SilverCrest Reports Updated Santa Elena Resources

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SilverCrest Reports Updated Santa Elena Resources

posted on Jan 15, 2009 06:49AM

January 15, 2009

SilverCrest Reports Updated Santa Elena Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 15, 2009) - SilverCrest Mines Inc. (the "Company") (TSX VENTURE:SVL) is pleased to announce a new resource estimation for the Santa Elena Project located in Sonora, Mexico. The new resources show an increase of 150% in contained gold ounces in indicated resources and a decrease of 4.6% in contained gold ounces in inferred resources compared to the resource estimates announced June 26, 2008. Contained ounces of silver in Indicated Resources increased by 172% and contained silver ounces in Inferred Resources increased 4.8%. The new estimates are based on a total of 98 core holes (15,791 metres), 4 geotechnical core holes (1,163 metres) and 21 reverse circulation drill holes (4,308 metres) as well detailed sampling of four underground levels.

The Probable Reserves remain unchanged and are within the limits of the pit design as defined in the Pre-feasibility Study dated August 11, 2008. However, the Company plans to re-estimate the Reserves in 2009 based on updated feasibility numbers and ultimate pit design for the project.

Santa Elena Mineral Resources January, 2009

          Santa Elena Gold and Silver Resources - January, 2009
---------------------------------------------------------------------------
                                                       Contained  Contained
                Metric   Au    Ag     Short    Au   Ag      Gold     Silver
Category(1)     Tonnes  gpt   gpt      Tons   opt  opt    Ounces     Ounces
---------------------------------------------------------------------------
Probable
 Reserve(3)  6,541,950 1.61  56.7 7,211,250 0.047 1.68   339,600 11,927,100
---------------------------------------------------------------------------
Indicated
 Resource(2) 2,161,240 2.75 170.2 2,379,660 0.080 4.97   190,666 11,815,600
---------------------------------------------------------------------------
Inferred
 Resource(2) 3,258,800 1.11  76.2 3,591,200 0.032 2.22   116,235  7,977,000
---------------------------------------------------------------------------

(1) Conforms to NI 43-101, 43101CP and current CIM definitions for
resources. All numbers are rounded. (2) Cutoff grade is 0.5 gpt Au
equivalent at a ratio of 64:1 (Ag:Au) with gold price US$765 and silver
price US$11.95 and 100% metal recovery for resources. The reserves are
diluted and mine recoverable. (3) Probable Reserves are not included in
Indicated and Inferred Resources.

The Indicated and Inferred Mineral Resources shown in the above table are outside the pit limits that contain the Probable Reserves as defined in the Pre-Feasibility Study using a cutoff grade of 0.5 gpt Au equivalent. For comparison purposes the reserves and resources announced in June, 2008 are shown below.

Santa Elena Mineral Resources June, 2008

             Santa Elena Gold and Silver Resources - June, 2008
---------------------------------------------------------------------------
                                                       Contained  Contained
                Metric   Au    Ag     Short    Au   Ag      Gold     Silver
Category(1)     Tonnes  gpt   gpt      Tons   opt  opt    Ounces     Ounces
---------------------------------------------------------------------------
Probable
 Reserve(3)  6,541,950 1.61  56.7 7,211,250 0.047 1.68   339,600 11,927,100
Indicated
 Resource(2) 1,800,000 1.32  75.0 1,980,000 0.039 2.19    76,300  4,334,000
Inferred
 Resource(2) 2,270,000 1.67 104.1 2,502,200 0.049 3.04   121,900  7,596,000
---------------------------------------------------------------------------

(1) Conforms to NI 43-101, 43101CP and current CIM definitions for
resources. All numbers are rounded. (2) Cutoff grade is 0.5 gpt Au
equivalent at a ratio of 64:1 (Ag:Au) with gold price US$765 and silver
price US$11.95 and 100% metal recovery for resources. The reserves are
diluted and mine recoverable. (3) Probable Reserves are not included in
Indicated and Inferred Resources.

The following table states the percent changes for Indicated and Inferred Resources from the June, 2008 to January 2009 estimates. The Probable Reserve is based on the open pit derived from the capital and operating cost parameters of the Pre-Feasibility study and therefore remains unchanged.

