Silver Bear Announces High Grade Results from 2008 Drill Program at Mangazeisky and Second Quarter Financial Results



    
    -   44 holes (7,039 metres) have been completed and results received for
        12 holes as of August 11, 2008;
    -   Hole V08-023 returned 2,154 grams per tonne of silver over a
        8.4 metre interval;
    -   Hole V08-031 returned 1,739 grams per tonne silver over a 2.8 metre
        interval;
    -   Hole V08-029 returned 998 grams per tonne silver over a 4.7 metre
        interval;
    -   Hole V08-028 returned 573 grams per tonne silver over a 3.4 metre
        interval;
    -   Hole V07-007 returned 361 grams per tonne silver and 5.47% zinc over
        a 4.7 metre interval
    

    TORONTO, Aug. 14 /CNW/ - Silver Bear Resources Inc. ("Silver Bear" or the
"Company") (TSX:SBR) today announced results from the first 12 of 44
exploration holes drilled at its Mangazeisky silver project in the Russian
Federation and financial results for the six months ended June 30, 2008.
    "With strong drilling results, a new strategic partner, a favourable
court ruling and sufficient funding to continue our drilling program through
the end of 2009, Silver Bear has never been better positioned," said Mr.
Randall Oliphant, President and Chief Executive Officer.
    In addition to the positive drill results during the quarter, and as
announced on June 13, 2008, the Company entered into a strategic partnership
with the Alfa Group Consortium (the "Alfa Group"), one of Russia's largest
privately-owned financial/industrial conglomerates. This partnership is
exciting as it provides Silver Bear with access to the Alfa Group's expertise
and long-standing relationships in Russia.
    The Company also announced that the Yakutsk Arbitration court ruled to
reject the claim of the Federal Tax Service to liquidate Silver Bear's Russian
subsidiary. An official ruling is expected to be delivered by the court within
the next few days. The Federal Tax Service can file an appeal of the court's
decision within 30 days of the official ruling. Should an appeal be filed
Silver Bear will take every measure to vigorously defend the claim from the
Federal Tax Service as we believe the case is without merit.

    Outlook - Mangazeisky Project
    -----------------------------
    Key milestones for Silver Bear are:

    
    -   Complete 10,000 to 12,000 metres of exploration drilling on the
        Mangazeisky Project by the end of 2008.
    -   Define a Canadian Institute of Mining "CIM" compliant Inferred
        resource on a portion of the Vertikalny vein of up to 150 million
        ounces of silver(1) by January 2009.
    -   Define a Russian C2, P1 and P2 resource estimate by January 2009.
    -   Complete a Russian technical and economic conditions report "TEO" by
        June 2009.
    -   Complete 40,000 metres of exploration drilling during the 2009 field
        season.
    -   Define a CIM compliant Measured, Indicated and Inferred resource
        estimate of the Vertikalny vein of up to 250 million ounces of silver
        (1) by the end of 2009.
    -   Initiate a scoping study examining the financial viability of the
        project in 2009.
    -   Commence a feasibility study for the Mangazeisky Project in late
        2009.
    

    "We are very pleased with the results to date as over half of the holes
for which results are available have returned high grade silver intercepts. In
addition to confirming the high grade silver mineralization previously
recognized, the drilling to date suggests excellent geologic continuity,"
stated Mr. Raymond Threlkeld, Chief Operating Officer. "These latest results
are an important step in reaching our objective of defining a significant
silver resource, in what is developing into one of the world's newest silver
districts."
    Wardrop Engineering Ltd, Swindon, United Kingdom, have been awarded the
contract to complete the NI 43-101 Technical Report in support of the
resources of the Vertikalny vein for 2008. Wardrop's scope of services also
includes identifying and managing a Russian Engineering company to complete
the Russian C2, P1 and P2 resource estimate and Russian technical and economic
conditions report "TEO" on the project. Both the estimate and the report are
vital components in Silver Bear's objective of converting the existing
exploration license to an exploitation license within the time frame outlined
in the current License Agreement. Work on this project began in early August,
2008.
    A third party contractor is in the process of mobilizing men and material
to site to complete a geophysical survey of the Vertikalny vein with the
objective of defining additional strike length and down dip exploration 
targets.

    
    --------------------------------
    (1) The reader is cautioned that the targets expressed above and
        elsewhere in this press release are based on Silver Bear's assessment
        of the geological data currently available and are conceptual in
        nature. There has been insufficient exploration with respect to these
        targets to define any estimates of quantities. There is no guarantee
        that the targeted estimates will be delineated through additional
        exploration. These are objectives set by the Company and they are not
        estimates of quantities as contemplated by section 2.3 of NI 43-101.
        There is no assurance that these objectives will materialize.

