Silver Bear Announces First Quarter Results - 2009 Drilling Program to Commence in May

    TORONTO, May 11 /CNW/ - Silver Bear Resources Inc. ("Silver Bear" or the
"Company") (TSX:SBR) today announces financial results for the first quarter
ended March 31, 2009, prepared in accordance with Canadian generally accepted
accounting principles ("GAAP") and provides an update on the status of the
winter road resupply. All dollar amounts are stated in Canadian dollars unless
otherwise indicated. Highlights of the first quarter include:

    -   $19.3 million in cash at March 31, 2009 with no debt, sufficient to
        fund operations into 2010

    -   All equipment and supplies needed for 2009 exploration program
        successfully delivered to site

    -   10,000 metre 2009 exploration drilling program to commence in
        late May

    "With the successful completion of the winter road resupply, all of the
materials are in place for the Company to begin its 2009 drilling program very
soon," said Randall Oliphant, President and Chief Executive Officer. "We look
forward to another year of high grade results with a view of significantly
increasing our resource base."

    Financial Results

    Net Loss

    Silver Bear incurred a net loss for the period ended March 31, 2009 of
$4.0 million or $0.11 per share. This compares to a loss of $2.9 million or
$0.08 per share for the period ended March 31, 2008. Exploration costs were
$2.6 million in the period ended March 31, 2009 compared with $1.6 million in
the period ended March 31, 2008, as the Company has paid $0.8 million of
mobilization costs for drilling supplies and equipment in the first quarter of
2009 that were not paid in 2008; the payment of upfront mobilization charges
results in the Company paying lower per metre drilling charges this year.
General and administrative expenses for the period ended March 31, 2009 were
$0.7 million compared with $1.2 million in the prior period. General and
administrative expenses are less than the prior year quarter due to lower
legal and consulting related expenses as well as reduced travel.

    Liquidity and Capital Resources

    At March 31, 2009, Silver Bear had cash and cash equivalents of $19.3
million, sufficient for the Company to complete the 2009 program and continue
operations into 2010. December 31, 2008 cash and cash equivalents were $24.2
million. In the first quarter of 2009, in addition to exploration and
administrative costs, the Company purchased $0.2 million of equipment and $0.9
million in supply inventories for the 2009 drilling season.

    Update - Mangazeisky Project

    Silver Bear's objective for 2009 is to increase the Company's resource
estimate significantly. Silver Bear plans to complete 10,000 metres of
exploration drilling and 10,000 cubic metres of surface trenching during the
year, leaving the Company with sufficient cash to fund further exploration in
2010. Total estimated cost for the 2009 program is approximately $12.0
    The winter road resupply of equipment and supplies necessary to complete
the 2009 exploration program has been completed. Approximately 440 tonnes of
fuel products and 400 tonnes of dry goods were moved to site during the first
quarter of 2009.
    In order to maintain the exploration license at the Mangazeisky Project
in good standing, Silver Bear is required to conduct certain minimum levels of
exploration activity. The exploration program concluded in 2008 and the
program planned for 2009 more than satisfies the commitments established in
the License Agreement.
    Silver Bear has entered into a drilling contract to complete a minimum of
10,000 metres of diamond drilling at the Mangazeisky Project for 2009.
Performance of work is expected to commence on May 25, 2009 and is expected to
be completed on October 1, 2009.

    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 as well as on the Company's web
site at

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

                                                  March 31,     December 31,
                                               --------------  --------------
                                                    2009            2008

    Current assets
    Cash and cash equivalents                  $  19,347,148   $  24,170,023
    Related party receivable                           9,922          23,063
    Inventories                                    2,065,615       1,142,408
    Prepaid expenses                                 699,492         666,396
    Miscellaneous receivables                         51,330          52,475
                                               --------------  --------------

                                                  22,173,507      26,054,365

    Capital assets
    Mineral properties                             1,265,117       1,265,117
    Property, plant and equipment                  2,553,416       2,520,265
    Asset held for sale                              944,150         944,150

                                               --------------  --------------
                                               $  26,936,190   $  30,783,897
                                               --------------  --------------
                                               --------------  --------------


    Current liabilities
    Accounts payable and accrued               $     950,801   $   1,013,888

    Long-term liabilities
    Asset retirement obligation                      580,215         570,711

    Shareholders' equity

    Capital Stock                                 73,771,289      73,771,289

    Contributed surplus                            8,813,618       8,621,876

    Deficit                                      (57,179,733)    (53,193,867)

                                               --------------  --------------
                                                  25,405,174      29,199,298
                                               --------------  --------------

                                               --------------  --------------
                                               $  26,936,190   $  30,783,897
                                               --------------  --------------

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

                                                   March 31,       March 31,
                                               --------------  --------------
                                                     2009            2008

      Interest income                          $      56,445   $     285,627
                                               --------------  --------------

      Exploration costs                            2,581,816       1,585,347
      General and administrative                     730,999       1,221,199
      Stock option compensation                      191,742         425,103
      Amortization                                   180,319         291,742
      Accretion expense                                9,504           3,600
      Foreign exchange loss (gain)                   347,931        (299,751)
                                               --------------  --------------
    Expenses from operations                       4,042,311       3,227,240
                                               --------------  --------------

      Non-controlling interest                             -         (27,833)

    Loss and Comprehensive Loss for the period    (3,985,866)     (2,913,780)

                                               --------------  --------------
    Net Loss                                      (3,985,866)     (2,913,780)
                                               --------------  --------------

    Deficit - Beginning of the period            (53,193,867)    (35,492,229)

                                               --------------  --------------
    Deficit - End of the period                $ (57,179,733)  $ (38,406,009)
                                               --------------  --------------
                                               --------------  --------------

    Weighted average number of
     common shares outstanding                    37,935,569      36,304,800

                                               --------------  --------------
    Income (loss) per share                    $       (0.11)  $       (0.08)
                                               --------------  --------------

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

                                                   March 31,       March 31,
                                               --------------  --------------
                                                     2009            2008

    Cash provided by (used in)

    Operating activities
    Loss from operations                       $  (3,985,868)  $  (2,913,780)

    Items not affecting cash:
      Amortization                                   180,319         291,742
      Accretion expense                                9,504           3,600
      Stock option compensation                      191,742         425,103
    Net change in non-cash working capital        (1,005,102)     (1,626,118)

                                               --------------  --------------
    Net cash from continuing operations           (4,609,405)     (3,819,453)
                                               --------------  --------------

    Financing activities
    Issuance of common shares                              -       1,926,971

                                               --------------  --------------
                                                           -       1,926,971
                                               --------------  --------------

    Investing activities
    Acquisition of property, plant and equipment    (213,470)       (548,517)

                                               --------------  --------------
                                                    (213,470)       (548,517)
                                               --------------  --------------

    Increase (decrease) in cash and
     cash equivalents during the period           (4,822,875)     (2,440,999)

    Cash and cash equivalents -
     beginning of the period                      24,170,023      30,314,667

                                               --------------  --------------
    Cash and cash equivalents -
     end of the period                         $  19,347,148   $  27,873,668
                                               --------------  --------------

    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: please visit, or
contact: Raymond Threlkeld, Chief Operating Officer, (416) 324-6005,; Brian Penny, Chief Financial Officer,
(416) 324-6002,; Hannes Portmann, Director,
Corporate Development and Investor Relations, (416) 324-6014,

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