Yellowhead Mining Inc. Appoints New Advisors to the Board

The Chairman of Yellowhead Mining Inc. (TSX VENTURE:YMI) (YMI or "Yellowhead"), T. Greg Hawkins is pleased to announce that Keith Matthew and Paul B. Sweeney have been appointed as Advisors to the Board of Directors, effective January 11, 2011 and January 31, 2011, respectively. They join Michael Kenyon and Jonathan Rubenstein who have advised Yellowhead's Board since October 2007.

"As we move the Harper Creek project through the development stages we will need direct access to the variety of skills that these gentlemen bring to Yellowhead in the fields of Community Relations, Project Finance and Project Development. Each of the individuals is a recognised and accomplished practitioner and we are fortunate to have gained their participation in our future," said Hawkins.

Keith Matthew

Keith Matthew is the former chief of Simpcw First Nation, an accomplished journalist and a long time First Nations leader. While serving as a chief he was instrumental in concluding several major impact benefit agreements with Kinder Morgan Canada and Canadian Hydro Developers (now owned by TransAlta Corp.). He was also instrumental in the creation of both Simpcw Resources Ltd., the business arm of Simpcw First Nation and Simpcw Heritage Trust, the wealth management arm of the community. His focus as both a councilor and chief was in creating wealth and opportunities for Simpcw First Nation.

Paul B. Sweeney

Paul Sweeney recently retired as an Executive Officer of Plutonic Power Corporation but remains as a Consultant. Paul has a record of success with project finance, having most recently arranged the $470 million project financing for the East Toba Montrose Hydro Project and $175 million for the Dokie Wind project. He is the former Vice-President and Chief Financial Officer of Canico Resource Corp. (a mining company) from February 2002 through November 2005 where he was responsible for arranging project financing for the Onça-Puma Nickel Project. He was Chief Financial Officer and Corporate Secretary of Manhattan Minerals Inc. (a mining company) since December 1999 through May 2001; Vice-President and Chief Financial Officer of Sutton Resources Inc. (a mining company) from May 1998 to March 1999; Senior Vice President, Chief Financial Officer and Director of Princeton Mining Corp. from 1996 to 1998; and prior to that was Senior Vice President and Chief Financial Officer of Gibraltar Mines Ltd. from 1993 to 1996.

Paul is currently on the boards of Pan American Silver Corp. (Chair of the Audit committee and Member of the Compensation Committee), Polaris Minerals Corp. (Chair - Audit Committee, Member of the Compensation and Governance Committees), Tahoe Resources Inc. (Chair - Audit Committee and Member of the Compensation Committee), Magma Energy Corp. (Chair - Compensation Committee and Member of the Audit Committee) and Mongolia Growth Group Ltd (Chair of the Audit Committee).

Jonathan Rubenstein

Mr. Rubenstein practiced law until 1993 and has been a mining executive since that time. In 2001, Mr. Rubenstein was one of the founders of Canico Resources Corp., where he served as a Director and as Vice President & Corporate Secretary. Mr. Rubenstein was instrumental in the negotiations for the 2005 acquisition of Canico Resources Ltd. by Companhia Vale do Rio Doce (CVRD, now Vale). Mr. Rubenstein was also a director for Cumberland Resources Ltd. from 1983 to 2007 and was on the Special Committee for the Agnico-Eagle Mines Ltd. takeover in 2007. From 2006 to 2008, Mr. Rubenstein was a director for Aurelian Resources and on the Special Committee for the takeover bid by Kinross Gold Corp. in 2008. As Vice President, Corporate Affairs for Sutton Resources Ltd., he also played a key role in the takeover of that company by Barrick Gold Corporation in 1999. He is currently the Chairman and a director of MAG Silver Corp. and a director of Eldorado Gold Corporation, Troon Ventures Ltd. and Rio Novo Gold.

The Company also wishes to announce that the Company has granted a total of 400,000 incentive stock options to the four members of the board of advisors. The options are exercisable at prices ranging from $1.00 to $1.08 per share and will expire on dates ranging from October 21, 2012 to January 31, 2016.

About Yellowhead Mining Inc.

Yellowhead has a 100% interest in the Harper Creek Project, (subject to the payment of a 3% NSR royalty capped at $2.5 million, adjusted for inflation and an additional 2.5% NSR royalty on an estimated 3.3 million tonnes of ore which is expected to be mined beginning in year nine within the NI 43-101 resource). The Harper Creek Project is a large copper-gold-silver project located in south-central British Columbia, approximately 150 kilometres by highway from Kamloops.

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.

Neither the TSX Venture Exchange Inc. 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 release.

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Yellowhead Mining Inc. Appoints New Advisors to the Board