    SECOND QUARTER FINANCIAL RESULTS
    --------------------------------

    Liquidity and Capital Resources
    -------------------------------
    At June 30, 2008, Silver Bear had cash of $32.1 million, an amount
sufficient to sustain its planned operations through 2009. Further, on
July 16, 2008, the Company announced the completion of the private placement
of 1.5 million common shares to the Alfa Group at $3.00 per share for total
gross proceeds to Silver Bear of $4.5 million.

    Financial Results
    -----------------
    
    Silver Bear incurred a net loss for the six month period ended June 30,
2008 of $5.3 million or $0.15 per share. This compares to a loss of
$6.4 million or $0.28 per share for the six month period ended June 30, 2007.
Exploration costs were $4.6 million in the six month period ended June 30,
2008 compared with $2.4 million in the six month period ended June 30, 2007.
The Mangazeisky Project accounted for all of the $4.6 million in costs, which
primarily related to the 2008 exploration program and costs related to the
Company's Yakutsk administrative offices. Non-cash stock option compensation
expense for the six month period ended June 30, 2008 was $0.7 million compared
with $0.9 million in the six month period ended June 30, 2007. General and
administrative expenses for the six month period ended June 30, 2008 were
$2.6 million compared with $1.1 million in the prior six month period. The
increased general and administrative costs are primarily related to legal fees
associated with our Russian litigation, increased investor relations
activities and other costs associated with increased staffing in the corporate
office.
    Silver Bear incurred a net loss for the three month period ended June 30,
2008 of $2.4 million or $0.07 per share. This compares to a loss of
$4.9 million or $0.19 per share for the three month period ended June 30,
2007. Exploration costs were $3.1 million in the three month period ended
June 30, 2008 compared with $2.4 million in the three month period ended
June 30, 2007. The Mangazeisky Project accounted for all of the $3.1 million
in costs, which primarily related to the 2008 exploration program and costs
related to the Company's Yakutsk administrative offices. Non-cash stock option
compensation expense for the three month period ended June 30, 2008 was
$0.3 million compared with $0.8 million in the three month period ended
June 30, 2007. General and administrative expenses for the three month period
ended June 30, 2008 were $1.4 million compared with $0.7 million in the prior
three month period. The increase in the general and administrative expenses
for the three month period ended June 30, 2008 were for the same reasons as
indicated in the six month period explanation.
    Silver Bear recorded a $2.5 million gain on the sale of discontinued
operations (Avlayakan Mine LLC), for the six month period ended June 30, 2008
compared to a net loss of $1.0 million for the six month period ended June 30,
2007.

    
    Exploration Update
    ------------------
    
    The Mangazeisky project consists of an exploration license covering an
area of 570 km(2), hosting 16 known silver anomalies located within the
Republic of Sakha, Yakutia in the Russian Federation; approximately 400
kilometres north of the capital city Yakutsk in the Verhoyanskiy district.
Silver Bear has focused its exploration on the Vertikalny vein, a high grade,
sub vertical silver vein.
    Exploration during 2007 identified high grade (+ 1,000 gram per tonne)
silver mineralization at the Vertikalny vein. Drilling in 2008 is focusing on
the Vertikalny vein to identify an inferred mineral resource ranging from 100
to 150 million ounces of silver(1).
    The 2008 exploration drilling program commenced on May 26th, utilizing
two Canadian drill rigs contracted from Boart Longyear Russia. As at
August 11, 2008, the Company has completed 44 holes totaling 7,039 metres of
drilling at Vertikalny. The majority of the holes have intersected the
Vertikalny mineralized structure and have encountered favourable
mineralization over core intervals ranging from less than 1.0 metre to greater
than 8.0 metres.
    Results have been returned for 12 holes to date, representing
approximately 25% of the total drilled. Significant results include:
    Hole V08-023 intersected 8.4 metres averaging 2,154 grams of silver per
tonne. This hole intersected the Vertikalny mineralized zone approximately 50
metres below Trench 5050 which, in 2007, returned a 10.0 metre interval
averaging 480 grams of silver per tonne.
    Hole V08-031 intersected 2.8 metres averaging 1,739 grams of silver per
tonne. This hole intersected the Vertikalny vein approximately 50 metres above
hole V07-006 which, in 2007, returned 8,887 grams per tonne silver over a 6.0
metre interval.
    Hole V08-029 intersected several anomalous zones over a 29.2 metre
interval, the most significant of which returned 4.7 metres averaging 998
grams of silver per tonne. This hole was situated 50 metres below trench 5014
which, in 2007, returned 663 grams per tonne silver over a 35.5 metre
interval.
    Hole V08-028 intersected 3.4 metres averaging 573 grams of silver per
tonne. This hole is approximately 25 metres below hole V07-004 which, in 2007,
intersected 5.7 metres averaging 147 grams of silver per tonne.
    Hole V07-007 intersected 4.7 metres averaging 361 grams per tonne of
silver and 5.47% zinc. This hole, completed in 2007, was re-assayed when
significant zinc results were reported.

