UMG Increases its Contiguous Exploration Holdings by 265%

October 12, 2010, Vancouver, British Columbia: United Mining Group, Inc. (the “Company”), (TSX:UMG Frankfurt:UM8) announces that it has signed a letter of intent (LOI) that will increase its contiguous exploration land holdings by 265% from approximately 143 hectares (353 acres) to a total of 379 hectares (937 acres) at the Crescent Mine project. The Company has 30 days to complete its due diligence and has already commenced its environmental evaluation.

Acquisition Highlights:

• The new claims lie adjacent to the west of the Company’s Crescent Mine property.
• These claims more than double the potential, silver-hosting area available to the Company.
• The major silver-hosting structures, Alhambra and South fault zones, strike westerly onto the acquisition.
• Historic exploration on the claims include:
  • Approximately 15,000 feet (4.5 km) of cross cuts and development drifts on structures which identified mineralized structures at surface and projected from underground workings
  • Mining of at least four small stopes along the Alhambra fault
  • A 200 ton mill test of ore from one of these adits.
• Agreement terms:
  • $US100,000 was paid to the seller upon acceptance of the LOI
  • $US400,000 payable upon closing of definitive agreement
  • $US750,000 payable within 6 and 12 months of the definitive agreement
  • 1% net smelter royalty is payable and subject to a UMG buy back option for $1,000,000

“This acquisition, along with our recent securing of initial milling capacity, will certainly open up immediate growth opportunities for the Company. The significance of these claims being along the structural strike of known ore zones and host to the Sunshine Mine and the Bunker Hill Mine, cannot be underestimated and significantly increase the UMG inventory of immediate and near term exploration property,” commented Charles Pitcher, CEO of the Company.

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

In compliance with NI 43 101, Lawrence Dick, Ph.D., P.Geo., is the Qualified Person responsible for the accuracy of this news release.

"Charles Pitcher"

Charles Picher
Chief Executive Officer

FOR MORE INFORMATION, PLEASE CONTACT:

Greg Stewart
President & Chief Operating Officer
Tel: 208.682.9018
[email protected]