SilverCrest Updates Santa Elena Mine Transition

VANCOUVER, BC - SilverCrest Mines Inc. reported an update for the transition of the Santa Elena Mine in Sonora, Mexico from open pit heap leach to underground mining and milling operations. Activities at the mine are now moving from capital intensive expenditures for the overall Expansion Plan to operating costs and sustaining capital expenditures for underground development with emphasis on generating free cash flow through continued strict cost controls.

N. Eric Fier, President and COO stated, "We are pleased with our transition to a conventional milling operation at the Santa Elena Mine. The commissioning of the mill was completed. The ramp up of underground stope production to 1,500 tonnes per day has encountered short-term delays. These delays are primarily due to finalizing detailed stope designs based on recent in-fill drilling with associated geotechnical constraints. Also, delays in long-hole drilling start-up for stope development are attributed to personnel training in drilling procedures while testing stope ground support. These short-term delays are manageable but will impact previously announced 2014 metal production guidance of approximately 3.3 million AgEq ounces at a ratio of 60:1. Guidance for 2014 is now projected to range from 3.0 to 3.3 million AgEq ounces. Estimated operating cash costs for 2014 of $8.50 to $9.50 per AgEq ounce and all-in sustaining cash costs of $11 to $12 per AgEq ounce, remain unchanged. These costs continue to make SilverCrest one of the lowest cost producers in the sector with anticipated free cash flow for Q4 2014".

The new mill and CCD/Merrill Crowe processing plant is currently running at an average throughput of 2,500 tonnes per day. Grind size testing for optimization is ongoing which impacts throughput, recoveries and efficient operation of the dry tailings belt filters. Optimized milling rate of 3,000 tonnes per day is targeted for Q4 2014.

Current underground ore development grades are averaging 1.72 gpt Au and 115.4 gpt Ag which is consistent with reserve estimates. Average pad ore grades in September 2014 are 0.68 gpt Au and 50.0 gpt Ag or 8% and 38% higher, respectively than budget. The plant is currently processing a blended mix of 30% underground development ore and 70% pad ore with an average blended grade of 1.0 gpt Au and 71.2 gpt Ag. Approximate mill recovery rates of 90% for gold and 68% for silver are consistent with budget target rates. It is anticipated that recoveries will increase as the mill grind size is optimized. For Q4 2014, monthly metal production is projected to range from 3,000 to 3,750 ounces of gold and 140,000 to 180,000 ounces of silver to achieve guidance of 3.0 to 3.3 million. Although behind schedule, mining the first production stope has commenced which is being developed between the 600m and 575m levels. Underground ramp access continues to be driven ahead of mine development with the bottom of the ramp currently at the 564m elevation. Completion of a ventilation raise in Q4 2014 is expected to increase operating efficiencies and improve advancement rates for both underground development and mine production. Total underground development to date, including ramping, lateral ore and waste development, and raise development, is approximately 6,000 meters. Six levels currently have ore and partial waste development completed in anticipation of stope production. ?

With major capital expenditures completed for the 3 year long Expansion Plan, the Company anticipates generating free cash flow in Q4 2014 at current precious metal prices. The Company is assessing the possibility of re-opening the Santa Elena open pit over the next 2 months which would increase projected metal production for Q4 2014 and H1 2015, providing safety and permitting requirements are met. Approximately 100,000 tonnes grading 1.4 gpt Au and 88.0 gpt Ag remain in the pit for possible low cost excavation and mill processing.