SilverCrest Mines Inc.

SilverCrest Mines Inc.

November 30, 2009 06:00 ET

SilverCrest Mines Receives US$12 Million Funding Under Gold Purchase Agreement With Sandstorm Resources Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2009) - SilverCrest Mines Inc. ("SilverCrest") (TSX VENTURE:SVL) is pleased to announce that it has received the US$12 million advance purchase payment under the definitive gold purchase agreement (the "Agreement") with Sandstorm Resources Ltd. ("Sandstorm") (TSX VENTURE:SSL).

Sandstorm has agreed to purchase 20% of the life of mine gold production from SilverCrest's Santa Elena project (the "Santa Elena Project"), located in Mexico, for US$12 million upfront in cash plus (a) ongoing per ounce payments equal to the lesser of (i) US$350 (which approximates SilverCrest's cash cost of production) (subject to an increase equal to 1% per annum commencing on the third anniversary of the date that the Santa Elena Project begins commercial production), and (ii) the then prevailing market price per ounce of gold, and (b) the issuance of 3,500,000 common shares of Sandstorm as part of the upfront consideration. Reference is made to SilverCrest's news releases dated May 15 and April 24, 2009 for further details of the transaction.

J. Scott Drever, President stated; "We are obviously pleased that we have been able to complete all of the necessary documentation for the release of the Sandstorm funds. The receipt of these funds and the 3.5 million shares of Sandstorm assure that the construction of the facilities at the Santa Elena gold and silver mine, which is well under way, will continue full steam ahead and that we will be able to maintain our construction schedule for completion of the mine and initial pouring of gold and silver by mid-2010. The explosion of the gold and silver metal prices is particularly encouraging in that it adds to the already robust economics of the project that were developed at much lower gold and silver prices."

Sandstorm's President and Chief Executive Officer, Nolan Watson and David Awram, Executive VP, Corporate Development are formerly executive officers of Silver Wheaton Corp., a mining company listed on both the Toronto and New York stock exchanges. Through Silver Wheaton, Messrs. Watson and Awram were involved in the successful execution and financing of approximately US$1 billion worth of metal streaming transactions over the past five years and have recently been successful in raising approximately $85 million to be applied to acquisition of additional gold production purchases similar to the transaction with SilverCrest.

SilverCrest Mines Inc. is a "Precious Metals Focussed" exploration and development company with a portfolio of gold & silver deposits and high grade exploration properties located in Mexico and El Salvador. This property portfolio, which includes reported indicated and inferred gold & silver resources and substantial exploration potential, provides an important base from which SilverCrest can develop its corporate objective of becoming a significant precious metals asset based company. The Company's immediate initiative is to acquire and develop substantial mineral resources and ultimately to operate multiple low cost, high grade precious metals mines.

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.

J. Scott Drever, President


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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