Starcore Reports Third Quarter Earnings of $4.2 Million and $10.8 Million for the Nine Months Ended April 30, 2012

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/15/12 -- Starcore International Mines Ltd. (the "Company") (TSX:SAM) has filed the results for the quarter and nine months ended April 30, 2012, for the Company and its mining operations. Over the third quarter ended April 30, 2012, the Company is pleased to report revenues of $14.0 million, earnings from mining operations of $5.0 million and earnings for the period of $4.17 million, which includes a net $1.93 million gain in financing costs due to gains in the Company's gold forward sales contracts. The basic and diluted income per share for the quarter ended April 30, 2012 was $0.03. Over the nine months ended April 30, 2012, the Company reports revenues of $49.4 million, earnings from mining operations of $17.8 million and earnings for the period of $10.8 million, which includes a net $1.95 million loss in financing costs due to net losses in gold forward sales contracts over the period. The basic and diluted income per share for the nine month period ended April 30, 2012 was $0.09 and $0.08, respectively.

The following table is a summary of mine production statistics for the San Martin mine for the three months ended April 30, 2012 as compared to the twelve months ended January 31, 2012:

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                                                        Actual       Actual
                                                   results for  results for
                                                      3 months    12 months
                                                         ended        ended
                                                      April 30,  January 31,
(Unaudited)                        Unit of measure        2012         2012
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Mine Production of Gold in Dore    thousand ounces         4.6         17.7
Mine Production of Silver in Dore  thousand ounces        63.8        268.9
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Mine Equivalent ounces of Gold     thousand ounces         5.8         23.7
Purchased Concentrate Equivalent   thousand ounces         1.9         13.6
 ounces                                                                    
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Total Mine Production - Equivalent thousand ounces         7.7         37.3
 Ounces                                                                    
                                                                           
Mine Gold grade                    grams/tonne            2.15         2.12
Mine Silver grade                  grams/tonne              33           39
Milled                             thousands of             77          300
                                   tonnes                                  
Mine Operating Cost per tonne      US                       55           50
 milled                            dollars/tonne                           
Mine Operating Cost per Equivalent US                      725          654
 Ounce                             dollars/ounces                          
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(i) Based on actual gold equivalency ratios of 51:1 and 46:1 for three      
months ended April 30, 2012 and twelve months ended January 31, 2012,       
respectively.                                                               

Overall equivalent gold production was 7,700 ounces over the three months ended April 30, 2012, compared to an average of 9,325 per quarter for the previous twelve month period. While ore grade remained comparable to the previous twelve month period, the lower production was due mainly to significantly more concentrate ore purchases in the prior year. Mine production alone was 5,800 ounces for the quarter, compared to an average of 5,925 per quarter for the previous twelve month period, with the decrease due mainly to production issues in April regarding supplies of chemicals and to required stope development, both of which were subsequently rectified.

The following table contains selected highlights from the Company's unaudited consolidated statement of operations for the three months ending April 30, 2012 and 2011:

                                                                           
                                                     April 30,    April 30, 
(unaudited) (in thousands of Canadian dollars)           2012         2011 
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Revenues                                                                   
Mined ore                                         $    10,628  $     9,189 
Purchased ore                                           3,361        4,670 
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                                                  $    13,989  $    13,859 
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Cost of Sales                                                              
Mined Ore                                               5,878        4,154 
Purchased ore                                           3,139        4,543 
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                                                  $    (9,017) $    (8,697)
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Earnings from mining operations                   $     4,972        5,162 
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Net income (loss)                                                          
  (i) Net income (loss)                           $     4,172  $    (1,003)
  (ii) Income (loss) per share - basic            $      0.03  $     (0.01)
  (iii) Income (loss) per share - diluted         $      0.03  $     (0.01)
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Revenues for the quarter ended April 30, 2012 were slightly higher at $13,989 compared to 2011 revenues of $13,859, despite lower metal production of 7,700 ounces compared to 9,500 ounces produced over the same period in the prior year, due mainly to overall higher metal prices. The majority of the decrease in production was due to much lower purchased concentrate production of 1,900 ounces and revenues of $3,361 in the current quarter compared to the prior year's quarter production of 3,200 ounces and revenues of $4,670. While purchased concentrate deliveries were lower, the Company's profits are only marginally affected as we earn only a small processing fee on these shipments. Net income for the three months ended April 30, 2012, of $4,172, was $5,175 higher than the loss in the comparative period due to the improved metal prices as discussed above and to positive financing costs of $1,927 in the quarter ended April 30, 2012 compared to an expense of $5,759 in the April 30, 2011 quarter. The main component of the financing cost is net realized and unrealized gain on forward contracts which results solely from the fluctuation in the price of gold from quarter to quarter applied against the remaining open contracts to January 31, 2013. The lower gold price at April 30, 2012 of $1,648 as compared to $1,722 at January 31, 2012 resulted in a net gain on the remaining gold forward sales contracts of 10,885 ounces. The Company announced on May 15, 2012 that the balance of the hedge was repurchased by the Company for $9,042, thereby eliminating the future fluctuations of the hedge value on the Company's net income.

"The mining operations continue to perform, producing near 2,000 equivalent ounces per month for over a year now and with the current metal prices the Company is consistently reporting positive cash flows and positive income results which, on an undiluted basis, have averaged $0.03 per share per quarter for the past three quarters in a row. The elimination of the hedge last month will allow the Company to report earnings based solely on mining operations without the fluctuations of the hedge affecting both reported earnings and actual cash flows," said Robert Eadie, Chairman and CEO of the Company.

Full financial statements are available on SEDAR at www.sedar.com and on Starcore's website at www.starcore.com.

ON BEHALF OF STARCORE INTERNATIONAL MINES LTD.

Gary Arca, Chief Financial Officer and Director

The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.