Mr. Christian Scovenna reports

OREMEX SILVER DECLARES DIVIDEND-IN-KIND OF SHARES OF OREMEX GOLD INC.

Oremex Silver Inc.'s board of directors has declared a dividend in kind of 14 million common shares held by it in the capital of Oremex Gold Inc. The company intends to pay the dividend during the week of May 7, 2012, to the holders of record of the outstanding common shares of the company at the close of business on April 30, 2012. The common shares of the company will start to trade ex dividend on April 26, 2012 (that is, shares of the company purchased on the TSX Venture Exchange on or after April 26, 2012, will not be eligible to receive the Oremex Gold shares as a dividend in kind). The company would like to remind all holders of company options or warrants who intend to exercise their securities and participate in the dividend that they should proceed to do so well in advance of the ex dividend date in order to ensure that they are eligible to receive the dividend.

The Oremex Gold shares were acquired by the company in connection with the previously announced spinout of its gold assets to Oremex Gold in July, 2011, and subject to escrow in accordance with the rules and policies of the exchange. The company received approval from the exchange for the release of the Oremex Gold shares from escrow for the purposes of effecting the dividend. Upon transfer to the shareholders of record, no exchange escrow conditions will apply to such shares. The company has filed a Form 3E with the exchange in respect of the dividend, notifying the exchange of the record date.

The dividend will be paid and satisfied in full by the company transferring the Oremex Gold shares to the shareholders of record on the record date, on a pro rata basis, subject to certain adjustments to account for the company's withholding obligations under applicable tax laws (as described below). No fractional Oremex Gold shares, cash or any other form of payment will be payable under the dividend. Any fractional interests in Oremex Gold shares under the dividend will be rounded up or down to the nearest whole number of shares. Based upon the number of Oremex Silver shares currently outstanding, and without taking into account the exercise of any options or warrants currently outstanding or the effect of rounding for fractional interests, one Oremex Gold share will be paid under the dividend for approximately every 8.775 Oremex Silver shares held by a shareholder of record on the record date.

The dividend will be an eligible dividend for the purposes of the Income Tax Act (Canada) and corresponding provincial legislation. The dividend will be taxable and non-residents of Canada will be subject to Canadian withholding taxes. In order to comply with its statutory withholding obligations, Oremex Silver will, with respect to shareholders of record having a registered address outside of Canada on the record date, withhold and retain all interest, right and title to that number of Oremex Gold shares required to meet the company's withholding obligations with respect to such shareholders and remit to the Canada Revenue Agency, in cash, the equivalent of the fair-market value of the withheld shares. The fair-market value of the Oremex Gold shares distributed under the dividend shall be, subject to certain exceptions, equal to the volume-weighted average trading price of the common shares in the capital of Oremex Gold on the exchange for a period of five consecutive trading days prior to the dividend payment date. Shareholders of record with questions regarding the tax treatment of the dividend in their personal circumstances should consult with their own tax advisers or contact their local office of the Canada Revenue Agency and, where applicable, the provincial taxation authorities.

It is expected that certificates evidencing the Oremex Gold shares paid under the dividend will be mailed to the shareholders of record on or shortly after the dividend payment date.

We seek Safe Harbor.