SilverCrest Mines Inc. (TSX:SVL) (NYSE MKT:SVLC) is pleased to announce its financial results for the second quarter ended June 30, 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 and six months ended June 30, 2014, and associated management discussion and analysis 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: “As expected, SilverCrest’s second quarter financial results reflect Santa Elena’s lower production numbers during the transition from an open pit, heap leach operation to an underground mine and milling circuit. With the major milestone of mill commissioning accomplished in early August, SilverCrest’s immediate focus turns to underground stope production. Expected increases in ore grades fed to the mill, combined with potential higher metal recoveries, should result in the Company achieving the lower end of our 2014 production guidance of approximately 3.3 million AgEq(2) ounces. With all major expansion capital expenditures complete, SilverCrest is now well situated to increase its cash position of $40.9 million (June 30, 2014) with near-term free cash flow from operation.”
 

FINANCIAL HIGHLIGHTS OF Q2, 2014, Compared to Q2, 2013:

--  Cash flow from operations (1)decreased 45% to $3.1 million ($0.03 per

    share).  

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

    $7.66. 

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

    decreased 5% to $12.62. 

--  Revenue decreased 41% to $7.7 million. 

--  Metal sales of 163,026 ounces of silver and 4,743 ounces of gold

    decreased 10% and 36%, respectively. 

--  Realized spot metal prices declined from $22 to $20 (9%) for silver and

    from $1,365 to $1,296 (5%) for gold.  

--  Net earnings were $1.3 million ($0.01 per share), compared to $2.9

    million ($0.03 per share). 

--  Cash and cash equivalents were $40.9 million (at June 30, 2014),

    compared to $29.6 million (at June 30, 2013). 

--  Working capital was $44.5 million (at June 30, 2014), compared to $41.6

    million (at June 30, 2013). 

--  Bullion inventory at June 30, 2014, included 69,000 ounces of silver and

    1,330 ounces of gold.

Comparison of the three months ended June 30, 2014, to June 30, 2013
 

Net earnings were $1,314,350 ($0.01 per share basic) for the second quarter compared with $2,866,080 ($0.03 per share basic) in 2013. The decrease in net earnings during the second quarter was primarily attributed to reduced revenues from lower silver and gold sales at lower realized prices. The decrease in silver and gold production was primarily related to the closure of the open pit on April 4, 2014, three months ahead of schedule, with subsequent reduced production from the leach pad.
 

Silver and gold revenue totaled $7,719,057 (2013 – $13,028,258) in the second quarter. Silver sales totaled 163,026 ounces including capitalized underground ounces (2013 – 181,398), 10% lower than for the same period in 2013. The foregoing, combined with a 9% lower average realized silver price of $20 (2013 – $22) per ounce, resulted in 18% lower silver revenue. Total gold revenue reported in the second quarter decreased 40% compared to the same period in 2013. Total gold sales were 4,743 ounces including capitalized underground ounces (2013 – 7,375), or 36% below 2013. The Company sold 3,794 (2013 – 5,900) ounces of gold at an average realized gold price of $1,296 (2013 – $1,365) per ounce, a 5% decline. The Company delivered 949 gold ounces (2013 – 1,475) under the Sandstorm Purchase Agreement at $350 per ounce.
 

Cost of sales amounted to $3,046,958 (2013 – $5,047,895). Cash cost per silver equivalent ounce sold for the second quarter was $7.66, Ag:Au 60.0:1 (2013 – $7.80, Ag:Au 63.2:1). The decrease in operating cash cost per silver equivalent ounce sold was driven by the reduction in direct production costs during the second quarter as a result of the closure of the open pit and elimination of open pit mining costs.

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FINANCIAL AND OPERATING HIGHLIGHTS:                 Q2 2014         Q2 2013 

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Cash flow from operations (1) (2)             $   3,062,502   $   5,587,251 

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Cash flow from operations (1)(2) per share    $        0.03   $        0.05 

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Cash operating cost per silver equivalent                                   

 ounce sold (2)                               $        7.66   $        7.80 

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All-in sustaining cash cost per silver                                      

 equivalent ounce sold (2)                    $       12.62   $       13.34 

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Revenues reported                             $   7,719,057   $  13,028,258 

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Cost of sales                                 $   3,046,958   $   5,047,895 

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Depletion, depreciation and amortization      $   1,577,897   $   1,685,777 

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Mine operating earnings                       $   3,094,202   $   6,294,586 

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Other net expenses                            $  (2,050,358)  $  (2,129,627)

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Foreign exchange gain                         $      34,506   $     761,121 

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Tax recovery (expense)                        $     236,000   $  (2,060,000)

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Net earnings                                  $   1,314,350   $   2,866,080 

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Exchange loss on translation to US Dollars    $           -   $  (1,126,190)

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Comprehensive earnings                        $   1,314,350   $   1,739,890 

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Weighted average number of common shares                                    

 outstanding                                    118,728,205     108,865,828 

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Earnings per share - basic                    $        0.01   $        0.03 

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Earnings per share - diluted                  $        0.01   $        0.03 

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Adjusted earnings per share (2)               $        0.01   $        0.03 

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Silver ounces sold                                  163,026         181,398 

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Gold ounces sold                                      4,743           7,375 

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Silver equivalent ounces sold (2)                   447,606         647,504 

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Ag : Au Ratio (2)                                    60.0:1          63.2:1 

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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.

2014 PRODUCTION GUIDANCE UPDATE
 

Management now anticipates total production from Santa Elena in 2014 to be at the low end of our original guidance (3.3 to 3.6 million AgEq ounces). Underground stope production, due to start in August, will increase through-put grades to the new mill and therefore higher levels of gold and silver ounces for the rest of the year. As anticipated, production is heavily weighted for H2 2014 to achieve guidance.
 

OUTLOOK
 

SilverCrest’s immediate focus is to (i) continue the efficient operation of its flagship Santa Elena low cost silver and gold mine, (ii) complete initial underground stope production, (iii) expand resources and subsequent reserves at Santa Elena by systematic exploration of the deposit, (iv) evaluate and acquire exploration properties in proximity to Santa Elena and drill test some targets in 2014, (v) complete evaluation of certain aspects of 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 its 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 average operating cash costs of $11 per ounce of silver equivalent (55:1 Ag:Au). SilverCrest anticipates that the new 3,000 tonnes per day conventional mill facility at the Santa Elena Mine should recover an average of 1.5 million ounces of silver and 32,800 ounces of gold per annum over the current reserve life. Major expansion and commissioning of the 3,000 tonnes per day conventional mill facility is complete and is expected to significantly increase metals production at the Santa Elena Mine in the second half of 2014 and beyond. Exploration programs continue to result in 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.