Northair Significantly Increases Land Position at La Cigarra Silver Project, Mexico

October 3, 2012

- Surface Sampling on New Concession Yields 233 g/t Silver

- Mineralized Strike Length Doubles from 3 to 6 Kilometres


International Northair Mines Ltd. (TSXV: INM) (the "Company" or "Northair") is very pleased to announce the acquisition of a significant package of mineral concessions totaling nearly 32,000 hectares contiguous to the Company's La Cigarra silver project located in the state of Chihuahua, Mexico. The land package was acquired through an option agreement, staking and purchase to cover permissive ground that surrounds the Company's original La Cigarra concessions. Drilling at La Cigarra by the Company has outlined a potentially surface minable mineralized system with an open ended strike length in excess of three (3) kilometres. An initial resource estimate utilizing the results from 111 core holes and 11 reverse circulation holes covering 2,400 metres of this system is presently being calculated.

Work to date by Northair indicates significant geological potential exists over multiple areas on these newly acquired concessions and priority target areas have already been identified. Surface sampling on the new concession 500 metres south of the La Carolinas Zone, has returned values up to 233 g/t silver and the Company has commenced an aggressive exploration program to advance the new acquisitions to the drill ready stage.

Northair will host a conference call and live audio webcast on Wednesday October 3 at 8.00 am Pacific Time (11.00 am Eastern Time) to outline the significance of this land acquisition. Conference call and live audio webcast details are located at the end of this release and on the Northair website: www.internationalnorthair.com

"The consolidation of this large land package is an important step for the Company and one of the most exciting developments at La Cigarra since the release of initial drill results," said Fred Hewett, President & CEO of Northair. "This new land position not only covers the down dip projection of known silver mineralization but also the extensions of the mineral system on strike to the north and south beyond the Company's previous land holdings. As supported by a number of historic mine working on trend to the south of the Las Carolinas Zone, the strike length of the La Cigarra system doubles from three (3) to six (6) kilometres in length. To the best of the Company's knowledge, the newly acquired southern half of the mineral system has seen no drilling. There is also significant mineralized potential on the remainder of this large land package as evidenced by clusters of old workings in several locations as well as well mineralized grab samples obtained from preliminary prospecting."

Geology and Exploration Potential of the Acquired Properties:

The majority of the new ground is underlain by the same package of sedimentary and associated intrusive rocks that hosts silver mineralization at the main La Cigarra occurrence. Numerous old workings, again with similarities to the original three (3) La Cigarra showings, occur throughout the property and provide excellent exploration targets.

As noted, significant exploration potential exists immediately to the south of the Las Carolinas Zone, where preliminary prospecting and rock sampling has traced silver bearing quartz veining and stockwork for approximately three (3) kilometres along what is believed to be the southern continuation of the La Cigarra mineralized system. Two historic mining areas, Las Venadas and La Soledad are situated 500 and 1,200 metres, respectively south of the original Las Carolinas Zone. Initial rock chip sampling in the vicinity of Las Venadas have returned important silver values over an area of approximately 230 metres by 90 metres. Nineteen (19) of thirty three (33) of these samples exceed 20 g/t silver as follows:

Sample
Number
Sample Width
(metres)
Silver
(g/t)
42118 2.7 51.1
42117 2.5 233.0
42116 2.5 23.2
42115 1.2 42.9
42114 1.1 34.2
42113 1.0 51.8
42112 1.0 39.5
42111 1.2 82.3
42103 2.0 44.7
42101 2.0 25.9
42097 2.2 64.0
42082 1.8 33.0
42081 1.0 82.0
42080 2.0 21.7
42079 2.8 41.2
42078 1.0 74.1
42077 2.2 81.7
42076 2.3 54.8
42072 1.5 46.3

The remaining fourteen (14) samples returned values ranging from 1.1 g/t silver to 17.5 g/t silver.

