TORONTO, ONTARIO–(Marketwired
– May 8, 2014) –
McEwen
Mining Inc. (NYSE:MUX)(TSX:MUX) – (All Amounts in US Dollars Unless
Otherwise Stated) – McEwen
Mining Inc. is pleased to provide a summary of the Company’s Q1 2014
financial and operating results.

Q1 2014 Highlights

• The
  Company reported net income of $17.9 million or $0.06
  per share in Q1 2014. Net income includes $24.7 million, or
  $0.08 per share, of deferred income tax recoveries due to
  the decline in the Argentine peso relative to the U.S dollar. Removing the impact of this
  foreign currency gain, adjusted net loss* for the quarter
  ended March 31, 2014 was $6.2 million, or $(0.02)
  per share.

• Earnings
  from mining operations* during Q1 totaled $11.4
  million. This is up from $7.0 million in Q1 2013
  and $6.5 million in Q4 2013. The increase compared to Q1
  2013 is primarily due to a higher number of ounces sold from the San José
  mine, as well as lower costs due to the devaluation of the Argentine peso.
  

• Gold
  equivalent production** totaled 32,146 ounces (20,062
  gold ounces and 725,025 silver ounces). This is 14% higher than Q1 2013
  and 8% lower than Q4 2013. Production was lower than Q4 2013 due to fewer
  days in the quarter and traditional ramp-up in Argentina
  after year-end holidays.

• The
  Company is on track to meet full-year
  production guidance of 135,000 to 140,000 gold equivalent
  ounces.

• Total
  cash costs* and all-in sustaining costs*
  were $790 and $1,100 per gold equivalent
  ounce. Total cash costs were 21% lower than Q1 2013 and 1% lower than Q4
  2013. All-in sustaining costs were 37% lower than Q1 2013 and 6% lower
  than Q4 2013. Costs were lower versus the two comparable quarters due to
  1) devaluation of the Argentine peso and 2) less mine site exploration and
  mine development.

• El
  Gallo 1 mine expansion is now
  complete and commissioning is underway. The final cost of the expansion
  was under budget.

• A new
  reserve and resource estimate for the San José mine
  increased the size of the proven and probable reserve by 12%, gold grades
  by 9% and silver grades by 10%, confirming San José as one of the highest
  grade precious metal mines in the America’s.

• At March
  31, 2014, the Company had $21.5
  million in liquid assets and no debt.

Financial Highlights

During Q1 2014 McEwen
Mining reported net income of $17.9 million $0.06
per share versus a loss of $11.0 million $(0.04)
per share in the comparable period in 2013 and a loss of $11.3 million
$(0.04) per share in Q4 2013. Net income during the quarter
included $7.0 in income on investment in MSC, and a $24.7
million gain due to the recovery of deferred income taxes relating to
the decline in the Argentine peso relative to the U.S. dollar. Removing the impact of this foreign
currency gain, adjusted net loss* for the quarter ended March 31, 2014
was $6.2 million, or $(0.02) per share.

Earnings from mining
operations during the quarter totaled $11.4 million versus $7.0
million in Q1 2013 and $6.5 million in Q4 2013. Earnings
from mining operations were up compared to Q1 2013 due to a higher number of
ounces sold from the San José mine, in addition to lower costs due to the
devaluation of the Argentine peso.

At March 31, 2014,
McEwen Mining had cash and
liquid assets of $21.5 million, comprised of cash totaling $19.5
million and gold and silver bullion of $2.0 million. The
Company remains debt free. During Q1, McEwen
Mining received $3.9 million in dividends from Argentina
with the majority having been repatriated back to the Company’s head office in Canada.
In addition, McEwen Mining is
awaiting payment from the Mexican government for a $13.1 million
tax refund.

Major expenditures in Q1
2014 included $0.9 million for the El
Gallo 1 mine expansion, $1.6 million in development
costs for El Gallo
2, $2.7 million in exploration costs and $3.2 million
in general and administrative expenses.

