Mr. Arturo Prestamo reports

SANTACRUZ SILVER ANNOUNCES FIRST QUARTER 2014 PRODUCTION RESULTS/RAMP UP PROGRAM AT ROSARIO MINE IS ON SCHEDULE

Santacruz Silver Mining Ltd. had first quarter 2014 production of 159,729 silver-equivalent ounces from the company's Rosario mine in San Luis Potosi, Mexico. This production represents a 260-per-cent quarter-over-quarter increase as compared with fourth quarter 2013 and demonstrates the company is on schedule to meet its production target of between 850,000 to 1,100,000 silver-equivalent ounces by year-end 2014.

At the end of the first quarter, the mine was producing at about 240 tonnes per day, driven largely by increased production from the recently accessed level II of the Rosario mine. The main ramp is now advancing toward level III.

The installation of a third ball mill is proceeding on time and on budget, with commissioning scheduled for May. Once the third ball mill is commissioned, the Rosario milling facility will have a 700 tpd installed capacity, thereby providing opportunity for the company to custom mill up to 200 tpd of third party ore in addition to milling ore feed from the Rosario mine.

"With the Rosario mine steadily increasing the ore delivered to the mill, together with the imminent commissioning of the third ball mill, we are well on our way to our annual production target for 2014," stated Arturo Prestamo, chief executive officer of Santacruz. "While the first quarter production numbers represent an important milestone for the company, we are focused on continuing production growth as we progress through 2014."

First quarter 2014 operations highlights (compared with fourth quarter 2013)

• Ore processed grew 238 per cent to 20,447 tonnes.
• Metal production increased 261 per cent to 159,729 silver-equivalent ounces.
• Silver production totalled 94,312 silver ounces.
• Underground development is on target at 1,216 metres.

           FIRST QUARTER 2014 OPERATIONAL HIGHLIGHTS

Operations summary                           Q4 2013     Q1 2014

Ore processed (tonnes milled)                  8,586      20,447
Silver-equivalent ounce production            61,153     159,729
Silver ounce production                       35,482      94,312
Gold ounce production                             66         166
Lead production (tonnes)                          61         186
Zinc production (tonnes)                         165         367
Total underground development (m)              1,333       1,216

           FIRST QUARTER 2014 GRADE AND RECOVERY TABLE

                            Grades
Au                  Ag                  Pb                 Zn
(g/t)             (g/t)                 (%)                (%)

0.33               167                1.02               2.34

                        Total recoveries

Au                  Ag                  Pb                 Zn

77.3%             85.7%               89.7%              76.8%

With mining having transitioned through the more oxidized material into primarily sulphide ore mined from sublevel I and level II, the grades and recoveries for the remainder of 2014 should increase. The company expects that ore sourced from level II will carry a silver head grade of approximately 240 grams per tonne and silver recoveries in the mill will increase to approximately 90.0 per cent.

Development plan for 2014

Since level II has been reached and development is in progress, the stopes are more than 40 vertical metres of high-grade sulphide mineralization, compared with level I, where the average was seven to 10 vertical m.

Ramp development is continuing and is expected to reach level III within 60 days, which will open new production levels with more than 40 vertical m similar to level II. The additional stopes and working faces from level III, together with the current stopes and working faces at level II, will provide sufficient ore availability to achieve Rosario's production targets.

In addition, with the commissioning of the third ball mill in May, 2014, the company will potentially seek to maximize the full mill capacity of 700 tonnes per day by processing up to 200 tonnes per day of third party private mine material.

Effective for the period commencing Jan. 1, 2014, the company will be reporting its results of operations from the Rosario mine in its consolidated statement of operations.

Qualified person

All technical information included in this statement has been reviewed and approved by Donald Hulse, PE, of Gustavson Associates LLC. Mr. Hulse is independent of the company and a qualified person, pursuant to the meaning of such terms in National Instrument 43-101.

We seek Safe Harbor.