Bear Creek Mining Announces Results of Updated Corani Feasibility Study

2015-06-02

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43% increase in Net Present Value from 2011 FS $54 Mdecrease in Total Capital 13.4 M oz/yr payable Ag (yrs 1-5); 8.4 M oz/yr LOM All-in Sustaining Cost $(0.23)/oz (yrs 1-5); $3.85/oz LOM

VANCOUVER, June 2, 2015/CNW/ - Bear Creek Mining Corporation (TSX Venture: BCM) ("Bear Creek" or the "Company") is pleased to announce the results of an updated feasibility study for its 100% owned Corani silver-lead-zinc deposit (the "2015 Corani Feasibility Study"), which, among other things, results in a reduction in total costs and optimization of the metallurgy and mine plan.

Corani hosts one of the world's largest undeveloped silver-lead-zinc deposits and is a critical component of Bear Creek's project portfolio. It is located in the Department of Puno in southern Peru, in a mining-friendly area with favourable access and good infrastructure and was discovered by the Company in 2006. A number of economic studies of the Corani deposit have been conducted on behalf of Bear Creek, including a feasibility study entitled "Corani Project, Form 43-101F1 Technical Report, Feasibility Study" dated December 22, 2011(the "2011 Corani Feasibility Study"). An Environmental and Social Impact Assessment (the "ESIA") for Corani was approved by the government of Peruin 2013.

The 2015 Corani Feasibility Study, led by M3 Engineering & Technology Corporation ("M3"), Tucson, AZwith support by Global Resource Engineering ("GRE"), Denver, COand others, reflects significant modifications to the processing and construction designs of the Corani operation as envisioned in the 2011 Corani Feasibility Study. These modifications include: dry-stacking of the tailings resulting in elimination of the tailings impoundment and fresh water storage dams; revision of the mine sequencing plan and new metallurgical recovery modeling with higher confidence in recovery predictions; and reconfiguration of infrastructure layouts and equipment selection for certain areas of the processing facility. As a result, total capital costs have been reduced, the proposed Corani operation is expected to be more efficient, and its physical and environmental footprint are expected to be reduced. The optimized 2015 Corani Feasibility Study has defined a large, low-cost, economically robust, low-impact operation that the Company believes will benefit shareholders and local and national Peruvian stakeholders alike.

Bear Creek will host a conference call to discuss the results of the 2015 Corani Feasibility Study on Tuesday, June 2, 2015at 8:00 am Pacific time. Call-in information is provided at the bottom of this release. A corresponding presentation entitled "2015 Corani Feasibility Study" is available on the Company's website (www.bearcreekmining.com).

Highlights of the 2015 Corani Feasibility Study

| | 2015 Corani Feasibility

Study Results | Variance from 2011

Corani Feasibility Study | | Net Present Value (1) | $660 M | + $197 M | | Internal Rate of Return (2) | 20.9% | + 3.3% | | Payback (3) | 3.6 years | - 0.2 years | | Total Capital | $664 M | - $54 M | | Initial Capital | $625 M | + $51 M | | Sustaining Capital | $39 M | - $105 M | | AISC (4)per oz Silver (by-product basis), Years 1-5 | $(0.23) | - $0.14 | | AISC (4) per oz Silver (by-product basis), Life of Mine | $3.85 | - $0.71 | | AISC (4)per oz Silver (co-product basis), Life of Mine | $11.13 | + $0.44 | | Contained Silver(5) | 228 M oz | - 42 M oz | | Contained Lead(5) | 2,768 M lbs | - 0.345 M lbs | | Contained Zinc(5) | 1,784 M lbs | + 0.086 M lbs | | Contained Silver Equivalent (5) | 449 M oz Ag Eq. | -9.6% | | Silver Recovery | 71.9% | +7.7% | | Lead Recovery | 62.8% | -8.3% | | Zinc Recovery | 60.1% | +8.5% | | Avg. Annual Silver Production Life of Mine | 8.4 M oz/year | No change | | Stripping Ratio | 1.68 | -0.01 | | Mine Life (extraction) | 18 years | No change | | Mine Life (processing) | 18 years | -2 years | | Mill Capacity | 22,500 tonnes per day | No change |

| (1) | 5% discount rate, after tax, at base case metal prices ($20/ounce silver, $0.95/pound lead and $1.00/pound zinc) | | (2) | After tax, at base case metal prices | | (3) | After tax | | (4) | All-In Sustaining Costs ("AISC") are per payable oz, and are calculated as cash operating costs + sustaining capital costs + reclamation and closure costs + social costs | | (5) | see "2015 Corani Reserve and Resource Estimates" below, and regulatory footnotes at the end of this document for calculation methods and assumptions used in the Mineral Reserve and Mineral Resource estimates presented herein. |

Andrew Swarthout, President and CEO of the Company, commented "Corani remains one of the world's largest undeveloped silver-base metal deposits and is the key driver for growth at Bear Creek. As a result of the modifications to the Corani mine design in the updated 2015 Corani Feasibility Study, we have created a more compact, efficient and cost-effective operation with a smaller physical and environmental footprint, which we expect will result in a shorter and less costly path to permitting. We were able to further refine the geo-metallurgical model and mine sequencing, which led to an 8% increase in overall silver recovery with a 7% increase in silver reporting to the lead concentrate relative to zinc, partially offsetting the effects of the small ore reserve reduction."

