Yellowhead Mining Inc.
TSX VENTURE : YMI

Yellowhead Mining Inc.

January 24, 2011 13:15 ET

Yellowhead Mining Is Pleased to Report Positive Results From Hole HC10-78 in the Ongoing 4,000m Diamond Drilling Program at Harper Creek

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 24, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Yellowhead Mining Inc. (TSX VENTURE:YMI) is pleased to report the results from its third drill hole of an ongoing 4,000 meter diamond drilling program. The previously reported first hole, HC10-76 (press release dated December 14, 2010), the second hole, HC10-77 (press release dated January 11, 2011), and this third hole, HC10-78 are part of a three-hole fence on the western side of the deposit on Section 303880E. Drilling is designed to confirm previous historical drilling and identify down-dip extensions to the mineralization not previously drilled. This eight (8) hole program is expected to be completed by January 31, 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 (6) weeks. The program is being managed by CME Consultants Inc. ("CME").

A complete list of significant intervals from Hole HC10-78 is presented in the table below.

Significant intersections at 0.2% Cu Cut-off
Hole Interval (m) Results
From To Length Cu % Ag ppm Au ppb
HC10-78 202.40 263.50 61.10 0.36 0.7 39
including 202.40 215.62 13.22 0.41 0.9 50
including 221.75 263.50 41.75 0.40 0.7 41
including 226.65 231.08 4.43 1.34 3.2 100
  431.75 466.00 34.25 0.39 1.8 13
including 464.75 466.00 1.25 1.92 7.0 40

Please refer to the Cross Section Map http://www.yellowheadmining.com/i/pdf/DDHCrossSectionHC10-78.pdf
And Drill Plan Map http://www.yellowheadmining.com/i/pdf/Drill-Plan-Map.pdf
or available at www.yellowheadmining.com

Hole HC10-78 continued to prove continuity of mineralization within the current proposed pit outline(1) as well as identify down-dip extensions to the mineralization below the pit limit. Horizons reaching surface at the south of the deposit, have been shown in this fence to continue at least 620 m down dip, up to 385 m vertically below surface and up to approximately 220 m below the prior resource pit bottom.

Mineralization intercepted below the currently proposed pit bottom in hole HC10-78 has identified 61.10m averaging 0.36% Cu, 0.04 g/t Au and 0.7 g/t Ag from 202.40m to 263.50, including 13.22m @ 0.41% Cu, 0.05 g/t Au and 0.9 g/t Ag from 202.4m to 215.62m and 41.75m(2) @ 0.40% Cu, 0.04 g/t Au and 0.7 g/t Ag, from 221.75m to 263.50m. A further mineralized zone of 34.25m @ 0.39% Cu, 0.01 g/t Au and 1.8 g/t Ag, was intersected from 431.75m to 466.00m. All grades are reported at a 0.20% Cu cutoff.

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.

Ian Smith, Chief Executive Officer, stated "The results for hole HC10-78 along with results for previously reported holes HC10-76, HC10-77 continue to demonstrate the potential to increase the resource within the established resource limits, by drilling deeper than the historical drilling from the 1960's and 1970's. Continuity of previously established shallow horizons has been shown in this program to continue for hundreds of metres down dip, outside of the previous resource limits."

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.

(1) Not NI43-101 compliant pending completion of the Preliminary Economic Assessment scheduled for first quarter 2011.

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

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.

Neither the TSX Venture Exchange Inc. 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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