Santa Elena Percent Changes - June, 2008 to January, 2009

--------------------------------------------------------------------------
                                                       Contained Contained
             Metric     Au     Ag  Short     Au     Ag      Gold    Silver
             Tonnes  gpt %  gpt % Tons %  opt %  opt %    Ounces    Ounces
Category   % Change Change Change Change Change Change  % Change  % Change
--------------------------------------------------------------------------
Indicated
 Resource      20.1  108.1  127.0   20.2  105.4  126.7     149.9%    172.6%
--------------------------------------------------------------------------
Inferred
 Resource      43.6  -33.6  -26.8   43.6  -33.9  -26.9      -4.6%      4.8%
--------------------------------------------------------------------------

The changes to the tonnages and grades of the new resource estimates result from additional drilling, optimization of the mineralized zone with exclusion of peripheral lower grade material and increasing silver grades to the east and to depth of the deposit.

The Company believes that at some point the operations will transition from open pit to underground mining. The Company has taken the next step in evaluating the Santa Elena resources by estimating potential underground resources. The potential underground resources were segregated by utilizing a conceptual, ultimate Whittle pit shell based on a gold price of US$850 per ounce and silver price of US$12 per ounce based on projected market conditions. A cut off grade of 1.75 gpt gold equivalent and a minimum width of 2 metres was applied to all resources located outside this conceptual ultimate pit. These cutoff parameters reflect the higher cost of underground mining and are generally considered standard for establishing current underground resources in Mexico. The results of this analysis are shown in the table below.

Underground Indicated and Inferred Mineral Resources January, 2009

---------------------------------------------------------------------------
               Million              Million            Contained  Contained
Resource        Metric   Au    Ag     Short    Au   Ag      Gold     Silver
Category(1)     Tonnes  gpt   gpt      Tons   opt  opt    Ounces     Ounces
---------------------------------------------------------------------------
Indicated    1,084,390 2.10 127.6 1,195,000 0.061 3.72    73,235  4,448,800
---------------------------------------------------------------------------
Inferred     1,350,080 1.94 121.5 1,487,790 0.056 3.55    84,057  5,276,300
---------------------------------------------------------------------------

(1) Conforms to NI 43-101, 43101CP and current CIM definitions for
resources. All numbers are rounded.  Cutoff grade is 1.75 gpt Au equivalent
at a ratio of 83;1 (Ag:Au) with gold price US$850 and Silver price US$12.00
using 94% recovery for gold and 80% for silver and a minimum mining width
of 2m.

The new resources are based on the same statistical and geostatistical parameters used for the pre-feasibility resources and can be reviewed in the "Technical Report on the Pre-Feasibility Study for the Santa Elena Project, Sonora, Mexico" dated August 11, 2008 and filed on SEDAR.

J. Scott Drever, President, stated: "We are making steady progress towards making the Santa Elena project SilverCrest's first producing operation from which the Company can grow and prosper. We are convinced that this first stage of open pit, heap leach production will eventually be followed by reprocessing the high grade spent heaps in a conventional mill to recover residual gold and silver to substantially increase the ultimate mine life and annual gold and silver production. The long lead time equipment to which we committed, such as the 3500 tonne per day, three stage crusher, is complete and the construction of the Merrill Crowe recovery plant is well underway. Final engineering and a detailed construction schedule have been completed so that the only remaining risks are financing and construction risks. Although we are seeing some overall delays from our original schedule to commence construction in late 2008, our management and construction teams are in place and we are finalizing our financial requirements with the view to commencing construction in early 2009 and achieving initial production during late 2009."

Mr. N. Eric Fier, CPG, P.Eng. is the Qualified Person for the Company and has reviewed and approved the contents of this press release.

SilverCrest Mines Inc. is a "Silver Focused" exploration and development company with a portfolio of high grade silver deposits and exploration properties located in Mexico and El Salvador. This property portfolio, which includes reported indicated and inferred silver resources and substantial exploration potential, provides an important base from which SilverCrest can develop its corporate objective of becoming a significant silver asset based company. The Company's immediate initiative is to acquire and develop substantial silver resources and ultimately to operate high grade silver mines throughout North, Central and South America.

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