Mr. Robert Archer reports

GREAT PANTHER SILVER UPDATES MINERAL RESOURCE ESTIMATE AT THE GUANAJUATO MINE COMPLEX

Great Panther Silver Ltd. has released an updated mineral resource estimate for the company's Guanajuato mine complex (GMC) in Guanajuato, Mexico. For the purpose of resource estimation, the GMC includes the operating Guanajuato and San Ignacio mines and the El Horcon project, which has the potential to be a satellite operation but is not currently in production.

"Once again, we successfully replaced what we mined at the GMC, and upgraded much of the resource to higher categories," stated Robert Archer, president and chief executive officer. "Notably, due to permitting delays, the fourth quarter 2016 stepout drilling at San Ignacio started after the effective cut-off date for this resource estimate, and the results of that program, which would have added to the inferred resource, were not included. For 2017, we have more than doubled our drilling budget at the GMC to 34,500 metres, and will continue our efforts to expand and further define the resource base at the Guanajuato and San Ignacio mines and the outlying El Horcon project."

• Estimated measured and indicated (M&I) mineral resources at the GMC increased 15 per cent from the previous mineral resource (news release of Feb. 22, 2016) to 7,146,076 silver-equivalent (AgEq) ounces.
• Estimated measured mineral resources at the GMC increased 22 per cent to 5,564,396 AgEq ounces from the previous measured mineral resource, as the San Ignacio mine indicated mineral resources were developed and categorized as measured, and the Guanajuato mine measured resource increased slightly.
• Estimated indicated mineral resources at the GMC decreased 12 per cent from the previous indicated mineral resource to 1,581,680 AgEq ounces, due to an upgrade of the San Ignacio mine indicated mineral resources to measured mineral resources and a slight decrease at the Guanajuato mine.
• The GMC, excluding the El Horcon project, contains estimated inferred mineral resources of 6,990,004 AgEq ounces, a 38-per-cent decrease from the previous resource, primarily due to the upgrade of the San Ignacio mine inferred resource to an M&I mineral resource and the delay in starting the San Ignacio surface drilling such that the results were not considered for this resource estimate.
• Including the El Horcon project, the GMC contains estimated inferred mineral resources of 9,082,917 AgEq ounces, a 26-per-cent decrease from the previous resource. The El Horcon project inferred mineral resource increased due to higher metal price assumptions only, as no fieldwork was completed in 2016.

During 2016, exploration at the San Ignacio mine consisted primarily of underground drilling to better define the mineral resource in the Intermediate and Melladito zones. A surface drill program to expand the mineral resource started after the effective date of this mineral resource, and therefore, has not been included. Development in the period between mineral resource effective dates of July 31, 2015, and Aug. 31, 2016, was conducted along the Melladito, Melladito FW, Melladito Splay, Intermediate and Intermediate 2 zones.

At San Ignacio, plans for 2017 include 8,000 metres of surface exploration drilling along the continuation southeast from the present mineral resource to the historical mining areas of San Pedro and Mexiamora and on the subparallel Plateros trend. An additional 13,025 metres of underground drilling will focus on converting inferred mineral resources to the measured and indicated categories.

At the Guanajuato mine, underground exploration in 2016 was focused on the Los Pozos, Valenciana and Guanajuatito areas to increase the mineral resource. The focus of exploration in 2017 will be on those three zones and the Promontorio zone. A comprehensive evaluation of historical workings is also being undertaken with emphasis on undeveloped veins with mineralization of economic significance. This will include the Rayas, upper Cata, Los Pozos, Valenciana and Guanajuatito zones.

Along with the mineral resource estimates, the company also considered geological potential at the Guanajuato mine, which was estimated within ranges for areas that contain pillars and remnant material in historical mining areas with limited topographic control. Geological potential includes 186,908 to 311,514 tonnes grading between 96 and 137 g/t (grams per tonne) silver and between 1.56 and 2.22 g/t gold. These areas have often been drilled and evaluated underground by detailed sampling and geological mapping, and include the Promontorio area and parts of Los Pozos and Valenciana areas. Between July 31, 2015, and Aug. 31, 2016, it is estimated that approximately 35 per cent of Guanajuato mine production came from geological potential and other areas outside the mineral resource.

The El Horcon project is located approximately 100 kilometres by paved highway northwest of Guanajuato and is considered to be within trucking distance of the processing Cata plant. Consequently, it is included in the GMC mineral resource estimate. No work was completed on this project in 2016, but a drill program is budgeted for the fourth quarter of 2017 to test the continuity of mineralization.

The updated 2016 mineral resource estimate for the Guanajuato mine complex is summarized in the attached tables (1).

                                      MEASURED                                     
                                                                     
                   Tonnes      Ag          Ag      Au       Au   AgEq        AgEq 
                             (g/t)        (oz)   (g/t)     (oz)  (g/t)        (oz)
Mine
San Ignacio       408,327     116   1,525,584    2.88   37,760    319   4,191,435
Guanajuato        114,695     264     974,318    1.53    5,647    372   1,372,961
Total measured    523,022     149   2,499,902    2.58   43,407    331   5,564,396
                                                                              
                                    INDICATED 
                                                                                                     
                   Tonnes      Ag          Ag      Au       Au   AgEq        AgEq 
                             (g/t)        (oz)   (g/t)     (oz)  (g/t)        (oz)
Mine
San Ignacio       133,398     106     453,762    2.56   10,987    287   1,229,462
Guanajuato         36,480     216     253,876    1.19    1,393    300     352,218
Total indicated   169,879     130     707,638    2.27   12,380    290   1,581,680
                                                                              
