Silver Falcon Mining, Inc. has provided an operational update on a variety of ongoing activities at its Sinker Tunnel Project and at both its Diamond Creek Mill and Metallurgical Facilities. Sinker Tunnel Project drilling update: The company's site plan covering the equipment and securing of the Sinker tunnel area, necessary to support the underground work, has been approved by the Bureau of Land Management. Equipment necessary for work to begin in the Sinker Tunnel has arrived on site and is being made ready for use.

SFMI has acquired a loader, excavator, mine personnel carrier, and snow plow. The company anxiously awaits the arrival of its drilling equipment to finally begin a giant step forward in its business plan as to drilling inside the mountain for proven reserves. Once core results from drilling become available, this data will translate into the much awaited instrument NI-43-101.

Metallurgical Lab update: Shareholders present at the annual meeting held September 21, 2012 at SFMI's Diamond Creek Mill Facility, saw the ongoing progress towards completion of the Diamond Creek Metallurgical Lab. The lab is expected to be fully operational in the ensuing weeks. Management and company personnel provided attending shareholders a smelted dore pour, the precious metal dore pour to date, approximately 240 oz.

Management continues its delivery of dore to Republic Metals Refinery on a monthly basis. The company's management team is working under the umbrella of the Idaho Department of Environmental Quality (DEQ) to coordinate with all the various agencies involved so as to obtain certification on SFMI's plans to construct and operate the closed circuit leaching unit. Once operational, this allows SFMI to extract the $5 to $6 million of precious metals assayed on the 30,000 tons of tailings previously brought down from War Eagle Mountain.

Additionally, at the very well attended shareholders meetings, attendees were shown all of the mill expansion and the ongoing installation of the floatation circuit.