South American Silver Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 3, 2013) - At the request of IIROC, on behalf of the Toronto Stock Exchange, South American Silver Corp. (TSX:SAC)(OTCQX:SOHAF) (the "Company" or "SASC") advises shareholders today that there are no corporate developments to report.

As reported by SASC on December 2, 2013, Ralph Fitch has been re-appointed to the position of President and CEO. Mr. Fitch, who was Executive Chairman, is the founder of the Company. He takes over the role from Phillip Brodie-Hall who has served as Interim President and CEO since August 2012. Mr. Brodie-Hall will continue to provide services to the Company on an as needed basis as a consultant going forward.

As reported by SASC on November 14, 2013, South American Silver continues to advance before the Permanent Court of Arbitration its international arbitration proceedings against Bolivia for the expropriation of the Malku Khota project. An arbitral tribunal of three members is being empanelled by the parties. Two arbitrators have been appointed and the two appointed arbitrators had until November 29, 2013 to appoint a third arbitrator who will act as president of the tribunal. Once the tribunal is formed, it will set a provisional timetable for the arbitration itself. This will include a schedule for submission of a Statement of Claim, Statement of Defense and oral hearings at the court of arbitration. Unless there is a negotiated settlement of the dispute, it is expected that the arbitration can take up to 2-3 years from commencement of proceedings until rendering of a final award. Most of South American Silver's costs and expenses related to its international arbitration proceedings against Bolivia, including those to be incurred in connection to the enforcement of any arbitration award, are covered by a third party funder on a non-recourse basis (See News Release 13-12 dated May 24, 2013).

As reported on October 21, 2013 the Company announced that it has entered into an arrangement agreement pursuant to which the Company will acquire all of the issued and outstanding shares of High Desert Gold Corporation ("HDG") that it does not already own in an all-share transaction by way of a plan of arrangement. Under the Arrangement, immediately prior to the exchange of the outstanding securities of HDG for securities of the Company, each shareholder of the Company will exchange each of its South American Silver common shares for one South American Silver Class A Share and one South American Silver Class B Share. The Class A Shares (which will be redesignated as "Common Shares" as the last step in the Arrangement) will carry voting, dividend and liquidation rights similar to the Company's current common shares. The Class B Shares will carry redemption and retraction rights and rights on liquidation which entitle the holders collectively to 85% of the net cash, if any, (after deducting all costs, taxes and expenses and the third party funder's portion thereof) received by the Company from an award or settlement in relation to the Company's wholly- owned subsidiary South American Silver Limited's arbitration proceeding against the Plurinational State of Bolivia for the expropriation of the Malku Khota project. The Class B Shares will be non-voting and non-participating in regards to dividends and on liquidation other than as described above. HDG shareholders will receive 0.275 of a South American Silver Class A Share for each HDG common share held and all outstanding HDG stock options and warrants will be adjusted accordingly. The TSX has conditionally approved the Arrangement including the listing of the Class B Shares to be issued thereunder. Meetings of the Shareholders of HDG and the Company to consider the Arrangement are to be held on December 9, 2013.