Athena Silver Announces $1 Million Credit Facility

Athena Silver Announces $1 Million Credit Facility

Funding Now in Place to Aggressively Advance Langtry Silver Project

BOULDER, Colo., July 18, 2012 (GLOBE NEWSWIRE) -- Athena Silver Corporation
(OTCBB:AHNR) announced today it has entered into a $1M credit facility with a
related party and principal Athena shareholder. The unsecured credit line
is available until July 31, 2013 with outstanding balances accruing at an
interest rate of 5% per annum. The outstanding line balance and accrued
interest are convertible into shares of common stock, at the option of the
holder, at a price of $0.50 per share.

"This is a very positive development for Athena as funding is now in place to
aggressively move our flagship Langtry silver project forward," said John
Power, President of Athena. "The Company completed its NI 43-101 technical
report and initial resource estimate in May 2012 and quickly put together a
financing plan on favorable terms in very challenging capital markets. We were
anxious to move Langtry forward but didn't want to issue shares at our current
stock price, so securing convertible debt financing at a significant premium
above the market is positive news for our shareholders," he said.

Our plans to advance Langtry are likely to include further drilling and
metallurgical work as recommended by SRK International in Athena's NI 43-101
report published in May 2012. "As our plans are finalized over the next
several weeks, more specific details and objectives will be announced," Power
said. 

The major shareholder of Athena providing the credit facility said "I continue
to be very bullish on the long term prospects for silver. Langtry is a
quality pure silver play located in a geopolitically favorable jurisdiction
and I think it has a promising future.Also, the Calico District is heating up
with recent confirmation drilling by Pan American Silver on its Waterloo
project and other new exploration activity by a significant industry player.
Based on these factors, I believe Athena is significantly undervalued compared
to its peers."

About Athena Silver Corporation:

Athena Silver Corporation is a junior exploration company focused on the
exploration and development of its flagship Langtry project in California.

The Langtry silver project consists of 862 acres including 20 patented claims
comprising 413.22 acres in the Calico Mining District of San Bernardino
County, California. Athena entered into a 20-year mining lease with an option
to purchase the Langtry patented Claims effective March 15, 2010. The
Lease/Purchase agreement is subject to continuing financial and work
commitments on the claims and other royalties more fully described in the
company's filings available on the SEC's website at www.sec.gov.

There were over 200 holes drilled in the project area by the minerals division
of Superior Oil Company in the late 1960s and 1970s. Average depth was 400
feet and the deepest hole was 575 feet. Our resource database includes 135 of
the Superior holes together with the 13 holes drilled by Athena in 2011.An NI
43-101 technical report was published on May 3, 2012 on the Langtry project
with an Indicated Resource of 18,809,000 Ounces of Silver and Inferred
Resource of 42,623,000 Ounces of Silver.

Cautionary Statement

The terms "mineral reserve", "proven mineral reserve" and "probable mineral
reserve" are Canadian mining terms as defined in accordance with Canadian
National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI
43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the
"CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended. These definitions differ from the
definitions in the United States Securities and Exchange Commission ("SEC")
Industry Guide 7 under the United States Securities Act of 1933, as amended
(the "Securities Act"). Under SEC Industry Guide 7 standards, a "final" or
"bankable" feasibility study is required to report reserves, the three-year
historical average price is used in any reserve or cash flow analysis to
designate reserves and the primary environmental analysis or report must be
filed with the appropriate governmental authority.

In addition, the terms "mineral resource", "measured mineral resource",
"indicated mineral resource" and "inferred mineral resource" are defined in
and required to be disclosed by NI 43-101; however, these terms are not
defined terms under SEC Industry Guide 7 and are normally not permitted to be
used in reports and registration statements filed with the SEC. Investors are
cautioned not to assume that all or any part of a mineral deposit in these
categories will ever be converted into reserves. "Inferred mineral resources"
have a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot be assumed
that all or any part of an inferred mineral resource will ever be upgraded to
a higher category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of feasibility or pre-feasibility studies,
except in rare cases. Investors are cautioned not to assume that all or any
part of an inferred mineral resource exists or is economically or legally
mineable. Disclosure of "contained ounces" in a resource is permitted
disclosure under Canadian regulations; however, the SEC normally only permits
issuers to report mineralization that does not constitute "reserves" by SEC
Industry Guide 7 standards as in place tonnage and grade without reference to
unit measures.

For more information, please visit the Company's website at:
www.athenasilver.com.

This release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended that are intended to be covered by
the safe harbor created by such sections. Such statements are based on good
faith assumptions that Athena Silver Corporation believes are reasonable but
which are subject to a wide range of uncertainties and business risks that
could cause actual results to differ materially from future results expressed,
projected or implied by such forward-looking statements. Factors that could
cause actual results to differ from those anticipated are discussed in Athena
Silver Corporation's periodic filings with the Securities and Exchange
Commission.

CONTACT:  John Power
          707-884-3766
 
Press spacebar to pause and continue. Press esc to stop.