San José Mine, Argentina
(49%)

Production for McEwen
Mining’s share in the San José mine during Q1 2014 was 22,781 gold
equivalent ounces (converting silver into gold using a 60:1 ratio), consisting
of 10,767 gold ounces and 720,830 silver ounces. This was 6% higher than the
comparable period in 2013 and 16% lower than Q4 2013. Production was lower than
Q4 2013 due to fewer days in the quarter and ramp-up after year-end holidays.
Historically Q1 is the lowest production quarter at the mine.

Gold equivalent total cash
costs in Q1 2014 equaled $816 per ounce. This is 29% lower than
Q1 2013 and 1% higher than Q4 2013. Cash costs fell versus Q1 2013 mainly due
to the devaluation of the Argentine peso and the cash flow optimization program
implemented by at the mine. Production costs in Q1 2013 were also affected by a
10-day production stoppage at the mine. There was no similar stoppage in the
same period in 2014.

All-in sustaining costs
totaled $992 per gold equivalent ounce and was 39% lower than Q1
2013 and 10% lower than Q4 2013. The decrease in all-in sustaining costs are
due to the change in total cash costs noted above and fluctuations in
exploration, pre-development, capital expenditures and ounces sold during the
quarter. The average realized prices for gold and silver during Q1 2014 were $1,337
oz. and $20.15/oz., respectively.

Production guidance for San
José in 2014 remains 97,500 gold equivalent ounces. Cash costs and all-in
sustaining costs are estimated at $750 and $1,100
per gold equivalent ounce in 2014.

An updated reserve and
resource estimate for the San José mine was published during Q1. Proven and
probable gold and silver reserves increased by 12%, to 409,400 ounces gold and
30.1 million ounces silver, contained in 1.8 million tonnes and gold grades
increased by 9% to 7.03 gpt and silver grades increased by 10% to 515 gpt.
Measured and Indicated gold and silver resources increased by 6% and 7%
respectively, with 1.05 million ounces gold and 72.8 million ounces silver,
contained in 4.4 million tonnes and gold and silver grades increased by 6% to
7.45 gpt gold and 515 gpt silver. Inferred gold and silver resources were down
by 13% and 16% respectively from 2012 with 430,500 ounces gold and 27.1 million
ounces silver, contained in 1.9 million tonnes and gold grades decreased by 2%
to 7.23 gpt and silver grades decreased by 4% to 455 gpt.

San José Mine Production Results

El Gallo 1 Mine, Mexico
(100%)

In Q1 2014 the El
Gallo 1 mine set a production record, producing 9,365 gold
equivalent ounces, consisting of 9,295 gold ounces and 4,195 silver ounces.
This was 38% higher than Q1 2013 and 21% higher than Q4 2013. The increased
production is the result of more tonnes being processed versus the comparable
quarters.

Total cash costs in Q1 2014
equaled $720 per gold equivalent ounce, 7% lower than Q1 2013
and 6% lower than Q4 2013. All-in sustaining costs totaled $1,046
per gold equivalent ounce in Q1 2014, which was 27% lower than Q1 2013 and 3%
lower than Q4 2013. The average realized prices for gold and silver during Q1
2014 were $1,296/oz. and $20.26/oz.,
respectively.

In 2014, El
Gallo 1 is forecasted to produce 37,500 gold equivalent ounces
(converting silver into gold using a 60:1 ratio). Total cash costs and all-in
sustaining costs have been estimated at $750 and $1,100
per gold equivalent ounce.

The El
Gallo 1 expansion from 3,000 to 4,500 tonnes per day is now complete.
The expansion was completed ahead of schedule. The increased capacity, combined
with higher grades as mining moves deeper in the pit, is expected to increase
production from 37,500 gold equivalent ounces in 2014, to 75,000 gold
equivalent ounces in 2015. Cash costs and all-in sustaining costs are
forecasted to fall from $750 to $575 per gold equivalent ounce
and $1,100 to $850 per gold equivalent ounce in 2015
respectively.

