Yellowhead Mining is pleased to provide this update on our activities:

Economic, Financing and Commodities Environment Improving

Since the start of the credit crisis in mid-2008 through late 2009, equity markets have been effectively closed to development-stage base metal companies. From a copper price peak of US$4.10/lb in July 2008, a low of about $1.25/lb was reached in December 2008. The IPO market for development stage base metals projects was essentially closed on the TSX in 2008. During the spring of 2009, equity risk capital started to return to the mining sector with the funding of several precious metal exploration and production companies and base metal producers. Copper has recently surged to over US$3.50/lb, returning our Harper Creek project economics to an attractive range, with significant upside from further metal price improvements.

Equity markets for base metal exploration and development companies are improving with the increased metals prices, and a few financings have been announced for companies at this stage of development. At PDAC 2010, it was apparent strategic buyers of metals and concentrates are looking to secure sources of supply in politically safe regions, and many large international mining companies have stated an intention to make acquisitions in the sector. As other projects in British Columbia are getting permitted and moving ahead, this helps the international perception of B.C. as a desirable location in which to invest. These developments should benefit Yellowhead Mining due to our favourable location, size of resource and technical merits compared to many other copper investment opportunities.

Recent Activities

• CME Consultants Inc. delivered their Phase VI exploration program report in January 2010.
• Field office work has continued, focussing on re-logging and sampling of historical drill core, and building the geological model needed for upgrade of the resource to include tonnes in the Measured Category and potential inclusion of precious metals in the resource estimate
• The Environmental Assessment process was put on hold pending reactivation of the feasibility process and commencement of significant field work.
• Environmental monitoring has continued with water sampling and climate station recording.
• We held our Annual General meeting on December 14, 2009 where we presented our October 31, 2009 annual audited financial statements.
• The Company maintained an active presence at major industry conferences

CME Consultants Inc.'s Phase VI Report

The Phase VI exploration program was undertaken from January 16 through August 15, 2009, with the report being delivered in January 2010. The objectives of this program were to review the history of the geological descriptions of the rocks of the Harper Creek area, both from a regional scale and at a deposit scale and to develop a geological legend that promotes consistency and accuracy in lithological identification during core logging process.

The geological legend defined in CME's report will maintain a consistent field identification of the rocks encountered in drilling of the Harper Creek deposit proper, as well as its environs. Although the legend will be subject to some modification over time as new data and observations are collected, the basic structure has been set up to remain intact and absorb new information or rock types.


Update on Core Resampling Work

Of the 28,682.05 metres of historical drilling in 169 holes in the Harper Creek deposit area, we have recovered approximately 75% of this core.

Historically, under Noranda and US Steel, drill core on the Harper Creek property was only analyzed for copper. In order to establish gold and silver values for these holes, YMI, through CME Consultants, has been reanalyzing historical drill core for multi-elements by total digestion ICP-ES and gold by fire assay with an atomic absorption finish. To September 2008, some 78 holes had been reanalyzed.

In February 2010, CME delivered an update on the results of partial or complete resampling of 28 historical Noranda drill holes with a total length of 2,903.01 metres of core, carried out in 2009. A total of 1,609 samples were analyzed at Eco-Tech Laboratories (Stewart Group) in Kamloops B.C. All results have been merged into an assay database containing all resampled drill core. There are 28 historical holes remaining to be analyzed representing 5,665.93 metres.

Results for gold showed 99 samples with greater than 50 ppb (ranges from 50-550 ppb); one sample was greater than 1,000 ppb but was located outside the deposit envelope and was not assayed. Results for silver showed 140 samples with greater than 2 ppm (ranges from 2-14 ppm).


A map showing location and status of historical core resampling follows.



The following table presents a sample of reanalyzed core results showing copper and precious metals, which support the concept that precious metals should add a minor but meaningful contribution to cash flows from operations.

