$SFMI - Silver Falcon Updates

Recently, Silver Falcon Mining, Inc. (OTCBB: SFMI) ($SFMI) reported on its mining and milling operations, as well as commented on anticipated 2013 activities.

Diamond Creek Mill

The Company's Diamond Creek Mill's designed gravity feed circuit has been temporarily shut-down for its yearly heavy maintenance and component recalibrations. At the same time, the integration of the new floatation cell circuit is being added as a new component to the existing mill circuitry. Early testing of tailings material, from the floatation cells, reveals a significant improvement in recovery values of ALL precious metals. Management feels that once the flotation circuit is fully operational in the ensuing weeks, this will greatly improve bottom-line for the 2013 operational year. The company is floating the 30,000 on hand to extract all the contained gold and silver.This means that for every ton of tailings that are being processed the company will be pulling out more precious metal than before. Its a much more efficient system that will generate benefits for years to come.

The "Conditional Use" application for full implementation of the permitted closed-loop leaching system remains on-going and on schedule without delays. The Company can move forward to becoming a full fledged operation.

Further, management reports that work on the permanent storage of mill tailings will begin in earnest.

Diamond Creek Metallurgical Lab

The Company's metallurgical laboratory building which contains, the Bullion Dore facility, the lab facility and the secured vault, has been fully erected. Company workers are finishing the remaining interior architectural components, allowing this facility to be fully operational. The company can reduce overhead costs and increase gross margin by bringing this operation in house instead of shipping to an outside service.

Sinker Tunnel Gold Project

The Company has been working within the Sinker Tunnel Gold Project as per directives approved by SFMI's Board of Directors. Due to mining rules, only SFMI personnel will be allowed inside the fenced in parameter of the project. As drilling, bolting, shoring, and exploration proceeds over the upcoming months, management will report as necessary on these operational developments. Basically, the company is preparing the site to begin exploration mining activities. Once ready, they'll be pulling out ore to be processed.

Management remains excited about the fact that these are the first mining activities on War Eagle Mountain in over a century. The provenance on this site is extraordinary. Look at its history and the fact that it hasn't been touched in such a long time. The money is in there and its only a matter of time before $SFMI begins to pull it out.

Pierre Quilliam, CEO, states, "After two years of efforts, both at the mill site and at the Sinker, it is very gratifying to see our efforts maturing. From a barren 20-acre site, the Diamond Creek Mill Facility has risen into an agglomeration of infrastructures, buildings, and equipment. The Company has one objective, to extract and deliver as much precious metals to the world markets as we can produce profitably from our holdings." He further mentions, "This is the year where production will become the mainstay of SFMI's objectives and operational motives. This in turn should deliver significant revenue to the Company and growth of shareholder values." Investors you should be aware that this company will begin generating real revenues from the Sinker Tunnel this year. Don't get caught with your pants down because it has taken a few years. The long wait will soon be over and once they start generating revenues those numbers should continue to grow in the future.