ECU Silver Releases Second Quarter Results for 2010

Monday August 16, 2010, 3:00 am EDT

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2010) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) reports that it has recently released its consolidated financial statements for the second quarter ended June 30, 2010 (Q2 2010) and the related management's discussion and analysis of financial position and results of operations (MD&A).

The Company generated record net revenues from the sale of dore bars and concentrates for a total of $4,425,413, representing a 39% increase over the previous quarter ending March 31, 2010 (Q1 2010). The strong increase in revenue is primarily a result of improved efficiencies in the mining methods and at the Oxide Mill.

The revenues were applied against cash development costs of $3,554,651 bringing the net positive cash flow to $864,471 for Q2 2010. These costs are essentially equal to the previous quarter, Q1 2010. This was achieved in spite of increased development activities starting in the month of June in line with the hiring of our new veteran mine manager. This new development included opening new areas of the Santa Juana mine, a newly discovered vein at the Chicago mine, a new level at the San Juanes mine and a totally new mining unit on the western extension of the Terneras vein.

As previously reported (see press release dated August 3, 2010), in Q2 2010 the operations generated silver totaling 106,887 ounces (Ag oz) and gold totaling 3,064 ounces (Au oz), which is a quarterly record. In addition, the mines generated 58,273 pounds of lead and 36,533 pounds of zinc. Expressed in terms of silver equivalent ounces (AgEq oz), and based on recent commodity prices, total metal output was 314,754 AgEq oz yielding cash operating costs of $11.29 per Ag oz or US$10.98/oz based on the average $US $C exchange rate during the three month period ending June 30, 2010.

Stephen Altmann, President of ECU, said; "Since acquiring the Oxide Mill in April of 2009, the entire team has worked diligently to achieve stable monthly operations. We now have achieved steady production at our Oxide Mill and in our mines. This is providing us with a solid platform for our future growth. With the recent hiring's of our VP Operations and our new Mine Manager, the Company is continuing to implement improvements and we expect continued strong results from our mining and milling operations."

During Q2 2010, the Company reported a net loss of $3,400,930, or 1 cent per share, versus $1,852,350, or 1 cent per share, over the previous quarter Q1 2010. The largest impact to this change was due to a $1,706,504 fluctuation in foreign exchange. Before changes in foreign exchange, a net loss of $2,496,439 was realized in Q2 2010, which is a 6% enhancement in net loss versus the comparable net loss for Q1 2010.

Subsequent to June 30, 2010

As reported in its press release dated July 13, 2010, the Company entered into an agreement to sell an initial 10,000 tonnes from its gold/pyrite concentrate, currently stockpiled near its Velardena Property in Durango, Mexico. The Company will deliver the gold/pyrite concentrate at a rate of 1,500 to 2,000 tonnes per month, equivalent to approximately 965 to 1,285 ounces of gold per month. The Company has commenced delivery of its gold/pyrite concentrate and is making investments in underground development to generate additional gold/pyrite concentrates for future sales. The underground development will include reactivating stopes in sulphide mineralization that will be processed at the Company's Sulphide Mill. Furthermore, the current mining plan calls for both mills to be operating at full capacity by the fourth quarter, which would significantly increase current sales levels.

Outlook

Going forward, the Company expects its cash balance to strengthen as it begins receiving payment from the sale of its gold/pyrite concentrates and through further increases in silver/gold dore fabrication.

The Company plans to have regular updates as results become available from the new developments being prepared in the Santa Juana mine, Terneras West, San Juanes and Chicago mines.

Copies of the financial statements and related MD&A can be found on SEDAR at www.SEDAR.com.

About ECU Silver

ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent ounces in the measured and indicated category and 391 million silver equivalent ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena. http://www.ecu.ca/

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