Mr. Arturo Elizondo reports

SANTACRUZ INITIATES VETA GRANDE MILL EXPANSION AND RECEIVES DRILLING PERMIT

Pursuant to the terms of the binding letter of intent between Santacruz Silver Mining Ltd. and Carrizal Mining SA de CV, Carrizal has commenced construction works to expand the Veta Grande mill to 750 tons per day. The mill expansion program is expected to conclude early in the second quarter of this year.

In addition to this, Santacruz has received final permits from SEMARNAT (Mexico's environmental agency) to conduct a surface diamond drill program at its Veta Grande project. The first stage of the campaign is to drill 6,000 metres in 15 drill holes. The initial campaign will be focussed on drilling the Veta Grande vein at depth below the current area being mined by the company and will be financed by Carrizal as part of the Carrizal LOI.

Carlos Silva, chief operating officer of Santacruz, stated, "The purpose of this diamond drilling campaign is to confirm the width and grade of the Veta Grande vein at depth which will allow us to properly develop a mine plan to deliver mineraized material to the expanded Veta Grande mill." Mr. Silva continued, "These ongoing activities at Veta Grande will result in more reliable operations and provide a solid base for growing the company."

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican-focused silver company with two producing silver assets (Rosario project, including the Rosario mine, Cinco Estrellas property and Membrillo prospect, and the right to operate the Veta Grande mine and milling facility); and two exploration properties, the Minillas property and Zacatecas properties.

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