Silver Bear Announces Closing of the Private Placement with Alfa Group Consortium

    TORONTO, July 16 /CNW/ - Silver Bear Resources Inc. ("Silver Bear" or the
"Company") (TSX:SBR) is pleased to announce completion of the private
placement of 1.5 million common shares of Silver Bear pursuant to the
previously announced strategic partnership with the Alfa Group Consortium (the
"Alfa Group"), one of Russia's largest privately-owned financial/industrial
conglomerates. The 1.5 million common shares were sold to Impetra Ltd., an
indirect wholly-owned subsidiary of the Alfa Group, at the price of $3.00 per
share for aggregate gross proceeds to the Company of $4.5 million.
    The strategic partnership is intended to introduce Silver Bear to new
opportunities in the mining sector, which will enhance fundamental value and
increase the market capitalization of the Company, while ensuring long-term
stability and appreciation of its mining projects in the Russian Federation.
    The Company is also pleased to announce that following the private
placement, Messrs. Dominic Gualtieri and Alexei Mikhailovski have been
formally appointed to the Board of Directors of Silver Bear. Mr. Gualtieri, a
Canadian, brings a wealth of financial expertise to Silver Bear, having joined
Alfa-Bank, a division of the Alfa Group, in 2000 as the Head of Equities and a
Managing Director. He was previously Group Managing Director of Franklin
Templeton Asset Management in South Africa and headed Templeton's Moscow
office. Mr. Mikhailovski, who heads up the Alfa Group's gold unit, is a leader
in the Russian mining sector, having previously held the position of Managing
Director of Alrosa Investment Group.
    The private placement resulted in the Alfa Group beneficially holding an
aggregate of 7.4 million common shares of Silver Bear, representing
approximately 19.5% of the number of common shares now outstanding.
    Before closing the private placement, the Alfa Group beneficially owned
5.9 million Silver Bear common shares, which represented approximately 16.2%
of the then issued and outstanding common shares of Silver Bear. Alfa Group
advises that the Common Shares were acquired for investment purposes. Alfa
Group and its joint actors may, from time to time, acquire additional
securities of Silver Bear, dispose of some or all of the existing or
additional securities they hold, or may hold, or may continue to hold their
current positions. The Alfa Group has agreed not to sell its 1.5 million
common shares acquired in the private placement for a period of 12 months from
the closing of the private placement. Alfa Group will be filing a report (as
contemplated by National Instrument 62-103 - The Early Warning System and
Related Takeover Bid and Insider Reporting Issues) in connection with this
private placement. Any person who wishes to obtain a copy of such report may
contact David Knight of Macleod Dixon LLP, Canadian counsel to the Alfa Group
Consortium, by telephone at (416) 203-4460.

    About 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, after giving
effect to the private placement, 37,935,569 issued and outstanding common
shares. Other information relating to Silver Bear is available on SEDAR at as well as on the Company's web site at

    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.

For further information:

For further information: Randall Oliphant, President and Chief Executive
Officer, (416) 324-6000,; Raymond Threlkeld,
Chief Operating Officer, (416) 324-6005,;
Brian Penny, Chief Financial Officer, (416) 324-6002,; Julie Taylor Pantziris, Director, Regulatory
Affairs and Investor Relations, (416) 324-6015,

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