El Gallo 1 Mine
Production Results

El Gallo 2, Mexico
(100%)

On January 21, 2014,
the Company announced that the Secretariat of Environment and Natural Resources
(SEMARNAT) for the State of
Sinaloa, Mexico had approved McEwen
Mining’s Change of Land Use permit for El
Gallo 2. El
Gallo 2 is projected to produce an average of 95,000 gold equivalent
ounces per year (5.2 million ounces of silver and 6,100 ounces of gold) at an
approximate cash cost of $750 per gold equivalent ounce
(including all pre-strip and Mexican royalties). All-in sustaining costs have
been estimated at approximately $800 per gold equivalent ounce
(including an estimated $5 million per year on exploration).
Gold equivalent ounces have been calculated by converting silver into gold
using a 60:1 exchange ratio.

The Company has made a
decision to defer the construction of El
Gallo 2 due to low silver prices. The Company believes silver prices
would have to be closer to $25 per ounce before the rate of
return would be high enough to move forward with construction. In order to
prepare for a possible construction decision later this year, the Company has
been evaluating possible debt financing alternatives while advancing the
construction of the ball mill, which is the longest lead time item associated
with the project. The ball mill is 60% complete and expected to be delivered in
Q3 2014.

The feasibility study for El
Gallo 2 (September 2012) has been reviewed and we
have identified opportunities to reduce estimated capital expenditures by
approximately $20 million. The savings are expected in the
following areas: 1) reduction in leach tanks, 2) smaller process plant /
refinery, 3) modular crushers, and 4) reduction in transformers. These changes
are expected to have minimal impact on annual production. To date $10
million of the final construction cost has been spent. Provided the
Company realizes on these projected savings and factoring in the funds that
have been spent to date, approximately $150 million would be
required in order to complete the mine.

Gold Bar
Project, Nevada
(100%)

McEwen
Mining continues to advance the Gold Bar permitting process for
construction and production. Gold Bar is forecasted to produce 50,000 ounces
gold per year for 8 years at a cash cost of $700 per ounce and
an all-in sustaining cost of $850 per ounce. McEwen
Mining submitted the Plan of Operations permit application during the
fourth quarter of 2013, and received a completeness determination from the Bureau
of Land Management in April 2014. A subsequent
determination of the level of National Environmental Policy Act and
commencement will occur after review and approval of baseline documents for the
associated land actions. This is expected in May. McEwen
Mining is hopeful to receive approval for mine construction by the end of
Q2 2015.

Nevada Exploration
Activities

In Q1 2014, McEwen
Mining entered into a joint venture with partner, Kinetic Gold for their South
Roberts Project. The property is located in the Cortez trend 10 miles (16
km) south-east of the Gold Bar deposit. Recent and historical geochemical and
geophysical work has identified a number of untested near surface targets.

McEwen
Mining was granted the right to earn a 70% interest over four years by
spending a minimum of $4 million in exploration and development
expenditures. The $4 million spending requirement must include a
minimum drilling of 15,000 ft. (4,500m).

McEwen
Mining will be the operator of the exploration program. The program will
consist of five drill holes totaling 7,500 ft. (2,300m) during 2014.

Q1 2014 Conference Call Details

McEwen
Mining will be hosting a conference call to discuss the Q1 2014, results
and project developments on Thursday May 8, 2014 11 am EDT.

ABOUT MCEWEN
MINING (www.mcewenmining.com)

The goal of McEwen
Mining is to qualify for the S&P 500 by creating a high
growth gold/silver producer focused in the Americas.
McEwen Mining’s principal assets
consist of the San José mine in Santa
Cruz, Argentina
(49% interest), the El
Gallo 1 mine and El
Gallo 2 project in Sinaloa,
Mexico, the Gold Bar project in Nevada,
USA, and the Los Azules copper project in San
Juan, Argentina.

As of May 8, 2014
McEwen Mining has an aggregate
of 297,159,359 shares of common stock outstanding and issuable upon the
exchange of the exchangeable shares. Rob McEwen , Chairman and
Chief Owner, owns 25% of the shares of the Company (assuming all outstanding
Exchangeable Shares are exchanged for an equivalent amount of Common Shares).

TECHNICAL
INFORMATION

This news release has been
reviewed and approved by William Faust, PE, McEwen
Mining’s Chief Operating Officer, who is a Qualified Person as defined by
National Instrument 43-101 (“NI 43-101).

