Southern Silver Obtains Loan Facility to Fund Final Option Payments at Cerro Las Minitas

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 20, 2014) - Southern Silver Exploration Corp. ("Southern Silver" or the "Company") (TSX VENTURE:SSV)(FRANKFURT:SEG) reported today that it has entered into a loan facility arrangement with Radius Gold Inc. ("Radius") to borrow $CDN 800,000 to fund the final payments of $USD 600,000 to fully exercise its option to acquire the Cerro Las Minitas mineral claims in Durango, Mexico. The final payment completes the purchase price of $USD 3.6 million to acquire a 100% unencumbered interest in the claims where exploration has been ongoing since 2010.

In consideration for the grant of the loan facility, the Company has granted Radius an exclusive option for 120 days to enter into negotiations with the Company to settle terms of a business arrangement for Radius to acquire either a direct or indirect interest in the claims inclusive of continued exploration and development of the claims.

Since acquisition of an option to purchase the claims in 2010, the Company has conducted 23,310 metres of diamond drilling in 75 core holes together with surface geochemical and biogeochemical sampling, airborne magnetics, deep penetrating IP geophysics and gravity geophysics. Aggregated acquisition and exploration costs incurred on the property total approximately $USD 9.2 million. Over the course of exploring the project, the Company has discovered two new zones of mineralization on the claims, the Blind zone and the El Sol zone, which it has traced for a cumulative 820 metres strike-length in a northwest-southeast direction and to depths of up to 550 metres in some drill holes.

Details of the loan facility are:

• The loan is repayable on demand, provided that Radius shall not demand repayment for one year.
  
  
• Interest is payable annually at 8% per annum. At Radius' election, interest may be paid by the issuance of common shares of the Company in accordance with the policies of the TSX Venture Exchange ("TSXV").
  
  
• Radius shall have the right at any time during the Term to convert such portion of the loan into common shares of the Company to result in Radius holding no greater than 19.9% of the then issued and outstanding shares of the Company. In the event of such conversion election, the balance of the loan shall remain due and payable for the remainder of the Term, provided that, upon default of payment, Radius shall have the right to convert the balance of the loan into common shares of the Company based upon a market price of $.05 per share. In the event of such election resulting in a "Change of Control" in accordance with TSXV Policy, the Company shall convene a shareholders meeting for the purpose of approving such Change of Control.