Southern Silver Closes First Tranche of Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 20, 2013) - Southern Silver Exploration Corp. ("Southern Silver") (TSX VENTURE:SSV)(FRANKFURT:SEG) has closed the first tranche of its previously reported non-brokered private placement by issuing 6,830,150 units at a price of $0.02 per unit for gross proceeds of $136,603. Each unit consists of one common share and one share purchase warrant exercisable to purchase one additional common share for a period of three years at an exercise price of $0.05 per share. Securities issued pursuant to this tranche of the private placement, including common shares, share purchase warrants and finder's warrants issued as finder's fees, carry a legend restricting trading of the securities until January 14, 2014.

The private placement is being conducted pursuant to the TSX Venture Exchange ("TSXV") bulletin of April 12, 2013 - Private Placements - Extension and Modification of Temporary Relief from Certain Pricing Requirements. The private placement and payment of finder's fees are subject to acceptance for filing by the TSXV. The private placement has been approved by Southern Silver's board of directors, excluding those directors that have a direct interest in the private placement.

As required by the Temporary Relief policy of the TSX-V Southern Silver advises that it proposes to use the proceeds from the first tranche of this offering approximately as follows:

Use of Proceeds
Issue costs (finder's fees and filing fees):	$8,000
Dragoon property claim fees:	$11,000
Legal fees:	$2,000
Transfer agent fees:	$2,000
Rent & Administration:	$35,750
Staff (accounting, geological, corporate, IR):	$24,700
Office expenses / travel / phone etc:	$4,550
Directors and officers services:	$13,500
General working capital / miscellaneous accounts payable:	$35,103

As noted above, $13,500 of the proceeds will be paid to directors and officers or related entities in partial payment of amounts owing to them for services provided to Southern Silver. A related party will receive payment of the above noted rent, administration, staff charges and office expenses on a cost recovery basis, which charges have accrued over a 5 month period and have been paid by the related party on behalf of Southern Silver.