Mr. Arturo Prestamo reports

SANTACRUZ TO TRANSFER THE EL GACHI PROPERTY TO FIRST MAJESTIC FOR US$2.5 MILLION

Santacruz Silver Mining Ltd. has signed a binding agreement to transfer its interest in the El Gachi property in Sonora state, Mexico, to First Majestic Silver Corp. for total consideration of $2.5-million (U.S.) plus applicable value-added tax.

The El Gachi property comprises a 48,057-hectare land package located adjacent to First Majestic's Santa Elena mine in Sonora state, Mexico.

"With our corporate strategic focus being concentrated on our two producing projects, Veta Grande and Rosario, the El Gachi property became a non-core asset in our mineral property portfolio," stated Arturo Prestamo, president and chief executive officer of Santacruz. "As such, we are pleased to enter this transaction with First Majestic which allows us to monetize our investment, pay down debt and provide additional working capital for our core operations."

Of the total proceeds received by the company, approximately $750,000 (U.S.) will be paid to JMET LLC as partial repayment of its outstanding loan and $580,000 (U.S.) will be paid to Minera Hochschild Mexico SA de CV.

We seek Safe Harbor.