United Mining Group Announces US$4.3 Million Exploration Program at Crescent Silver Mine Project

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/17/11 -- United Mining Group, Inc. ('UMG' or the 'Company') (TSX: UMG)(OTCQX: UMGZF)(FRANKFURT: UM8) is pleased to announce a US$4.3 million Phase I exploration program at its intermediate-advanced stage Crescent Silver Mine project, located in Silver Valley Idaho, in the Coeur d'Alene Mining District.

Scheduled to commence in April 2011, the Phase I exploration program will consist of 12,000 feet of underground drilling from stations within the Crescent Silver Mine and 25,000 feet of surface drilling from platforms on the original 143 hectare (353 acre) property, as well as on the newly acquired, 236 hectare (620 acre) contiguous Bunker Claims (see news release dated December 14, 2010). The Bunker Claims' 1.2 kilometer strike extension of the Crescent Mine's silver-bearing Alhambra and South veins, which strike east-west on the newly acquired property, has never been drilled.

Located between two world-class silver producers, the Sunshine and Bunker Hill mines, with combined silver production of approximately 500 million ounces, the Crescent Silver Mine, historically the highest grade producer in the region, is one of the few properties in the Silver Belt that remains highly prospective yet relatively unexplored and un-mined. From 1917 to 1981, under the ownership of the Bunker Hill Mining Co., the Crescent Silver Mine produced 25 million ounces of silver from four main mineral structures at an average grade of 27.3 opt (SRK Consulting National Instrument 43-101 report, March 1, 2010). From 2007 to 2009, approximately CAD$13.5 million in exploration expenditures were incurred by new owners, targeting just two mineralized structures, the Alhambra and South veins, resulting in an indicated resource of 6.1 million ounces of silver (324,000 tons grading 18.7 opt silver), and inferred resources of 4.1 million ounces silver (211,000 tons grading 19.5 opt silver). The current resource estimate includes only mineralization above the 2,450 ft evaluation, the 'upper country', within two of the five mineral structures, the Alhambra and South veins, with none of the historic production areas located within the areas of the NI 43-101 resource estimate. Furthermore, while the Alhambra Vein is confined at depth, the South Vein remains open at depth and was never mined.

The objective of the Company's Phase I exploration program is to increase resources within the mine, along with obtaining new geological data on near-surface structures on the newly-acquired Bunker Claims. The approach will be to drill test from underground stations, presently being prepared at a depth of 2,300 feet below surface with the objective of proving the continuity of the South and Alhambra veins. The indicated resources of the upper reaches of these veins are in the current mine planning development stage for the first three years of production. Underground drifting on the South Vein from deeper levels, provided by the currently-progressing decline, will continue to provide much-needed bulk samples deeper within the system.

The objective of the underground drilling on the South Vein will be to extend the indications of silver mineralization to a level which is twice as deep as the currently-identified resource, up to 2,600 feet below surface. Historic mining at the Crescent Mine reached a vertical depth of 6,500 feet, indicating that the vein-hosted silver deposits have great depth potential. Fan drilling will test the depth extension of known silver-bearing veins during the course of the year. Surface drilling will test the numerous new targets from six platforms on the western extension of the system towards Bunker Hill and should provide a constant stream of information as the year progresses.

Charles Pitcher, Chief Executive Officer, commented, 'With 80 years of 'Silver Belt' experience within the Crescent Silver Mine geological and engineering staff we are confident of obtaining a continuing flow of geological data that would enhance our historical knowledge and resource improvements. Our current resource is now actually in the bulk sampling stage and mine planning is well underway. We anticipate a very successful year both in exploration and underground development.'

ABOUT UNITED MINING GROUP

United Mining Group is a vertically integrated mining company with operations in Idaho, USA. The Company is currently earning, through development and operations, an 80% interest in the Crescent Silver Mine project in Idaho's prolific Silver Belt - directly between two of the world's historically largest silver producing properties, the Sunshine and Bunker Hill mines. The Company also offers a full suite of mining services including contract mining and mine machine repair and fabrication services to silver miners in the district. UMG is committed to building a senior silver-producing mining company based on aggressive exploration and development of the highly-prospective current land position at the Crescent Silver Mine project and through the acquisition of additional precious metals interests. The Company trades on the Toronto Stock Exchange under the symbol 'UMG'. For more information about the Company, please visit: www.unitedmininggroup.com .

In compliance with NI 43 101, Lawrence Dick, Ph.D., P.Geo., is the Qualified Person responsible for the accuracy of this news release.

ON BEHALF OF UNITED MINING GROUP, INC.

Charles Pitcher, Chief Executive Officer

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the inability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contacts:

United Mining Group Inc.

Greg Stewart

Chief Operating Officer

208.682.9018
gstewart@unitedmininggroup.com
www.unitedmininggroup.com