SilverCrest Mines Inc. (TSX:SVL) (NYSE MKT:SVLC) is pleased to announce its financial results for the first quarter ended March 31, 2014. All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in U.S. dollars unless otherwise specified. The information in this news release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2014 and associated management discussion and analysis (“MD&A”) which are available from the Company’s website at www.silvercrestmines.com and under the Company’s profile on SEDAR at www.sedar.com.
 

N. Eric Fier, President and COO stated; “We are pleased with the steady start to 2014, for which operating costs and production were consistent with budget, although our financial performance compared to the first quarter of 2013 was impacted by lower metal prices. Our all-in sustaining cash costs per silver equivalent ounce sold (2) at $9.71 continues to makes us one of the lowest cost precious metal producers. With the commissioning of our new 3,000 tpd mill, SilverCrest is well positioned to continue to generate strong operating cash flows in H2 2014, with continued strengthening of its cash position of $54.5 million at March 31, 2014.”
 

FINANCIAL HIGHLIGHTS OF Q1, 2014, Compared to Q1, 2013:

--  Cash flow from operations (1)decreased 25% to $6.6 million ($0.06 per

    share).  

--  Cash operating cost per silver equivalent ounce sold (2) decreased 7% to

    $7.14. 

--  All-in sustaining cash cost per silver equivalent ounce sold (2)

    decreased 40% to $9.71. 

--  Revenues reported decreased 15% to $13.0 million. 

--  Metal sales of 198,800 ounces of silver and 7,650 ounces of gold

    increased 27% and 4% respectively. 

--  Realized spot metal prices declined from $30 to $21 (30%) for silver and

    from $1,626 to $1,319 (19%) for gold.  

--  Net earnings were $2.5 million ($0.02 per share), compared to $6.0

    million ($0.06 per share). 

--  Cash and cash equivalents were $54.5 million (at March 31, 2014),

    compared to $41.1 million (at March 31, 2013). 

--  Working capital was $63.7 million (at March 31, 2014), compared to $48.9

    million (at March 31, 2013). 

--  Bullion inventory at March 31, 2014, included 59,114 ounces of silver

    and 2,084 ounces of gold.

Comparison of the three months ended March 31, 2014 to March 31, 2013
 

Net earnings were $2,467,989 ($0.02 per share basic) for the first quarter compared with $6,002,276 ($0.06 per share basic) in 2013. The decrease in net earnings during the first quarter was primarily attributed by lower revenues resulting from significantly lower realized prices.
 

Silver and gold revenue totalled $13,005,527 (2013 – $15,329,642) in the first quarter. Silver sales totalled 198,800 ounces (2013 – 157,088), 27% higher than the same period in 2013. The foregoing, combined with a 30% lower average realized price at $21 (2013 – $30) per ounce, resulted in 12% less silver revenue. Total gold revenue reported in the first quarter decreased 16% compared to the same period in 2013. Total gold sales were 7,650 ounces (2013 – 7,370) or 4% above 2013. The Company sold 6,120 (2013 – 5,896) ounces of gold at an average realized price of $1,319 (2013 – $1,626) per ounce, a 19% decline and delivered 1,530 gold ounces (2013 – 1,474) under the Sandstorm Purchase Agreement at $350 per ounce.
 

Cost of sales amounted to $4,686,523 (2013 – $4,368,519). Operating cash cost per silver equivalent ounce sold amounted to $7.14, Ag:Au 60.0:1 (2013 – $7.69, Ag:Au 55.8:1). The decrease in operating cash cost per silver equivalent ounce sold is driven generally by the difference in silver equivalence ratios. The 40% decrease in all-in sustaining cash costs from Q1 2013, is primarily due to lower exploration costs incurred by the Company during Q1 2014.
 

General and administrative expenses increased by 10% to $1,477,002 (2013 – $1,340,926) primarily due to an increase in regulatory expenses resulting from the onetime TSX listing fee.

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FINANCIAL AND OPERATING HIGHLIGHTS:                 Q1 2014         Q1 2013 

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Cash flow from operations (1)(2)              $   6,597,397   $   8,775,212 

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Cash flow from operations (1)(2) per share    $        0.06   $        0.08 

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Cash operating cost per silver equivalent                                   

 ounce sold (2)                               $        7.14   $        7.69 

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All-in sustaining cash cost per silver                                      

 equivalent ounce sold (2)                    $        9.71   $       16.05 

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Revenues reported                             $  13,005,527   $  15,329,642 

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Cost of sales                                 $   4,686,523   $   4,368,519 

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Depletion, depreciation and amortization      $   1,721,406   $   1,378,945 

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Mine operating earnings                       $   6,597,598   $   9,582,178 

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Other net expenses                            $  (1,403,161)  $  (2,076,475)

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Foreign exchange (loss) gain                  $    (485,448)  $     488,573 

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Tax expense                                   $  (2,241,000)  $  (1,992,000)

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Net earnings                                  $   2,467,989   $   6,002,276 

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Exchange loss on translation to US Dollars    $           -   $    (878,199)

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Comprehensive earnings                        $   2,467,989   $   5,124,077 

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Weighted average number of common shares                                    

 outstanding                                    111,315,927     107,170,245 

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Earnings per share - basic                    $        0.02   $        0.06 

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Earnings per share - diluted                  $        0.02   $        0.05 

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Adjusted earnings per share (2)               $        0.02   $        0.06 

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Silver ounces sold                                  198,800         157,088 

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Gold ounces sold                                      7,650           7,370 

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Silver equivalent ounces sold (2)                   657,800         568,380 

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Ag : Au Ratio (2)                                    60.0:1          55.8:1 

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(1) Cash flow from operations before changes in working capital items.      

(2) These are Non-IFRS performance measures. Refer to "CAUTIONARY NOTE      

REGARDING NON-IFRS PERFORMANCE MEASURES". Silver equivalent ("AgEq") ounces 

consist of the number of ounces of silver production/sold plus the number of

ounces of gold production/sold multiplied by a 60:1 gold price to silver    

price ratio. Prior to Q1 2014, the AgEq ratio was based on the spot gold    

price to the spot silver price at the quarter end dates for financial       

reporting. All numbers are rounded.

OUTLOOK
 

SilverCrest’s immediate focus is to (i) continue its efficient operation of its flagship Santa Elena low cost silver and gold mine, (ii) complete commissioning of the new 3,000 tonne per day CCD-MC processing plant, (iii) complete accelerated development of the underground mine for initial underground production, (iv) expand resources and subsequent reserves at Santa Elena by systematic exploration of the deposit, (v) evaluate and acquire exploration properties in proximity to Santa Elena, (vi) complete evaluation of certain aspects at the La Joya Project to a Pre-Feasibility Study level in 2014.

SilverCrest Mines Inc. is a Canadian precious metals producer headquartered in Vancouver, BC. SilverCrest’s flagship property is the 100%-owned Santa Elena Mine, located 150 km northeast of Hermosillo, near Banamichi in the State of Sonora, Mexico. The mine is a high-grade, epithermal silver and gold producer, with an estimated life of mine of 8 years and operating cash costs of $11 per ounce of silver equivalent (55:1 Ag:Au). SilverCrest anticipates the new 3,000 tonnes per day conventional mill facility at the Santa Elena Mine should recover average silver and gold annual quantities of 1.5 million ounces of silver and 32,800 ounces of gold over the current 8 year reserve. Exploration programs continue to make new discoveries at Santa Elena and also have rapidly advanced the definition of a large polymetallic deposit at the La Joya property in Durango State, Mexico.