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Silver Falcon Mining Commences Work on Sinker Tunnel Gold Project

Silver Falcon Mining, Inc. announced that as of November 1, 2012, work commenced on the Company's Sinker Tunnel Gold Project.

Management also provides an operational update on a variety of ongoing activities at its Diamond Creek Mill and Metallurgical Facilities.

Sinker Tunnel Drilling Project Update

After 100 years hiatus, and some tentative steps in the last two years to reopen the Sinker Tunnel, work has finally begun. The tunnel is being aerated and preparation work to complete the bolting of the remaining upper wall of the tunnel is underway. The Company has placed orders for the myriad of items needed on site to equip and supply its underground work crews and is reviewing its plan of operation concerning the upcoming 5,000 feet core drilling project.

After the bolting operation is complete and a side room has been excavated near the "Oro Fino Vein," as it intersects with the tunnel, core data resulting from exploratory drilling will become available, and will be translated into the much awaited instrument NI-43-101.

Metallurgical Laboratory Update

Management continues its delivery of dore to Republic Metals Refinery on a monthly basis. Revenues received from refinery transactions will be reported in forthcoming US SEC FORM 10-Qs and Form 10-Ks. Shareholders are reminded that revenue from the operation is only reported as the refinery buys the "Bullion Dore" from SFMI, which only happens after the refinery melts the "Bullion Dore" delivered to them.

The Company's management team has begun work on its certification of plans to construct and operate a closed circuit leaching unit, in Murphy, Idaho following the Owyhee County permit issued this past July. Once operational, this will allow SFMI to extract the 5 to 6 million dollars of precious metals, assayed on the 35,000 tons of tailings previously brought down from War Eagle Mountain.

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