EAST-SIDE DRILLING INTERCEPTS SIGNIFICANT GOLD AND SILVER MINERALIZATION
COMSTOCK UPDATES DRILL RESULTS IN LUCERNE

Virginia City, NV (October 16, 2012) -- Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE MKT: LODE) announced significant progress on its extended development drilling and initial step-out drilling programs, both in the Company’s Lucerne Resource Area (the “Lucerne”). The step-out drilling concluded in the East-side of the Lucerne on October 7, 2012. Assays for this program have been received for the first ten holes out of 20 holes drilled, with highlights including an assay of 1.693 ounces of gold per ton in hole E12-05, contained in a 20 foot interval averaging 0.621 ounces of gold and 1.408 ounces of silver per ton, and an assay of 6.000 ounces of silver per ton in hole E12-10, contained in a 75 foot interval averaging 0.111 ounces of gold and 1.382 ounces of silver per ton. Seven of the holes had multiple intervals of significant mineralization totaling 150 feet or more, up to 370 feet per hole, including five of the holes with contiguous intervals of 100 feet or more.

The East-side step-out program was drilled concurrently with the conclusion of the extended development-drilling program that began on March 13, 2012, in the Lucerne Mine. That program was designed to optimize and extend the life of the currently operating Lucerne Mine and included 237 reverse circulation (RC) drill holes to-date, totaling over 87,000 feet and 25 core holes totaling 6,126 feet. The Lucerne development-drilling is scheduled for completion in late October.

"Our Lucerne drilling is expected to extend our initial mine life by at least one year, at current production rates,” stated Corrado De Gasperis, President and CEO of Comstock, "and the East-side developments, both the higher grades and significant thicknesses, continue to exceed expectation and generate incredible resource expansion opportunity. We look forward to completing this phase of the program and formally updating the results in our next NI 43-101 report in the fourth quarter.”

East-side 2012 Preliminary Results

The Lucerne East-side drilling began July 24, 2012, with plans to drill twelve deep RC holes from the top of Donovan Ridge, on the east side of State Route 342. These holes were designed to test the continuity and down-dip extensions of the mineralization encountered in the 2010 and 2011 East-side drilling, with depths planned of up to 1,400 feet. The initial, positive results of the program encouraged the Company to extend the program to a total of 18 RC holes. An additional two holes were drilled to test the location for a future water monitoring well. Twenty East-side holes were completed altogether, totaling 21,310 feet of RC drilling.

Assay results have been received for the first ten RC drill holes, showing that all holes encountered intervals of significant mineralization (gold grades greater than 0.010 ounces per ton or silver grades greater than 0.100 ounces per ton, and length of at least ten feet).

Highlights of the results from the first ten holes include hole E12-05, with total significant mineralization of 370 feet in multiple zones, including contiguous significant mineralization of 120 feet (0-120’), 90 feet (965-1055’), and 55 feet (1065-1120’). The 120-foot interval averaged 0.050 ounces of gold and 0.267 ounces of silver per ton. Hole E12-05 also includes a 10-foot interval averaging 1.016 ounces of gold and 2.589 ounces of silver per ton, contained in a 20-foot interval averaging 0.621 ounces of gold and 1.408 ounces of silver per ton.

Also of note was hole E12-02, with total significant mineralization of 280 feet in multiple zones, including 135 feet (675-810’) of contiguous significant mineralization. Hole E12-02 also includes a 20 foot interval averaging 0.273 ounces of gold and 0.264 ounces of silver per ton. Visible gold was logged in the RC chips from this interval.

Hole E12-02, depth 410-415', goethite with visible gold on quartz.
(Image taken at 40x; length of gold particle approximately 0.35 mm)

Hole E12-04 has total significant mineralization of 290 feet in multiple zones, including 145 feet (660-805’) of contiguous significant mineralization, which contains a 75-foot interval averaging 0.018 ounces of gold and 0.400 ounces of silver per ton. Hole E12-06 is also of note for a 10 foot interval averaging 0.213 ounces of gold and 1.605 ounces of silver per ton, contained in a 35 foot interval averaging 0.091 ounces of gold and 0.897 ounces of silver per ton.

Hole E12-07 has a total of 265 feet of significant mineralization in multiple zones, including contiguous intervals of significant mineralization of 105 feet (505-610’) and 140 feet (735-875’). Hole E12-09 includes a 45 foot interval averaging 0.142 ounces of gold and 1.165 ounces of silver per ton, and hole E12-10 includes a 75 foot interval averaging 0.111 ounces of gold and 1.382 ounces of silver per ton.

Significant Mineralized Intervals

A sample from each five-foot interval in each drill hole has been sent for analysis to American Assay Labs, of Reno, Nevada, a certified independent laboratory. Assay results have been received to date for ten of the RC holes in the program. 

Ongoing Drilling Programs

The previously completed Spring Valley exploration drilling, the Lucerne West-side development drilling and the initial East-side step-out drilling were the first phases of the Company’s ambitious, 2012-2013 exploration program. Further phases will include Infill drilling in the Dayton Resource Area, to support a mine plan and permitting activities for a second mine; Infill drilling in the East-side of the Lucerne Resource Area, to support a mine plan and permitting activities for an expansion of the existing Lucerne Mine; and ultimately, Exploration drilling on high-priority targets outside the Lucerne and Dayton Resource Areas.

"The remaining East-side of Lucerne and Dayton Infill drill programs will develop and expand mine plans for both Lucerne and Dayton and provide the precise engineering and economic plans for implementing our production growth plans in 2013 and beyond,” stated Corrado De Gasperis, President and CEO of Comstock.

About Comstock Mining Inc.

Comstock Mining Inc. is a Nevada-based gold and silver mining company with extensive, contiguous property in the Comstock District. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and commenced production in 2012. The Company continues acquiring additional properties in the district, expanding its footprint and creating opportunities for further exploration and mining. The goal of its strategic plan is to deliver stockholder value by validating qualified resources (at least measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces in 2013, and commencing commercial mining and processing operations with annual production rates of 20,000 gold equivalent ounces.

Forward-Looking Statements

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