LINCOLN TO PURCHASE CAVANAUGH CLAIMS AT PINE GROVE PROPERTY

VANCOUVER, Aug. 24 /CNW/ - Lincoln Mining Corporation, TSX-V: LMG ("Lincoln" or the "Company") is pleased to announce that, as part of its progress in moving the Pine Grove to production, Lincoln and its wholly owned subsidiary Lincoln Gold US Corp. ("Lincoln US") have entered into a purchase agreement for Lincoln US to acquire 10 unpatented mining claims and associated water rights (collectively known as the "Cavanaugh property") situated at the Company's Pine Grove project in Lyon County, Nevada.

In consideration for the sale of the Cavanaugh property, the vendors will receive a total of US $650,000 and 400,000 common shares in the capital of the Company as follows:


     On closing   
     August 23, 2011  
     August 23, 2012   
     August 23, 2013   
 


            $250,000.00 
            $150,000.00 
            $150,000.00 
            $100,000.00
   and 
   and 
   and 
   150,000 shares
   150,000 shares
   100,000 shares

The vendors will also retain a 1.5% net smelter returns royalty subject to Lincoln's option to buy down the royalty at a rate of US $75,000 per one-half percent.  The balance of the payments indicated above following closing will be secured against the Cavanaugh property.

The addition of the Cavanaugh property completes the acquisition of all claims within the area of the Pine Grove project. The claims will allow the Company to plan its open pit mine designs and the design of the operation in general. The Cavanaugh property includes certain water rights which are expected to provide the Company with a large part of the water requirements needed for production purposes.  As well the Cavanaugh property has significant exploration potential.

Closing of the transaction remains subject to approval of the TSX Venture Exchange.

Lincoln Mining Corp. is a Canadian precious metals exploration and development company with several projects in various stages of exploration and development which include the Pine Grove gold property, the Oro Cruz gold property in California and the La Bufa gold-silver property in Mexico. In the United States, the Company operates under Lincoln Gold US Corp., a Nevada corporation.

On behalf of Lincoln Mining Corporation  

"Paul Saxton"  

Paul Saxton, President & CEO  

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS OR INFORMATION. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT INCLUDED IN THIS RELEASE, INCLUDING WITHOUT LIMITATION, STATEMENTS REGARDING FUTURE PLANS AND OBJECTIVES OF LINCOLN IN RESPECT OF PLANS FOR DEVELOPMENT OF ITS PINE GROVE PROPERTY ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE VARIOUS RISKS AND UNCERTAINTIES. THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE ACCURATE AND ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE COMPANIES' PLANS OR EXPECTATIONS INCLUDE AVAILABILITY OF CAPITAL AND FINANCING, GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS, REGULATORY CHANGES, TIMELINES OF GOVERNMENT OR REGULATORY APPROVALS AND OTHER RISKS DETAILED HEREIN AND FROM TIME TO TIME IN THE CONTINUOUS DISCLOSURE FILINGS MADE BY THE COMPANY. THE COMPANY MAKES ALL REASONABLE EFFORTS TO UPDATE ITS CORPORATE MATERIAL, DOCUMENTATION AND FORWARD-LOOKING INFORMATION ON A TIMELY BASIS.

SOURCE LINCOLN MINING CORPORATION

For further information: For further information:

please contact Investor Relations at 604-688-7377 or visit the Company's website at www.lincolnmining.com.

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LINCOLN MINING CORPORATION

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