contain some sensitivity analysis, this information should not be considered in isolation or as a substitute for the capital payback periods contained in the FS.
• Mine life is 20 years.
• Mill capacity is 22,500 tonnes per day.
• Stripping ratio is 1.69:1 (waste:ore).
• 89 million ounces of measured and indicated silver resource ounces (134 million tonnes grading 20.5 g/t silver) represent potential future reserve conversion. Additional new mineralization was intersected in recent drilling near perimeter of proposed tailings dam.

Mr. Swarthout continues "We remain extremely pleased with the results of the Corani Feasibility Study. Using metals prices on December 22, 2011 the date the FS was filed on SEDAR, of $29.30/oz silver, $0.83/lb zinc and $0.90/lb lead, Corani has an after-tax NPV of $1.2 billion at a 5% discount rate reflecting robust economics with strong leverage to rising metals prices. The Feasibility Study establishes that the project can be built using conventional mining and processing technology.  The Feasibility Study maximizes the value of the project by defining a very large primary silver mine that leverages the base metal credits resulting in very low cash costs per ounce of silver for the first five years. Additionally, the production of high-quality lead and zinc concentrates (126,000 tonnes per year) provides for excellent financing alternatives in the form of concentrate off-take agreements. The Feasibility Study, which provides the basis for the Environmental and Social Impact Assessment to be submitted as the master permitting document in Q2 2012, defines a project which complies with, and in many respects exceeds, the standards for environmental and social standards.  Our timeline for approval is 12 months; however, based upon indications from the Peruvian government that permitting times will be shortened, we are hopeful that approval will be significantly sooner so that we can consider financing alternatives prior to year-end 2012.  Production startup is targeted for 2015."

In other news, the Company will restart phase II drilling on its Tassa gold-silver prospect following the holiday break on January 8th.  Drilling is to begin on hole #4 of a planned 10 drill hole program.  Drilling will also restart on the Company's La Yegua copper-moly porphyry target in joint venture with JOGMEC in early January.  Discussions will continue with the Peruvian government regarding a negotiated solution to the Santa Ana Supreme Decree issued in June, 2011.

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