Mr. Robert Archer reports

GREAT PANTHER SILVER REPORTS THIRD QUARTER 2016 PRODUCTION RESULTS

Great Panther Silver Ltd. has released production results for the third quarter 2016 from its two wholly owned Mexican silver mining operations: the Guanajuato mine complex (GMC), which includes the San Ignacio mine, and the Topia mine in Durango.

Third quarter 2016 production highlights (compared with third quarter 2015)

• Consolidated metal production decreased 12 per cent to 953,632 silver-equivalent ounces (AgEq).
• Silver production decreased 13 per cent to 510,491 silver ounces.
• Gold production decreased 11 per cent to 5,423 gold ounces.
• Ore processed increased 2 per cent, with 95,282 tonnes milled.

"Despite the third quarter being challenged by lower grades, recoveries and two temporary shutdowns, we expect to meet our production guidance for 2016," stated Robert Archer, president and chief executive officer. "Furthermore, we expect to continue the trend of significant reductions in our cash costs over prior-year levels."

                       CONSOLIDATED OPERATIONS SUMMARY

                                      Q3 2016    Q3 2015    Q3 2016    Q2 2016

Ore processed (tonnes milled)          95,282     93,730     95,282     99,905
Silver-equivalent-ounce
production (1) (2)                    953,632  1,080,296    953,632  1,037,728
Silver-ounce production               510,491    586,918    510,491    536,726
Gold-ounce production                   5,423      6,079      5,423      6,010
Lead production (tonnes)                  248        341        248        290
Zinc production (tonnes)                  324        493        324        433

Notes                                                                           
(1) Silver-equivalent ounces for 2016 were calculated using a 70:1 Ag:Au 
ratio, and ratios of 1:0.0504 and 1:0.0504 for the price/ounce of silver 
to price/pound of lead and zinc, respectively.
(2) Silver-equivalent ounces for 2015 were calculated using a 65:1 Ag:Au 
ratio, and ratios of 1:0.050 and 1:0.056 for the price/ounce of silver 
to price/pound of lead and zinc, respectively.  

Guanajuato mine complex

In the third quarter of 2016, metal production at the GMC was 2 per cent lower than the previous quarter, and decreased by 5 per cent, to 755,008 AgEq ounces, when compared with the same quarter in the previous year. The decrease was attributed to lower grades and gold recoveries at San Ignacio, mainly reflecting variance from the modelled mineral resource. Additional underground drilling is being undertaken to improve the resource definition in these areas. These factors were partly offset by a 6-per-cent increase in ore processed compared with the third quarter of 2015.

                             GMC OPERATIONS SUMMARY

                                   Q3 2016     Q3 2015     Q3 2016     Q2 2016

Ore processed (tonnes milled)       81,602      77,136      81,602      84,134
Silver-equivalent-ounce
production (1) (2)                 755,008     797,119     755,008     774,160
Silver-ounce production            383,598     413,085     383,598     366,943
Gold-ounce production                5,306       5,908       5,306       5,817
Ag grade (g/t)                         164         188         164         159
Au grade (g/t)                        2.36        2.64        2.36        2.52
Ag recovery (%)                      88.9%       88.5%       88.9%       85.3%
Au recovery (%)                      85.8%       90.2%       85.8%       85.2%
 
Notes                                                                            
(1) Silver-equivalent ounces for 2016 were calculated using a 70:1 Ag:Au 
ratio.
(2) Silver-equivalent ounces for 2015 were calculated using a 65:1 Ag:Au 
ratio.                                                                           

The decrease in gold recovery, when compared with the same quarter in the previous year, is attributed to the lower gold grades and the increased proportion of tonnage from San Ignacio. Conversely, silver recovery has returned to last year's levels due to increased silver grades at the GTO mines and improved metallurgical procedures.

Topia mine

Total metal production in the third quarter of 2016 decreased by 25 per cent and 30 per cent, respectively, when compared with the previous quarter and the same quarter in the previous year, due to lower tonnes milled, lower grades and lower recoveries.

                              TOPIA OPERATIONS SUMMARY

                                       Q3 2016     Q3 2015     Q3 2016     Q2 2016

Ore processed (tonnes milled)           13,680      16,594      13,680      15,771
Silver-equivalent-ounce
production (1) (2)                     198,624     283,177     198,624     263,568
Silver-ounce production                126,892     173,834     126,892     169,783
Gold-ounce production                      117         170         117         192
Lead production (tonnes)                   248         341         248         290
Zinc production (tonnes)                   324         493         324         433
Ag grade (g/t)                             322         359         322         367
Au grade (g/t)                            0.49        0.54        0.49        0.59
Ag recovery (%)                          89.7%       90.8%       89.7%       91.3%
Au recovery (%)                          54.3%       59.6%       54.3%       64.0%
                                                                             
Notes
(1) Silver-equivalent ounces for 2016 were calculated using a 70:1 Ag:Au ratio, 
and ratios of 1:0.0504 and 1:0.0504 for the price/ounce of silver to price/pound 
of lead and zinc, respectively.
(2) Silver-equivalent ounces for 2015 were calculated using a 65:1 Ag:Au ratio, 
and ratios of 1:0.050 and 1:0.056 for the price/ounce of silver to price/pound 
of lead and zinc, respectively.  

The decrease in mill throughput was mainly attributed to the two temporary plant shutdowns during the quarter. In addition, third quarter production was challenged by narrower veins, which increased dilution and decreased grade.

Outlook

Despite lower production in the third quarter of 2016, the company continues to expect to achieve its guidance of four million to 4.2 million AgEq ounces (based on a 70:1 silver:gold ratio) for 2016. For the nine months ended Sept. 30, 2016, production totalled just over three million AgEq ounces.

As noted in previous disclosures, the company is undertaking the construction of a phase II dry-stack tailings facility at Topia that is expected to add five to seven years of capacity. As work proceeds through the fourth quarter, there is the potential for a temporary disruption of throughput at the plant. In the unlikely event of a disruption, it is anticipated that ore will be stockpiled for later processing.

After completing a $29.9-million (U.S.) financing early in the third quarter, the company has an exceptionally strong balance sheet, and continues to focus on an acquisition strategy to add precious metal production opportunities in the Americas.

The technical information contained in this news release has been reviewed and approved by Robert F. Brown, PEng, vice-president of exploration for the company, who is the qualified person (QP) for the Guanajuato mine complex and the Topia mine under the meaning of National Intrument 43-101. Aspects relating to mining and metallurgy are overseen by Ali Soltani, chief operating officer for Great Panther.

We seek Safe Harbor.