Mr. Swarthout continues, "As a result of a reduction in total capital costs and optimization of the metallurgy and mine plan, the key financial metrics of the Corani project were significantly improved, including a 43% increase in the project's after-tax Net Present Value (at a 5% discount rate), which is now estimated at $660 M. Even using the June 1, 2015silver, lead and zinc prices of $16.71/oz, $0.87/lb and $0.98/lb respectively, Corani has a Net Present Value of $372 Mand a 14.9% Internal Rate of Return. Add to this the low all-in sustaining costs per payable silver ounce (below zero in the first five years and $3.85over the life of the mine on a by-product basis) and it is clear Corani is a robust, undeveloped silver-base metal deposit even at current depressed metal prices."

Key Modifications Included in the 2015 Corani Feasibility Study

Optimized Processing

Dry-stacking of tailings: The change to dry-stacking of concentrator tailings is the most significant optimization in the 2015 Corani Feasibility Study and had a substantial effect on the project economics as well as the physical and environmental footprint of the proposed operation. Dry-stacking eliminates the need for the tailings dam and one of the fresh water storage dams, and co-disposal of the tailings and waste-rock eliminates one of the waste rock dump sites envisioned in the 2011 Corani Feasibility Study. Dry-stacking involves filtering the tailings to remove water, which is then recycled to the concentrator, reducing the water requirements. The filtered tailings are then mixed with waste rock and stacked in "lifts" within already-approved waste rock disposal sites. Dry-stacking technology is used successfully at various mining operations world-wide, including the Cerro Lindo silver-base metal mine in Peru. Not only does dry-stacking create a smaller, more efficient project footprint and reduce the total capital requirements for Corani (see "Capital and All-In Sustaining Costs", below), elimination of the tailings dam and reduction of the project footprint will save time and lower the engineering costs associated with securing a mine permit.

_Primary Crusher and grinding mills: _The selection of the primary crusher, from a gyratory to a jaw reduced the amount of earthwork and the footprint required, which resulted in capital expenditure ("CapEx") savings. The sizes for both the Semi-Autogenous Grinding ("SAG") and ball mills remained relatively unchanged, however, the size of the motors for both mills increased from 5,500 kW to 7,000 kW due to the additional grinding test work results.

_Flotation: _The elimination of the 3rd cleaner scavenger and the change of the 2nd cleaner mechanical cells to one column cell, reduced the equipment footprint and also provided CapEx savings for both lead and zinc circuits. The change to a column cell for the 2nd stage cleaners will also allow to maximize lead and zinc grades in each circuit respectively.

_Regrind mills: _The change of the regrind mills from ball mills to tower mills, reduced the footprint of the equipment and resulted in additional CapEx savings.

Optimized Mine Sequence and Improvements in Recoveries

_Mine Sequencing:_The mine sequencing plan has been modified in order to complete mining from the Corani Este pit in the 6thyear to begin accepting co-disposal of waste rock and filtered tailings. This allows for shorter haul distances and eliminates or reduces the size of the waste dump facilities, which is expected to result in lower operating costs, easier permitting and reduced final mine closure costs. Although the revised mine sequencing adds approximately $17 Min pre-production stripping, this capital expenditure is far outweighed by the expected operating and capital cost benefits.

_Metallurgy and Recoveries: _Significant improvements were made in the understanding of metal recovery stemming from a thorough analysis of the metallurgical test work data and the associated geochemical data base. Previously ore within each metallurgical type was treated fairly homogenously. The new method allowed for the estimation of recovery in a distinct and predictable metallurgical manner, resulting in continuous recovery model that was applied to each block of the block model based on geology and mineralogy. Ultimately, this predictive model resulted in higher-confidence in metallurgical recoveries that led to improvements in mine planning.

