SILVER FALCON MINING, INC. (SFMI) Comments on 2011 Year-end Report

Murphy, Id. -- (MARKET WIRE) -- 04/11/12 -- Silver Falcon Mining, Inc. stock prices and volatility can be attributed to a number of factors, which can be directly and/or indirectly related to the Company.

Indirectly, the Corporation trades as a mining stock, which is influenced by the overall changes, in the trading platform, as it moves upwards or downwards. Both the global and domestic mining indexes have an indirect effect on the stock price, as well as the influence of the prices of commodities that SFMI produces, which are Gold and Silver. The mining sector in the last 5 months has been greatly affected from global downward pressures.

The Company currently operates its DIAMOND CREEK MILL which runs at 100 wet tons of ore per day, with an average grade of 5 grams per ton Gold and 18 grams per ton Silver. The mill operates 7 days a week.

Because the Company's mill feed materials contains inorganic minerals which is closely bound to the precious metals, the gravity feed system design at the mill does not operate at top efficiency in stripping a high proportion of the precious metals away from these carriers affecting the Gold and Silver recovery rates. As such, Management has undertaken the permitting of a "closed loop, cyanide leaching circuit" which will improve recovery rates up to, or greater than, 90%. So far, the permitting process has been going smoothly. SFMI believes based on statements from the government officials, that permitting could be granted towards the end of the 3rd quarter or early 4th quarter of this year. The Company cannot guarantee this timeframe, but has every confidence in its abilities to meet the necessary provision for the permit.

Noteworthy, as of this date from its milling operations, SFMI has $5.5M (approx) of precious metal value in inventory on site which has yet to be converted to BULLION DORE, and under US SEC accounting rules cannot be added to the balance sheet until this material is reprocessed in its coming leaching circuit; which will start once final permits have been granted from, Local, State and Federal entities. In the mean time, deliveries of BULLION DORE to the refinery are ongoing from current milling operations.

Drilling 6,000 feet has been budgeted for the Sinker Tunnel to ascertain the true values contained within War Eagle Mountain, which has numerous veins and off-shoot veins of epithermal precious metal bearing geological structures. The study will result in a fleshing out of the preliminary instrument 43-101 to be filed shortly. Since drilling has yet to begin, and results from drilling have yet to materialize, this could have an effect SFMI's stock prices.

Through December 31, 2011, SFMI spent over $2 million, to acquire and refurbish the mine shafts, the Sinker Tunnel and build/develop access roads. Mining is both time and capital intensive. Even with the best mine plan, time expectations always take longer and capital is always necessary to manage and develop projects. To date, SFMI has self-funded its operations through a combination of long-term promissory notes, issuances of S-8 registered shares, 144 restricted shares and sales of precious metal. The monies received in return, have enabled SFMI buy a property, build its DIAMOND CREEK MILL FACILITY, ASSAY LAB, METALLURICAL BUILDING (GOLD & SILVER Producing Facility), roads, and rehabilitation of the Sinker tunnel, to hire key personnel and to greatly enhance mineral rights ownership claims throughout War Eagle Mountain.

Knowingly, financing is a "GIVE and TAKE" situation. The Company issues promissory notes as collateral for equity to investors and issues shares both restricted and free shares under its S-8 filing to contractors to pay for the aforementioned infrastructures. This creates dilution to the overall outstanding shares. This too can be a direct reason for a falling stock price.

Mr. Quilliam, CEO, said, "No public corporation likes to see its stock price lowered, but as long as management maintains austere cost controls, develops minable deposits and can produce more gold and silver, stock price will respond, accordingly. The Corporation remains confident in its mining / developmental / exploration activities at its War Eagle Mountain project, Murphy, Idaho. As it continues to advance its milling activities, develop its mining projects, and move forward with other exciting exploration targets, Silver Falcon Mining, Inc. will be driven to deliver results and always be appreciative of its shareholder support."

The Company further reports that as of this date, approximately ˝ of the long-term and short term promissory notes classified as long-term and short term notes payable as of year-end have been converted to restricted shares. This greatly reduced the Company’s reported liabilities.

Silver Falcon Mining, Inc. (SFMI:OTCBB) is a developer and explorer of mineral resource properties, 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, 800-631-8127 and/or visit http://www.silverfalconmining.com.

About Silver Falcon Mining, Inc.

SFMI has mineral rights to approximately 2,000 acres on War Eagle Mountain in southern Idaho. Its 100% owned Diamond Creek Mill is situated at the foot of War Eagle Mountain and is serviced by 6.2 miles of paved roads from State Highway 78. It maintains year round access to the Sinker Tunnel which will facilitate underground mining of the rich veins crisscrossing the mountain and employs a mining oriented local workforce.
For further information, contact Mr. Richard Kaiser, Investor Relations, 757-306-6090 and/or 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 the time statements are made.


Investor Relations
Yes International Ltd.
Attn: Rich Kaiser
3419 Virginia Beach Blvd., #252
Virginia Beach, VA 23452
Tel: 757-306-6090

Silver Falcon Mining, Inc.
2520 Manatee Ave. West, Suite#200,
Bradenton, Florida

TEL: 941-761-7819
FAX: 941-761-7848