Mr. Arturo Elizondo reports

SANTACRUZ REPORTS PROGRESS ON VETA GRANDE MILL EXPANSION AND ADDITIONAL DRILLING CAMPAIGN AT ARMADOS VEIN

Santacruz Silver Mining Ltd.'s construction works to expand the Veta Grande mill capacity to 750 tons per day are 85 per cent advanced. Commissioning of this expansion is expected to start in late March. The mill expansion is being financed by Carrizal Mining SA de CV pursuant to the Carrizal letter of intent (see press release dated Dec. 14, 2017).

In addition, Santacruz advises that the previously announced drill campaign (see press release dated Jan. 9, 2018), at the Veta Grande project has been expanded to include an initial 3,000-metre underground diamond drill program on the Armados vein. In order to complete the program in a timely manner Carrizal is mobilizing a second drill rig to the Veta Grande mine with drilling expected to commence by mid-March.

Carlos Silva, chief operating officer of Santacruz, stated, "The expansion of the Veta Grande project diamond drill program to include the Armados vein will allow us to better delineate a mine plan on this vein in anticipation of the inminent expansion of the Veta Grande mill capacity." Mr. Silva continued, "The mill expansion activities are in line with our budget and commissioning of the new ball mill is scheduled to start by the end of the first quarter aiming to achieve designed efficiencies during the month of April."

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.

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