Lincoln Mining Announces Elgin Agreement Update

Lincoln Mining Corporation (TSX VENTURE:LMG) ("Lincoln" or the "Company")
announces that the Letter Agreement of March 31, 2011 (the "Agreement") with
Elgin Mining Inc. ("Elgin") has been terminated by Lincoln as certain
obligations under the Agreement have not been fulfilled by Elgin. Elgin has
disputed the validity of Lincoln's termination of the Agreement and the parties
are now proceeding to arbitration under the terms of the Agreement to address
and resolve the dispute.


The Agreement required Elgin to fund certain exploration expenditures on the Oro
Cruz and La Bufa properties by making payments on certain dates, so as to earn
by March 31, 2013 the right to an option entitling Elgin to acquire an interest
in the properties. Work on both the Oro Cruz and La Bufa properties has been
delayed as a result of the dispute and arbitration process, and is not expected
to proceed until the dispute has been resolved.


Oro Cruz

The Oro Cruz property is located in the Cargo Muchacho Mountains, southern
California. The property is approximately 2 miles from the American Girl and
Padre-Madre gold mines (past producers) and approximately 14 miles southeast of
the Mesquite gold mine (in production). Oro Cruz was partially mined by open-pit
and underground methods during the early 1990's but was closed owing to low gold
prices. The Oro Cruz data base includes 481 drill holes, 13,000 blast holes, and
nearly 3,000 underground samples. A NI 43-101 Technical Report was completed on
Oro Cruz by Tetra Tech Inc. and was filed on September 21, 2010 on SEDAR
(www.sedar.com). The Technical Report estimates an inferred resource of 341,800
ozs gold grading 2.20 grams per tonne (0.064 oz per ton). Gold mineralization
remains exposed in the Oro Cruz pit and underground. Lincoln plans to test the
down-dip extension of the deposit by drilling. In addition, confirmation
drilling of the known gold mineralization is planned in an effort to upgrade
Inferred resources to Indicated and Measured categories. The U.S. Bureau of Land
Management (BLM) has permitting jurisdiction on the property. To assist in
permitting, Lincoln has retained Mr. Richard Grabowski, consultant and past
Deputy State Director, Energy and Minerals for the BLM in California
(1997-2010).


La Bufa

The La Bufa gold-silver property is located in the Sierra Madre Occidental in
southwestern Chihuahua, Mexico. Lincoln controls concessions surrounding the
Rosario mine with past production in the area estimated at 2 million ozs gold
and 28 million ozs silver from an epithermal quartz-breccia vein system. During
2011, Lincoln, drilled targets developed by geophysics and surface sampling on
the Company's northern concessions. Twenty (20) core holes were completed for
5,091 meters. Drilling confirmed the existence of strong quartz-bearing
structures and anomalous gold and silver. Continued exploration is planned.


Mr. Jeffrey Wilson, the Company's Vice President Exploration and a "qualified
person" under National Instrument 43-101, reviewed and approved the scientific
and technical information contained in this news release.


Lincoln Mining Corp. is a Canadian precious metals exploration and development
company with several projects in various stages of exploration and development
which include the Pine Grove gold property, the Oro Cruz gold property in
California and the La Bufa gold-silver property in Mexico. In the United States,
the Company operates under Lincoln Gold US Corp., a Nevada corporation.


On behalf of Lincoln Mining Corporation

Paul Saxton, President & CEO

THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS OR INFORMATION. ALL
STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT INCLUDED IN THIS RELEASE,
INCLUDING WITHOUT LIMITATION, STATEMENTS REGARDING FUTURE PLANS AND OBJECTIVES
OF LINCOLN IN RELATION TO THE ELGIN AGREEMENT AND UNDERLYING EXPLORATION
PROGRAMS ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE VARIOUS RISKS AND
UNCERTAINTIES. THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE
ACCURATE AND ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE
ANTICIPATED IN SUCH STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THE COMPANY'S PLANS OR EXPECTATIONS INCLUDE
THE OUTCOME OF THE ARBITRATION PROCESS, THE RISK THAT ACTUAL RESULTS OF FUTURE
EXPLORATION WORK, INCLUDING DRILL RESULTS AND RESULTS OF ENGINEERING AND
METALLURGICAL STUDIES, WILL NOT SUPPORT THE COMPANY'S PLANS TO ADVANCE ITS
PROJECTS; COST OVERRUNS AND PROJECT DELAYS; AVAILABILITY OF CAPITAL AND
FINANCING, GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS, FLUCTUATING METAL
PRICES, REGULATORY CHANGES, TIMELINES OF GOVERNMENT OR REGULATORY APPROVALS AND
OTHER RISKS DETAILED HEREIN AND FROM TIME TO TIME IN THE FILINGS MADE BY THE
COMPANY. THE COMPANY MAKES ALL REASONABLE EFFORTS TO UPDATE ITS CORPORATE
MATERIAL, DOCUMENTATION AND FORWARD-LOOKING INFORMATION ON A TIMELY BASIS.