Silver Scott Announces Closing of Acquisition of Mexican Gold Mine Assets

HILTON HEAD, S.C., Feb. 9, 2011 /PRNewswire/ -- Silver Scott Mines, Inc. (OTC: SILS.pk) is pleased to announce the Company has closed a transaction whereby it acquired all of the issued and outstanding shares of HMD Holdings, Inc. which owns 100% of the outstanding shares of Minera Mystery S.A. de C.V., a Mexican corporation.

Minera Mystery controls multiple gold hosting mineral concessions in the Sonora and Chihuahua states of Mexico. The projects include the Carmen, Purisima, Venturina, Minitas and others. Silver Scott issued a total of 12.4 million shares to acquire HMD Holdings.

In addition, Silver Scott issued 3.3 million shares to acquire all of the issued and outstanding shares of Hibernia Ventures VI, Inc. which controls a 50% ownership interest in seven patented mining claims in Beaver County, Utah comprising the Imperial Mine, a past producer of high grade gold and silver and located in the prolific Granite Mining District.

Each of the projects in Mexico has a high potential for relatively early production of gold and silver from heap leaching operations. The business strategy of Minera Mystery has been to acquire existing smaller size precious metal deposits, generally with less than 100,000 ounces of gold equivalent resources. The focus is on projects which are amenable to rapid, low cost heap leaching operations, with low capex requirements and that have significant upside exploration potential to expand the existing resources.

The Imperial Mine is an early stage exploration project which lies on the same mineral trend as the historic Silver Horn Mine near Frisco, Utah. The Silver Horn was a top producer of very high grade silver in the 1880's. The Company intends to attempt to expand its ownership interests in the Granite District and undertake a thorough review of historic records as next steps toward formulating an exploration/development strategy for the project area.

Following successful additional drilling and possible start-up of production from these projects, the strategy of the Company will be to continue to search for other attractive gold and silver projects in Mexico and the Western United States.

Minera Mystery is staffed by an experienced team of geologists, geophysicists, engineers, and operators with many years of collective experience in the mineral industry including Mel Herdrick, Dave Herdrick, Robert Toporowski, John Reynolds, and Sean Herdrick.

Additional information on the projects and the management and consulting team will be forthcoming in future news releases.

The source of this news release is Silver Scott Mines, Inc. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate.

SOURCE Silver Scott Mines, Inc.

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