El Gallo: for additional information about
the El Gallo
complex see the technical report titled “Resource Estimate for the El
Gallo Complex, Sinaloa State, Mexico”
dated August 30, 2013 with an effective date of June 30,
2013, prepared by John Read , C.P.G., and Luke
Willis , P. Geo. Mr. Read and Mr. Willis are not considered
independent of the Company as defined by NI 43-101 Gold Bar: For
information about the Gold Bar project see the technical report titled “NI
43-101 Technical Report on Resources and Reserves Gold Bar Project, Eureka
County, Nevada” dated February 24, 2012 with an
effective date of November 28, 2011, prepared by J. Pennington,
C.P.G., MSc., Frank Daviess , MAusIMM, Registered SME, Eric
Olin , MBA, RM-SME, MSc, Herb Osborn, P.E, Joanna Poeck , MMSA, B. Eng., Kent Hartley P.E . Mining, SME, BSc, Mike Levy,
P.E, P.G, MSc., Evan Nikirk , P. E., Mark Allan Willow , M.Sc, C.E.M. and Neal Rigby , CEng, MIMMM, PhD, all of whom
are qualified persons and all of whom are independent of McEwen
Mining, each as defined by NI 43-101.

The foregoing news release
and technical reports are available under the Corporation’s profile on SEDAR (www.sedar.com).

There are significant risks
and uncertainty associated with commencing production or changing production
plans without a feasibility, pre-feasibility or scoping study. The expansion to
El Gallo 1 has
not and may not be explored, developed or analyzed in sufficient detail to
complete an independent feasibility or pre-feasibility study. Further,
although the subject of a 2012 feasibility study, the Company does not have a
current feasibility study on the El
Gallo 2 project. As such, each of the foregoing may ultimately be
determined to lack one or more geological, engineering, legal, operating,
economic, social, environmental, and other relevant factors reasonably required
to serve as the basis for a final decision to complete the expansion of all or
part of this project.

RELIABILITY OF
INFORMATION REGARDING THE SAN JOSÉ MINE

Minera Santa Cruz S.A.,
the owner of the San José mine, is responsible for and has supplied to the
Company all reported results from the San José mine. McEwen
Mining’s joint venture partner, a subsidiary of Hochschild Mining plc,
and its affiliates other than MSC do not accept responsibility for the use of
project data or the adequacy or accuracy of this release.

CAUTIONARY NOTE
REGARDING NON-GAAP MEASURES

In this report, we have
provided information prepared or calculated according to U.S. GAAP, as well as
provided some non-U.S. GAAP (“non-GAAP”) performance measures.
Because the non-GAAP performance measures do not have any standardized meaning
prescribed by U.S. GAAP, they may not be comparable to similar measures
presented by other companies.

(1) Total Cash Costs and
All-in Sustaining

Total cash costs consist of
mining, processing, on-site general and administrative costs, community and
permitting costs related to current explorations, royalty costs, refining and
treatment charges (for both doré and concentrate products), sales costs, export
taxes and operational stripping costs. All-in sustaining cash costs consist of
total cash costs (as described above), plus environmental rehabilitation costs,
mine site exploration and development costs, and sustaining capital
expenditures. In order to arrive at our consolidated all-in sustaining costs,
we also include corporate general and administrative expenses. Depreciation is
excluded from both total cash costs and all-in sustaining cash costs. Total
cash cost and all-in sustaining cash cost per ounce are calculated on a
co-product basis by dividing the respective proportionate share of the total
cash costs and all-in sustaining cash costs for the period attributable to each
metal by the ounces of each respective metal sold. We use and report these
measures to provide additional information regarding operational efficiencies
both on a consolidated and an individual mine basis, and believe these measures
provide investors and analysts with useful information about our underlying
costs of operations. A reconciliation to the nearest U.S. GAAP measure is
provided in McEwen Mining’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2014.

(2) Adjusted net income
(loss)

Adjusted net income (loss)
excludes the following items from net income (loss): impairment charges, net of
tax; foreign currency gains and losses, including the impact of the devaluation
Argentine peso relative to the U.S. dollar; other non-recurring items, if
applicable. We use and report this measure because we believe it provides
investors and analysts with a useful measure of the underlying operating
performance of our core mining business. A reconciliation to the nearest U.S.
GAAP measure is provided in McEwen
Mining’s Quarterly Report on Form 10-Q for the quarter ended March
31, 2014.

