Mr. Lawrence Page reports

SOUTHERN SILVER CLOSES SECOND TRANCHE OF OVERSUBSCRIBED PRIVATE PLACEMENT

Southern Silver Exploration Corp. has closed the second tranche of its non-brokered private placement and, together with the first tranche closing on Jan. 31, 2013, Southern Silver has raised an aggregate $783,100 by the issuance of 15,662,000 units. The financing was oversubscribed by 662,000 units.

In this second tranche closing, Southern Silver issued 7.66 million units at a price of five cents per unit for gross proceeds of $383,000. Each unit consists of one common share and one share purchase warrant exercisable to purchase one additional common share for a period of three years at an exercise price of 10 cents per share. All securities issued pursuant to this second tranche, including common shares, share purchase warrants and finder's warrants issued as finders' fees, carry a legend restricting trading of the securities until June 29, 2013. The private placement and finders' fees relative thereto are subject to regulatory approval. Net proceeds from the offering will be utilized for exploration and property maintenance expenses incurred at the Dragoon project in Arizona and will be added to general working capital.