FMEC Funds $250,000 Option Payment and Commences Second Phase Drill Program at Cerro Las Minitas - Seite 2

FMEC contract synopsis

To date, FMEC has funded total expenditures and payments of $3,127,103 as follows:

• paid Southern Silver $700,000 in option payments;
  
  
• funded $1,508,000 to the underlying optionor of the property as option payments; and
  
  
• funded exploration costs of $919,103 on the project.
  

(Note: all references to money and $ refer to United States currency)

FMEC has been providing funding for, and directing, Southern Silver's subsidiary, Minera Plata del Sur, S.A. de C.V., to explore the property since October 2012 and holds an option to earn a 70% indirect interest in the project by making staged purchase payments and funding exploration and development expenditures of $25 million on the project over a ten year period. Included in the gross interest is an initial 51% interest to be earned in the first three years of the agreement by expenditure of $5 million. FMEC has now met and exceeded the first year earn-in requirements of the option.

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/SSVFigure1.pdf.

About Southern Silver Exploration Corp.

Southern Silver Exploration Corp. is a precious and base metal exploration and development company and a member of the Manex Resource Group; a private company comprised of an exceptional multi-disciplinary team of professionals with specific expertise in all areas of exploration, development, corporate finance and public company administration.

The company's growth strategy is to acquire, explore and develop either directly or through joint venture relationships high-quality mineral properties in progressive jurisdictions within North America including Southern Silver's silver-lead-zinc Cerro Las Minitas project located in Durango, Mexico. Freeport-McMoRan Exploration Corporation currently holds an option to earn a 70% indirect interest in the project by making staged purchase payments and funding exploration and development expenditures of $25 million on the project over a ten year period.

Desert Star Resources Ltd. has the option to earn up to a 70% interest in the gold-silver-copper Oro project in New Mexico by making cash payments to underlying optionors, issuing one million shares, completing a preliminary economic assessment and incurring exploration expenditures of $6 million on the property over a period of 66 months. Southern Silver is currently advancing the porphyry copper-molybdenum Dragoon project in Arizona.