Mr. Lawrence Page reports

SOUTHERN SILVER PAYS CREDIT FACILITY; APPOINTS DIRECTORS

Southern Silver Exploration Corp. has issued six million shares to Radius Gold Inc. to satisfy a conversion notice from Radius electing to receive the shares in satisfaction of $300,000 of debt owed by Southern Silver to Radius pursuant to a loan agreement dated Nov. 13, 2014, in the amount of $800,000. Southern Silver has paid the balance of $500,000, together with accrued interest in cash, and has accordingly satisfied the loan agreement in advance of its due date.

Appointment of directors

The company has appointed two additional members to its board of directors.

Dr. Larry Buchanan serves as the chief geologist and president of Electrum Resources LLC. Dr. Buchanan has served as the chief geologist of Apex Corp. since 1995. Prior to that, he served as a principal adviser of international operations at Apex Silver Mines Ltd. He is a noted exploration geologist with a reputation as one of the industry's leading experts on epithermal deposits, on which he has written several definitive texts. Dr. Buchanan serves as a director of Begeyge Minera Ltda. He was previously a director of TintinaGold Resources Inc. (formerly Mantra Mining Inc.) from 2009 to 2011. His analysis of such deposits has given rise to the industry paradigm known as "the Buchanan model." Dr. Buchanan has published eight geological texts, played a key role in identifying several multimillion-ounce gold deposits and developed implementation programs for numerous currently producing mines. His consulting clients included Cyprus Minerals Co., FMC Corp., Total Resources Inc. and Fischer-Watt Gold Co. Inc. He is the 2006 recipient of the Thayer Lindsley award for the discovery of the San Cristobal mine, located in the Potosi mining district of Bolivia. Dr. Buchanan holds a BSc and a PhD in economic geology from the Colorado School of Mines.

Peter Cheesbrough is president of the exploration division of the Electrum Group LLC. He has more than 30 years of experience as a senior financial executive of public and private companies in various industries, including the mining industry, where he was the chief financial officer of Echo Bay Mines Ltd. Most recently, Mr. Cheesbrough was CFO of ZeaChem and the executive vice-president and CFO of CIBER, a global information technology consulting, services and outsourcing company listed on the New York Stock Exchange. He serves on the board of Sunward Resources Ltd. Mr. Cheesbrough is a chartered accountant and a fellow of the Institute of Chartered Accountants in England and Wales, and a member of the Institute of Chartered Accountants of Alberta.

"Conversion of $300,000 of the debt by Radius results in its holding approximately 13 per cent of the currently issued shares of the company," said president Lawrence Page, QC. "We welcome Radius as a significant shareholder of our company due to the depth of experience of its principals in the mineral exploration sector. This transaction, coupled with the recent acquisition by Electrum Global Holdings LP (Electrum) of an approximate 35-per-cent shareholding, provides the company with two major shareholders and helps underpin the company's efforts toward the exploration and development of the Cerro Las Minitas project. The addition of Dr. Buchanan and Mr. Cheesbrough to our board of directors with extensive experience in the mineral resource industry from discovery to production will greatly assist our geology team as it continues to develop the Cerro Las Minitas project in Mexico and the Oro project in New Mexico."

Project geologists from the company will meet with geological representatives from Electrum at the property next week for an extensive review of results from the most recent drilling on the property conducted by the company and Freeport-McMoRan Exploration Corporation totalling 7,598 metres, and to develop a schedule and plan for continuing exploration on the project. Priorities for future exploration include offset drilling of known mineralization on the Blind and El Sol zones and district-scale evaluation for new discoveries within the larger, 13,700-hectare property located 70 kilometres northeast of Durango, Durango state, Mexico.

Stock options

Southern Silver has granted incentive stock options to directors, officers and consultants to purchase 3,503,500 common shares at eight cents per share, exercisable for a period of five years, in accordance with Southern Silver's stock option plan. In addition, the company intends to reprice a total amount of 281,700 options held by consultants of the company from exercise prices of $1 and $1.70 per to share to an exercise price of eight cents per share. The granting and the repricing of stock options are subject to TSX Venture Exchange acceptance.

We seek Safe Harbor.