In a just released PR SFMI addresses concerns regarding the more than doubling of shares since the last 10K by noting how many of the shares are "restricted" (without saying for how long). They also note that most of those shares were issued when the sp was higher (DUH- it's lower now than just about ever). They also don't mention that many of those shares went to pay salaries, and PQ's salary tripled last year. Shares also went to GHDC as lease payments and were then used to pay GHDC's salaries (same people, for you newbies), instead of GHDC issuing GHDC shares for that. I wouldn't be so POed except that those 400+M shares could have generated $20M at .05- enough for all the drilling program with plenty left over. 'Nuf said.

PR follows.

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Silver Falcon Mining, Inc. (SFMI) Provides Guidance to Shareholders Over Share Dilution Concern

http://media.marketwire.com/attachments/200711/381103_sfmi.jpghttp://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=873305&ProfileId=051205&sourceType=1

BRADENTON, FL -- (Marketwire) -- 04/12/12 -- Management at Silver Falcon Mining, Inc. (OTCBB: SFMI) would like to make reference to its current fully diluted share count, 789,162,405.

Since the publication of its 3rd quarter results, share dilution increased from 344,966,817 to 789,162,405.

The Company's 10-K published for the Year-Ending December 31, 2011, states under "NOTE 15" of the financials, a breakdown of current share issuances, http://www.sec.gov/Archives/edgar/data/1464830/000109181812000111/sfmi0410201210k.htm

Management wants shareholders to understand that the majority of the shares issued operate under Rule 144 and Section 16 US SEC rules, which are restricted from free-traded.

The breakdown between free traded shares and RESTRICTED shares are as follows (Please: reference NOTE 15 on the Company recent 10-K Filed, April 11, 2012).

----------------------------------------------------------------------------
      Category           Terms       Amounts             Issuance
----------------------------------------------------------------------------
Gold Land Holdings  Lease Payment  7,480,000  RESTRICTED-RULE 144
Co.
----------------------------------------------------------------------------
Vendor Payables     Payables      16,846,500  Free-trade S-8
----------------------------------------------------------------------------
Promissory Note     Conversions   60,461,757  RESTRICTED-RULE 144
Holders
----------------------------------------------------------------------------
Contractors         Payables      23,728,571  Free-trade S-8
----------------------------------------------------------------------------
Salaries            Payroll       157,952,616 RESTRICTED-RULE 144/Section 16
----------------------------------------------------------------------------
  TOTAL                           266,469,444
----------------------------------------------------------------------------

• As of 2/21/2012 the Company had a street FLOAT of 298,731,191-reported by CEDE & CO
• Certified shareholder count of 177,726,147 held in certificate form.
• Total outstanding on fully diluted basis, as of 03/13/2012, is 789,162,405.

Of the total 789,162,405 outstanding on fully diluted bases, the Officer/Directors/Major Shareholders held approximately 233,000,000 under RESTRICTED RULE 144 and SECTION 16. SECTION 16 of the US SEC rule places further restrictions beyond Rule 144 for officer/director/major shareholders. Major shareholders are classified as holders of 10% or more of the fully diluted total aggregate shares.

Noteworthy, shares issued to Officer and Directors had been issued at prices higher than the current share prices.

Management wants to ensure that even though dilution has occurred that the vast majority of shares, except for 40,571,071, are held under both RESTRICTED RULE 144 and Section 16 sale previsions. Thus, the street float went up approximately 40.5M to 298,731,191 since the Company's third quarter report filed 11-14-2011.

Silver Falcon Mining, Inc. (OTCBB: SFMI) is a producer, developer and explorer of mineral resources, primarily in Owyhee County, Idaho, USA, with the objective of being a profitable, low-cost, precious metal producer and creating significant growth in shareholder value.

Further Information contact: Rich Kaiser, Investor Relations, 757-306-6090, http://www.silverfalconmining.com.

SFMI cautions that statements made in press releases constitute forward-looking statements, and makes no guarantees of future performance and actual results/developments may differ materially from projections in forward-looking statements. Forward-looking statements are based on estimates and opinions of management at time statements are made.

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Contact:
Rich Kaiser
757-306-6090

Source: Marketwire (April 12, 2012 - 3:30 PM EDT)

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