    
    --------------------------------
    (1) The reader is cautioned that the targets expressed above and
        elsewhere in this press release are based on Silver Bear's assessment
        of the geological data currently available and are conceptual in
        nature. There has been insufficient exploration with respect to these
        targets to define any estimates of quantities. There is no guarantee
        that the targeted estimates will be delineated through additional
        exploration. These are objectives set by the Company and they are not
        estimates of quantities as contemplated by section 2.3 of NI 43-101.
        There is no assurance that these objectives will materialize.

    The following table outlines the results received to date.

    -------------------------------------------------------------------------
    Hole ID       Profile       From        To      Length (m)   Silver (g/t)
    -------------------------------------------------------------------------
    V07-007         10300       80.6        85.3          4.7            361
    -------------------------------------------------------------------------
    V08-022         10200      108.7       109.3          0.6             94
    -------------------------------------------------------------------------
    V08-023         10200       30.8        39.2          8.4           2154
       Incl                     34.1        39.2          5.1           3434
    -------------------------------------------------------------------------
    V08-024         10300      240.2      242.85         2.65             50
    -------------------------------------------------------------------------
    V08-025         10300      123.0       126.8          3.8            182
       Incl                    124.8       125.3          0.5           1118
    -------------------------------------------------------------------------
    V08-026         10300       33.1        34.5          1.4             39
    -------------------------------------------------------------------------
    V08-026A        10300       16.1        16.7          0.7             55
    -------------------------------------------------------------------------
    V08-027         10400      50.85       53.80         2.95            110
    -------------------------------------------------------------------------
    V08-028         10400      120.6       124.0          3.4            573
    -------------------------------------------------------------------------
    V08-029         10500       21.7        25.7          4.0             74
                                28.8        33.5          4.7            998
                                42.6        43.4          0.8            220
                                49.9        50.9          1.0             89
    -------------------------------------------------------------------------
    V08-030         10500      139.5       143.3          3.8            221
    -------------------------------------------------------------------------
    V08-031         10600       50.3        53.1          2.8           1739
       Incl                     50.5        51.7          1.2           3901
    -------------------------------------------------------------------------
    

    The results contained herein have been reviewed by Vivian Park, P.Geo.,
Silver Bear's Qualified Person managing the exploration program on the
Mangazeisky Project. Vivian Park is an employee of Silver Bear in the capacity
of Director of Exploration.

    SAMPLE COLLECTION AND PREPARATION

    Silver Bear's core sampling and preparation program is summarized as
follows:
    All core is 60.3 mm diameter. The core is placed in boxes at the drill
site, complete with distance markers. On arrival at the core logging facility,
the core boxes are opened and a geologist is responsible for organizing and
photographing the core, completing a geotechnical log, and preparing the core
for geological logging and sampling.
    The core is logged for lithology, structure and mineralization. Intervals
of interest are marked for sampling. Intervals deemed to be potentially
anomalous in silver are cut using a diamond saw with one half of the core
prepared as the sample and the other half retained in the core box and stored
at site.
    Samples are crushed to a nominal size of -1mm at an on-site preparation
facility. A 500 gram split is shipped to the laboratory for pulverization and
assay; a duplicate split is retained on site.
    All fire assays for silver are completed at the Chemical Laboratory of
the State Enterprise Aldangeologiya (Aldan Lab), located in Yakutia, Russia.
    Silver Bear's quality control protocol includes the blind submission of
certified standards (prepared by Geostats Pty Ltd of Australia), field blanks
and field duplicates into the sample stream to monitor the accuracy and
precision of the fire assay results.
    Geological control samples comprise 15% of the total sample volume. It is
standard practice that should the reported results exceed the permissible
variance limits ascribed to said standards that the affected batches are
re-analyzed. No such occurrences were noted in the results reported above.
    An updated drill plan and longitudinal section demonstrating the hole
locations is available on the Company's website at
www.silverbearresources.com.

    
    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.
    Silver Bear Resources Inc. is listed on the Toronto Stock Exchange and
its common shares trade under the symbol "SBR". Silver Bear has 37,935,569
issued and outstanding common shares. Other information relating to Silver
Bear is available on SEDAR at www.sedar.com as well as on the Company's web
site at www.silverbearresources.com.

