Mr. Arturo Prestamo reports

SANTACRUZ COMMENCES DRILLING AT VETA GRANDE PROJECT

Carrizal Mining SA de CV has initiated a 6,000-metre surface diamond drilling campaign at the Veta Grande project located in Zacatecas, Mexico, pursuant to the terms of the binding letter of intent between Santacruz Silver Mining Ltd. and Carrizal (see press release dated Dec. 14, 2017).

The initial 6,000-metre campaign over 15 drill holes will be focused on drilling the Veta Grande vein at depth below the current level being mined by the company and is expected to also intersect the La Flor, San Jose and Armados veins that run parallel to the Veta Grande vein.

Carlos Silva, chief operating officer of Santacruz, stated, "This drill program will allow Santacruz to establish a maiden resource estimate on the Veta Grande vein in the first half of 2018." Mr. Silva continued, "Following this phase 1 program the company's plan is to broaden the exploration program along the northern strike of the Veta Grande vein as we are eager to test the strike extent of this important historical vein system."

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican focused silver company with two producing silver projects (Rosario, including the Cinco Estrellas property, and Membrillo prospect, and the Veta Grande project and milling facility); and two exploration properties including the Minillas property and Zacatecas properties. The company is managed by a technical team of professionals with proven records in developing, operating and discovering silver mines in Mexico. The company's corporate objective is to become a mid-tier silver producer.

Rosario project

The decisions to commence production at the Rosario mine, Cinco Estrellas property and Membrillo prospect were not based on a feasibility study of mineral reserves demonstrating economic and technical viability, but rather on a more preliminary estimate of inferred mineral resources. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with this production decision. Production and economic variables may vary considerably, due to the absence of a complete and detailed site analysis according to and in accordance with National Instrument 43-101.

Veta Grande project

The decision to commence production at Veta Grande project was not based on a feasibility study on mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with this production decision. Production and economic variables may vary considerably due to the absence of a complete and detailed site analysis according to and in accordance with NI 43-101.

We seek Safe Harbor.