Mr. Arturo Prestamo reports

SANTACRUZ SILVER REPORTS FIRST QUARTER 2018 PRODUCTION RESULTS

Santacruz Silver Mining Ltd. has released the operating results from the Veta Grande project in Zacatecas, Mexico, and the Rosario project in San Luis Potosi, Mexico, for the first quarter of 2018.

The company produced a total of 154,175 silver equivalent ounces in first quarter 2018 (first quarter 2017: 223,968 and fourth quarter 2017: 139,670). As compared with first quarter 2017, the decreased production reflects 30 per cent less tonnes milled at the Rosario project and a 32-per-cent decrease in the average silver equivalent head grade at the Veta Grande project. As compared with fourth quarter 2017, the increased production reflects an 11-per-cent increase in the average silver equivalent head grade at the Rosario project and a 98-per-cent increase in tonnes milled at the Veta Grande project offset by a 22-per-cent decrease in the average silver equivalent head grade.

"During first quarter of 2018, management focused activities on aggressively developing the Veta Grande main ramp in order to access in situ mineralized material from third quarter onwards. This strategy has resulted in lower head grades and reduced metal production for the short run but will pave the way for achieving targeted production for third quarter and beyond," stated Arturo Prestamo.

He continued: "At Rosario, the mill feed continued to be a blend of development muck and mineralized material from production stopes. During second quarter, the percentage of development muck will decrease as more production stopes come on-line, and by third quarter, we expect to be at targeted production and head grade levels."

                       CONSOLIDATED PRODUCTION RESULTS
  
Summary of production results              Q1 2018        Q4 2017        Q1 2017

Material processed (tonnes milled)          48,068         30,975         45,474
Silver eqv. ounce production (1)           154,175        139,670        223,968
Silver production (ounces)                  48,102         44,316         92,154
Gold production (ounces)                       135            239            326
Lead production (tonnes)                       134             94            144
Zinc production (tonnes)                       449            412            559
Average head grade (g/t AgEq)                  167            194            216

(1) Metal prices 2018: silver: $17, gold: $1,295, lead: $1 and zinc: $1.35.
Metal prices 2017: Ag: $16, Au: $1,150, Pb: $1 and Zn: $1.15.

                  VETA GRANDE PROJECT PRODUCTION RESULTS
  
Summary of production results             Q1 2018       Q4 2017       Q1 2017

Material processed (tonnes milled)         34,928        17,657        26,751
Silver eqv. ounce production (1)           71,410        64,987       108,728
Silver production (ounces)                 32,413        25,665        57,598
Silver head grade (g/t)                        62            78           117
Silver recovery (%)                            47            58            57
Gold production (ounces)                       56            53           131
Lead production (tonnes)                      109            70            99
Zinc production (tonnes)                      118           163           177
Average head grade (g/t AgEq)                 142           183           209

(1) Metal prices 2018: silver: $17, gold: $1,295, lead: $1 and zinc: $1.35.
Metal prices 2017: Ag: $16, Au: $1,150, Pb: $1 and Zn: $1.15.

                     ROSARIO PROJECT PRODUCTION RESULTS
  
Summary of production results             Q1 2018       Q4 2017       Q1 2017

Material processed (tonnes milled)         13,140        13,317        18,723
Silver eqv. ounce production (1)           82,765        74,683       115,240
Silver production (ounces)                 15,689        18,652        34,556
Silver head grade (g/t)                        43            53            66
Silver recovery (%)                            85            82            86
Gold production (ounces)                       79           186           195
Lead production (tonnes)                       25            23            45
Zinc production (tonnes)                      331           249           382
Average head grade (g/t AgEq)                 232           209           226

(1) Metal prices 2018: silver: $17, gold: $1,295, lead: $1 and zinc: $1.35.
Metal prices 2017: Ag: $16, Au: $1,150, Pb: $1 and Zn: $1.15.

Update -- Veta Grande project

Two important initiatives are currently in progress at the Veta Grande project. One is the continuing first phase of a surface drilling campaign consisting of 6,000 metres on the Veta Grande vein and a 3,000-metre underground drill program on the Armados vein. The plan is to complete a 20,000-metre drill program during 2018 financed by Carrizal Mining SA de CV. To this end, a second surface drill rig is expected on the property shortly. With respect to the current program, the first two surface drill holes have been completed, and five underground drill holes have been completed. Assays are pending.

The other initiative is to drive a second production ramp to access the Armados vein while concurrently continuing with development work on the Veta Grande vein.

Update -- Rosario project

As disclosed previously, during fourth quarter 2017, the company took the decision to consolidate all of its Rosario project mining operations to the Membrillo prospect. Mine development has now reached Level 3, and mine production is increasing. Management anticipates that the targeted production rate (350 tonnes per day) and head grade will be achieved by the end of second quarter.

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican-focused silver company with two producing silver projects, Veta Grande and Rosario, and two exploration properties, 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. Its corporate objective is to become a mid-tier silver producer.

We seek Safe Harbor.