Southern Silver Reports Progress on Cerro Las Minitas and Oro Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 28, 2016) - Southern Silver Exploration Corp. (TSX VENTURE:SSV)(OTCQB:SSVFF)(FRANKFURT:SEG1)(SSE:SSVCL) ("Southern Silver") reports on continuing exploration programs on both of the Company's projects; the Ag-Pb-Zn, Cerro Las Minitas project, Mexico and the Au-Ag-Cu project, Oro Stockpond, New Mexico.

Corporate Update

Southern Silver owns a 70% indirect interest in the Cerro las Minitas Property and, as operator, has been expending funds provided by Electrum Global Holdings L.P. ("Electrum") since May 2015 for exploration on the Property. To date, Electrum has provided US$3,050,000 which was utilized by Southern Silver on exploration programs which targeted both the known zones of mineralization and new discoveries with the goal of developing a large silver-polymetallic resource on the Property.

Electrum has earned a 30% indirect interest in the Property and has until May 14, 2019 to advance the balance of US$1,950,000 to earn a total 60% indirect interest in the Property. Electrum has advised Southern Silver that it will accelerate the remaining provision of funding to reach a total of US$5,000,000 to increase its indirect interest in the Property to 60%.

President Lawrence Page Q. C. stated, "Since Southern Silver joined forces with Electrum in Q4 2015, Electrum has consistently demonstrated its willingness to provide funds and expertise on a timely basis to allow the completion of an initial Resource and to continue exploration to test the extent of the large property while the Resource at the Cerro is expanded and developed. Southern Silver is well funded to continue its programs and we look forward to continuance of a long and fruitful relationship in the development of the Property after earn-in and establishment of a joint venture for the exploitation of the Resource."

Cerro Las Minitas Project

A total of 91 drill holes for 35,955 metres have now been completed on the Cerro Las Minitas project with exploration expenditures of approximately US$8.35 million spent on the property since 2011.

The next phase of exploration on Cerro Las Mintas will comprise up to 10,000 metres of drilling and focus primarily on:

• the further delineation of depth extensions of the Blind and El Sol deposits;
• the delineation of an initial mineral resource estimate at the Mina La Bocona target located approximately 1.2 kilometres to the east of the Blind-El Sol-Santo Nino deposits; and
• drill testing targets identified through the current surface exploration program outboard of the main target area.

The Cerro Las Minitas project contains an estimated Inferred Resource of 17.5Mozs silver and 237Mlbs of lead and 626Mlbs zinc (77.3Mozs AgEq) and an estimated Indicated Resource of 10.8Mozs silver, 189Mlbs lead and 207Mlbs zinc (36.5Mozs AgEq).⁽¹⁾