Mr. Arturo Prestamo reports

SANTACRUZ SILVER ANNOUNCES THIRD QUARTER 2014 PRODUCTION RESULTS

Santacruz Silver Mining Ltd. had third-quarter 2014 production of 184,900 silver equivalent ounces from the company's Rosario mine in San Luis Potosi, Mexico. This production represents a 9.9-per-cent quarter-over-quarter increase as compared to second-quarter 2014 silver equivalent ounces.

During the second quarter, the Rosario mine produced at an average rate of approximately 325 tonnes per day. By the end of the third quarter, the mine was producing at approximately 380 tonnes per day. With current milling capacity of 300 tonnes per day, the higher mining rate has resulted in a surface stockpile inventory of over 8,500 tonnes of ore. Santacruz is finalizing the installation of a third ball mill, which when operational later in the fourth quarter, will increase the milling capacity from 300 tonnes per day to 450 tonnes per day, with a further increase to 700 tonnes per day as additional flotation cells are integrated.

"The Rosario mine is now in position from a development perspective to provide the full mine capacity of between 450 tonnes per day to 500 tonnes per day in the very near term," stated Arturo Prestamo, chief executive officer of Santacruz. "Our main focus is to generate free cash flow at the Rosario mine."

Third-quarter 2014 operations highlights (compared to second quarter 2014):

• Ore processed grew 4.7 per cent to 23,677 tonnes;
• Metal production increased 9.9 per cent to 184,900 silver equivalent ounces;
• Ore milled blend has come 60 per cent from development and 40 per cent from producing stopes.

               2014 THIRD QUARTER OPERATIONAL HIGHLIGHTS
                                                                   
                                                  Q3 2014      Q2 2014

Ore processed (tonnes milled)                      23,677       22,612
Metal recovered to concentrate
Silver equivalent (ounces)(1)                     184,900      168,300
Silver (ounces)                                   115,455      100,227
Gold (ounces)                                        94.0        106.8
Lead (tonnes)                                       184.9        165.5
Zinc (tonnes)                                       462.2        393.6
Additional third party precipitate processed(2)
Silver equivalent (ounces)(1)                      21,600            -
Silver (ounces)                                     1,146            -
Gold (ounces)                                       327.0            -
Silver equivalent payable ounces                  186,780      148,800

Notes:
1. Silver equivalent ounces: (Au times Pau divided by 31.1035) plus 
(Ag times Pag divided by 31.1035) plus (Cu times Pcu times 22.05) plus 
(Pb times Ppb times 22.05) plus (Zn times Pzn times 22.05). Metal 
prices (P): Ag, $20; Au, $1,250; Pb 96 cents; Zn 92 cents.
2. During the third quarter the company purchased and processed at the 
Rosario milling facility certain third party precious metal 
precipitates containing gold and silver.

 THIRD-QUARTER 2014 GRADE AND RECOVERY TABLE

                     Au      Ag     Pb     Zn
                    g/t     g/t      %      % 

Grades             0.16     161   0.91   2.39 
Total recoveries   79.0%   90.0%  86.1%  81.7%

Development plan for 2014

Underground mine development at the Rosario mine is now reaching a steady state of delivering between 450 tonnes per day and 500 tonnes per day per day and is expected to average those levels during the fourth quarter of 2014 resulting in a further buildup of stockpiled ore. The company plans to have a constant stockpile available at surface of approximately 7,000 tonnes. For the balance of 2014, the company will focus on the mill becoming fully operational and maintaining the steady ramp-up of mine development as the company enters into 2015.

Qualified person

All technical information included in this statement has been reviewed and approved by Donald E. 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 Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.