    Forward-Looking Information

    This release and subsequent oral statements made by and on behalf of the
Company may contain forward-looking statements, which reflect management's
expectations with respect to the proposed transaction. Wherever possible,
words such as "intends", "expects", "scheduled", "estimates", "anticipates",
"believes" and similar expressions or statements that certain actions, events
or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved, have been used to identify these forward-looking statements.
Although the forward-looking statements contained in this release reflect
management's current beliefs based upon information currently available to
management and based upon what management believes to be reasonable
assumptions, Silver Bear cannot be certain that actual results will be
consistent with these forward-looking statements. A number of factors could
cause events and achievements to differ materially from the results expressed
or implied in the forward-looking statements. Such risks factors include but
are not limited to risks factors identified by Silver Bear in its continuous
disclosure filings filed from time to time on SEDAR. These factors should be
considered carefully and prospective investors should not place undue reliance
on the forward-looking statements. Forward-looking statements necessarily
involve significant known and unknown risks, assumptions and uncertainties
that may cause Silver Bear's actual results, events, prospects and
opportunities to differ materially from those expressed or implied by such
forward-looking statements. Although Silver Bear has attempted to identify
important risks and factors that could cause actual actions, events or results
to differ materially from those described in forward-looking statements, there
may be other factors and risks that cause actions, events or results not to be
as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Accordingly, prospective investors should not place undue reliance
on forward-looking statements. These forward-looking statements are made as of
the date of this release, and Silver Bear assumes no obligation to update or
revise them to reflect new events or circumstances, unless otherwise required
by law.



    
    Silver Bear Resources Inc.
    (an exploration stage enterprise)
    Consolidated Balance Sheet
    (Canadian dollars)
    (unaudited)

                                                     June 30,    December 31,
                                                  ------------- -------------
                                                       2008          2007
    Assets                                               $             $

    Current assets
    Cash and cash equivalents                       32,087,043    30,295,581
    Related party receivable                            17,904        31,052
    Non-controlling interest                                 -       151,592
    Inventories                                      2,035,738       628,196
    Prepaid expenses                                   922,441     2,305,284
    Miscellaneous receivables                           81,918        50,232
    Deferred stock issuance costs                      214,456             -

                                                  ------------- -------------
                                                    35,359,500    33,461,937

    Capital assets
    Mineral properties                                 959,670       959,670
    Property, plant and equipment                    2,584,870       874,147
    Asset held for sale                                      -     5,885,218

                                                  ------------- -------------
                                                  ------------- -------------
                                                    38,904,040    41,180,972
                                                  ------------- -------------
                                                  ------------- -------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities
     from continuing operations                      2,101,982     1,127,478
    Accounts payable and accrued liabilities
     from discontinued operations                            -       200,265
                                                  ------------- -------------
                                                     2,101,982     1,327,743
                                                  ------------- -------------
    Long-term liabilities
    Asset retirement obligation                        252,942       245,360
    Non-controlling interest                                 -           127

    Shareholders' equity

    Capital Stock                                   69,551,324    67,991,311

    Warrants                                           184,008       273,575

    Contributed surplus                              7,654,108     6,835,085

    Deficit                                        (40,840,324)  (35,492,229)
                                                  ------------- -------------
                                                    36,549,116    39,607,742
                                                  ------------- -------------

                                                  ------------- -------------
                                                    38,904,040    41,180,972
                                                  ------------- -------------



    Silver Bear Resources Inc.
    (an exploration stage enterprise)
    Consolidated Statements of Operations and Comprehensive Loss and Deficit
    (Canadian dollars)
    (unaudited)

                              Three months                 Six months
                              Ended June 30,              Ended June 30,
                      --------------------------- ---------------------------
                           2008          2007          2008          2007
                             $             $             $             $

    Income
      Interest income      179,766        73,291       465,393        95,322
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Expenses
      Exploration costs  3,059,013     1,807,922     4,644,360     2,380,958
      Stock option
       compensation        304,353       812,470       729,456       939,671
      Amortization         245,649       238,191       537,391       469,836
      General and
       administrative    1,406,358       701,323     2,627,557     1,121,446
      Penalty shares             -       647,233             -       647,233
      Foreign exchange
       loss (gain)         102,098       118,577      (197,653)      129,503
      Accretion expense      3,982             -         7,582             -

                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------
    Expenses from
     continuing
     operations          5,121,453     4,325,716     8,348,693     5,688,647
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Non-controlling
     interest               (5,345)     (256,245)      (33,178)     (256,245)

