Lincoln Mining Closes Bell Mountain Acquisition

November 28, 2012

Vancouver, British Columbia – Lincoln Mining Corporation, TSX-V: LMG ("Lincoln" or the "Company") announces that further to the Company’s news release dated November 22, 2012 announcing closing of the Procon financings, the Company has signed a definitive purchase agreement and closed the acquisition of the Bell Mountain property in Churchill County, Nevada.

Lincoln entered into a Purchase Agreement – Bell Mountain Project dated as of November 28, 2012 (the "Purchase Agreement") among Lincoln, Lincoln Resource Group Corp. (Lincoln's wholly-owned Nevada subsidiary) ("LRG"), Laurion Mineral Exploration Inc. and its Nevada subsidiary Laurion Mineral Exploration USA LLC (together, "Laurion"), pursuant to which LRG has acquired from Laurion certain unpatented mining claims and the assignment and assumption of Laurion's option (the “Bell Mountain Option”) to earn a 100% interest in the Bell Mountain property from Globex Nevada Inc. (“Globex").  The total Bell Mountain land package is 1,212 hectares (2,900 acres).  Further details of the property are contained in the Company’s news release dated September 5, 2012. 

The purchase price for the transaction is an aggregate of $2,350,000 cash, payable by Lincoln to Laurion as follows:

  1. $350,000 within five business days following receipt by Lincoln and Laurion of all necessary TSX Venture Exchange approvals to the letter agreement between the parties dated September 4, 2012 (paid);
     
  2. $350,000 following completion of the $2,300,000 convertible debenture financing with Procon Mining and Tunnelling Ltd. (see Lincoln's news release dated November 22, 2012).  This payment was made to Laurion at the closing of the Bell Mountain transaction today;
     
  3. $750,000 on completion of a pre-feasibility study for the Bell Mountain property.  Lincoln shall use its commercially reasonable efforts to complete the pre-feasibility study by June 30, 2013; and
     
  4. $900,000 on or before five months after completion of the pre-feasibility study. 

In order to complete the exercise of the Bell Mountain Option to acquire a 100% interest in the property from Globex, Lincoln must incur an additional $1,755,000 in exploration expenditures on the property by June 28, 2015.

Pursuant to the Purchase Agreement, Laurion retains the right to reassert its interests and rights in the Bell Mountain Option in order to be able to exercise the option to earn a 100% interest in the property in the case that Lincoln does not complete the remaining expenditure requirements of $1,755,000, Lincoln defaults on any of the other obligations assumed under the Bell Mountain Option, or fails to complete the remaining payments under the Purchase Agreement.

The Bell Mountain property is also subject to two royalties which will take effect upon commencement of commercial production.  The first royalty is held by N.A. Degerstrom Inc. (a previous property owner/operator) which retains a 2% net smelter return royalty, which can be acquired for US$167,000.  In addition, Globex will maintain a sliding-scale gross metal royalty ("GMR") on all mineral production (gold, silver, etc.) benchmarked upon the price of gold (1% GMR at a gold price under US$500/troy ounce, 2% GMR at a gold price between US$500 and US$1200/troy ounce and 3% GMR at a gold price over US$1200/troy ounce). 

Pursuant to the Globex Agreement, upon exercise of the option and the acquisition of a 100% interest in the Bell Mountain property from Globex, Lincoln (as assignee of Laurion) would be required to pay annually a $20,000 advanced royalty payment which would be credited against the royalty payable to Globex described above. 

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 and the Bell Mountain gold properties in Nevada, the Oro Cruz gold property in California and the La Bufa gold-silver property in Mexico.  In the United States, the Company operates under its Nevada subsidiaries, Lincoln Gold US Corp. and Lincoln Resource Group Corp.

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

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 relation to paying the remaining balance of the purchase price for the Bell Mountain transaction, completing a pre-feasibility study on the Bell Mountain project and incurring the remaining expenditures required to exercise the Bell Mountain Option, 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 Company's plans or expectations include the risk that actual results of future exploration work, including drill results and results of engineering and metallurgical studies, will not support the Company's plans to advance the Bell Mountain project; risks relating to delays in the preparation of geological reports; the uncertainty of the geology, grade and continuity of mineral deposits (including in respect of the Bell Mountain property) and the risk of unexpected variations in mineral resources, grade and/or recovery rates; cost overruns and project delays; availability of additional capital and financing required to fund the remaining portion of the Bell Mountain purchase price and the remaining expenditures to exercise the Bell Mountain Option; the risk that the Company will not receive all necessary United States regulatory approvals in relation to the Procon and Bell Mountain transactions as planned, or that the necessary approvals will require modifications to the terms of the transactions; US regulatory review of the Procon and Bell Mountain transactions may result in regulatory orders or other action that may have an adverse effect on the business, operations or assets of the Company in the United States, including in relation to the Bell Mountain project; general economic, market or business conditions; fluctuating metal prices; regulatory changes; timelines of government or regulatory approvals and other risks detailed herein and from time to time in the 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.  
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