TORONTO, ONTARIO--(Marketwire - July 14, 2011) - ECU Silver Mining Inc. (News - Market indicators) ("ECU") is pleased to report that it has closed the previously announced issuance of CAD$15 million principal amount, 0.0% senior unsecured convertible notes at par (the "Convertible Notes") in a private placement (the "Private Placement") to Golden Minerals Company ("Golden"). The Private Placement was described in the June 24, 2011 joint press release in which ECU and Golden announced the signing of an arrangement agreement pursuant to which the two companies have agreed to merge by way of plan of arrangement under the Quebec Business Corporations Act (the "Arrangement").

The Convertible Notes will mature on June 30, 2012 (subject to extension as described below), and will be convertible by Golden at any time prior to 5:00 p.m. (Toronto time) on June 29, 2012 into common shares of ECU ("ECU Shares") at a conversion rate of 1,032 ECU Shares for each CAD$1,000 in principal amount converted, consistent with the exchange ratio under the Arrangement. Upon the occurrence of certain specified fundamental changes, the Convertible Notes may be redeemed or converted into ECU Shares at the option of Golden based on 102% of the outstanding principal amount of the Convertible Notes. The Convertible Notes will also be redeemable by ECU, in whole, at any time after the record date for the ECU special meeting to approve the Arrangement and prior to the maturity date. ECU may elect to extend the maturity of the Convertible Notes to December 31, 2012 upon making a cash payment to Golden equal to 4% of the face value of the then outstanding Convertible Notes, payable on the day the extension option is exercised, with interest accruing on the Convertible Notes at 10% per annum during such extension period. The proceeds of the Private Placement are held in an escrow account and may only be used by ECU for certain specified purposes. At closing, CAD$2.8 million of such proceeds were released to ECU.

About ECU:

ECU Silver Mining Inc. is focused on the exploration, development and mining of silver, gold and base metals at its Velardeña District Properties in Durango, Mexico, where it holds an NI 43-101 compliant mineral resource of 40 million silver equivalent ounces in the Measured and Indicated category and 391 million silver equivalent ounces in the Inferred category. ECU also owns and operates two mills with a combined capacity of 820 tonnes per day.

Cautionary Statements:

The statements in this press release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.