    Loss and
     Comprehensive Loss
     for the period
     from continuing
     operations         (4,936,342)   (3,996,180)   (7,850,122)   (5,337,080)

    Discontinued
     operations          2,502,027      (925,057)    2,502,027    (1,041,719)

                      ------------- ------------- ------------- -------------
    Net Loss            (2,434,315)   (4,921,237)   (5,348,095)   (6,378,799)
                      ------------- ------------- ------------- -------------

    Deficit
     - Beginning of
     the period        (38,406,009)  (24,088,796)  (35,492,229)  (22,631,234)

                      ------------- ------------- ------------- -------------
    Deficit - End of
     the period        (40,840,324)  (29,010,033)  (40,840,324)  (29,010,033)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Weighted average
     number of
     common shares
     outstanding        36,435,569    25,524,606    36,370,184    22,852,340

    Income (Loss) per
     share from
     continued
     operations       $      (0.14) $      (0.16) $      (0.22) $      (0.24)
    Income (Loss) per
     share from
     discontinued
     operations               0.07         (0.03)         0.07         (0.04)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------
    Income (Loss) per
     share            $      (0.07) $      (0.19) $      (0.15) $      (0.28)
                      ------------- ------------- ------------- -------------



    Silver Bear Resources Inc.
    (an exploration stage enterprise)
    Consolidated Statements of Cash Flows
    (Canadian dollars)
    (unaudited)

                              Three months                 Six months
                              Ended June 30,              Ended June 30,
                      --------------------------- ---------------------------
                           2008          2007          2008          2007
                             $             $             $             $

    Cash provided by
     (used in)

    Operating
     activities
    Loss for the
     period             (4,936,342)   (4,921,237)   (7,850,122)   (6,378,799)
    Net of earnings
     from discontinued
     operations          2,502,027      (925,057)    2,502,027    (1,041,719)
    Items not affecting
     cash:
      Amortization         245,649       238,191       537,391       469,836
      Accretion expense      3,982             -         7,582             -
      Stock option
       compensation        304,353       812,470       729,456       939,671
      Penalty shares
       issued                    -       647,233             -       647,233
    Net change in
     non-cash working
     capital             2,508,713       657,578       882,594       366,331

                      ------------- ------------- ------------- -------------
    Net cash from
     continuing
     operations            628,382    (3,490,822)   (3,191,072)   (4,997,447)
                      ------------- ------------- ------------- -------------

    Discontinued
     operations         (2,502,027)      925,057    (2,502,027)    1,041,719

    Financing activities
    Issuance of common
     shares               (366,959)          677     1,560,012    17,279,568
    Stock issuance
     costs                (214,456)            -      (214,456)            -
    Non-controlling
     interest                 (127)            -          (127)          127

                      ------------- ------------- ------------- -------------
                          (581,542)          677     1,345,429    17,279,695
                      ------------- ------------- ------------- -------------

    Investing activities
    Project acquisition
     costs - Mine
     Avlayakan                   -             -             -    (4,724,953)
    Acquisition of
     property, plant
     and equipment      (1,686,319)     (165,661)   (2,234,835)     (194,377)
    Proceeds on sale of
     Mine Avlayakan      8,354,881             -     8,354,881             -

                      ------------- ------------- ------------- -------------
                         6,668,562      (165,661)    6,120,046    (4,919,330)
                      ------------- ------------- ------------- -------------

    Increase (decrease)
     in cash and cash
     equivalents during
     the period          4,213,375    (2,730,749)    1,772,376     8,404,637

    Cash and cash
     equivalents -
     beginning of the
     period             27,873,668    13,114,315    30,314,667     1,978,930

                      ------------- ------------- ------------- -------------
    Cash and cash
     equivalents - end
     of the period      32,087,043    10,383,566    32,087,043    10,383,567
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Supplementary
     disclosure of
     non-cash financing
     and

    Issuance of
     warrants                    -       184,008             -       184,008
    Expenses of common
     share issue                 -      (184,008)            -      (184,008)
    Issuance of
     penalty shares              -       647,233             -       647,233
    Expenses of
     penalty share
     issue                       -      (647,233)            -      (647,233)
    





For further information:

For further information: please visit www.silverbearresources.com, or
contact: Raymond Threlkeld, Chief Operating Officer, (416) 324-6005,
rthrelkeld@silverbearresources.com; Brian Penny, Chief Financial Officer,
(416) 324-6002, bpenny@silverbearresources.com; Hannes Portmann, Director,
Corporate Development and Investor Relations, (416) 324-6014,
hportmann@silverbearresources.com

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SILVER BEAR RESOURCES INC.

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