VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/22/11 -- United Mining Group, Inc. ('UMG' or the 'Company'), (TSX: UMG)(OTCQX: UMGZF)(FRANKFURT: UM8) announces the following changes to its Board of Directors effective immediately. Mr. Greg Stewart is stepping down from the position of Chairman and Mr. Graham M. (Chip) Clark, Jr., a current Director of the Company, has been elected to the position of Non-Executive Chairman. The Company expresses its appreciation to Mr. Stewart, who as founding Chairman, helped lead the Company to its current success. Mr. Stewart will continue as Chief Operating Officer and Director of the Company, allowing him to focus on the Company's aggressive expansion plans for its Crescent Silver Mine project, in the Coeur d'Alene Mining District, Silver Valley, Idaho.
Mr. Clark is a corporate mining lawyer and executive with more than 35 years experience in the field with The Anaconda Company, ASARCO, and 13 years with Newmont Mining Corporation, spending 5 years as Senior Vice President and General Counsel. He has deep expertise in the acquisition, finance and provision of security for mineral properties in the U.S. and internationally, and has conceived and executed joint operating agreements for hundreds of millions of dollars. Mr. Clark is a graduate of the Yale School of Law and is presently practising in Phoenix, Arizona.
The Company also announces the resignation of Herrick Lau as Director effective February 18, 2011 and that Mr. Fred W. Brackebusch has been appointed to the Board of Directors effective immediately. The Company and its Directors wish to thank Mr. Lau for his invaluable contributions over his tenure and wish him the best in his future endeavours.
Mr. Brackebusch is a professional mining engineer with over 25 years experience in mine development and mine management in the Silver Valley district. He is President and Chairman of New Jersey Mining Company ('NJMC') which has a gold exploration joint venture with Marathon Gold Corp, near Murray, Idaho. UMG recently announced an agreement with the NJMC to secure near term milling capacity for the Company's Crescent Silver Mine project (see news release dated January 11, 2011). Under the agreement, UMG is to finance approximately US$2.3 million for mineral processing plant expansion and, upon completion, will receive a one-third equity ownership with NJMC continuing as operator.
'We believe these additions will add to the balance and breadth of experience of the board and will significantly strengthen our ability to meet UMG's goals of reaching an annual production level of 3.0 million ounces of silver within the next 36 months from its underground operations in the Silver Valley', said UMG, Chief Executive Officer, Mr. Charles Pitcher, 'Chip was a key officer during the period when Newmont increased its gold production more than 400% to become the largest producer in North America, and Fred is recognized worldwide as an expert in the development of paste backfill tailings systems, a strategic component in the Crescent Silver mining plan.'
ABOUT UNITED MINING GROUP
United Mining Group is a vertically integrated mining company with operations in Idaho, USA. The Company is currently earning, through development and operations, an 80% interest in the Crescent Silver Mine project in Idaho's prolific Silver Belt - directly between two of the world's historically largest silver producing properties, the Sunshine and Bunker Hill mines. The Crescent Mine has historically produced 25 million ounces of silver at an average grade of 27.3 opt (SRK Consulting 43-101 report, March 1, 2010). The Company also offers a full suite of mining services including contract mining and mine machine repair and fabrication services to silver miners in the district. UMG is committed to building a senior silver-producing mining company based on aggressive exploration and development of the highly-prospective current land position at the Crescent Silver Mine project and through the acquisition of additional precious metals interests. The Company trades on the Toronto Stock Exchange under the symbol 'UMG'. For more information about the Company, please visit: www.unitedmininggroup.com.
ON BEHALF OF UNITED MINING GROUP, INC.
Charles Pitcher, Chief Executive Officer
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. Forward looking statements in this press release include that we can reach an annual production level of 3.0 million ounces of silver within the next 36 months, that we are building a senior silver-producing mining company, that we will have aggressive exploration and development of our current land position at Crescent, that our land is the highly-prospective for mining and that we will make acquisitions of additional silver interests. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the inability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Contacts:
United Mining Group, Inc.
Greg Stewart
Chief Operating Officer
208.682.9018
gstewart@unitedmininggroup.com
www.unitedmininggroup.com