(3) Earnings from mining
operations

Earnings from mining
operations consists of gold and silver revenues from our El
Gallo 1 mine and our 49% attributable share from the San José mine,
and deducts Production Costs Applicable to Sales. It also includes depreciation
and amortization expense incurred at the mining operations, but does not
include amortization expense related to the fair value increments on historical
business acquisitions (fair value paid in excess of the carrying value of the
underlying assets and liabilities assumed on the date of acquisition). We use
and report this measure because we believe it provides investors and analysts
with a useful measure of the underlying earnings from our mining operations. A
reconciliation to the nearest U.S. GAAP measure is provided in McEwen
Mining’s Quarterly Report on Form 10-Q for the quarter ended March
31, 2014.

CAUTIONARY NOTE TO
US INVESTORS REGARDING RESOURCE ESTIMATION

McEwen
Mining prepares its resource estimates in accordance with standards of
the Canadian Institute of Mining, Metallurgy and Petroleum referred
to in Canadian National Instrument 43-101 (NI 43-101). These standards are
different from the standards generally permitted in reports filed with the SEC.
Under NI 43-101, McEwen Mining
reports measured, indicated and inferred resources, measurements, which are
generally not permitted in filings made with the SEC. The estimation
of measured resources and indicated resources involve greater uncertainty as to
their existence and economic feasibility than the estimation of proven and
probable reserves. U.S. investors are cautioned not to assume that any part of
measured or indicated resources will ever be converted into economically
mineable reserves. The estimation of inferred resources involves far greater
uncertainty as to their existence and economic viability than the estimation of
other categories of resources.

CAUTION CONCERNING
FORWARD-LOOKING STATEMENTS

This news release contains
certain forward-looking statements and information, including “forward-looking
statements” within the meaning of the Private Securities Litigation Reform
Act of 1995. The forward-looking statements and information expressed, as at
the date of this news release, McEwen
Mining Inc.’s (the “Company”) estimates, forecasts, projections,
expectations or beliefs as to future events and results. Forward-looking
statements and information are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are inherently
subject to significant business, economic and competitive uncertainties, risks
and contingencies, and there can be no assurance that such statements and
information will prove to be accurate. Therefore, actual results and future
events could differ materially from those anticipated in such statements and
information. Risks and uncertainties that could cause results or future events
to differ materially from current expectations expressed or implied by the
forward-looking statements and information include, but are not limited to,
factors associated with fluctuations in the market price of precious metals,
mining industry risks, political, economic, social and security risks
associated with foreign operations, the ability of the corporation to receive
or receive in a timely manner permits or other approvals required in connection
with operations, risks associated with the construction of mining operations
and commencement of production and the projected costs thereof, risks related
to litigation, the state of the capital markets, environmental risks and
hazards, uncertainty as to calculation of mineral resources and reserves and
other risks. Readers should not place undue reliance on forward-looking
statements or information included herein, which speak only as of the date hereof.
The Company undertakes no obligation to reissue or update forward-looking
statements or information as a result of new information or events after the
date hereof except as may be required by law. See McEwen
Mining’s Annual Report on Form 10-K for the fiscal year ended December
31, 2013 and Quarterly Report on Form 10-A for the quarter ended March
31, 2014 and other filings with the Securities and Exchange
Commission, under the caption “Risk Factors”, for additional
information on risks, uncertainties and other factors relating to the
forward-looking statements and information regarding the Company. All
forward-looking statements and information made in this news release are
qualified by this cautionary statement.

The NYSE and
TSX have not reviewed and do not accept responsibility for the adequacy or
accuracy of the contents of this news release, which has been prepared by
management of McEwen Mining Inc.

Contact Information:
McEwen Mining Inc.
Sheena Scotland Director, Investor Relations
(647) 258-0395 ext 410 or Toll Free: (866) 441-0690
(647) 258-0408 (FAX)
[email protected]
www.mcewenmining.com

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