United Mining Group Extends Contract at Galena Mine

February 24, 2011 Vancouver, British Columbia: United Mining Group, Inc. (the "Company"), (TSX:UMG Frankfurt:UM8 OTCQX:UMGZF) announces that the Company’s Mine Services Division has extended its agreement with U.S. Silver Corporation ("the Agreement"), to provide contract underground mining services at the Galena Mine located in Silver Valley Idaho, in the Coeur d’Alene Mining District. The total value of the contract is estimated at approximately US$ 6.0 million and extends the original contract by 18 months, through to August 2012.

The Agreement calls for UMG to provide the necessary manpower and oversight to perform contract mining for U.S. Silver Corporation, primarily at their Galena Mine, with a focus on expanding production from existing operations. The Galena mine ranks as the second largest primary silver mine in U.S. history, with 2010 production of approximately 2.3 million ounces of silver, 5.6 million pounds of lead and 1 million pounds of copper. As part of the normal course of business under its Mine Services Division, UMG actively pursues new opportunities to provide contract mining services on an ongoing basis.

ABOUT UNITED MINING GROUP

United Mining Group is a vertically integrated mining company with operations in Idaho, USA. The Company is currently earning, through development and operations, an 80% interest in the Crescent Silver Mine project in Idaho's prolific Silver Belt - directly between two of the world's historically largest silver producing properties, the Sunshine and Bunker Hill mines. The Crescent Mine has historically produced 25 million ounces of silver at an average grade of 27.3 opt (SRK Consulting 43-101 report, March 1, 2010). The Company also offers a full suite of mining services including contract mining and mine machine repair and fabrication services to silver miners in the district. UMG is committed to building a senior silver-producing mining company based on aggressive exploration and development of the highly-prospective current land position at the Crescent Silver Mine project and through the acquisition of additional precious metals interests. The Company trades on the Toronto Stock Exchange under the symbol "UMG". For more information about the Company, please visit: www.unitedmininggroup.com.

ON BEHALF OF UNITED MINING GROUP, INC.
"Charles Pitcher"
Chief Executive Officer