SilverCrest Mines Inc.
TSX VENTURE : SVL

SilverCrest Mines Inc.

October 16, 2006 08:00 ET

SilverCrest Announces Significant Increase in Resources With Addition of Santa Elena, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - SilverCrest Mines Inc. (TSX VENTURE:SVL) (the "Company") is pleased to announce it has completed its resource estimation for the 100% owned Santa Elena Project in northern Mexico. Indicated Resources are estimated at 2.46 million tonnes grading 55.7 gpt (1.62 oz/t) silver and 2.16 gpt (0.063 oz/t) gold. Inferred Resources are estimated at 3.51 million tonnes grading 78.3 gpt (2.28 oz/t) silver and 1.42 gpt (0.041 oz/t) gold. The Indicated Resource contains 4.4 million ounces of silver and 171,000 ounces of gold and the Inferred Resource contains 8.83 million ounces of silver and 159,000 ounces of gold based on a 60 gpt silver equivalent cut-off grade. These resources are a result of a phase I drilling and sampling program and are more than double the Company's preliminary target of 15 million ounces silver equivalent. It is expected that the planned phase II drilling and sampling program will add to the total resource and improve the confidence level of the current resource numbers.

The Company now has reported resources at Santa Elena in Mexico and at its El Zapote property in El Salvador. The addition of the Santa Elena resource increases the Company's total Indicated Resources to 26.5 million ounces silver equivalent, representing an increase of 124%. Total Inferred Resources now are estimated to be 22.3 million ounces silver equivalent representing an increase of 464%. Silver equivalency is based on a silver to gold ratio of 60:1 and assumed 100% recovery.



SilverCrest Resource Summary

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Resource Ag Au Ag Au
Property Category(1) Tonnes gpt gpt Tons opt opt
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Santa Elena Indicated 2,458,900 55.7 2.164 2,710,500 1.62 0.063
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Inferred 3,514,300 78.3 1.42 3,873,900 2.28 0.041
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El Zapote(2) Indicated 1,925,251 177.7 0.19 2,122,226 5.20 0.006
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Inferred 1,086,420 101.6 0.18 1,197,573 3.00 0.005
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Total Indicated Resources
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Total Inferred Resources
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Contained Contained Contained
Resource Silver Gold Silver
Property Category(1) Ounces Ounces Equiv. Ounces
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Santa Elena Indicated 4,391,000 171,000 14,651,000
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Inferred 8,832,000 159,000 18,372,000
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El Zapote(2) Indicated 11,036,000 13,000 11,816,000
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Inferred 3,593,000 6,000 3,953,000
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Total Indicated Resources 15,439,000 184,000 26,467,000
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Total Inferred Resources 12,415,000 166,000 22,325,000
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(1) conforms to NI 43-101, 43-101CP, and current CIM definitions for
resources. All Santa Elena numbers are rounded.
(2) El Zapote resources reported September 13, 2005. Cut off grade
was 34.0 gpt Ag.
El Zapote resources also contain estimated 78 million pounds of
zinc.


C. Stewart Wallis, P.Geo., independent qualified person (QP) from the consulting firm of Scott Wilson Roscoe Postle Associates Inc. and N. Eric Fier, CPG, P.Eng, QP and Chief Operating Officer of the Company completed the Santa Elena resource estimation. The qualified persons are currently completing a Technical Report adhering to the disclosure requirements of NI 43-101 which will be filed no later than 45 days from the date of this release. There have been no previous resources reported for Santa Elena.

The resource statements for Santa Elena are based on recent and historical information collected by SilverCrest Mines and previous operators between 2002 to present. The most significant components of the data are the recent results from 19 drill holes (2,579 metres), ten composite surface samples (491 metres) and 25 composite underground samples (201 metres) validated by the Company. Details of the drill core assays and surface and underground sampling results can be found in press releases dated September 11, 2006, May 9, 2006, April 12, 2006 and December 15, 2005. It has been concluded by the qualified persons preparing the Technical Report that there is no reason to believe that any historical data used in the resource estimation is biased in any way.

In complying with NI 43-101 section 3.4c, the Santa Elena resource estimate is based on the following key assumptions; a cut-off grade of 60g/t Ag equivalent, silver grades exceeding 300 g/t were cut to 300 g/t, gold grades exceeding 12 g/t were cut to 12 g/t, raw data was composited to 3 metres; a 10 metre by 10 metre by 5 metre block size was used based on geological constraints and potential future mining method; variography and ordinary kriging were used to create both gold and silver block models; block models were classified into Indicated and Inferred Resources according to appropriate criteria based on sample sets and search radii; parameters used for resource estimation are approximately 100 x 50 x 27 metres for Indicated Resources and the remaining blocks are classified as Inferred Resources; a minimum of three sample points were required to interpolate grade; and a specific gravity of 2.67 was used based on test work. Details of these criteria will be presented in the Technical Report to be filed on SEDAR.

The Company plans a second phase drilling and sampling program at Santa Elena for further verification and expansion of the current resource. The additional drilling and underground sampling, commencement of environmental baseline studies, and metallurgical test work to determine leaching characteristics will be undertaken in the fourth quarter of 2006 to support a scoping study. The Company believes that the deposit is potentially amenable by open pit mining and standard heap leach processing. Significant potential for resource expansion exists along the eastern strike of the main mineralized zone and the footwall of the main mineralized zone where surface sampling has indicted substantial silver and gold mineralization (see News Released dated September 11, 2006).

This significant increase in the Company's resource base is considered another important milestone in its goal of becoming a major silver asset - based company by acquiring high grade, low cost silver-gold resources that may be expanded. SilverCrest's immediate initiative is to continue to acquire and develop substantial silver resources and ultimately to operate high grade silver mines throughout North, Central and South America.

The Qualified Persons for this news release are C. Stewart Wallis, P.Geo. of Scott Wilson Roscoe Postle Associates Inc. and N. Eric Fier, CPG, P.Eng. and Chief Operating Officer for SilverCrest Mines Inc.

SilverCrest Mines Inc. is a "pure silver" exploration and development company with a portfolio of high grade silver deposits and exploration properties located in El Salvador and Mexico. 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.

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

On Behalf of the Board of Directors of

SilverCrest Mines Inc.

"J. Scott Drever"

J. Scott Drever, President

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

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