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United Mining Group, Inc. Closes First Tranche of $8,000,000 Private Placement

DGAP-News: United Mining Group / Schlagwort(e): Sonstiges
United Mining Group, Inc. Closes First Tranche of $8,000,000 Private
Placement

27.12.2010 / 12:30

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Not for dissemination in the United States
NEWS RELEASE

United Mining Group, Inc. Closes First Tranche of $8,000,000 Private
Placement

December23, 2010, Vancouver, British Columbia: United Mining Group, Inc.
(the ´Company´), (TSX:UMG Frankfurt:UM8; OTCQX: UMGZF) announces that it
has closed the first tranche of $7,291,700 of the $8,000,000 private
placement (the ´Private Placement´), previously announced on December 1,
2010. The Private Placement provides further funding for the Company´s
continuing exploration and production development for the Crescent Mine,
and for general corporate purposes.

The Private Placement consists of the issuance of units (´Units´) at a
price of $0.90 per Unit (the ´Unit Price´). Each Unit consists of one (1)
common share (a ´Common Share´) and one half of one (1/2) common share
purchase warrant (a ´Warrant´). Each whole warrant entitles the holder
thereof to purchase one additional Common Share (a ´Warrant Share´) of the
Company at a price of $1.25 per Warrant Share for a period of two (2) years
from the closing date of the Private Placement.

In the event that the Common Shares of UMG are traded on the Toronto Stock
Exchange (´TSX´) at a daily volume weighted average price of $1.75 or more
for 15 trading days out of any 20 consecutive trading days prior to the
Expiry Date (the ´Acceleration Event´), the Warrant will expire on the
earlier of the Expiry Date and 4:30 p.m. (Pacific Time) on the date which
is 30 calendar days after UMG provides notice to the holders of the Warrant
that the Acceleration Event has occurred, provided that such notice cannot
be provided until the four month hold period has expired.

The Private Placement consists of brokered and non-brokered portions. The
brokered portion of the Private Placement was led by Pope & Company. On
the brokered portion of the Private Placement, the Company paid the Agents
cash commission $157,941 and issued a total of 175,490 non-transferable
broker warrants (the ´Broker Warrants´). Each Broker Warrant entitles the
holder thereof the right to purchase one Common Share of UMG at a price of
$0.92 per share for a period of 2 years from the date of issuance. The
Company also paid a cash finder´s fee of $423,850 on the non-brokered
portion of the Private Placement. All securities issued under this Private
Placement will be subject to a four-month and one day hold period from the
date of issuance.

About United Mining Group

United Mining Group is a vertically integrated mining company with
operations in Idaho, USA. The Company offers a full suite of mining
services including contract mining to silver mines in the district. The
Company owns its own custom welding and fabrication shop allowing it to
repair/rebuild equipment for its own use and for outside mining companies.

The Company is currently earning, through development and operations, an
80% interest in the Crescent Silver Mine adjacent to the Sunshine Silver
Mine in the Silver Valley. The Crescent Mine has historically produced 25
million ounces of silver at an average grade of 27.3 opt (SRK Consulting
43-101 report, March 1, 2010). UMG currently has an indicated resource of
6.1 million ounces silver (324,000 tons grading 18.7 opt silver) and
additional inferred resources of 4.1 million ounces silver (211,000 tons
grading 19.5 opt silver).

UMG is committed to building a senior silver-producing mining company based
on aggressive exploration and development of the highly-prospective current
land position at Crescent and through the acquisition of additional silver
interests.

For more information about the Company, please visit:
www.unitedmininggroup.com.

On behalf of the board of directors of United Mining Group Inc.,

´Charles Pitcher´

Charles Pitcher
Chief Executive Officer

FOR MORE INFORMATION, PLEASE CONTACT:
Greg Stewart,
President & Chief Operating Officer
Tel: [phone]
[e-mail]

FORWARD LOOKING STATEMENTS: This press release contains forward-looking
statements, which address future events and conditions, which are subject
to various risks and uncertainties. Forward looking statements in this
press release include that we will use private placement funds for further
exploration and development, that we are building a senior silver-producing
mining company, that we will have aggressive exploration and development of
our current land position at Crescent, that our land is the
highly-prospective for mining and that we will make acquisitions of
additional silver interests. The Company´s actual results and financial
position could differ materially from those anticipated in such
forward-looking statements as a result of numerous factors, some of which
may be beyond the Company´s control. These factors include: results of
exploration activities and development of mineral properties, fluctuations
in the marketplace for the sale of minerals, the inability to implement
corporate strategies, the inability to obtain financing, currency
fluctuations, general market and industry conditions and other risks
disclosed in the Company´s filings with Canadian Securities Regulators.
Past production of minerals and encouraging exploration results are not
necessarily indicative of a commercially exploitable resource.

Forward-looking statements are based on the expectations and opinions of
the Company´s management on the date the statements are made. The
assumptions used in the preparation of such statements, although considered
reasonable at the time of preparation, may prove to be imprecise and, as
such, undue reliance should not be placed on forward-looking statements.
The Company expressly disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise.

The TSX Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of the content of this news release.

Ende der Corporate News

27.12.2010 Veröffentlichung einer Corporate News/Finanznachricht,
übermittelt durch die DGAP - ein Unternehmen der EquityStory AG.
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107675 27.12.2010