Yellowhead Mining Inc.
TSX VENTURE : YMI

Yellowhead Mining Inc.

February 02, 2011 09:15 ET

Yellowhead Mining Inc.: Harper Creek Drill Hole HC10-79 Extends Mineralization Beyond Previously Identified Eastern Limit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Yellowhead Mining Inc. (TSX VENTURE:YMI) is pleased to report the results from its fourth drill hole of the winter diamond drilling program. This hole, HC10-79 is part of a three-hole fence (including HC10-80 and HC10-81) near the eastern limit of the resource on Section 305620E, and 1,740m east of the three holes, HC10-76, HC10-77, and HC10-78 recently reported. Drilling is designed to test the eastern limit of the resource model and identify up-dip extensions to the mineralization. Section 305620E ranges from 40 to 120 metres east of the most easterly drill holes (69-H-26, J-11, 96-1 and 96-7) that were used in the resource calculation. Also on this section, south of hole HC10-79, is historical hole J-45, which was only partially sampled but which had trace to 3% chalcopyrite noted in the drill log report from the bottom half of the unsampled drill hole. This hole demonstrates that the mineralized zone on this section continues up-dip in the north body of the resource, with the potential to add considerably to the resource.

The company completed the eight-hole winter drill program on February 1, 2011. The company intends to continue with an expanded drilling program into the spring for the expansion of mineralized zones outside the published resource as well as increasing confidence categories within the published resource. Laboratory assays lag the drilling and logging by approximately six weeks. The program is being managed by CME Consultants Inc. ("CME").

A list of significant intervals from Hole HC10-79 is presented in the table below.

Significant intersections - 0.2% Cu Cut-off
Hole Interval (m) Results
   
From To Length Cu % Ag ppm Au ppb
HC10-79 138.08 236.17 98.09 0.31 1.3 18
including 161.80 164.14 2.34 1.27 7.3 42
  249.30 315.00 65.70 0.35 1.3 29
including 284.68 287.60 2.92 1.37 5.3 121

Please refer to the Cross Section Map http://www.yellowheadmining.com/i/pdf/DDH-Cross-Section-Feb-2-2011.pdf

And Drill Plan Map http://www.yellowheadmining.com/i/pdf/DDH-Plan-Map-Feb-2-2011.pdf

or available at www.yellowheadmining.com

Mineralization intercepted at the eastern limit of the 2010 NI43-101 resource block model has identified 98.09m1 averaging 0.31% Cu, 0.018 g/t Au and 1.3g/t Ag from 138.08m to 236.17m, including 2.34m @ 1.27% Cu, 0.042 g/t Au and 7.3 g/t Ag from 161.80m to 164.14m; and 65.70m(1) @ 0.35% Cu, 0.029 g/t Au and 1.3 g/t Ag, from 249.30m to 315.00m including 2.92m averaging 1.37% Cu, 0.121 g/t Au and 5.3 g/t Ag from 284.68m to 287.60m . All grades are reported at a 0.20% Cu cut-off.

Ian Smith, Chief Executive Officer, stated "The results for hole HC10-79 demonstrate the potential to increase the resource along strike to the east and up-dip to the south. This is strongly supported by the results of extensive aeromagnetic and geochemical surveys and surface mapping and sampling of outcropping sulphides which identify drill targets extending some 3.0km to the east of the current eastern pit limit. Hole HC10-79 continued to prove continuity of mineralization within the 2010 NI43-101 Resource pit outline as well as identify up-dip extensions to the mineralization within and below that pit limit."

Harper Creek is a copper-gold-silver volcanogenic sulphide deposit with an indicated resource of 569 million tonnes grading 0.32% Cu (4,010,000,000 pounds of copper), plus an inferred resource of 62.7 million tonnes grading 0.33% Cu (460,000,000 pounds of copper) plus as yet an unquantified resource of gold and silver. Mineralization occurs as a series of tabular bodies hosted within the Eagle Bay Assemblage volcanic and sedimentary rocks.

Qualified Person
Christopher O. Naas, P.Geo. B.Sc., Project Manager for Yellowhead's Harper Creek Project, is a qualified person as defined by National Instrument 43-101 and prepared or reviewed the preparation of the scientific and technical information in this press release with respect to the assay results from the Harper Creek drill program.

Sample Collection, Analyses, and QA-QC
All core processing was undertaken by CME personnel. Core was cut by electric motorized rock saw with half core shipped to Eco Tech Laboratory Limited, part of the Stewart Group (Eco Tech), in Kamloops, BC for sample preparation and analysis. Drill core samples were analyzed for gold by fire assay with an AA finish and multi-elements by total digestion ICP-ES. Core samples returning greater than 2,000 ppm copper in the ICP-ES process were then assayed for copper. In addition to control samples inserted by CME, the analytical laboratory routinely inserted their own control samples, which consisted of standards, blanks and sample repeats.

About Yellowhead Mining Inc.
Yellowhead has a 100% interest in the Harper Creek Project subject to the payment of a royalty capped at $2.5 million, adjusted for inflation, on claims within the NI 43-101 resource. The Harper Creek Project is a large copper-gold-silver project located in south-central British Colombia, approximately 150 kilometers by highway from Kamloops.

Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, inherent operating risks, planned expenditures, proposed exploration and development at the Harper Creek Project, operating and economic aspects of the Harper Creek Project, as well as those risk factors identified in the Filing Statement filed under the Company's SEDAR profile. Yellowhead undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.

(1) down-dip dimensions are along the drill hole and approximate to a true width of the mineralization

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