Drilling at Pirquitas returning higher than expected values.

BOISE, Idaho--(BUSINESS WIRE)--Feb. 29, 1996--Sunshine Mining & Refining Co. (NYSE:SSC) announced today that the initial results of its drilling and sampling program at the newly acquired Pirquitas property in northwest Argentina is confirming evidence of a large disseminated of silver and tin ore body, that could be developed by standard low-cost open pit techniques.

A 1992 report on the property, supported by extensive underground sampling data, estimated a resource of some 39 million short tons containing 3.50 to 5.25 ounces of silver per ton and between 0.2 percent and 0.4 percent tin, for a total contained metal content of 134 to 202 million ounces of silver and between 154 and 308 million pounds of tin (equivalent to 2.9 to 4.9 million ounces of gold at current prices). The same report also suggested the potential for the area to host significantly greater tonnages of similar mineralization.

Work is currently underway to verify previously reported grades and establish ore reserves. The first part of this program is expected to be completed by mid-year. Selected assay results for the first three reverse circulation drill holes from surface, shown on the available cross-section, are as follows: -0-

Drill Hole    Interval    Length    Silver Assay    Tin Assay

AR-1 P        305-440     135 ft.    9.3 oz/ton      0.69%
AR-2 P        105-463     358 ft.   18.1 oz/ton      0.55%
AR-3 P        230-358     128 ft.    9.3 oz/ton      0.24%

In addition to the above drill results, the company has received assays from the resampling of certain workings located above the water level in the mine, also shown on the cross-section.

While initially not expected to be heavily mineralized, areas of considerable length contain significantly higher values than anticipated, as described below: -0-

Adit        Length       Silver Assay        Tin Assay

Oploca-2    62 ft.       42.9 oz/ton         0.85%
Oploca-2    98 ft.        5.1 oz/ton         0.07%
Potosi-2   125 ft.        6.0 oz/ton         0.12%

Because of the better-than-expected results of this initial drilling and sampling work, the company is very encouraged about the property's potential to host an ore deposit of more than 130 million ounces of silver.

The underground workings of the mine are now being dewatered and are being re-sampled as they become accessible to verify the data supporting the 1992 report. Underground core drilling to test for mineralization below the limits of the surface drilling will commence shortly thereafter.

Sunshine, through its Sunshine Precious Metals Inc. subsidiary, owns and operates the Sunshine Mine and Refinery Complex in the Coeur d'Alene Mining District in northern Idaho. The Sunshine Mine has been in operation for over 100 years, over which time it has been the largest primary silver producing mine in North America. The company has recently become active in South America, with the opening of exploration offices in Lima, Peru, and Mendoza, Argentina. -0-

Note to Editors: A cross-section graphic of the property depicting the location of drilling and sampling data, is available upon request.

CONTACT: Sunshine Mining Co.

William W. Davis, 214/265-1377