Mr. Greg Johnson reports

SOUTH AMERICAN SILVER CLARIFIES PRIVATE OWNERSHIP AND STATUS OF THE MALKU KHOTA PROJECT

South American Silver Corp. clarifies recent media coverage regarding the potential for the government of Bolivia to "recover" operatorship control of certain state-owned mines. On Thursday, April 14, the Minister of Mining and Metallurgy, through the government's official information agency (ABI No. 238272), stated that Bolivia is evaluating greater operatorship in four specific mines, which are all 100 per cent owned by COMIBOL (the Bolivian state mining corporation) and that are currently under lease agreements from COMIBOL as part of a privatization process in the mid-1990s.

Reuters also reported that the Minister of Mining and Metallurgy stated that the Bolivian government is not looking at any mining projects that have been private investments from the start and without involvement of COMIBOL, such as San Cristobal, 100 per cent owned by Japan's Sumitomo Corp.

South American Silver's 100-per-cent-owned Malku Khota project has also been a private investment since its discovery by the company in 2003 and has never had any COMIBOL involvement in the project. The company confirms that its concessions covering over 50 square kilometres are in good standing with the government.

Additionally, on Wednesday, April 13, the Bolivian paper Pagina Siete reported that the vice-minister of mining highlighted that the Bolivian government wishes to attract foreign investments in mining and respects legal security and private investment. He further stated that the government intends to support the development activities at Malku Khota this year as one of the largest new mining projects in the country. The mining industry is the second most important segment of the Bolivian economy with zinc and silver exports bringing over $1.57-billion into the country last year.

Greg Johnson, president and chief executive officer of South American Silver, stated: "Based on our regular discussions with the Bolivian government we believe that they want to encourage foreign private investment in mining and that they specifically support the development of the Malku Khota project. The development and operation of the project will provide significant economic benefits to the local region and to Bolivia as a whole with approximately 1,000 new jobs created in the region during the construction phase and over 400 employees during operations. The Malku Khota project has the potential to become one of the largest new primary silver producing mines in the world and would also be one of the largest producers of the high-technology metals, indium and gallium. At base case metal price assumptions, cash flows, project valuations and rates of returns have all strengthened considerably over previous studies, highlighting the value of this long life asset. We are excited about the significant opportunities to further optimize and enhance the economics of the Malku Khota project as we move into prefeasibility in 2011 and feasibility in 2012."

We seek Safe Harbor.