VANCOUVER, BRITISH COLUMBIA, Oct 07, 2010 (MARKETWIRE via COMTEX) -- United Mining Group, Inc. (the "Company") /quotes/comstock/11t!e:umg (CA:UMG 0.95, 0.00, 0.00%) (frankfurt:UM8) announces that it has signed a letter of intent with the New Jersey Mining Company (NJMC) to secure milling capacity for the Company. The mill is less than 4 miles from the Company's Crescent Silver Mine.

Agreement Highlights:

--  NJMC owns a fully permitted mill including tailings storage with 100
    tons per day (tpd) milling capacity
--  UMG will pay to expand the mill to 350 tpd at an estimated cost of
    $US2.3 million.
--  UMG will receive 250 tpd capacity for the life of the mill and any
    excess capacity to the 350 tpd.
--  UMG will acquire a one third interest in a joint venture company between
    the parties.
--  NJMC will operate the mill.
--  UMG will receive access to the tailings to use for backfill.

This agreement is subject to approval by the Toronto Stock Exchange.

About United Mining Group

United Mining Group is a profitable, vertically integrated mining company with operations in Idaho, USA. The Company offers a full suite of mining services including contract mining to silver miners in the district. The Company owns its own custom welding and fabrication shop allowing it to repair/rebuild equipment for its own use and for outside mining companies.

The Company is currently earning, through development and operations, an 80% interest in the Crescent Silver Mine adjacent to the Sunshine Silver Mine in the Silver Valley. 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). UMG currently has an indicated resource of 6.1 million ounces silver (324,000 tons grading 18.7 opt silver) and additional inferred resources of 4.1 million ounces silver (211,000 tons grading 19.5 opt silver).

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 Crescent and through the acquisition of additional silver interests.

For more information about the Company, please visit: www.unitedmininggroup.com

"Charles Pitcher"

Charles Pitcher, Chief Executive Officer

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. Forward looking statements in this press include that we will earn an interest in the Crescent Silver Mine, and that we can build a senior silver-producing mining company based on aggressive exploration and development of the highly-prospective current land position at Crescent and through the acquisition of additional silver interests. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the inability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contacts:
United Mining Group, Inc.
Greg Stewart
208.682.9018
[email protected]
www.unitedmininggroup.com