United Mining Group, Inc.

United Mining Group, Inc.

May 17, 2010 10:03 ET

United Mining Group Commences Multi-Million Dollar Environmental Remediation Contract

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 17, 2010) - United Mining Group, Inc. (the "Company")(CNSX:UMG) is pleased to announce that today, the Company is commencing its multi-million dollar contract with the State of Idaho Department of Environmental Quality ("DEQ") to provide environmental remediation services in North Idaho's Silver Valley.

This multi-million dollar contract is for an initial one-year term with the opportunity to extend the contract for three additional years at the DEQ's option. Over the last four years, a similar contract with the DEQ generated over $22 million for United Mining Group.

"We are pleased to continue our longstanding relationship with the DEQ. We have worked successfully on cleanup projects in the Silver Valley since 1992 and look forward to continuing the remediation of the Coeur d'Alene River Basin. This contract provides a solid foundation for our revenue projections for 2010," stated Greg Stewart, the Company's President and CEO.

About United Mining Group

United Mining Group is a profitable, vertically integrated mining company with operations in Idaho, USA combining both mining services and mining. The Company offers a full suite of mining services including contract mining, contracting/construction (including mine remediation), and fabrication and machine services.

The Company owns its own custom welding and fabrication shop, allowing it to repair/rebuild its own equipment and supply outside customers. In 2009, Mining Services earned $15.7 million revenue and $3 million operating income.

The Company has the right to acquire an 80% interest in the Crescent Silver Mine. The Crescent Mine is located in the Silver Valley, Idaho, the second largest silver district in the world. It has a 43-101 resource of 10.2 million ounces silver. The Crescent Mine has historically produced 25 million ounces silver at an average grade of 27.3 opt (SRK Consulting 43-101 Report, March 1, 2010). The Company is currently reactivating the Crescent Mine and expects to be in production within 12 months.

The Company is committed to building a senior silver producing mining company based on aggressive development and acquisitions.

For more information about the Company, please visit: www.unitedmininggroup.com

In compliance with National Instrument 43-101, Lawrence Dick, Ph.D., P.Geo., is the Qualified Person responsible for the accuracy of this news release.

On behalf of the board of directors of United Mining Group, Inc.,

Greg Stewart, President, CEO and Director

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. Forward looking statements may include, but not limited to, statements with respect to the Company's expectation to be in production within 12 months, future remediation contracts, the timing of activities and the estimated revenues and profitability generated from the existing remediation contracts, in particular, the remediation service contract with Idaho DEQ in North Idaho's Silver Valley. The Company's actual results 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, among others, risks related to actual results of exploration activities and development of mineral properties, actual results of remediation activities regarding lower than expected revenues and profitability and potential early termination of existing remediation contracts, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.

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. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

The Canadian National Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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