Mr. Bob Garnett of Great Panther reports

GREAT PANTHER AND CANGOLD EXECUTE DEFINITIVE ARRANGEMENT AGREEMENT

Great Panther Silver Ltd. and Cangold Ltd., further to the binding letter agreement announced on Feb. 26, 2015, have entered into a definitive arrangement agreement, pursuant to which Great Panther will, subject to the terms and conditions of the arrangement agreement, acquire all of the issued and outstanding common shares of Cangold by way of a court-approved plan of arrangement.

The transaction will result in Great Panther adding more than 6,000 hectares of the advanced-stage Guadalupe de los Reyes gold-silver project to its existing portfolio of projects and two primary silver producing mines in Mexico at Guanajuato and Topia. The transaction also adds Cangold's Plomo gold project in Mexico and its past-producing Argosy gold mine in the Red Lake mining division of Northeastern Ontario, Canada.

Arrangement overview

The arrangement will be carried out by way of a court-approved plan of arrangement under the provisions of the Business Corporations Act (British Columbia). Under the terms of the arrangement, Cangold shareholders will receive 0.05 common share of Great Panther for each common share of Cangold held, resulting in the issuance of approximately 2,139,030 Great Panther shares in exchange for 42,780,600 Cangold shares (excluding approximately 2.9 million Cangold shares currently held by Great Panther and approximately one million additional Cangold shares expected to be issued pursuant to the loan agreement discussed below). In addition, each outstanding option and warrant to acquire Cangold shares will entitle the holder thereof to receive, upon the exercise thereof, 0.05 Great Panther share in lieu of each Cangold share, at a price adjusted in accordance with the exchange ratio, and otherwise on the same terms and conditions as the original option or warrant. The Great Panther shares to be issued represent approximately 1.5 per cent of the current number of Great Panther shares issued and outstanding. Total share consideration is valued at approximately $1.7-million.

Completion of the arrangement is subject to approval by the Supreme Court of British Columbia and the affirmative vote of Cangold shareholders at a special meeting that is expected to be held on May 22, 2015. At the meeting, the arrangement will require approval by at least two-thirds of the votes cast by Cangold shareholders present in person or represented by proxy and entitled to vote at the meeting.

Pursuant to the terms of the arrangement agreement, the arrangement is also subject to customary conditions, including support of the transaction by directors, officers and significant shareholders of Cangold, and receipt of applicable regulatory and third party approvals and consents as may be required to effect and complete the transaction, including approval of the Toronto Stock Exchange, and applicable filings with the New York Stock Exchange in respect of Great Panther) and the TSX Venture Exchange (in respect of Cangold). Completion of the transaction is also subject to Great Panther being satisfied with the results of its due diligence investigations and receipt by Great Panther of an opinion of Mexican legal counsel relating to the option Cangold holds in respect of the Guadalupe de los Reyes gold-silver project in Sinaloa state, Mexico. The arrangement agreement also provides for a payment of a termination fee of $250,000 by Cangold to Great Panther in certain circumstances where the transaction is not completed.

Great Panther presently has three directors and/or officers that are also directors and/or officers of Cangold, including the same president and chief executive officer. Accordingly, both Great Panther and Cangold established separate special committees consisting of their respective independent directors to review the arrangement agreement and oversee all aspects of the transaction.

The board of directors of Cangold, based in part on the unanimous recommendation of the special committee of the Cangold board created to consider matters relating to the arrangement, has determined that the arrangement is fair to Cangold shareholders and is in the best interests of Cangold. Accordingly, the Cangold board approved the arrangement and recommends that Cangold shareholders vote their Cangold shares in favour of the arrangement. In making its recommendation, the Cangold board considered a number of factors, including the receipt by the Cangold board of a fairness opinion from Evans & Evans Inc., which determined that the consideration offered to Cangold shareholders pursuant to the arrangement is fair, from a financial point of view, to Cangold shareholders.

All of the directors and officers of Cangold (who hold in the aggregate approximately 9 per cent of the issued and outstanding Cangold shares on a non-diluted basis) have entered into support agreements with Great Panther pursuant to which they have agreed, among other things, to support the transaction and vote their Cangold shares in favour of the arrangement. In addition, it is a condition of the arrangement agreement that certain significant shareholders of Cangold (who hold in the aggregate approximately 13 per cent of the issued and outstanding Cangold shares on a non-diluted basis) enter into support agreements with Great Panther within 10 business days of the execution of the arrangement agreement pursuant to which they will agree, among other things, to support the transaction and vote their Cangold shares in favour of the arrangement.

Assuming that all requisite approvals are received, Great Panther and Cangold expect to close the proposed arrangement prior to the end of May, 2015. Upon completion, all of the members of the Cangold board will resign and the current management team of Great Panther will manage Cangold after completion of the arrangement.

The terms of the arrangement will be described in further detail in the management information circular of Cangold to be filed with regulatory authorities and mailed to Cangold shareholders in late April, 2015, in accordance with applicable securities laws.

Cangold security holders and other interested parties are advised to read the materials relating to the proposed arrangement, including the arrangement agreement, that will be filed by Cangold with securities regulatory authorities in Canada when they become available. Anyone may obtain copies of these documents when available free of charge at SEDAR.

Advances from Great Panther to Cangold

Under the terms of the previously announced loan agreement, dated Feb. 25, 2015, among Great Panther, Cangold and a Mexican subsidiary of Cangold, Great Panther has provided Cangold with credit advances in the aggregate amount of approximately $1-million (including an initial advance of $580,000 (U.S.)). Pursuant to the loan agreement, the outstanding principal balance owing to Great Panther bears interest at the annual rate of 15 per cent and is secured by a general security agreement and share pledge agreement over the shares of Cangold's Mexican subsidiary. As previously announced, Cangold has issued 2,897,680 bonus Cangold shares to Great Panther in connection with the initial advance of $580,000 (U.S.) and has applied to the TSX-V for approval of the issuance of an additional 1.06 million bonus Cangold shares in connection with additional advances (in the aggregate amount of $265,000) under the loan agreement.

We seek Safe Harbor.