Silver Bear Resources extended license with Rosnedra till 2011

On February 18, 2009, Silver Bear Resources successfully extended the term of the Mangazeisky license agreement with Rosnedra by two years to December 2011. Work with Rosnedra on the license extension proved, once again, to be very cooperative; the license extension was approved well in advance of our September 2009 deadline.

In addition to the cooperation from Rosnedra during the license extension process, we received a high level of support from both Moscow and Yakutsk-based regulators. The Alfa Group, our largest shareholder, remains committed to its investment and continues to provide excellent guidance on Russian business matters.

Mr. Randall Oliphant, President and Chief Executive Officer stated, "This initial resource estimate reinforces our belief that Mangazeisky has the potential to be a world class deposit of greater than 200 million ounces of silver(1). Considering that the year-end resource is limited to a 1.6 kilometre portion of the 5.1 kilometre long Vertikalny vein and only to a depth of 275 metres, our focus remains unchanged. Going forward, we will focus our efforts on achieving continued resource growth. Our successful extension of the Mangazeisky license term to December 2011 provides us with ample time to realize continued resource growth."

Mr. Raymond Threlkeld, Chief Operating Officer stated, "The 2009 exploration program at Vertikalny will be focused on increasing the resource. The Vertikalny resource is open along strike and down dip. This provides the framework to drill step out holes and significantly expand the resource upon completion of our 2009 drill program. We are also encouraged by the initial exploration of promising targets proximal to the Vertikalny vein which exhibit similar geological and geochemical characteristics to Vertikalny."

An initial resource estimate for its 100% owned Mangazeisky silver project in Russia has been completed by Wardrop Engineering, Inc., a Tetra Tech Company ("Wardrop") in Swindon, UK. Wardrop estimates an inferred mineral resource of 1.9 million tonnes averaging 508 grams per tonne silver totaling approximately 31 million ounces for the central portion of the Vertikalny vein, one of twenty known silver bearing zones identified within the Mangazeisky license area. The estimate is based on a long term silver price of US$10.50 per ounce and results obtained from 73 drill holes and 13 surface trenches that define a block measuring 1,600 metres along strike and 275 metres from surface. The estimate anticipates that the mineralized zone would be mined by selective underground methods at a minimum mining width of 1.2 metres.

The Vertikalny vein is a narrow steep dipping composite structure with high grade silver mineralization. The resource estimate was completed by Wardrop using industry standard methods in accordance with CIM and NI 43-101 requirements with Gemcom Surpac modeling software. The geological model of the structure was created from geological interpretation supplied by Silver Bear staff using intersection data spaced between 100 metres by 50 metres and 50 metres by 50 metres in longitudinal section. Ordinary kriging was used to estimate grades into blocks with dimensions of 30 metres (easting), 1 block (northing) and 15 m (elevation). The search ellipsoid dimensions and directions chosen reflected the good continuity obtained from geostatistical studies. No high grade capping was carried out. The density used in the model was supplied from metallurgical test work.

Financial Results

Net Loss

Silver Bear incurred a net loss for the year ended December 31, 2008 of $17.7 million or $0.48 per share. This compares to a loss of $12.9 million or $0.52 per share for the year ended December 31, 2007. Exploration costs were $14.1 million in the year ended December 31, 2008 compared with $5.5 million in the year ended December 31, 2007. General and administrative expenses for the year ended December 31, 2008 were $4.5 million compared with $2.6 million in the prior year. Non-cash items for the year ended December 31, 2008 were $2.4 million compared with $2.9 million in the year ended December 31, 2007. Interest income for the year ended December 31, 2008 was $0.8 million compared with $0.2 million in the prior year. The Company recorded a gain on the sale of its Avlayakan gold property of $2.5 million during 2008.

For the year ended December 31, 2008, Silver Bear spent $14.1 million on exploration activities, compared with $5.5 million during the 2007 year. All of the $14.1 million was spent on the Mangazeisky Project. Costs associated with the Mangazeisky Project in year ended December 31, 2008 relate to the 2008 exploration program and costs related to the Company's Yakutsk administrative office. Exploration expenses increased when compared to the 2007 year since 12,945 metres of diamond drilling was completed in 2008 versus 3,094 metres in 2007. Rising fuel prices and increased staffing have also contributed to the cost increases. Silver Bear plans to spend $12.0 million on exploration activities in 2009.

General and administrative expenses for the year ended December 31, 2008 were $4.5 million compared with $2.6 million in the prior year. The increased general and administrative costs are primarily related to legal fees associated with our Russian litigation, increased investor relations and other public company expenses, and other costs associated with increasing staffing in the corporate office. Management salaries for the year ended December 31, 2008 were $1.6 million, (year ended December 31, 2007 - $1.5 million). In addition, for the year ended December 31, 2008, Silver Bear spent $1.5 million on professional fees (year ended December, 2007- $0.4 million) primarily for legal, audit and consulting fees. Other general and administrative expenses for year ended December 31, 2008 were $1.4 million, (year ended December, 2007- $0.7 million). Silver Bear plans to spend $2.9 million on general and administrative expenses in 2009.

Liquidity and Capital Resources

As at December 31, 2008, Silver Bear had cash and cash equivalents of $24.2 million. At the start of 2008, Silver Bear had cash and cash equivalents of $30.0 million. On January 18, 2008, the company raised net proceeds of $1.6 million in relation to the over-allotment option granted by the Company to the underwriters in connection with the Company's initial public offering in December 2007. In May 2008, the Company sold its 70% interest in Mine Avlayakan LLC for proceeds of US$8.5 million. On July 16, 2008, the Company completed a private placement with Alfa Bank Consortium for net proceeds of $4.2 million. During 2008 the Company invested $3.5 million in property, plant and equipment and had cash expenses of $16.6 million from continuing operations.

Silver Bear Resources Inc.

The primary business of the Company is the evaluation, acquisition, exploration and development of silver properties in the Russian Federation. The Company's principal asset is its 100% owned Mangazeisky Project, located approximately 400 kilometres north of Yakutsk in the Republic of Sakha, Yakutia in the Russian Federation.

// Mar. 16, 2009

Resource: SilverBearResources.com