Yellowhead Mining Is Pleased to Report Positive Results From Hole HC10-78 in the Ongoing 4,000m Diamond Drilling Program at Harp

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Yellowhead Mining Inc. (TSX VENTURE:YMI) is pleased to report the results from
its third drill hole of an ongoing 4,000 meter diamond drilling program. The
previously reported first hole, HC10-76 (press release dated December 14, 2010),
the second hole, HC10-77 (press release dated January 11, 2011), and this third
hole, HC10-78 are part of a three-hole fence on the western side of the deposit
on Section 303880E. Drilling is designed to confirm previous historical drilling
and identify down-dip extensions to the mineralization not previously drilled.
This eight (8) hole program is expected to be completed by January 31, 2011. The
company intends to continue with an expanded drilling program into the Spring
for the expansion of mineralized zones outside the published resource as well as
increasing confidence categories within the published resource. Laboratory
assays lag the drilling and logging by approximately six (6) weeks. The program
is being managed by CME Consultants Inc. ("CME").


A complete list of significant intervals from Hole HC10-78 is presented in the
table below. 




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               Significant intersections at 0.2% Cu Cut-off               
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                          Interval (m)                     Results        
              ------------------------------------------------------------
Hole                From        To    Length      Cu %    Ag ppm    Au ppb
--------------------------------------------------------------------------
HC10-78           202.40    263.50     61.10      0.36       0.7        39
--------------------------------------------------------------------------
including         202.40    215.62     13.22      0.41       0.9        50
--------------------------------------------------------------------------
including         221.75    263.50     41.75      0.40       0.7        41
--------------------------------------------------------------------------
including         226.65    231.08      4.43      1.34       3.2       100
--------------------------------------------------------------------------
                  431.75    466.00     34.25      0.39       1.8        13
--------------------------------------------------------------------------
including         464.75    466.00      1.25      1.92       7.0        40
--------------------------------------------------------------------------



Please refer to the Cross Section Map
http://www.yellowheadmining.com/i/pdf/DDHCrossSectionHC10-78.pdf


And Drill Plan Map http://www.yellowheadmining.com/i/pdf/Drill-Plan-Map.pdf

or available at www.yellowheadmining.com

Hole HC10-78 continued to prove continuity of mineralization within the current
proposed pit outline(1) as well as identify down-dip extensions to the
mineralization below the pit limit. Horizons reaching surface at the south of
the deposit, have been shown in this fence to continue at least 620 m down dip,
up to 385 m vertically below surface and up to approximately 220 m below the
prior resource pit bottom.


Mineralization intercepted below the currently proposed pit bottom in hole
HC10-78 has identified 61.10m averaging 0.36% Cu, 0.04 g/t Au and 0.7 g/t Ag
from 202.40m to 263.50, including 13.22m @ 0.41% Cu, 0.05 g/t Au and 0.9 g/t Ag
from 202.4m to 215.62m and 41.75m(2) @ 0.40% Cu, 0.04 g/t Au and 0.7 g/t Ag,
from 221.75m to 263.50m. A further mineralized zone of 34.25m @ 0.39% Cu, 0.01
g/t Au and 1.8 g/t Ag, was intersected from 431.75m to 466.00m. All grades are
reported at a 0.20% Cu cutoff.


Harper Creek is a copper-gold-silver volcanogenic sulphide deposit with an
indicated resource of 569 million tonnes grading 0.32% Cu (4,010,000,000 pounds
of copper), plus an inferred resource of 62.7 million tonnes grading 0.33% Cu
(460,000,000 pounds of copper) plus as yet an unquantified resource of gold and
silver. Mineralization occurs as a series of tabular bodies hosted within the
Eagle Bay Assemblage volcanic and sedimentary rocks.


Ian Smith, Chief Executive Officer, stated "The results for hole HC10-78 along
with results for previously reported holes HC10-76, HC10-77 continue to
demonstrate the potential to increase the resource within the established
resource limits, by drilling deeper than the historical drilling from the 1960's
and 1970's. Continuity of previously established shallow horizons has been shown
in this program to continue for hundreds of metres down dip, outside of the
previous resource limits."


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, Analyses, and QA-QC

All core processing was undertaken by CME personnel. Core was cut by electric
motorized rock saw with half core shipped to Eco Tech Laboratory Limited, part
of the Stewart Group (Eco Tech), in Kamloops, BC for sample preparation and
analysis. Drill core samples were analyzed for gold by fire assay with an AA
finish and multi-elements by total digestion ICP-ES. Core samples returning
greater than 2,000 ppm copper in the ICP-ES process were then assayed for
copper. In addition to control samples inserted by CME, the analytical
laboratory routinely inserted their own control samples, which consisted of
standards, blanks and sample repeats.


About Yellowhead Mining Inc.

Yellowhead has a 100% interest in the Harper Creek Project subject to the
payment of a royalty capped at $2.5 million, adjusted for inflation, on claims
within the NI 43-101 resource. The Harper Creek Project is a large
copper-gold-silver project located in south-central British Colombia,
approximately 150 kilometers by highway from Kamloops.


(1) Not NI43-101 compliant pending completion of the Preliminary Economic
Assessment scheduled for first quarter 2011.


(2) down-dip dimensions are along the drill hole and approximate to a true width
of the mineralization


Forward-Looking Statements

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 Filing Statement 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.