TORONTO, ONTARIO--(Marketwire - Sept. 28, 2011) - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (News - Market indicators) is pleased to announce the results of its Preliminary Economic Analysis ("PEA") released today. The PEA was prepared by Wardrop, a Tetra Tech Company, in Swindon, England ("Wardrop").

An Investor call is planned to review the PEA at 10 a.m. (ET) on Friday, September 30, 2011. To register or listen to the call please dial:

A live and archived recording of the conference call will be available at www.silverbearresources.com.

Highlights of the PEA include:

• Cash Costs
  • Base Case - U.S. $9.34/ounce of Silver
  • Alternate Case – U.S. $7.90/ounce of Silver
    • Alternate Case focuses on reducing operating costs by using lower cost hydro electric power versus that of diesel power generators

• Production base of 1000 tonnes per day of silver ore at a mined grade of 419 grams of Silver per tonne of ore (13.5 ounces per tonne of ore);

• Full annual production rate of 4.1 million ounces per year of recoverable silver, 3.9 million ounces per year payable silver; mine life of 8.4 years.

• Initial Capital
  • Base Case – U.S. $111.1 Million
  • Alternate Case – U.S. $129.1 Million

• All ore is sourced from Silver Bear's Vertikalny deposit which is part of Silver Bear's Mangazeisky exploration lease in Yakutia, Russia.

• Silver Bear expects Construction of the facility to take approximately 18 to 24 months after the Company completes a Feasibility Study and Permitting.

Overall economics of the study are shown in Table 1 below. The study looked at a base case and an alternate case. The difference between the base case and alternate case is the means of electric power generation for the day-to-day needs of the mine and surface plants. In the base case it is assumed that all power is generated from diesel generators. The alternate case has assumed that 50% of the power is generated hydroelectrically by damming of local rivers.

Table 1 – Economic Highlights of the PEA:

Since acquiring the exploration rights and prior to this summer's drill program, Silver Bear has drilled 32,000 meters on its Mangazeisky lease, of which the Vertikalny deposit forms part. An updated National Instrument 43-101 ("NI 43-101") mineral resource estimate was released earlier this year and is comprised of an inferred mineral resource of 1.7 million tonnes averaging 554 grams per tonne of silver totaling 31 million ounces and an Indicated mineral resource of 1.1 million tonnes averaging 514 grams per tonne of silver totaling 18 million ounces. (See Silver Bear news release dated March 28, 2011). 

Regarding the PEA results, Mark Trevisiol, President and CEO of Silver Bear Resources commented: "We are pleased with the economics which the current mineral resource has given us. In addition, we believe our current drill program has the potential to add to our mine life and to further enhance the project's economics."

A copy of the complete PEA will be filed on SEDAR in compliance with the National Instrument 43-101 Technical Report requirements and is available on the Silver Bear website at www.silverbearresources.com or under the Company's SEDAR profile available at www.sedar.com. 

Exploration drilling is continuing on Silver Bear's Mangazeisky property in Russia. Thus far, approximately 6000 meters of Diamond drilling has been completed over the summer. More than 80% of the Diamond drill holes completed to their target depth intersected mineralization. Silver Bear has been testing both northwest and southeast extensions of the ore body as well as at depth. Assays are currently pending.

In addition, Silver Bear is pleased to announce that Mr. Andrey Tseshinskiy has been appointed to its board of directors as a representative of Silver Bear's largest shareholder, Alfa Group. Mr. Tseshinskiy replaces Mr. Denis Alexandrov, also formerly of Alfa Group, who has tendered his resignation. Mr. Andrey Tseshinskiy is a Director with A1 Investment Group. Having been a Chief Financial Officer and previous Senior Business Analyst, Mr. Tseshinskiy has worked within the Alfa Group companies since 2001. He holds a PhD from the Ivanovo State Power Engineering University and an MBA from INSEAD.  In relation to Denis' departure and Andrey's appointment, Randall Oliphant, Silver Bear's Chairman commented: "On behalf of all board members I would like to thank Denis for his contribution to Silver Bear and wish him well in his future endeavours. I would also like to welcome Mr. Andrey Tseshinskiy to the Silver Bear board. We look forward to working with Andrey and benefiting from his valuable hands-on experience working in Russia."

Silver Bear Resources Inc.

The primary business of the Company is the evaluation, acquisition, exploration and development of silver properties in the Russian Federation. The Company's principal focus is the Mangazeisky exploration lease, over which Silver Bear has exclusive exploration rights, located approximately 400 kilometres north of Yakutsk in the Republic of Sakha, Yakutia in the Russian Federation.

Silver Bear Resources Inc. is listed on the Toronto Stock Exchange and its common shares trade under the symbol "SBR". Silver Bear has approximately 44.2 million common shares issued and outstanding. Other information relating to Silver Bear is available under its SEDAR profile at www.sedar.com as well as on the Company's website at www.silverbearresources.com.

QUALIFIED PERSON

The Preliminary Economic Assessment report was prepared by Wardrop under the supervision of Mr. P. Gribble, FIMMM C.Eng., who is an independent qualified person as defined in National Instrument 43-101 and who prepared the March 2011 mineral resource estimates disclosed herein. Mark Trevisiol P.Eng, President and CEO of Silver Bear is the Company's designated qualified person under National Instrument 43-101 for the PEA and has reviewed and approved the scientific and technical information in this press release.

CAUTIONARY NOTES

The PEA is preliminary in nature and is based on a number of assumptions that may be changed in the future as additional information becomes available. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect management's expectations. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes" 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. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such risks factors include but are not limited to risks 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. These forward-looking statements 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.

For further details, please visit www.silverbearresources.com.