Seven In-Fill Drill Holes Continue to Add Confidence To Harper Creek Stratabound Resource

TSX:YMI, OTCQX:YHMGF

VANCOUVER, Feb. 21, 2013 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI; OTCQX: YHMGF) is pleased to report the results of a further seven holes of the 11,000 metre drill program announced in December 2012.  Drill spacing between the cross-sections (along strike) reported here is 60m, whereas the previous drill spacing in this part of the deposit was in the range of 120m. Yellowhead intends to update the NI 43-101 resource estimate subsequent to the completion of the drill program.

Section 304060E

Holes HC12-137 and HC12-139 are part of a five-hole fence on the western side of the deposit, of which results for two holes were announced on February 14, 2013.

Please refer to the Cross Section Map http://www.yellowheadmining.com/i/pdf/2013-02-21-Cross-Section-304060E.pdf and Drill Plan Map http://www.yellowheadmining.com/i/pdf/2013-02-21-Drill-Plan-Map.pdf or available at www.yellowheadmining.com.

Section 304580E

Holes HC12-135 and HC12-141 are part of a four-hole fence west of centre in the deposit.

Please refer to the Cross Section Map http://www.yellowheadmining.com/i/pdf/2013-02-21-Cross-Section-304580E.pdf.

Section 304640E

Holes HC12-138, HC12-140 and HC12-142 are part of a five-hole fence west of centre in the deposit.

Please refer to the Cross Section Map http://www.yellowheadmining.com/i/pdf/2013-02-21-Cross-Section-304640E.pdf.

Qualified Person

The program is being managed by CME Consultants Inc. ("CME"). Christopher O. Naas, P.Geo. B.Sc., President of CME and Drill Program Contractor for Yellowhead's Harper Creek Project, and a Director of Yellowhead's wholly-owned subsidiary Harper Creek Mining Corp., is a qualified person as defined by National Instrument 43-101, and is not independent of Yellowhead as defined by Section 1.3 of the Instrument.  Mr. Naas prepared or reviewed the preparation of the scientific and technical information in this press release with respect to the analytical results from the Harper Creek drill program.

Sample Collection, Analyses, and QA/QC

All core processing was undertaken by CME personnel.  Core was cut by electric motorized rock saw with half core shipped to ALS Laboratory Group for sample preparation and analysis.  Drill core samples were analyzed for gold by fire assay with an AA finish and multi-elements by total digestion ICP-ES.  Core samples returning greater than 2,000 ppm copper in the ICP-ES process were then assayed for copper. In addition to control samples inserted by CME, the analytical laboratory routinely inserted their own control samples, which consisted of standards, blanks and sample repeats.

About Yellowhead Mining Inc.

Yellowhead's Harper Creek Project is a copper-gold-silver volcanogenic sulphide deposit located in south-central British Columbia, approximately 150 kilometers by highway north of Kamloops.  The Feasibility Study, dated and filed on SEDAR on March 29, 2012 and restated and amended as of January 25, 2013 (and available for review on SEDAR and Yellowhead's website) shows an after-tax NPV₈ of US$465.3 million with an IRR of 17.0% based on long-term metal price projections of US$2.50/lb Cu, US$1,250/oz Au and US$20/oz Ag, and a US$:Cdn$ exchange rate of 0.86:1.  The Feasibility Study demonstrated a 28 year project life at a milling rate of 70,000 tpd (25.55Mt/y). The project as designed is expected to produce a total of 3.63 billion pounds of copper, 372,000 ounces of gold and 14 million ounces of silver contained in concentrate.

At a 0.14% Cu cutoff,  Proven Reserves are estimated at 401.18Mt @ 0.272% Cu, 0.031g/t Au and 1.15g/t Ag; Probable Reserves 303.22Mt @ 0.248% Cu, 0.027g/t Au and 1.13g/t for a total Proven and Probable Reserve of 704.4Mt @ 0.262% Cu, 0.029g/t Au and 1.14g/t Ag.

The Feasibility Study is based on an updated resource.  At a 0.20% Cu cutoff Measured Resources are estimated at 348.5Mt at 0.31 % Cu, 0.034g/t Au, 1.3g/t Ag; Indicated Resources at 466.5Mt at 0.28% Cu, 0.03g/t Au, 1.3g/t Ag for a total Measured and Indicated Resource of 815Mt at 0.29% Cu, 0.032g/t Au and 1.3g/t Ag (5.26 billion pounds of copper contained).  A further 80.17Mt at 0.30% Cu, 0.033g/t Au, and 1.4g/t Ag are estimated in the Inferred Resource category (0.53 billion pounds of copper contained) and are reported as waste in the mine production schedule until they can be upgraded by additional infill drilling.

Yellowhead has a 100% interest in the Harper Creek Project (subject to the payment of a 3% NSR royalty capped at $2.5 million, adjusted for inflation and an additional 2.5% NSR royalty on an estimated 1.5 Mt of ore which is expected to be mined beginning in year 16 of the Feasibility Study mine plan).

T. Gregory Hawkins, Interim Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this press release other than the assay results of the Harper Creek drill program disclosed in this release.

Forward Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, inherent operating risks, planned expenditures, proposed exploration and development at the Harper Creek Project, operating and economic aspects of the Harper Creek Project, as well as those risk factors identified in the Company's Annual Information Form filed under the Company's SEDAR profile. Yellowhead undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect projected results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.

This news release includes disclosure of scientific and technical information, as well as information in relation to the calculation of mineral resources and reserves, with respect to the Harper Creek Project. Yellowhead's disclosure of mineral resource and reserve information is governed by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). There can be no assurance that mineral resources will ultimately be converted into mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability. This news release uses the terms "measured", "indicated" and "inferred" resources. U.S. persons are advised that while such terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. "Inferred Resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred resources may not form the basis of feasibility or other economic studies. U.S. persons are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. U.S. persons are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

SOURCE Yellowhead Mining Inc.