Revett Plans On Increasing Production

SPOKANE VALLEY, WA - Revett Minerals, through its subsidiaries, owns and operates the currently producing Troy Mine in Lincoln County, Montana and development-stage Rock Creek Project located in Sanders County, Montana, USA. The proven reserves at the Troy Mine and significant resources at the Rock Creek project form the basis of Revett's plan to become a premier mid-tier base and precious metals producer. Revett plans on expanding production through exploration in and around its current properties, as well as through targeted business combinations of advanced stage projects.

John Shanahan, President and CEO said, Cost of sales increased in the first half of 2012 compared to 2011. This increase was due to higher costs to final market (freight, treatment and refining charges) along with increased labor costs, fuel costs, and a non recurring charge for planned equipment conversions to B75 bio diesel to meet DPM (diesel particulate matter) emission standards during the first half of 2012. It is anticipated that cost of sales will remain at these levels for the remainder of 2012.

Our exploration and development costs also increased in the first half of 2012 compared to 2011 due to increased exploration work in and around the Troy Mine, along with higher costs associated with the Rock Creek Supplemental EIS. Similarly, higher general and administrative costs in the first half of 2012 were attributable to higher professional fees associated with technical related studies at Troy and Rock Creek.

The second quarter net loss of $2.2 million or $0.07 per share (basic) included a non cash charge of $2.0 million for the issuance of stock options to all employees of Revett Minerals and Troy Mine Inc.

Total revenue for the first half of 2012 was $32.7 million compared to $31.5 million for the first half of 2011. Revenue for the second quarter ended June 30, 2012 was $13.5 million compared to $18.8 million in the second quarter of 2011. The decrease in revenues and production for the second quarter of 2012 was primarily due to lower metal prices and reduced access to the higher grade C Bed mining areas, because of extended spring rains and unseasonably high snow melt. The Company was able to mine in the A Bed and Lower Quartzite mining areas at lower daily outputs. Mining in the C Bed area resumed in late June and has now returned to planned levels.

The Company is pleased to reconfirm its adjusted production guidance levels for 2012 at 1.325 million ounces of silver and 10.0 million pounds of copper.

Shanahan said, We remain focused on operating the Troy mine safely and responsibly to the highest possible standards, while still generating positive cash flow and strengthening our balance sheet. Despite reduced second quarter production, Troy's solid operations continue to provide an important source of cash flow and is the basis of building an experienced and growing work force in the region. Our objective remains unchanged, to extend Troy Mine life while completing the final steps of the permitting process for the Rock Creek project.

The company's address is 11115 East Montgomery, Suite G, Spokane Valley, WA 99206, (509) 921-2294, fax: (509) 891-8901.