Elsewhere on the property, other areas with multiple historic workings have reportedly yielded gold and silver values and have potential to develop into substantial exploration targets. Significant among these targets include the Cienega de San Cristobol area in the extreme northeast part of the property. Here multiple mine workings occur along a four (4) kilometre west northwest trend in Tertiary sediments; the Los Cuates area, fifteen (15) kilometres to the west where prospects occur in Cretaceous siltstones; and the Cerro Gordo area, eleven (11) kilometres south of Cienega de San Cristobol where mine prospects are hosted within a granodiorite intrusive.

Click on the following link to view a map of the newly acquired ground:
http://www.kootenaysilver.com/i/maps/northair/2012-10-03_La_Cigarra_Property_Parral_1.jpg

Concessions to be Acquired by Option Agreement:

Pursuant to an option agreement dated April 5, 2012 among DFX Exploration Ltd., Grupo Promotor Minero, S.A. de C.V. (together with DFX Exploration Ltd., the "DFX Parties"), Northair and Grupo Northair de Mexico, S.A. de C.V. (together with Northair, the "Northair Parties"), the Northair parties have been granted the exclusive right and option to acquire a 70% interest in certain concessions immediately adjacent to the La Cigarra concessions (the "70:30 Area") and a 50% interest in certain other concessions adjacent to the 70:30 Area (the "50:50 Area"). The combined area of the 70:30 Area and the 50:50 Area is approximately 22,300 hectares.

In order for the Northair Parties to exercise the option and acquire a 70% interest in the 70:30 Area and a 50% interest in the 50:50 Area, the Northair Parties must (i) pay the DFX Parties an aggregate of $525,000 in cash; (ii) issue to the DFX Parties from treasury an aggregate of 1,500,000 common shares in the capital of Northair; and (iii) incur an aggregate of $2,000,000 in exploration costs on the property by September 25, 2016.

Upon the Northair Parties having exercised the option, the Northair Parties and the DFX Parties will be deemed to have formed one joint venture with respect to the 70:30 Area and another joint venture with respect to the 50:50 Area. The Northair Parties will be responsible for all exploration costs on the 70:30 Area until completion of a feasibility study and thereafter the parties will fund all costs in proportion to their interests in the joint venture. In respect of the 50:50 Area, upon exercise of the option, the parties will fund all costs in proportion to their interests in the joint venture. Northair will be the operator in respect of the properties and have a casting vote.

If, during the term of the option, a National Instrument 43-101 compliant mineral resource is calculated with respect to both the existing La Cigarra concessions and the 70:30 Area, which shows that more than 50% of the aggregate number of ounces of silver estimated in the calculation are located on the 70:30 Area, then Northair is required to make a cash payment to DFX in the amount of $5,000,000.

In addition, Northair is required to subscribe for up to 1,000,000 common shares of DFX Exploration Ltd. at a price of $0.25, which as of the date hereof, would give Northair an approximate 10% ownership of DFX Exploration Ltd.

The 70:30 Area and the 50:50 Area are subject to a 1% net smelter royalty ("NSR") payable to Oro Gold de Mexico. The DFX Parties will be responsible for payment of the NSR in respect of the 70:30 Area. Each party to the 50:50 Area joint venture will pay the NSR in proportion to their respective interest in the joint venture.

Click on the following link to view a map highlighting the boundaries of the 70:30 Area:
http://www.kootenaysilver.com/i/maps/northair/2012-10-03_La_Cigarra_70_30_Area.jpg

Click on the following link to view a map highlighting the boundaries of the 50:50 Area:
http://www.kootenaysilver.com/i/maps/northair/2012-10-03_La_Cigarra_50_50_Area.jpg

Concession Acquired by Purchase:

The Company acquired 100% of one (1) concession totaling 34.4 hectares from a private individual at a cost of US$35,000. This concession is contiguous to the northernmost zone (La Borracha) of the original La Cigarra concessions and is considered by the Company to cover the projection of the mineralized trend extending in a northerly direction.

