Yellowhead Mining Inc. Reports Step-Out and In-Fill Drill Results from 2011 Program

TSXV: YMI

VANCOUVER, Feb. 21, 2012 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSXV: YMI) is pleased to report results for certain Holes from HC11-120 through HC11-130 which represent a series of "step out" holes drilled following the completion of resource drilling (ref. News Release February 16, 2012) to further investigate mineralization along strike, down dip and at depth.  The holes were positioned to the east and west of the proposed pit limit.  In addition two in-fill holes were drilled near the centre of the deposit, to support the block model estimates and provide increased confidence in the resource estimate in that area.

Please refer to Drill Plan Map http://www.yellowheadmining.com/i/pdf/2012-02-21-Drill-Plan-Map.pdf.

Section 303580E 

Please refer to the Cross Section Map http://www.yellowheadmining.com/i/pdf/2012-02-21-CrossSection303580.pdf.

Holes HC11-120 and HC11-121 are part of a three-hole fence (including historical hole NH-10 at the western limit of the resource on Section 303580E.  The holes intersected two mineralized zones indicating the potential to expand the resource to the west.

The significant intersections from these holes are presented in the tables below.

Hole HC11-123 is part of a seven-hole fence near the centre of the deposit on Section 304600E.  This infill hole supports the block model estimates from the PEA and increases confidence in the resource estimate.

The significant intersections from this hole are presented in the table below.

Hole HC11-125 is part of a five-hole fence near the centre of the deposit on Section 304720E.  As with hole HC11-123, this infill hole further supports the block model estimates from the PEA and increases confidence in the resource estimate.

The significant intersections from this hole are presented in the table below.

Hole HC11-124 is part of a six-hole fence near the eastern edge of the PEA pit limit on Section 305620E. It is collared 118m south of Hole HC11-87, the best hole drilled to date on the property, with 242. 52m @ 0.39% Cu, announced on May 27, 2011. This infill hole demonstrates the potential to expand resources at depth and to the south, as well as increasing mineable tonnage below the PEA pit bottom.

The significant intersections from this hole are presented in the table below.

This hole was collared 100 m east along strike from hole HC11-87.  It confirms that significant resources are expected to be added along strike at the eastern limit of the PEA pit.

This hole demonstrates continued potential to increase resource tonnage with mineable widths, along strike to the east, outside the PEA pit limit.

Ian Smith, President and Chief Executive Officer, stated: "These results confirm our previous hypothesis that the ore body is open along strike, down dip to the north and at depth.  Also, the in-fill drilling shows the high degree of continuity of the deposit and confirms the projection of resources in the PEA in areas previously sparsely drilled."

The program was managed by CME Consultants Inc. ("CME").

Qualified Person

Christopher O. Naas, P.Geo. B.Sc., Project Manager for Yellowhead's Harper Creek Project, is a qualified person as defined by National Instrument 43-101 and prepared or reviewed the preparation of the scientific and technical information in this press release with respect to the assay results from the Harper Creek drill program.

Sample Collection, Analysis and QA/QC

Core was cut by electric rock saw with half core shipped to the ALS Group for sample preparation and analysis. Independent laboratory checks were performed by Acme Analytical Laboratories Ltd.  Drill core samples were analyzed for multi-elements by total digestion ICP-ES and for gold by fire assay with an AA finish. Core samples returning greater than 2,000 ppm copper in the ICP-ES process were then assayed for copper.  Key elements of Yellowhead's QA/QC program include chain of custody of samples, regular insertion of certified reference standards and blanks, and duplicate check assays.

About Yellowhead Mining Inc. and the Harper Creek Project

The Harper Creek Project is a copper-gold-silver volcanogenic sulphide deposit with an updated Measured and Indicated Resource of 815 million tonnes grading 0.29% Cu (5.26 billion pounds of copper) plus 0.032 g/t gold and 1.3 g/t silver, plus an Inferred Resource of 80.2 million tonnes grading 0.30% Cu (0.53 billion pounds of copper), announced in a news release dated February 16, 2012 entitled "Yellowhead Mining Updates Mineral Resource Estimate For Harper Creek Project". The Harper Creek Project is located in south-central British Columbia, approximately 150 kilometers by highway north of Kamloops.  Yellowhead has a 100% interest in the Harper Creek development project⁽¹⁾.  A Preliminary Economic Assessment Report ("PEA"), which demonstrated the technical and economic viability of the Project, was completed at the end of March and filed on SEDAR on April 1, 2011 and can be viewed on www.sedar.com. The PEA demonstrated a 22 year project life based on a Measured & Indicated resource of 532 million tonnes at a grade of 0.31%, a milling rate of 70,000 tonnes per day, producing 149 million lbs. copper in concentrate per year for years one to eight, (132Mlb/year life-of-mine), a life-of-mine stripping ratio 0.88:1, a pre-tax IRR of 19.8% with a base case copper price of US$2.66/lb., an NPV8 of US$598 million and a capital cost of C$759 million in Q4 2010 dollars, including contingency, with a 4 year payback⁽²⁾.

¹ (Subject to the payment of a 3% NSR royalty capped at $2.5 million, adjusted for inflation and an additional 2.5% NSR royalty on an estimated 3.3 million tonnes of ore which is expected to be mined beginning in year nine within the NI 43-101 resource.)

² Mineral resources are not mineral reserves and do not have demonstrated economic viability.

FORWARD-LOOKING STATEMENTS AND CAUTIONARY DISCLAIMER

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, inherent operating risks, planned expenditures, proposed exploration and development at the Harper Creek Project, operating and economic aspects of the Harper Creek Project, as well as those risk factors identified in the Company's Annual Information Form filed under the Company's SEDAR profile. Yellowhead undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.

This news release may include disclosure of scientific and technical information, as well as information in relation to the calculation of resources, with respect to the Harper Creek Project. Yellowhead's disclosure of mineral resource information is governed by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). There can be no assurance that mineral resources will ultimately be converted into mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability. This news release uses the terms "measured", "indicated" and "inferred" resources. U.S. persons are advised that while such terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. "Inferred Resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred resources may not form the basis of feasibility or other economic studies. U.S. persons are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. U.S. persons are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.