Southern Silver Reports Progress on Cerro Las Minitas and Oro Projects - Seite 2

Drilling in 2016 identified a 30.4m thick interval of continuous polymetallic semi-massive and massive sulphide mineralization averaging 107.4g/t Ag, 0.40% Cu, 1.1% Pb and 2.3% Zn (275g/t AgEq) in drill hole 16CLM-088 (see NR-14-16; June 13, 2016) which forms part of a new, previously unrecognized, deep extension of the Blind and El Sol deposits. Geological modelling of this target has outlined a 450 metre by 450 metre area for testing which, if successful, could significantly expand the Mineral Resources of the project.

Surface soil and rock sampling on the 13,700 hectare largely gravel-covered portions of the property continues through the fourth quarter. The sampling program will further evaluate targets developed during the Company's detailed re-evaluation of airborne and ground geophysics, property-wide biogeochemical surveys, and soil and float sampling completed by Southern Silver over the last several years. Follow-up drilling is anticipated as new targets are developed and refined. Gravel-covered areas are extensive at the Cerro Las Minitas property, with little or no drilling and occur on trend with Avino's gold and silver mine and Hecla's San Sebastian gold and silver mine located respectively to the east and west of the Property.

Oro Project

Southern Silver has completed a 1,223 metre drill program at the Stockpond gold target on the Oro project, New Mexico. The program comprised nine reverse circulation holes which tested an area within and around a previously outlined 500 metre x 500 metre gold-in-soil anomaly and mineralized outcrop exposure where rock-chip samples returned up to 4.8g/t Au.

Visual results from the drill program have been encouraging with most holes intersecting multiple thick (+10 metres) beds of strongly silicified and hematite-rich sediments, which are visually similar to surface rock chips containing anomalous concentrations of gold. The drilling tested an area approximately 450m by 450m, which encompasses and expands the area defined by anomalous gold in a small outcrop and the surrounding soil survey. Samples have been submitted for analyses and assays are pending.

The Oro property consists of patented land, State leases and BLM located mineral claims and covers and surrounds a highly prospective quartz-sericite-pyrite alteration zone, interpreted to overlie an unexposed porphyry center. Classic porphyry system zonation is indicated by gold and copper mineralization associated with Laramide-age intrusions, flanked by lead-zinc skarn and carbonate-replacement mineralization, and distal sediment-hosted gold occurrences. The Stockpond target is interpreted as one of these gold occurrences distal to the main porphyry center, which is located 3 kilometres to the southwest.