Mr. Lawrence Page reports

SOUTHERN SILVER INTERSECTS 6.5M (EST. TT) GRADING 737G/T AG, 8.6% PB, AND 21.8% ZN (1814G/T AGEQ; 51.2% ZNEQ) AT CERRO LAS MINITAS; EXTENDS HIGH-GRADE BLIND SHOULDER MINERALIZATION

Southern Silver Exploration Corp. has released assay results from the winter 2017 core drilling program on the Cerro Las Minitas project in Durango state, Mexico. Drilling continues to intersect intervals of heavily disseminated to massive sulphide mineralization on the Blind Shoulder zone. Highlights from core holes 17CLM-095 and 17CLM-094 include:

• A 7.3-metre downhole interval (estimated true thickness of 6.5 metres) averaging 737 grams per tonne silver, 8.6 per cent lead and 21.8 per cent zinc (1,814.3 grams per tonne silver equivalent; 51.2 per cent zinc equivalent) from 17CLM-095, including a higher-grade 3.4-metre interval (estimated true thickness of three metres) averaging 981 grams per tonne silver, 11.7 per cent lead and 26.4 per cent zinc (2,327.9 grams per tonne silver equivalent; 65.7 per cent zinc equivalent);
• A 14.1-metre downhole interval (estimated true thickness of 9.9 metres) averaging 48.6 grams per tonne silver, 0.3 per cent lead and 3.6 per cent zinc (186.1 grams per tonne silver equivalent; 5.3 per cent zinc equivalent) from 17CLM-094.

These mineralized intercepts remain open laterally and reflect a flattening of the Blind Shoulder zone mineralization from a subvertical orientation near surface, to a gently to moderately southwest-dipping horizon below 600-metre depth. Current drilling has now identified significant intervals of mineralization throughout an approximate 350-metre-by-300-metre zone within the originally targeted 600-metre-by-400-metre area. With approximately 4,280 metres now completed of the planned 10,000-metre, $2-million (U.S.) exploration program, further drilling with two core rigs will focus on continuing the systematic expansion of the Blind Shoulder mineralized zone.

Mineralization in drill hole 16CLM-095 is a continuation of earlier reported mineral intercepts in the Blind Shoulder zone and, significantly, contains much higher silver grades than earlier drilling in this part of the deposit. Further drilling to delineate this high-grade silver zone is planned for this target area.

The mineralization in drill hole CLM-095 is open both down dip to the southwest and along strike to the north and northwest and represents a 90-metre stepout from previously reported mineralization in hole 17CLM-091 (15.2 metres of 39.4 grams per tonne silver, 0.1 per cent lead and 10.2 per cent zinc; see news release dated Jan. 19, 2017), a 190-metre offset from hole 13CLM-066 (9.3 metres averaging 9.4 grams per tonne silver, 0.13 per cent copper and 13 per cent zinc; see news release dated July 16, 2013) and a 300-metre stepout from hole 16CLM-088 (30.4 metres averaging 107 grams per tonne silver, 0.4 per cent copper, 1.1 per cent lead and 2.3 per cent zinc; see news release dated June 13, 2016). The above intervals are quoted as downhole thickness.

"Assay results from this recent drilling have returned some of the better silver and base metal grades on the project to date and continues to not only expand the dimension of the Blind Shoulder target but have also yielded further improvement in potential size, quality and scope of the Cerro Las Minitas project," said Lawrence Page, Southern Silver's president. "Our focus remains to establish this rapidly evolving district into one of the most significant economic polymetallic discoveries in our industry."

                       SELECT COMPOSITES FROM FALL 2016 DRILLING ON THE CERRO LAS MINITAS PROPERTY

Hole No.        From       To   Interval        Estimated       Ag       Au      Cu      Pb      Zn     AgEq    ZnEq
                  (m)      (m)        (m)  true thickness     (g/t)    (g/t)     (%)     (%)     (%)    (g/t)     (%)
                                                       (m)   

17CLM-094      788.8    802.9       14.1              9.9     48.6     0.01    0.01     0.3     3.6    186.1     5.3
Including      788.8    798.6        9.8              6.8     65.2     0.01    0.02     0.3       5      253     7.1
Including      794.2    798.6        4.4              3.1       92     0.01    0.02     0.4     7.1      361    10.2
Assays pending from lower part of hole
17CLM-095      575.5    579.3        3.8              2.9     26.8     0.02    0.02     0.5       3    154.7     4.4
Including      575.5    576.1        0.6              0.5      115     0.01    0.01       3     7.4    478.8    13.5
17CLM-095      691.3    700.3          9                8    601.6     0.05    0.05     7.1    17.9  1,487.9      42
Including        693    700.3        7.3              6.5    736.9     0.05    0.06     8.6    21.8  1,814.3    51.2
Including        693    696.3        3.4                3      981     0.05    0.08    11.7    26.4  2,327.9    65.7

Composites were analyzed by FA/AA for gold and ICP-AES by ALS Laboratories of North 
Vancouver, B.C. Silver (over 100 parts per million), copper, lead and zinc 
(over 1 per cent) overlimits were assayed by ore-grade ICP analysis. High silver 
overlimits (over 1,500 grams per tonne silver) and gold (over 10 grams per tonne 
gold) overlimits were reassayed with FA-Grav. High lead (over 20 per cent) and zinc 
(over 30 per cent) overlimits were assayed by titration. AgEq and ZnEq were calculated 
using average metal prices of: $18.20 (U.S.) per ounce silver, $1,240 (U.S.) per ounce
gold, $2.80 (U.S.) per pound copper, 91 U.S. cents per pound lead and 94 U.S. cents 
per pound zinc. AgEq and ZnEq calculations did not account for relative metallurgical 
recoveries of the metals. Ore-grade composites were calculated using an
80-gram-per-tonne-silver-equivalent cut-off and less-than-20-per-cent internal dilution,
except where noted; anomalous intercepts were calculated using a 
10-gram-per-tonne-silver-equivalent cut-off.

Cerro Las Minitas project

Exploration on the company's flagship Cerro Las Minitas property in Durango, Mexico, is financed by Electrum Global Holdings LP, which has financed a broad range of exploration activities and has earned a 60-per-cent interest in the project through a $5.0-million earn-in on the property, with Southern Silver acting as operator.

The Cerro Las Minitas project contains an estimated inferred resource of 17.5 million ounces silver and 237 million pounds of lead and 626 million pounds zinc (77.3 million ounces silver equivalent) and an estimated indicated resource of 10.8 million ounces silver, 189 million pounds lead and 207 million pounds zinc (36.5 million ounces silver equivalent).

A total of 93 drill holes for 37,255 metres have been completed on the Cerro Las Minitas project with exploration expenditures of approximately $8.6-million (U.S.) spent through to the end of 2016.

About Southern Silver Exploration Corp.

Southern Silver Exploration is a precious metal exploration and development company with a focus on the discovery of world-class mineral deposits in north-central Mexico and the Southern United States. The company's specific emphasis is the Cerro Las Minitas silver-lead-zinc project located in the heart of Mexico's Faja de Plata, which hosts multiple world-class mineral deposits such as Penasquito, San Martin, Naica and Pitarrilla. The company's property portfolio also includes the Oro porphyry copper-gold project located in southern New Mexico, United States.

Robert Macdonald, MSc, PGeo, is a qualified person as defined by National Instrument 43-101 and responsible for the supervision of the exploration on the Cerro Las Minitas project and for the preparation of the technical information in this disclosure.

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