Click on the following link to view a map highlighting the boundaries of the purchased concession:
http://www.kootenaysilver.com/i/maps/northair/2012-10-03_La_Cigarra_70_30_Detail.jpg

Concessions Staked by Northair:

A total of four (4) concessions covering 9,422.6 hectares have been staked by Northair and are 100% owned by the Company. These concessions are contiguous to the southern boundary of the optioned concession.

Click on the following link to view a map highlighting the boundaries of the staked concessions:
http://www.kootenaysilver.com/i/maps/northair/2012-10-03_La_Cigarra_100_Owned.jpg

Summary:

In total, the new concessions acquired through the option agreement, purchase and staking increase the original size of the La Cigarra silver property by over 100 times from 306 hectares to 32,064 hectares and consolidates a large land package over a prospective and largely under-explored area. The importance of this acquisition cannot be understated as it allows room for the resource presently being calculated on the original La Cigarra concessions to grow significantly and provides numerous other high potential exploration targets. In light of the significance of these acquisitions, it is likely that the timing of the release of the initial resource will be delayed to early Q1 2013.

A major exploration program on the new concessions is warranted and is underway.

Conference Call and Webcast Information

Northair will host a conference call and live audio webcast to explain the significance of the land acquisition announced today. Conference call and live audio webcast details are below and on the Northair website, www.internationalnorthair.com

Date: Wednesday, October 3rd, 2012

Time: 8.00 am Pacific Time (11.00 am Eastern Time)

Dial-In Numbers:

  • North American toll-free number: 416-340-2217 / 866-696-5910
  • International toll number: 800-8989-6336
  • Passcode 6703450
Audio Webcast:

A live audio webcast can be accessed at: http://www.gowebcasting.com/3854

Playback Available for One Month Following the Call:

  • North American toll-free number: 905-694-9451 / 800-408-3053
  • International toll number: 800-3366-3052
  • Pass code: 6071482
Sampling and QA/QC

All technical information for the La Cigarra exploration program is obtained and reported under a formal quality assurance and quality control (QA/QC) program. Samples are taken under the direction of qualified geologists and stored in sealed bags. Samples are delivered by the Company via courier to ALS Minerals ("ALS") in Chihuahua and Inspectorate America Corporation ("Inspectorate") in Durango City. In both cases the samples are dried, crushed and pulverized with the pulps being sent airfreight for analysis by ALS to Vancouver B.C. and by Inspectorate to Vancouver B.C. or Reno, Nevada. Systematic assaying of standards and blanks are performed for precision and accuracy. Analysis for silver, zinc, lead,copper and related trace elements was done by ICP four acid digestion, with gold analysis by 30 gram fire assay with an AA finish.

About the La Cigarra Silver Project

The La Cigarra Project is located in the state of Chihuahua along the eastern fringes of the Sierra Madre Occidental in Mexico. Local topography is gentle with good road access to the major city of Parral, located 26 kilometres to the south east. The 32,064 hectare property position controls a significant silver bearing system, with a resource calculation presently underway on a 2,400 metre section of the system. It is anticipated the upcoming resource could be increased with exploration on the newly expanded land position.

This news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and approved by Fred Hewett the Company's President and CEO, and a Qualified Person under NI 43-101.

ON BEHALF OF THE BOARD,
INTERNATIONAL NORTHAIR MINES LTD.



"Fred G. Hewett"
____________________________________
Fred G. Hewett, P.Eng.
President & CEO

For further information please contact: Fred Hewett, President;
Chris Curran, Manager of Corporate Communications; Brent Levenstadt, Investor Relations Associate
at 604-687-7545 or 1-888-338-2200
Website: www.northair.com/international/ Email: info@northair.com



Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release may contain forward looking statements which are not historical facts, such as ore reserve estimates, anticipated production or results, sales, revenues, costs, or discussions of goals and exploration results, and involves a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, metal price volatility, volatility of metals production, project development, ore reserve estimates, future anticipated reserves and cost engineering estimate risks, geological factors and exploration results. See Northair's filings for a more detailed discussion of factors that may impact expected results.



This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.