NWM Q2 2011 Results and Lluvia-Jojoba Project Update

TORONTO, Aug. 29, 2011 /CNW/ --
TSX Venture Exchange


Symbol: NWM

TORONTO, Aug. 29, 2011 /CNW/ - NWM Mining Corporation (the 'Company'
TSX-V: NWM) is pleased to report its unaudited financial results for
the second quarter ended June 30, 2011. The summary of the selected
financial information should be read in conjunction with the unaudited
financial statements and the related management's discussion and
analysis dated August 29, 2011 together referred to as the 'Financial
Statements', which have been filed on SEDAR (www.sedar.com) and the Company's website (http://www.nwmcorp.ca). All figures are in Canadian dollars unless otherwise noted.

Highlights for the quarter ended June 30, 2011:

    --  Gold production began in May, 2011 and 1,064 ounces of gold
        were produced for the quarter ended June 30, 2011.
    --  Net Loss for the quarter was $1,434,201 or $0.004 per share as
        compared to $1,219,227 or $0.01 per share in the same quarter
        of 2010.  Since the company has not declared commercial
        production at the Lluvia-Jojoba project, pre-production revenue
        has been applied against capitalized pre-production
        expenditures. The Company reported no operating revenue for the
        three months ended June 30, 2010.
    --  460,480 tonnes of ore was stacked on the leach pads, containing
        approximately 8,400 ounces of gold.
    --  Exploration activities to expand the identified ore zones at
        Lluvia continued through the quarter, mainly consisting of
        air-track drilling to outline targets of interest and follow-up
        by diamond drilling.

Lluvia Site Activity:

Two new pad extensions at Lluvia, totalling 30,000 square meters were
completed and were loaded with ore and placed under leach in the
quarter.  During the second quarter, construction work began on the
Lluvia Dos leach pad facility.  Starting the last week in August, this
new leach pad was commissioned and started to receive ore.

Current Results and Outlook:

Based on progress to date, and realization of assumptions and targets
outlined in this MD&A and in the Company's press releases of April 27
and 28 and May 31, 2011 and the NI 43-101 technical report of July,
2010, the following points summarize an outlook of expected
developments.

    --  Recent NWM gold production has been stronger than anticipated
        with gold production in May, June July and August meeting or
        exceeding budgeted targets.
    --  Gold production for the first 28 days of August was 1,440
        ounces of gold with the anticipation that continued production
        will approximate budget by the end of the month.
    --  Approximately 1,065 ounces of gold was produced by the end of
        June, 2011 and an additional 10,000 ounces is expected to be
        produced by the end of 2011.
    --  Approximately 5 million tonnes containing over 100,000 ounces
        of gold will be stacked and under leach by the end of 2012,
        with approximately 50,000 ounces recovered.
    --  Expansion of the gold extraction circuits will proceed during
        the year as volume increases.  The second train of carbon
        columns, increasing capacity to 1600 GPM (363 cubic meters per
        hour), was brought on line during the first part of August
        2012.
    --  Reserves at the Jojoba deposit will continue to be developed
        and will begin to contribute to production by the end of the
        first Quarter of 2012.

    --  Copper content at the Lluvia deposit is manageable and gold
        recovery is as anticipated.
    --  ASPN technology is being advanced to handle the Jojoba
        deposit's higher copper levels.
    --  The mine site and all administrative support facilities are now
        fully staffed and operational.

Summary

During Q2 2011 NWM commenced gold production, a milestone for the
company.  NWM continued to advance the Lluvia site by extending the
size of the leach pads.  The Company continued to adjust its cost
structure, both on the operational and administrative side. The Company
also continued to advance the exploration program at Lluvia and Jojoba.
NWM continues to focus on ramping up gold production while improving
the efficiency of its new gold production processes.

NWM Mining is an emerging gold mining company with two gold ore bodies
containing NI 43-101 compliant gold reserves and resources. The Company
is focused on demonstrating profitable operations at the Lluvia de Oro
mine and growing its reserves through exploration and development.

For more information please see NWM's website at www.nwmcorp.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy of this release

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Chris Berlet, President & CEO    or    Chris Chadder, CFO

Phone: 416-364-6799    Fax: 416-364-2595
info@nwmcorp.ca