Mr. Gary Cope reports

ORKO SILVER REGAINS 100% OWNERSHIP OF LA PRECIOSA

Pan American Silver Corp. has provided notice to Orko Silver Corp. that it has decided not to deliver a feasibility study before April 13, 2012, for the La Preciosa project, as required under the terms of the joint venture agreement between Orko and Pan American. As a result, Pan American is relinquishing its right to earn a 55-per-cent interest in the La Preciosa project, and Orko will retain 100 per cent of the project.

Gary Cope, president and chief executive officer of Orko, noted: "We are very excited about regaining 100-per-cent ownership of the La Preciosa project and developing it into a large primary silver mine. With over $18-million in exploration and development expenditures funded by Pan American, there has been significant progress in developing the La Preciosa project over the past three years. We anticipate having an updated resource estimate in hand later this month or early in May and the AMEC preliminary economic assessment in late July. We identified a number of areas in the preliminary economic assessment of the project released August, 2011, that we believe offer opportunities for improving the economics of the project. AMEC will be exploring those opportunities in the current study. The new PEA will be based on work completed on the project since that time. We thank Pan American for their contribution and partnership and we look forward to developing La Preciosa."

Geoff Burns, president and chief executive officer of Pan American, commented: "After completing almost three years of exploration, engineering and project development work, we have come to the unfortunate conclusion that our continued participation in the La Preciosa project is unlikely to generate a rate of return that meets Pan American's internal economic hurdle rate. As a consequence, we have decided to relinquish our right to earn a 55-per-cent interest in La Preciosa. We thank Orko for the positive relationship that we have developed as partners and wish them good fortune with La Preciosa going forward."

Orko has already engaged AMEC Americas Ltd. to complete an updated preliminary economic assessment on the project, which is expected late July. Management believes the potential exists for improvement in the economics of the project relative to the preliminary economic assessment released in August, 2011. The results of the 2011 PEA were very favourable, on a 100-per-cent basis, for the La Preciosa project and demonstrated an after-tax net present value of $315-million (U.S.) at a 5-per-cent discount rate and an after-tax internal rate of return of 24.3 per cent (assuming prices of $25 (U.S.) per ounce for silver and $1,250 (U.S.) per ounce for gold). A preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the preliminary economic assessment will be realized. For additional details on the 2011 PEA, please refer to the joint news release dated Aug. 11, 2011.

Pan American's drilling had been quite successful in delineating significant mineral resources on the property to support the 2011 PEA, but in Orko's opinion, the drilling had been terminated prematurely for the feasibility study. Additional drilling is still required to allow a feasibility study to be completed that will have a more meaningful result. The mineral resource in the 2011 PEA included approximately 30-per-cent inferred resources, and because Pan American did no further drilling of those resources since the 2011 PEA, these inferred resources would have had to be treated as waste in the feasibility study. In addition, many of the vein structures were still not drilled out, such that the veins are open-ended and further drilling would likely result in additional resources that would significantly change the mine design.

Orko currently has approximately $12-million in cash and short-term investments and is well financed to continue to advance the project. Orko will take over as operator on the site and is in the planning stages of further optimization on the project.

To date, Pan American had been advancing the property toward the completion of a feasibility study. A number of engineering studies are done or are close to being completed, including metallurgical studies, environmental impact assessments and geotechnical test work. However, more work will be required before a feasibility study can be completed. The current data will be returned to Orko and incorporated into the AMEC preliminary economic assessment and will also form the basis for preparing for a full feasibility study that will be completed by Orko. Further details on the additional work required, costs and schedule of the full feasibility study will be announced after the completion of the AMEC preliminary economic assessment.

When the joint venture agreement was signed, Orko management had created a digital data room and is currently updating the files in response to recent requests from other mining companies to review the project's technical information. Furthermore, confidentiality agreements, including standstill clauses, have recently been signed and site visits are to be scheduled.

George Cavey, PGeo, is the qualified person for Orko Silver and takes responsibility for the technical disclosure in this news release.

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