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 Thu Mar 15, 2007
Bear Creek And Rio Tinto Formalized Option Agreement On Corani Silver Deposit, Peru
 Vancouver, B.C. - Bear Creek Mining Corporation (TSX Venture: BCM) ("Bear Creek" or the "Company") is pleased to announce that the final Option and Shareholders Agreement was executed between Bear Creek and Rio Tinto Mining and Exploration Ltd. ("Rio Tinto") on March 15, 2007. The agreement formally defines and confirms the terms as set out in the Letter of Understanding signed between the parties on January 19, 2005 and previously disclosed by the Company. The key terms of the agreement are summarized as follows:

  • Bear Creek's only remaining fixed payment to earn its 70% interest is US$3 million due January 2008. The Company has previously paid a total of US$2.4 million to Rio Tinto.
  • Bear Creek is to pay Rio Tinto the following success fees based upon Recoverable Reserves defined by a Feasibility Study:
    • US$ 1.10 per ounce of gold;
    • US$0.015 per ounce of silver; and
    • US$0.005 per pound of copper.
  • In addition, a success fee of US$5 million shall be paid in each of the events that Recoverable Reserves exceed 1 million ounces gold and/ or 100 million ounces silver, such payment not to exceed a total of US$10 million.
  • Upon Bear Creek earning its 70% interest, the parties enter into a joint venture agreement, with Rio Tinto having a 30% interest, and dilution provisions which conform to industry practices for each party.
  • If the Economic Resources exceed 10 million ounces of gold or precious metals equivalent (500 million ounces in the case of silver), Rio Tinto will have a claw-back right to earn up to a 60% interest by reimbursing Bear Creek three times its expenditures to that time and providing Bear Creek a deferred carried interest on its 40% of the project through commencement of production.
  • The claw-back right ceases at decision to mine.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

- End -
Andrew Swarthout - President and CEO, or Patrick De Witt - Investor Relations
Phone: 604-685-6269 Direct: 604-628-1111
E-mail: info@bearcreekmining.com
For further information, please visit the Company's website (www.bearcreekmining.com)

Regulatory footnotes:
All of Bear Creek's exploration programs and pertinent disclosure of a technical or scientific nature are prepared by or prepared under the direct supervision of David Volkert, P.Geo. Bear Creek's Vice President of Exploration, who serves as the qualified person (QP) under the definitions of National Instrument 43-101. All diamond drilling has been performed using HQ diameter core with recoveries averaging greater than 95%. Core is logged and split on site under the supervision of Bear Creek geologists. Sampling is done on two-meter intervals and samples are transported by Company staff to Cusco, Peru for direct shipping to ALS Chemex, Laboratories in Lima, Peru. ALS Chemex is an ISO 9001:2000-registered laboratory and is preparing for ISO 17025 certification. Silver, lead, and zinc assays utilize a multi-acid digestion with atomic absorption ("ore-grade assay method"). The QC/QA program includes the insertion every 20th sample of known standards prepared by SGS Laboratories, Lima. A section in Bear Creek's website is dedicated to sampling, assay and quality control procedures.

Certain disclosure in this release, including management's assessment of Bear Creek's plans and projects, constitutes forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Bear Creek's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. *Any reference to the potential quantity & grade of mineralization at Corani is conceptual in nature, there has been insufficient exploration to define a mineral resource on the property and it is uncertain if further exploration will result in discovery of a mineral resource on the property. Readers are cautioned not to place undue reliance on forward-looking statements. Bear Creek expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.