	Resampled Core Significant Intersections
Hole	Interval (m)			Cu (ppm)	Au (ppb)	Ag (ppm)
	From	To	Length
NH-4	123.98	130.45	6.47	5,153	41	4
	134.57	141.88	7.31	4,080	32	3
NH-5	61.57	80.77	19.20	2,071	38	1
NH-6	57.30	107.90	50.60	4,181	49	3
	130.45	144.48	14.03	2,347	43	1
NH-15	3.96	31.70	27.74	4,991	68	4
including	7.92	18.29	10.37	8,343	106	7
NH-25	73.15	128.32	55.17	3,546	43	2
NH-29	6.10	18.29	12.19	2,480	28	1
	23.47	36.58	13.11	3,585	24	1
	39.78	49.07	9.29	2,924	32	1
	56.08	68.58	12.50	3,122	55	2
	73.30	83.52	10.22	2,971	34	1
	92.96	109.12	16.16	3,086	40	1
	125.88	151.79	25.91	2,481	31	2
NH-44	6.10	38.40	32.30	6,595	113	2
including	9.14	23.47	14.33	8,116	153	3
NH-45	26.21	117.35	91.14	4,656	55	1
NH-47	28.04	81.38	53.34	6,481	95	2
including	57.30	67.36	10.06	8,763	189	3
NH-48	8.23	29.57	21.34	4,212	42	1
	38.71	100.58	61.87	3,703	50	1
NH-50	102.72	129.42	26.70	3,550	43	2
NH-71	80.77	156.51	75.74	2,813	32	1
NH-72	78.03	110.95	32.92	3,387	31	1
NH-92	235.61	247.04	11.43	4,623	50	2

Updated Cash Flow Model

The Company has updated its internal cash flow model* for a 70,000 tpd operation to incorporate tax impacts. Using a capital expenditure of about CDN$750 million* and metal prices slightly below current levels (copper US$3.35/lb, gold $1,100/oz and silver $17/oz) and a CDN/US exchange rate of 0.98:1, the project's Internal Rate of Return (IRR) and Net Present Value (NPV) are as follows:

	Pre-tax	After-tax
IRR	34.4% *	29.2% *
NPV -- 0% discount rate	$4.5 billion *	$3.3 billion *
NPV -- 8% discount rate	$1.6 billion *	$1.2 billion *

(*figures represent Yellowhead Mining estimates and are not NI43-101compliant)


Plans for Resource Update

Subsequent to the last resource report update in March 2008, YMI has data for 22 holes totalling 7,292.94 m drilled by YMI. As these holes and the reanalyzed historical holes noted above collectively are within the established envelope, we do not expect any significant change to the overall tonnage of resource estimate. As many of the recent holes are at closer drill spacing, it may be possible that some tonnage will be upgraded to the Measured category in the next resource estimate.

As the historical drilling was only analyzed for copper, only copper values were included in the previous resource estimates. All YMI drill core has been analyzed for 30 elements including gold and silver, which when combined with the reanalysis data of historical core, may support inclusion of gold and silver in future resource estimates.

As part of the feasibility process, we intend to continue in-fill drilling as a means of generating data to support a partial resource upgrade to Measured category and to have precious metals included in the resource estimate

Plan for Preliminary Economic Assessment (PEA) Update

YMI had substantially completed a NI 43-101 PEA in September 2008 when the global financial crisis hit, rendering the PEA numbers irrelevant. Now that copper has stabilized at levels over US$3/lb, we plan to update the PEA in conjunction with the resource update. Several feasibility studies and PEA's for B.C. projects have been published over the last year, providing us with good proxies for our anticipated capital and operating costs. Based on our attractive infrastructure and tailings configuration and planned throughput of 70,000 tonnes/day, we believe our project will have favourable capital and operating cost efficiencies compared to our peer group. Harper Creek's capital intensity of $10,714/daily tonne of mill capacity is at the low end of our B.C. copper peer group.


Investor Relations Activities

The Company had booths at the Mines and Money show in London UK in December 2009, the Hard Asset Forum in San Francisco in November 2009, the AMEBC RoundUp in Vancouver in January 2010 and PDAC in March 2010. We will also have a booth at the Kamloops Exploration Group meeting in April 2010.

Contact Information:

For further details on Yellowhead Mining Inc., please visit our website at www.yellowheadmining.com or contact:

Ronald Handford, Chief Executive Officer
E: rhandford@yellowheadmining.com
T: (604) 273 5597
F: (604) 608 3524
W: www.yellowheadmining.com


Disclaimer

No regulatory authority has approved or disapproved the information contained in this newsletter. This newsletter includes certain statements that may be deemed "forward-looking statements". All statements in this newsletter, other than statement of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors should be cautious that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.