Mr. Lawrence Page reports

SOUTHERN SILVER ANNOUNCES ACQUISITION OF EL SOL CLAIM; CORPORATE UPDATE

Southern Silver Exploration Corp. has entered into an agreement with Monarca Minerals Inc. to purchase the El Sol mineral claim in Durango, Mexico.

The claim is situated contiguous with Southern Silver's Cerro Las Minitas mineral property, operated as a joint venture between Southern Silver and Electrum Global Holdings LP.

The purchase is solely for the account of Southern Silver and the claim will not form a part of the Cerro Las Minitas JV. Acquisition cost is $300,000 (U.S.), payable in three equal instalments on execution of a definitive agreement, 12 months and 18 months, together with retention by the vendor of a 2-per-cent net smelter returns royalty on production from the claim with a right in Southern Silver to purchase the royalty at any time for $1-million (U.S.).

El Sol claim

The El Sol concession is a single, 63-hectare claim strategically located on the northwestern boundary of the Bocona block of claims and is adjacent to the area of the Cerro, which hosts the four mineral deposits currently identified within the Cerro Las Minitas claim package. It covers an important northwest projection of the Blind and El Sol deposits, and potentially at least one additional mineralized structure.

The claim is largely gravel covered with previous work including: airborne magnetic geophysics, surface-soil and acacia sampling, limited dump sampling of historic artisanal workings, and a single core hole in the southeastern end of the property.

A drill hole from 2013 intersected thick intervals of aplite and monzonite with associated grossular skarn and recrystallized limestone, which corresponds well to the projection of the Blind zone deposit, and returned anomalous silver-lead-zinc values with associated pathfinder elements. Additional exploration potential exists both down dip of the initial drill intercepts and on strike to the northwest where the projected structure crosses two large, magnetic anomalies located on the claim.

Select dump sampling of artisanal workings located to the northeast of the Blind zone structure returned anomalous values from several strongly oxidized and silicified rocks including sample CLM-316, which returned 0.67 gram per tonne gold, 559 g/t Ag, 3.3 per cent Pb and 4.3 per cent Zn. These workings do not appear to be related to the Blind zone mineralization and represent a second potential-high-grade target for priority follow-up.

Future exploration on the claim by Southern Silver will focus on: defining new drill targets along the projection of the Blind zone deposit, further sampling in the area of the two large, magnetic anomalies located on the claim and target definition in the area of the artisanal workings.

Corporate update

In corporate matters, the company reported on recent warrant and stock-option exercises. During the current fiscal period:

• 9,944,295 share-purchase warrants issued in March, 2015, which expired in March, 2020, with an exercise price of eight cents, have been exercised for gross proceeds receivable of $795,544;
• 1,818,000 stock options granted in March, 2015, which expired in March, 2020, with an exercise price of eight cents, were exercised for gross proceeds receivable of $145,440;
• 1.85 million share purchase warrants issued in April, 2016, which were due to expire in April, 2021, with an exercise price of eight cents, have been exercised for gross proceeds receivable of $148,000;
• 1.11 million share purchase warrants issued in May, 2016, which were due to expire in May, 2021, with an exercise price of 15 cents, have been exercised for gross proceeds receivable of $166,500.

Proceeds from such warrant and option exercises of $1,255,484, together with gross proceeds from the company's 2019 unit private placement of $4,206,500, are being used for working capital and to cover the company's share of the costs associated with current and future exploration and development programs at Cerro Las Minitas and El Sol.

Southern Silver has also granted 2,466,666 incentive stock options exercisable at a price of 12 cents per common share to directors, officers and consultants. One million eight hundred thousand stock options have a five-year term and the remaining 666,666 stock options have a three-year term; all stock options are subject to the policies of the TSX Venture Exchange.

About Southern Silver Exploration Corp.

Southern Silver is a precious-metal exploration-and-development company with a focus on the discovery of world-class mineral deposits in north-central Mexico and the southern United States. The company's specific emphasis is the Cerro Las Minitas silver-lead-zinc project located in the heart of Mexico's Faja de Plata, which hosts multiple world-class mineral deposits such as Penasquito, San Martin, Naica and Pitarrilla.

We seek Safe Harbor.