Feasibility Study | | Lead Concentrate | Lead | 62.80% | 71.11% | | Silver | 67.10% | 60.29% | | | Zinc Concentrate | Zinc | 60.10% | 51.58% | | Silver | 4.83% | 3.90% | | | Total | Silver | 71.93% | 64.19% | | Lead | 62.80% | 71.11% | | | Zinc | 60.10% | 51.58% | | | Total Payable Metals | Silver | 151 M oz | 160 M oz | | Lead | 1,652M lbs | 2,102 M lbs | | | Zinc | 910 M lbs | 743 M lbs | |

Overall, expected silver and zinc recoveries increased by approximately 8% each and lead recoveries decreased by 8% from those cited in the 2011 Corani Feasibility Study. Because of the better understanding of metallurgical recoveries, some of the transitional materials (mixed oxide and sulfide) were eliminated from the mine plan as a result of low estimated flotation recovery, reducing the silver reserves by approximately 15.5% (see "2015 Corani Reserve and Resource Estimates" below) but only reducing the payable silver by 5.6% from 160 M oz in the 2011 Corani Feasibility Study to 151 M oz in the 2015 Corani Feasibility Study, thus achieving the objective of higher efficiencies in mining and processing.

Optimized Layout

The 2015 Corani Feasibility Study optimizations include various layout modifications that benefit the project economics. The crusher was relocated to create shorter and more efficient haul profiles. As mentioned previously, one waste dump (the East Dump) has been eliminated and pit backfilling has accelerated. Additionally, the South Water pond is no longer necessary due to reduction in water consumption with the dry tailings disposal method.

Importantly, as a result of the optimized layout, the Corani mine and processing infrastructure is entirely located on land to which Bear Creek owns 100% of the surface rights.

Key Financial and Technical Metrics

The 2015 Corani Feasibility Study was prepared using cost bids, estimates and production forecasts provided by qualified engineering consulting groups led by M3 with significant contributions by GRE and Tom Shouldice(metallurgical consultant). A Technical Report supporting the results presented herein will be prepared and filed, in compliance with National Instrument 43-101, within 45 days of the date of this release.

Base Case Assumptions

The following key assumptions were used in the 2015 Corani Feasibility Study:

Project Economics and Sensitivity

| Case | IRR | NPV (1)@5%

(000's) | NPV (1)@0%

(000's) | | Base Case (2) | 20.9% | $659,677 | $1,236,632 | | Recoveries + 10% | 24.7% | $862,821 | $1,558,926 | | Recoveries -10% | 16.8% | $456,132 | $913,705 | | Metal Prices +10% | 25.3% | $898,216 | $1,616,060 | | Metal Prices -10% | 16.1% | $420,083 | $855,417 | | Initial Capital Cost +10% | 18.5% | $607,115 | $1,188,245 | | Initial Capital Cost -10% | 23.7% | $710,167 | $1,279,366 | | Spot Metal Prices (3) | 14.9% | $372,170 | $783,250 |

| (1) | Net Present Value after tax | | (2) | Base Case calculated using metal prices of $20/oz Silver, $0.95/lb Lead and $1.00/lb Zinc | | (3) | Spot prices on June 1, 2015 were $16.71/oz Silver, $0.87/lb Lead and $0.98/lb Zinc |

The operating efficiencies resulting from the optimized Corani mine design and mine plan had a significant effect on the economics of the project. The Net Present Value (after tax and at a 5% discount rate) increased by 43% from $463 Min the 2011 Corani Feasibility Study to $660 Min the 2015 Corani Feasibility Study, and the Internal Rate of Return increased from 17.6% in 2011 to 20.9% today. The financial model is based on silver, lead and zinc prices of $20.00/oz, $0.95/lb and $1.00/lb respectively, which represent the three-year backward and two-year forward metal prices, weighted 60:40, in keeping with the Company's policy and industry standards, and takes into account current Peruvian tax and royalty rates. (Metal prices used in the 2011 Corani Feasibility Study were $18.00/oz silver, $0.85/lb lead and $0.85/lb zinc.)

Capital and All-In Sustaining Costs

| | 2015 Corani

Feasibility Study | 2011 Corani

Feasibility Study | | Initial Capital | $625 M | $574 M | | Sustaining Capital | $39 M | $144 M | | Total Capital Expenditures | $664 M | $718 M | | AISC (1)per ounce of Silver(by-product basis), Years 1-5 | $(0.23) | $(0.09) | | AISC (1) per ounce Silver (by-product basis), Life of Mine | $3.85 | $4.56 | | AISC (1)per ounce of Silver, (co-product basis) Life of Mine | $11.13 | $10.69 |

| (1) | All-In Sustaining Costs ("AISC") are per payable oz, and are calculated as cash operating costs + sustaining capital costs + reclamation and closure costs + social costs |

Initial capital costs are estimated at $625 Min the 2015 Corani Feasibility Study compared with $574 Min the 2011 Corani Feasibility Study. The increase in estimated initial capital is primarily a result of cost escalation and increased expenditures related to construction of roads, a power line and the mine camp, as well as increases in the cost of mine construction (including additional pre-production stripping), partially offset by capital savings stemming from elimination of the tailings dam. Sustaining capital costs were substantially reduced to $39 Min the 2015 Corani Feasibility Study compared to $144 Min the 2011 Corani Feasibility Study. Decreases in ongoing mining costs (as a result of leasing of equipment), ongoing process plant and tailings dam capital requirements contributed to this significant reduction in sustaining capital. The net effect of these changes is a decrease in total capital requirements of $54 M.

