Comstock Mining Announces Highest Gold Assay to Date with 3.56 Ounces per ton of Gold, Includes 5.20 Ounces per ton of Silver

VIRGINIA CITY, Nev., May 24, 2011 /PRNewswire/ -- Comstock Mining Inc. ("Comstock Mining" or "the Company") (OTCBB: LODE) announced results from the remaining assays from Phase I drilling at the East-Side target in the Lucerne Resource Area. The pattern of significant mineralization identified in the first twelve holes continued in all fifteen new holes, including the highest gold assay yet reported by Comstock Mining: 3.562 oz/ton gold (121.99 g/t) and 5.200 oz/ton silver (178.08 g/t) measured over a five foot section, found within a 30 foot intercept averaging 1.257 oz/ton gold (43.05 g/t) and 2.114 oz/ton silver (72.40 g/t), in hole E11-24. The East-Side Phase I drilling campaign consisted of 27 reverse circulation (RC) holes totaling 19,774 feet (6,027 m) of drilling.  

Highlights from the current assay results include:

• Significant mineralization (gold grade greater than 0.010 ounces per ton (0.34 g/t) or silver grades greater than 0.100 ounces per ton (3.42 g/t), and a length of at least ten feet (3.05 m)) occurred in all of the holes. Hole E11-24 is a highlight because of the assay reporting 3.562 oz/ton gold (121.99 g/t), but the context of that five-foot assay is equally noteworthy. It is found in a 100 foot (30.48 m) intercept averaging 0.309 oz/ton gold (10.58 g/t) and 0.911 oz/ton silver (31.20 g/t). Immediately surrounding it is a 30 foot (9.14 m) intercept averaging 1.257 oz/ton gold (43.05 g/t). The void that is mentioned in the table indicates a narrow stope cutting through this section, mined by the old-timers.  
• Hole E11-24 also includes a second intercept of 145 feet (44.20 m) averaging 0.069 oz/ton gold (2.36 g/t) and 0.549 oz/ton silver (18.80 g/t).  
• Hole E11-19 has an intercept of 130 feet (39.62 m) averaging 0.047 oz/ton gold (1.61 g/t) and 0.418 oz/ton silver (14.32 g/t) at the bottom of the hole.  The true thickness of this mineralized zone remains unknown until a deeper hole can be drilled.  Looking over all the newly reported holes, there are 11 intercepts of silver greater than 1.00 oz/ton (34.25 g/t).

"The East-Side target continues to exceed expectations with every hole demonstrating strong mineralization and indicating an expanding resource.  In addition to reporting the highest gold assay discovered to date on the property, the results also identify consistently high levels of silver throughout the area," said Corrado De Gasperis, President and CEO of Comstock Mining Inc.  "These results validate our initial assumptions that the East-Side target is ideal for a subsequent expansion of the starter mine.  Our on-going drilling will refine the Company's understanding of the mineralization envelope and facilitate detailed planning of this expansion."

Please follow the hyperlink below to see the map of the East Side Phase I Drill Program. Included on the map are the sites of the Spring 2010 drill program and prior drilling.

http://www.comstockmining.com/news/press-releases/155-tuesday-may-24-2011

The drilling-to-date has not yet identified an eastern boundary for the mineralized zone. Historically, the East-Side target was consolidated by the Comstock's Donovan family and included the Succor and Silver Hills shafts. The family leased some of the claims on the East-Side that were worked up until World War II and produced an estimated $1 million worth of ore (non-inflation adjusted dollars) processed at the Donovan Mill in Silver City which operated until 1967.

"When combined with the seven holes drilled in 2010, results from the East-Side target are beginning to confirm the potential of these claims identified in the August 2010 BehreDolbear technical report and by the previous owner of the patented claims, the late Michael Donovan," said Larry Martin, Chief Geologist of Comstock Mining Inc.

Completed Drill Results (E11-13 through E11-27)

Please follow the hyperlink to view the table reporting Drill Hole Intercepts

http://www.comstockmining.com/news/press-releases/155-tuesday-may-24-2011

Continued Drill Program

Drilling programs remain in full gear with four rigs in position in two resource areas. At the Dayton, a core rig just completed drilling a twinned hole for metallurgical tests and recently moved to the Justice patent. RC rigs are currently drilling at the Dayton and on the Justice claim in the Lucerne Resource Area, and another has just begun Phase II drilling on the East-Side target. Drilling priorities continue to be the completion of programs required for the starter pit's final mine plan, but additional drilling programs will continue to collect data for inclusion in the Company's next technical report.

About Comstock Mining Inc.

Comstock Mining is a Nevada-based gold and silver mining company with extensive, contiguous property in the Comstock District. The goal of its strategic plan is to deliver stockholder value by validating qualified resources (at least measure and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations in 2011, with annual production rates of 20,000 gold equivalent ounces.

Cautionary Note to U.S. Investors

This press release uses the terms "measured resources," "indicated resources," "inferred resources," and "historical resources" which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification system.  The United States Securities and Exchange Commission (the "SEC") does not recognize these terms and the SEC guidelines (Industry Guide 7) provide that such terms shall not be included in a registrant's filings with the SEC (unless required to be disclosed by foreign or state law).  The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility.  It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category.  U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at http://www.sec.gov.

Forward-Looking Statements

This press release and any related calls or discussions may contain forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements.  Forward-looking statements include statements about matters such as: future prices and sales of and demand for our products; future industry market conditions; future changes in our exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; operational and management restructuring activities (including implementation of methodologies and changes in the board of directors); future employment and contributions of personnel; tax and interest rates; capital expenditures and their impact on us; nature, timing and accounting for restructuring charges, gains or losses on debt extinguishment, derivative liabilities and the impact thereof; productivity, business process, rationalization, restructuring, investment, acquisition, consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales and other actions regarding debt or equity securities; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.  

The words "believe," "expect," "anticipate," "estimate," "project," "plan," "should," "intend," "may," "will," "would," "potential" and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our SEC filings and the following: the current global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources and reserves; operational or technical difficulties in connection with exploration or mining activities; contests over our title to properties; potential dilution to our stockholders from our recapitalization and balance sheet restructuring activities; potential inability to continue to comply with government regulations; adoption of or changes in legislation or regulations adversely affecting our businesses; business opportunities that may be presented to or pursued by us; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to unexpected equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, copper, diesel fuel, and electricity); changes in generally accepted accounting principles; geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues organically; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies and equipment raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities.  All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors.  We undertake no obligation to publicly update or revise any forward-looking statement.

Neither this press release nor any related calls or discussions constitutes an offer to sell or the solicitation of an offer to buy any securities.

SOURCE Comstock Mining Inc.