Encouraging Results Drive Exploration at Sunset Cove's Silver Polymetallic Carolay Project September Financing Raised USD$ 3.5 Million

TORONTO, Oct. 13, 2011 /CNW Telbec/ - (TSXV: SSM) (BVL: SSM) With the world teetering on the verge of a market meltdown and with the European sovereign debt crisis roiling away at stability, gold and silver are shouting safe haven and more than a few of Eric Sprott's predictions appear to be on the money. Sprott is the founder and CEO of Sprott Asset Management.

Sprott is fond of saying that gold is the investment of the past decade and that silver is the investment of the coming decade. International demand for silver rose by 10%, and the amount of silver held by investors rose by 40% to 279.3 million troy ounces in 2010. Industrial demand for silver, which makes up 40% of the silver market is expected to rise by 10% annually into the near future.

Silver is often called "poor man's gold." In a National Post comment piece, technical analysts Jon and Don Vialoux wrote, "Demand for silver is expected to exceed supply in 2011 and beyond because of another factor: investment demand."

Silver appears to be sprouting wings and heading for a bull run. According to the London Fix the price of an ounce of silver in January 2009 brushed a low of US $9.17. Since July 2011 it has been bouncing between US $29.00 and US $ 34.00. Sprott believes silver will return to its historic ratio of 16:1 with gold. He recently pointed out the geological in-situ ratio of the known ounces on earth is 17.5Au to 1 Ag.

With the commodity market booming there is a gold and silver rush in Peru, with US $40 billion in investments scheduled over the next decade. In 2010 Peru ranked second in global silver production with 116.1 million ounces of silver. The world's largest silver producer title rotates between Mexico and Peru. Lorne Woods and Marc Blais want to help Peru reclaim the title.

Like Sprott, Lorne Woods and Marc Blais strongly believe in silver. In 2009 they co-founded Canadian junior exploration and development mining company Sunset Cove to go after silver and precious metals in Peru. Woods is the CEO and President while Blais is the COO.

Sunset Cove now has a market cap of over C $8 million and both a silver property at Carolay and a copper property at Azulcunca. "The truth about mining," says Blais, a third generation miner, is that it takes an excellent management team." Blais has worked in Peru as a mining executive for more than 15 years. "There are a lot of little things that have to be done correctly to be successful."

"At our silver polymetallic Carolay project we have been doing a number of things you wouldn't normally think about when you think about creating value by exploring at the lowest cost possible." Blais then begins a list of events that started in May when the company began to build a permanent foundation for staff housing and to maintains the secondary roads it uses for both efficiency and to give back to the community. "We use local labour for everything we have to do which is not technical," said Woods who has a successful background in raising capital, investor relations, and as a mining executive.

"We needed to widen the road enough to mount a drilling platform on it to sample what we hoped is a lateral extension of the Carolay vein and we had to have it ready by June 1, and four days later drilling began for." Throughout July Sunset Cove continued to surface sample, drill and map the Carolay vein, near the world class Pataz Mining Belt.

Mining is still back-breaking work, to move the small drilling rig from site to site 20 men from Ushnoval haul it along mountain tracks. It took them two days to reach the drilling pad to drill holes CA-11-01 and CA-11-02.

"We spent May and June getting ready for our second drilling campaign," said Woods, "and July and August, mapping, sampling and drilling. In September we started platform remediation which means that we hired the same local labour we had used to build the drilling platforms, to tear them down, clean up the debris and plant vegetation."

As the old platforms were rehabilitated crews went to work building new ones to allow the drilling campaign to restart by the end of October. At the end of September Sunset Cove announced results from three of the holes drilled during the summer campaign and some of the surface sampling.

Drill hole CA-11-01 was projected to hit the Carolay vein at 140 meters but hit considerable mineralization at 73 meters, 12.3g/t of silver, at 97 meters 26.7g/t of silver, at 119 meters, 12.9g/t of silver and from 132 meters up to 142 meters, with averages of 3.05g/t of silver.

Drill hole CA-11-02 was projected to hit the Carolay vein at 170 meters and showed considerable mineralization from 70.95 meters to 167.8 meters, showing average values of 1.8g/t of silver over 96.85 meters. This hole didn't reach the richest part of the vein because of poor rock conditions.

Two promising surface samples showed 5 gr/t of silver and 76.4 gr/t of silver confirming the extension of the Carolay Vein on surface to its North-West.

Results like these are what keep men like Blais and Woods toiling away, so much so that Sunset Cove is in the next stage of starting an extensive surface sampling program on the Humberto and Maranon mining concessions which flank the Carolay vein to the north and east. The Maranon sector is closer to the rich Pataz Mining Belt and the Humberto sector contains some interesting breccias that appear to host gold.

"The results are in now and there is a potentially silver rich lateral extension to the Carolay vein. This is huge news in our world," said Woods. "We now think, that with further exploration and drilling the Carolay silver vein may extend up to 2,200 meters. There may also be a silver vein running parallel to Carolay."

Until the next drilling campaign starts up later in October, Sunset Cove will keep looking after all the small details that as Marc Blais says, most people don't immediately associate with exploration results. Roads will be maintained, crews will walk the mining concessions to take surface samples to identify new drilling targets which will then be sent to join the core samples from the drilling campaign that still have to assayed.

"We know the silver is there, now we have to find exactly where it is and how much there is and that we can do," finished Woods.

Quality Assurance/Quality Control

Alain Beauregard P. Geo, an independent consultant and qualified person as designated by National Instrument 43-101, has reviewed the technical content of this release. Bratzon Salvador, P.Eng, Operations Manager, supervises exploration at Sunset Cove's projects. All technical information for the company's projects is obtained and reported under a formal quality assurance and quality control (QA/QC) program.

About Sunset Cove

Sunset Cove Mining Inc., is a dynamic Canadian junior mineral exploration and development company dedicated to driving shareholder value through the economical acquisition, exploration and development of precious metals and copper properties in proven Latin American locations to the point where they become attractive joint venture or acquisition targets. Sunset Cove is in Peru now, because now is the time to be in Peru, and has a wholly owned Peruvian subsidiary, Minera Sunset Del Peru S.A.C based in Lima, and is building a Peruvian mining portfolio in precious metals and copper, with two properties under contract. One of those properties is the Carolay Polymetallic Silver Property, the Carolay Property.

Forward-Looking Statements

Some of the statements contained herein may be forward-looking statements that involve known and unknown risks and uncertainties. Results presented in this press release are exploratory in nature. Historical data, if mentioned, should not be relied upon, as they are not admissible under NI 43-101 rules and the Company has not conducted sufficient testing to verify this type of information.

Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward-looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world-wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability, and the uncertainty of access to additional capital. Sunset Cove disclaims any obligation to update any such forward-looking statements.

%SEDAR: 00026880E

For further information:

Lorne Woods, President, Sunset Cove Mining, (877) 234-0692; ext 250

[email protected] www.sunsetcovemining.com

CO: SUNSET COVE MINING INC.

CNW 08:49e 13-OCT-11