Mr. Arturo Prestamo reports

SANTACRUZ SILVER ANNOUNCES FOURTH QUARTER/YEAR-END 2014 PRODUCTION RESULTS

Santacruz Silver Mining Ltd. had 2014 fourth quarter production of 255,487 silver equivalent ounces from the company's Rosario mine in San Luis Potosi, Mexico. This production represents a 32.8-per-cent quarter-over-quarter increase as compared to 2014 third quarter silver equivalent ounces. The full calendar year of production at the Rosario mine for 2014 resulted in 776,787 silver equivalent ounces.

During the fourth quarter, the Rosario mine produced at an average rate of approximately 280 tonnes per day. By the end of the quarter, the underground mining operations were producing at approximately 400 tonnes per day and a surface stockpile inventory of over 15,000 tonnes of ore had been generated. In December, a third ball mill was installed at the milling facility and commissioning of this equipment was completed by month-end. This increase in grinding capacity will contribute to a further reduction in operating costs.

"During the past year, the company has made significant strides in its development. Production results for our fourth quarter 2014 confirm a continuous production expansion at the Rosario mine," stated Arturo Prestamo, president and chief executive officer. "We are working hard to capitalize on our achievements from 2014 by bringing the Rosario mine back into production as soon as possible. With some challenges behind us and based on the work completed in 2014, looking forward we are now focused on achieving positive milestones in 2015."

Fourth quarter 2014 operations highlights (compared to third quarter 2014)

• Ore processed grew 6 per cent to 25,097 tonnes;
• Metal production increased 32.8 per cent to 255,487 silver equivalent ounces;
• Ore milled was sourced 52 per cent from development and 48 per cent from producing stopes.

            2014 FOURTH QUARTER OPERATIONAL HIGHLIGHTS
                                                                           
Operations summary                             Q4 2014    Q3 2014   Year 2014

Ore processed (tonnes milled)                   25,097     23,678      95,063
Metal recovered to concentrate
Silver equivalent (ounces)                     255,487     192,400    776,787
Silver (ounces)                                159,622     115,455    469,629
Gold (ounces)                                     84.6        94.0        449
Lead (tonnes)                                      224       184.9        782
Zinc (tonnes)                                      626       462.2      1,968
Additional third party 
precipitate processed 
Silver equivalent (ounces)                                  21,600 
Silver (ounces)                                              1,146     47,643
Gold (ounces)                                                327.0        442
Silver equivalent payable ounces               225,349     186,780    684,049

     
    FOURTH QUARTER 2014 GRADE AND RECOVERY 

               Au       Ag       Pb       Zn
             (g/t)    (g/t)      (%)      (%) 
        
Grade        0.14      236     1.03     3.01 
Total 
recoveries  74.5%    93.3%    86.9%    82.9%

The 2015 guidance for the Rosario mine production will be disseminated once the definitive date for Rosario mine restart is determined and a corresponding operating plan is finalized. Currently, the Rosario mine is anticipated to restart operations in mid-February.

Qualified person

All technical information included in this statement has been reviewed and approved by Donald E. Hulse, PE, of Gustavson Associates LLC. Mr. Hulse is independent of the company and a qualified person, pursuant to the meaning of such terms in National Instrument 43-101, Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.