Southern Silver Announces Brokered Private Placement With Gravitas Securities

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 18, 2017) -

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Southern Silver Exploration Corp. (TSX VENTURE:SSV)(OTCQB:SSVFF)(FRANKFURT:SEG1)(SSE:SSVCL) ("Southern" or "the Company") has entered into an agreement with Gravitas Securities Inc. ("GSI" or the "Lead Agent") and such other co-agents (collectively, the "Agents") as may be agreed to by the Lead Agent for the Company's $5,000,000 Private Placement. The Company plans to issue (the "Offering") up to 12,500,000 units ("Units") in a brokered private placement at a price of $0.40 per Unit (the "Offering Price"). Each Unit will consist of one common share and one transferable share purchase warrant, with each warrant exercisable to purchase one additional common share for a period of three years at an exercise price of $0.55 per share.

Southern has arranged an initial subscription from Electrum Global Holdings L.P. ("Electrum") to purchase 36% of the total Units sold in this Offering.

The Company has agreed to grant the Lead Agent an over-allotment option to offer, at the Offering Price, up to that number of additional Units as is equal to 15% of the number of Units in the Offering, on the same terms and conditions as the Offering, increasing the size of the Offering to a maximum of 14,375,000 Units. The over-allotment option may be exercised in whole or in part at any time 24 hours prior to the closing of the private placement (the "Closing"). If this option is exercised in full, an additional $750,000 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be $5,750,000.

Net proceeds from this private placement are intended to be used to contribute to the Company's proportionate share (40%) of the costs associated with continuing exploration on the Cerro Las Minitas property near Durango, Mexico together with the Joint Venture partner of the Company, Electrum Global Holdings L.P. (60%), and for additional working capital. Further exploration work in 2017 and 2018 is to be funded by the two Joint Venture partners and is expected to consist of RC, RAB and core diamond drilling in order to: