Mr. Robert Archer reports

GREAT PANTHER SILVER REPORTS SECOND QUARTER 2015 PRODUCTION RESULTS AND INCREASED PRODUCTION GUIDANCE

Great Panther Silver Ltd. had record production results for the second quarter 2015 from its two wholly owned Mexican silver-mining operations and is increasing its production guidance for the year.

Second quarter 2015 consolidated production highlights (compared with first quarter 2015 and second quarter 2014) and revised production guidance:

• Metal production increased 10 per cent and 51 per cent, respectively, to a record 1,088,355 silver-equivalent ounces.
• Silver production rose 9 per cent and 54 per cent, respectively, to a record 648,810 silver ounces.
• Gold production increased 13 per cent and 41 per cent, respectively, to a record 5,322 gold ounces.
• Ore processed decreased 12 per cent and rose 8 per cent, respectively, to 87,476 tonnes.
• Full year production guidance increased by 8 per cent, from 3.5 million to 3.6 million AgEq ounces to 3.8 million to 3.9 million AgEq ounces.

"Great Panther's quarterly metal production exceeded one million silver-equivalent ounces for the first time, including individual records for silver and gold production," stated Robert Archer, president and chief executive officer. "While the ramp-up in production at San Ignacio since commencing commercial production in June, 2014, is a major factor in the increase in production over Q2 of last year, we continue to make changes necessary to adapt to the current metal price environment, and the result has been an improvement in ore grades and overall efficiencies. Silver grades improved at the main Guanajuato mine and gold grades were significantly higher at San Ignacio. I would like to congratulate our team for achieving this quarter's milestones and giving us the confidence to raise our production guidance for the year."

The company is increasing 2015 production guidance to 3.8 million to 3.9 million AgEq ounces from 3.5 million to 3.6 million AgEq ounces. While operational improvements contributed to the strong grade performance in Q2, grades are expected to moderate somewhat in the second half of 2015.

Management is also reviewing cash cost and all-in sustaining cost guidance for 2015 and expects to provide an update with its Q2 2015 earnings release scheduled for Aug. 6. Cash cost was well below guidance in the first quarter of 2015 and, with even further improved grades at Guanajuato, Q2 2015 cash cost is expected to be materially lower than the current guidance for 2015.

 
                   CONSOLIDATED Q2 OPERATIONS SUMMARY

                                        Q2 2015     Q2 2014     Q1 2015

Ore processed (tonnes milled)            87,476      80,964      99,252
Silver-equivalent ounce production    1,088,355     718,794     987,887
Silver ounce production                 648,810     420,001     597,111
Gold ounce production                     5,322       3,773       4,703
Lead production (tonnes)                    300         302         279
Zinc production (tonnes)                    491         395         441

Guanajuato mine complex

Total metal production during Q2 2015 at the Guanajuato mine complex (GMC) was a record 818,841 AgEq ounces, representing increases of 15 per cent and 74 per cent, respectively, compared with the first quarter of 2015 and second quarter of 2014. The increase in production over Q2 2014 is largely due to the ramp-up in production at San Ignacio since commencing commercial production in June of last year, while the increase over Q1 2015 is attributed to higher ore grades throughout the GMC combined with slight improvements in metal recoveries.

                                                                            
                        GMC Q2 OPERATIONS SUMMARY  
            
                                          Q2 2015   Q2 2014   Q1 2015

Ore processed (tonnes milled)              71,131    63,646    82,026
Silver-equivalent ounce production        818,841   470,589   713,371
Silver ounce production                   482,551   251,687   417,770
Gold ounce production                       5,174     3,648     4,548
Ag grade (g/t)                                233       139       177
Au grade (g/t)                               2.49      1.99      1.92
Ag recovery (%)                             90.5%     88.4%     89.7%
Au recovery (%)                             91.0%     89.4%     89.9%

The increase in ore grades during the second quarter of 2015 was due to a number of factors, including higher cut-off grades and new grade control measures implemented at all mining areas, and some high-grade pillar recoveries. As a result, ore tonnage processed at Guanajuato decreased 13 per cent compared with the first quarter of 2015.

Output from San Ignacio was consistent with the prior quarter at approximately 370 tonnes per day but metal production increased 15 per cent over the same period. This was achieved through a greater focus on the new South Extension zones, which contributed higher ore grades, particularly gold. As a result, San Ignacio accounted for 45 per cent of the overall gold production at the GMC in Q2 2015, 31 per cent of the total metal production and 36 per cent of the tonnes milled.

Underground drilling continues to focus on the definition of high-grade resources, mainly in the areas currently being mined. A total of 4,816 metres was drilled in the second quarter at Guanajuato, for a year-to-date total of 8,250 metres. Almost half of the drilling during the quarter was undertaken in the Valenciana area in order to update the resource estimate for the zone which is expected to be completed in the current quarter. Once complete, the Valenciana resource will be evaluated for near-term production.

Topia mine

Topia metal production decreased slightly when compared with the previous quarter, but increased 9 per cent over the Q2 2014. The increase over the comparative quarter of 2014 was achieved due to higher ore grades, separate processing campaigns for gold-rich mines and commissioning of two additional flotation cells.

Ore processed at Topia decreased 5 per cent and 6 per cent, respectively, compared with the first quarter of 2015 and second quarter of 2014. This is mostly attributed to weaker ground conditions at the Argentina mine and narrower veins encountered at several of the nine mines. Extensive rainfall in June also hampered ore transport to the plant.

                                                                               
                     TOPIA Q2 OPERATIONS SUMMARY  
       
                                         Q2 2015   Q2 2014   Q1 2015

Ore processed (tonnes milled)             16,345    17,319    17,225
Silver-equivalent ounce production       269,514   248,205   274,515
Silver ounce production                  166,258   168,314   179,341
Gold ounce production                        149       125       155
Lead production (tonnes)                     300       302       279
Zinc production (tonnes)                     491       395       441
Ag grade (g/t)                               350       336       357
Au grade (g/t)                              0.48      0.40      0.44
Ag recovery (%)                            90.5%     89.8%     90.8%
Au recovery (%)                            59.2%     56.1%     63.5%

Outlook

Given better-than-expected production results for the first half of 2015, the company is increasing its production guidance for 2015 by approximately 8 per cent, from 3.5 million to 3.6 million AgEq ounces to 3.8 million to 3.9 million AgEq ounces. While improved grade control and higher cut-off grades at all mines should maintain higher production levels, it is still early in the production history of the South Extension zones at San Ignacio. Grade fluctuations are possible and the company may consider alternative mining methods in order to reduce costs which could also impact head grades. The revised guidance represents an approximate 21-per-cent increase over 2014 production, including a small impact from the change in ratios in determining AgEq ounces to account for the movement in metal prices over the past year. Consolidated cash cost and all-in sustaining cost are being reviewed for a potential lowering of the annual guidance figures, and a further update will be provided when the earnings results for the quarter are released.

Release of second quarter 2015 financial results and conference call

The second quarter 2015 financial results will be released after market on Wednesday, Aug. 5, 2015, and a conference call and webcast will be held at 8 a.m. PT (11 a.m. ET) on Thursday, Aug. 6, 2015.

We seek Safe Harbor.