                              MEASURED AND INDICATED                                   
                                                      
                   Tonnes      Ag          Ag      Au       Au   AgEq        AgEq 
                             (g/t)        (oz)   (g/t)     (oz)  (g/t)        (oz)
Mine
San Ignacio       541,725     114   1,979,346    2.80   48,747    311   5,420,897
Guanajuato        151,175     253   1,228,195    1.45    7,040    355   1,725,179
Total M&I         692,900     144   3,207,541    2.50   55,787    321   7,146,076
                                                                              
                                      INFERRED                                   
                                                                   
                     Tonnes      Ag          Ag      Au       Au   AgEq        AgEq 
                               (g/t)        (oz)   (g/t)     (oz)  (g/t)        (oz)

San Ignacio         645,318     121   2,519,826    2.15   44,551    273   5,665,137
Guanajuato          147,327     129     612,220    2.13   10,095    280   1,324,867
Subtotal inferred   792,645     123   3,132,047    2.14   54,646    274   6,990,004
El Horcon           162,140      76     398,094    3.44   17,942    401   2,092,913
Total inferred      954,785     115   3,530,141    2.36   72,587    296   9,082,917

(1) Mineral resource estimates use an effective date of Aug. 31, 2016, and all used a metal price outlook of $18 (U.S.) per ounce silver and $1,300 (U.S.) per ounce gold.

Notes for San Ignacio mine mineral resource estimate:

1. Cut-offs are based on the marginal operating costs per mining area being $57 (U.S.) per tonne for San Ignacio;
2. Block model grades are converted to U.S.-dollar value using plant recoveries of 87 per cent silver, 86.8 per cent gold and net smelter terms negotiated for pyrite concentrates;
3. Rock density for Intermediate, Intermediate 2, Melladito, Melladito Step, Melladito FW and Melladito Splay are 2.63 tonnes per cubic metre. Rock density for Nombre de Dios is 2.61 tonnes per cubic metre and for Nombre de Dios II is 2.62 tonnes per cubic metre;
4. Totals may not agree due to rounding;
5. Grades in metric units;
6. Contained silver and gold in troy ounces;
7. Minimum true width of one metre.

Notes for Guanajuato mine mineral resource estimate:

1. Cut-offs are based on the marginal operating costs per mining area being $76 (U.S.) per tonne for Cata, $85 (U.S.) per tonne for Santa Margarita/San Cayetano, $72 (U.S.) per tonne for Los Pozos, $66 (U.S.) per tonne for Guanajuatito and $74 (U.S.) per tonne for Valenciana;
2. Block model grades are converted to U.S.-dollar value using plant recoveries of 87 per cent silver, 86.8 per cent gold and net smelter terms negotiated for pyrite concentrates;
3. Rock density for all veins is 2.68 tonnes per cubic metre;
4. Totals may not agree due to rounding;
5. Grades in metric units;
6. Contained silver and gold in troy ounces;
7. Minimum true width of one metre.

Notes for El Horcon project mineral resource estimate:

1. Cut-off of $110 (U.S.) per tonne, considering plant recoveries of silver, gold, lead and net smelter terms typical for lead concentrates;
2. Rock density for all veins for Diamantillo is 2.77 tonnes per cubic metre, for San Guillermo is 2.78 tonnes per cubic metre, for Diamantillo HW is 2.62 tonnes per cubic metre and for Natividad is 2.57 tonnes per cubic metre;
3. Totals may not agree due to rounding;
4. Grades in metric units;
5. Contained silver and gold in troy ounces;
6. Minimum true width of 1.5 metres;
7. Metal prices of $18 (U.S.) per ounce silver, $1,300 (U.S.) per ounce gold and 80 U.S. cents per pound lead. Silver-equivalent calculations for El Horcon include gold and lead content but not zinc, as the zinc would not be recovered in the Guanajuato plant.

The above estimates were classified per the CIM definition standards on mineral resources and mineral reserves, and as such, are consistent with the requirements of National Instrument 43-101. The mineral resource estimate was completed by Robert Brown, PEng, the company's qualified person. The mineral resource estimates were completed using MicroMine 3-D geological software and the inverse-distance-squared estimation technique for estimation of grade to each of the block model blocks. A company proprietary net smelter return (NSR) calculator, considering mill recoveries, smelter terms and designated metal prices, converted block grades into NSR values (in U.S. dollars). The stated mineral resources are a categorized compilation of blocks greater than the marginal operational costs of the various mining areas.

The company's QA/QC (quality assurance/quality control) program includes the regular insertion of blanks, duplicates and standards into the sample shipments; diligent monitoring of assay results; and necessary remedial actions. Sample assaying was completed at the independent SGS-GTO lab in Guanajuato, GTO, Mexico. Silver assaying was conducted with AAS12B technique, with overlimits (300 g/t) completed by FAG323. Gold assaying was conducted with FAA313 technique, with overlimits (10 g/t) completed by FAG323. Where necessary, lead, zinc, copper, arsenic and antimony assays were conducted using atomic absorption spectroscopy.

The technical information contained in this news release has been reviewed and approved by Mr. Brown, who is the qualified person for the Guanajuato mine complex under the meaning of National Instrument 43-101. Aspects relating to mining and metallurgy are overseen by Ali Soltani, chief operating officer for Great Panther.

We seek Safe Harbor.