United Mining Group, Inc.
TSX : UMG
FRANKFURT : UM8
OTCQX : UMGZF

United Mining Group, Inc.

December 23, 2010 16:17 ET

United Mining Group, Inc. Closes First Tranche of $8,000,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 23, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES

United Mining Group, Inc. (the "Company") (TSX:UMG)(OTCQX:UMGZF)(FRANKFURT:UM8) announces that it has closed the first tranche of $7,291,700 of the $8,000,000 private placement (the "Private Placement"), previously announced on December 1, 2010. The Private Placement provides further funding for the Company's continuing exploration and production development for the Crescent Mine, and for general corporate purposes.

The Private Placement consists of the issuance of units ("Units") at a price of $0.90 per Unit (the "Unit Price"). Each Unit consists of one (1) common share (a "Common Share") and one half of one (1/2) common share purchase warrant (a "Warrant"). Each whole warrant entitles the holder thereof to purchase one additional Common Share (a "Warrant Share") of the Company at a price of $1.25 per Warrant Share for a period of two (2) years from the closing date of the Private Placement.

In the event that the Common Shares of UMG are traded on the Toronto Stock Exchange ("TSX") at a daily volume weighted average price of $1.75 or more for 15 trading days out of any 20 consecutive trading days prior to the Expiry Date (the "Acceleration Event"), the Warrant will expire on the earlier of the Expiry Date and 4:30 p.m. (Pacific Time) on the date which is 30 calendar days after UMG provides notice to the holders of the Warrant that the Acceleration Event has occurred, provided that such notice cannot be provided until the four month hold period has expired.

The Private Placement consists of brokered and non-brokered portions. The brokered portion of the Private Placement was led by Pope & Company. On the brokered portion of the Private Placement, the Company paid the Agents cash commission $157,941 and issued a total of 175,490 non-transferable broker warrants (the "Broker Warrants"). Each Broker Warrant entitles the holder thereof the right to purchase one Common Share of UMG at a price of $0.92 per share for a period of 2 years from the date of issuance. The Company also paid a cash finder's fee of $423,850 on the non-brokered portion of the Private Placement. All securities issued under this Private Placement will be subject to a four-month and one day hold period from the date of issuance.

About United Mining Group

United Mining Group is a vertically integrated mining company with operations in Idaho, USA. The Company offers a full suite of mining services including contract mining to silver mines in the district. The Company owns its own custom welding and fabrication shop allowing it to repair/rebuild equipment for its own use and for outside mining companies.

The Company is currently earning, through development and operations, an 80% interest in the Crescent Silver Mine adjacent to the Sunshine Silver Mine in the Silver Valley. The Crescent Mine has historically produced 25 million ounces of silver at an average grade of 27.3 opt (SRK Consulting 43-101 report, March 1, 2010). UMG currently has an indicated resource of 6.1 million ounces silver (324,000 tons grading 18.7 opt silver) and additional inferred resources of 4.1 million ounces silver (211,000 tons grading 19.5 opt silver).

UMG is committed to building a senior silver-producing mining company based on aggressive exploration and development of the highly-prospective current land position at Crescent and through the acquisition of additional silver interests.

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

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

Charles Pitcher, Chief Executive Officer

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 in this press release include that we will use private placement funds for further exploration and development, that we are building a senior silver-producing mining company, that we will have aggressive exploration and development of our current land position at Crescent, that our land is the highly-prospective for mining and that we will make acquisitions of additional silver interests. 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: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the inability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators. Past production of minerals and encouraging exploration results are not necessarily indicative of a commercially exploitable resource.

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 TSX 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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