News for 'SFMI' - (Silver Falcon Mining, Inc. (SFMI) Comments on 2011 Year-end Report)

BRADENTON, FL, Apr 11, 2012 (MARKETWIRE via COMTEX) -- Silver Falcon Mining's

(OTCBB: SFMI) stock prices and volatility can be attributed to a number of

factors, which can be directly and/or indirectly relate! d to the Company.

Indirectly, the Corporation trades as a mining stock, which is influenced by the

overall changes, in the trading platform, as it moves upwards or downwards. Both

the global and domestic mining indexes have an indirect effect on the stock

price, as well as the influence of the prices of commodities that SFMI produces,

which are Gold and Silver. The mining sector in the last 5 months has been

greatly affected from global downward pressures.

The Company currently operates its DIAMOND CREEK MILL which runs at 100 wet tons

of ore per day, with an average grade of 5 grams per ton Gold and 18 grams per

ton Silver. The mill operates 7 days a week.

Because the Company's mill feed materials contains inorganic minerals which is

closely bound to the precious metals, the gravity feed system design at the mill

does not operate at top efficiency in stripping a high proportion of the

precious metals away from these carrier! s affecting the Gold and Silver recovery

rates. As such, Management has undertaken the permitting of a "closed loop,

cyanide leaching circuit" which will improve recovery rates up to, or greater

than, 90%. So far, the permitting process has been going smoothly. SFMI believes

based on statements from the government officials, that permitting could be

granted towards the end of the 3rd quarter or early 4th quarter of this year.

The Company cannot guarantee this timeframe, but has every confidence in its

abilities to meet the necessary provision for the permit.

Noteworthy, as of this date from its milling operations, SFMI has $5.5M (approx)

of precious metal value in inventory on site which has yet to be converted to

BULLION DORE, and under US SEC accounting rules cannot be added to the balance

sheet until this material is reprocessed in its coming leaching circuit; which

will start once final permits have been granted from, Local, State ! and Federal

entities. In the mean time, deliveries of BULLION DORE to the refinery are

ongoing.

Drilling 6,000 feet has been budgeted for the Sinker Tunnel to ascertain the

true values contained within War Eagle Mountain, which has numerous veins and

off-shoot veins of epithermal precious metal bearing geological structures. The

study will result in a fleshing out of the preliminary instrument 43-101 to be

filed shortly. Since drilling has yet to begin, and results from drilling have

yet to materialize, this could have an effect SFMI's stock prices.

Through December 31, 2011, SFMI spent over $2 million to acquire and refurbish

the mine shafts, the Sinker Tunnel and build/develop access roads.

Mining is both time and capital intensive. Even with the best mine plan, time

expectations always take longer and capital is always necessary to manage and

develop projects. To date, SFMI has self-funded its operations through a

comb! ination of long-term promissory notes, issuances of S-8 registered shares,

144 restricted shares and sales of precious metal. The monies received in

return, have enabled SFMI buy a property, build its DIAMOND CREEK MILL FACILITY,

ASSAY LAB, METALLURICAL BUILDING (GOLD & SILVER Producing Facility), roads, and

rehabilitation of the Sinker tunnel, to hire key personnel and to greatly

enhance mineral rights ownership claims throughout War Eagle Mountain.

Knowingly, financing is a "GIVE and TAKE" situation. The Company issues

promissory notes as collateral for equity to investors and issues shares both

restricted and free shares under its S-8 filing to contractors to pay for the

aforementioned infrastructures. This creates dilution to the overall outstanding

shares. This too can be a direct reason for a falling stock price.

Mr. Quilliam, CEO, said, "No public corporation likes to see its stock price

lowered, but as long as management ma! intains austere cost controls, develops

minable deposits and can produce more gold and silver, stock price will respond,

accordingly. The Corporation remains confident in its mining / developmental /

exploration activities at its War Eagle Mountain project, Murphy, Idaho. As it

continues to advance its milling activities, develop its mining projects, and

move forward with other exciting exploration targets, Silver Falcon Mining, Inc.

will be driven to deliver results and always be appreciative of its shareholder

support."

The Company further reports that as of this date, approximately 1/2 of the

long-term and short term promissory notes classified as long-term and short term

notes payable as of year-end have been converted to restricted shares. This

greatly reduced the Company's reported liabilities.

Silver Falcon Mining, Inc. (OTCBB: SFMI) is a producer, developer and explorer

of mineral resources, primarily in Owyhee County, I! daho, USA, with the objective

of being a profitable, low-cost, precious metal producer and creating

significant growth in shareholder value.