All-in sustaining costs per ounce of silver (net of base metal credits) are estimated in the 2015 Corani Feasibility Study to be $(0.23)for the first five years of the operation and $3.85over the 18 year mine life. In the 2011 Corani Feasibility Study these metrics were ($0.09)and $4.56respectively. On a co-product basis, the all-in sustaining costs, as calculated in the 2015 Corani Feasibility Study, are well below both the base case metal prices used herein and the spot silver, lead and zinc prices on June 1, 2015.

2015 Corani Reserve and Resource Estimates

(000's) | Silver g/t | Lead % | Zinc

% | Silver Million oz | Lead Million lb | Zinc Million lb | Eq. Silver M oz | Eq. Silver g/t | | Proven | 19,855 | 69.1 | 1.09 | 0.72 | 44.1 | 478.7 | 313.4 | 82.5 | 129.2 | | Probable | 117,843 | 48.6 | 0.88 | 0.57 | 184.3 | 2,289.2 | 1,470.7 | 366.5 | 96.8 | | Proven & Probable | 137,698 | 51.6 | 0.91 | 0.59 | 228 | 2,768 | 1,784 | 449 | 101.4 |

Note: see regulatory footnotes below for calculation methods and assumptions used to estimate the Mineral Reserves presented above.

(000's) | Silver g/t | Lead % | Zinc

% | Silver Million oz | Lead Million lb | Zinc Million lb | | Measured | 14,360 | 32.01 | 0.34 | 0.19 | 14.8 | 108.4 | 61.6 | | Indicated | 83,749 | 25.37 | 0.37 | 0.28 | 68.3 | 682.2 | 512.8 | | Measured & Indicated | 98,109 | 26.34 | 0.37 | 0.27 | 83.1 | 790.6 | 574.4 | | Inferred | 39,953 | 37.20 | 0.58 | 0.40 | 47.8 | 510.6 | 352.4 |

Note: see regulatory footnotes below for calculation methods and assumptions used to estimate the Mineral Resources presented above.

The 2015 Corani Feasibility Study re-calculated an estimate of Mineral Reserves and Mineral Resources contained within the Corani deposit based on the optimized mine plan and utilizing updated metal prices. No new drill data (beyond that which was used in the 2011 Corani Feasibility Study) were incorporated into the Mineral Reserve and Mineral Resource estimates above. As a result of the metal price updates and mine plan revisions included in the 2015 Corani Feasibility Study, primarily the elimination of 2 years' production of low-grade transitional materials (mixed oxide and sulfide), Proven and Probable silver reserves decreased 15.5% (from 270 M oz to 228 M oz) in comparison to the 2011 Corani Feasibility Study. As discussed above in "Optimized Mine Sequence and Improvements in Recoveries - Metallurgy and Recoveries" however, improvements in the recovery of silver offset the majority of this reduction in silver reserves, such that the payable silver was reduced only 5.6% from 160 M oz in the 2011 Corani Feasibility Study to 151 M oz in the 2015 Corani Feasibility Study.

Going Forward The design and operating improvements incorporated in the 2015 Corani Feasibility Study are expected to require only a modification of the existing approved ESIA, without the necessity for additional public hearings, as they are entirely located within the previously approved project footprint. Furthermore, as the environmental impact of the proposed Corani operation has been reduced as a result of the modifications described above, the Company anticipates final permitting timelines will shorten and costs will be lower than previously anticipated.

Bear Creek's plans for the Corani project are to focus on preparing for development of the project starting with the preparation and submission of the amended ESIA in the third quarter of 2015. Concurrently, the Company will commence the mine permitting process (of which the amended ESIA will form a key component). The Company will also commence evaluation of potential mine financing options and expects to enter into discussions with potential financing partners. The goal of these activities is to ensure Bear Creek has the information, permits, approvals and relationships in place to consider a production decision pending issuance of a construction permit as early as 2016.

Bear Creek Mining Announces Results of Updated Corani Feasibility Study

Highlights of the 2015 Corani Feasibility Study

Key Modifications Included in the 2015 Corani Feasibility Study

Key Financial and Technical Metrics

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