Southern Silver Signs Earn-In Agreement With Freeport-McMoRan

Southern Silver Signs Earn-In Agreement With Freeport-McMoRan on
Cerro Las Minitas 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/23/12 -- Southern
Silver Exploration Corp. (TSX VENTURE:SSV)(FRANKFURT:SEG) (the
"Company" or "Southern Silver") has granted Freeport McMoRan
Exploration Corporation the right to earn an indirect 70% interest in
the Cerro Las Minitas property in Durango, Mexico by making staged
purchase payments and funding exploration and development
expenditures of $25 million on the Cerro Las Minitas property over a
maximum ten year period. 
Subsequent to a sixty day Due Diligence period, Freeport will have
the option to earn respective 51% and 19% indirect interests in the
property through the acquisition of common shares of a Southern
Silver subsidiary company which has the right to purchase a 100%
interest in the property. 
To acquire the initial 51% interest Freeport shall: 

--  Pay to Southern Silver $600,000 on the effective date as a deduction
    from work expenditures, $100,000 on or before the first anniversary of
    the Effective Date, $200,000 on or before the second anniversary of the
    Effective Date and $300,000 on or before the third anniversary of the
    Effective Date. 
--  Complete Expenditures with respect to the property over a three year
    period of $1.5 million in year one, $1.3 million in year two and $1.6
    million in year three. 
--  Pay the residual option payments to the Optionor of the property in the
    aggregate amount of $2.8 million prior to November 18, 2013 as a
    deduction from work expenditures. 

To acquire the additional 19% interest Freeport shall elect within 90
days from the date of acquisition of the initial 51 % interest and: 

--  Pay to Southern Silver on or before the tenth anniversary of the
    Effective Date $ 1 million. 
--  Complete on or before the tenth anniversary of the Effective date a
    Feasibility Study involving the property and in doing so making
    additional Expenditures on the property of at least $19 million. 

Upon acquisition of the initial 51% interest, operations on the
Property will be conducted pursuant to a Shareholders' agreement with
each shareholder bearing its proportionate share of further
Expenditures on the property subject to the right of Freeport to
elect to earn an additional 19% interest in the property and upon
acquisition of the additional 19% interest, ongoing operations will
be governed by the shareholders' agreement. Provision for dilution of
a Participating Interest will apply and if a Participating Interest
of a Party is diluted to less than 10% its Participating Interest
will be converted to a 2% NSR. A Finder's fee may be paid to a
Consultant with respect to the Freeport Agreement in accordance with
policies of the TSX-V Exchange and subject to its approval thereof. 
President Lawrence Page Q. C. said that this relationship with
Freeport McMoRan Exploration Corporation is the logical and
appropriate stage in the evolution of the property from a promising
exploration target to development of a resource which has potential
to evolve into a world class deposit. "Since acquisition of an option
to purchase a 100% interest in the property with no royalty burdens
we have spent $ 5 million in acquisition costs and exploration and
development expenses which has resulted in the definition of a
significant silver/polymetalic resource and a new copper/gold
discovery. Several zones of interest, indicated by geophysics,
including possible targets buried under gravels, have yet to be
tested, adding to the appeal of the project," Page said. 
Cerro Las Minitas 
The Cerro Las Minitas property lies within the Faja de Plata (Belt of
Silver) and is located about 70 kilometres to the northeast of the
city of Durango in Durango State, Mexico, and is accessed easily by
road. The property comprises 18 concessions totaling 15,125 hectares
in one of the most significant silver producing regions in the world
with current reserves/resources and historic production in excess of
3 billion ounces of silver.  
Southern Silver has explored the property since late 2010 and to date
has completed airborne and ground geophysics over the project and
15,540 metres of core drilling in 62 drill holes. Mineralization
occurs as massive-sulphide pipes, veins and replacement deposits
distributed in the skarn-altered margins of a large intrusive body in
a similar geological environment to that of major Mexican Carbonate
Replacement Deposits (CRDs) such as Santa Eulalia (45Mt of 310g/t Ag,
7.1% Zn and 8.2% Pb) and Skarn deposits such as San Martin (60Mt of
118g/t silver, 0.9% copper and 3.9% zinc).  
To date, two high-grade silver-polymetallic deposits, the Blind zone
and El Sol zone, have been partially delineated and several other
high priority targets have been identified throughout the property
Geological modeling of the Blind and El Sol deposit using a nominal
80g/t AgEq cut-off has identified multiple distinct mineralized
structures with a 820 metre cumulative strike-length, with depth
projections of up to 300 metres below surface. Mineralization occurs
in sub-vertical structures that demonstrate good continuity between
drill holes. Mineralization is open on strike and at depth. 
South Skarn Target 
In addition to the higher level silver-polymetallic targets at the
Blind and El Sol zones, there exists excellent exploration potential
to developed deeper porphyry or skarn potential nearer the contact
with the central monzonite intrusion. At the new South Skarn target,
drilling encountered altered limestone and zones of diatreme breccia,
hematite breccia, skarn-hornfels and aplite dyke before entering
variably altered monzonite/feldspar porphyry. Strongly anomalous gold
mineralization was identified over a 20 metre interval within the
hematite breccia which averaged 0.8g/t gold and included a 4.3 metre
interval averaging 2.8g/t gold and 28g/t silver. A second 4.3 metre
interval averaging 1.4g/t gold, 89g/t silver and 1.8% copper was
intersected further down hole and is hosted in chlorite-garnet skarn
related to the adjacent intrusions. This style of mineralization is
open along strike and at depth and clearly highlightsthe further
exploration potential of the project area. 
Select composites from the 2011-12 Drilling: 

Blind Zone                                                                  
             From     To  Interval     Ag     Au     Cu     Pb     Zn   AgEq
Hole No.        m      m         m    g/t    g/t      %      %      %    g/t
11CLM-008   168.4  171.4       3.0    895    0.2    0.0   13.8   11.6   1584
 inc        169.6  171.4       1.8   1400    0.3    0.0   19.7   14.5   2328
11CLM-012   109.2  111.4       2.2    259    0.1    0.9    9.1   11.8    902
 inc        109.2  110.1       0.9    336    0.2    1.4   12.7   12.2   1134
11CLM-023   293.8  320.5      26.7     69    0.1    0.1    1.9    2.3    194
 inc        300.1  312.5      12.4    134    0.1    0.2    4.0    4.5    380
 inc        310.0  311.6       1.6    404    0.0    0.4   13.2   11.5   1093
11CLM-032   344.3  349.5       5.2     95    0.1    0.0    1.6    2.3    206
            347.5  349.5       2.1    138    0.0    0.0    2.2    3.4    293
11CLM-032   378.4  382.1       3.7    159    1.5    0.1    4.1    4.5    475
 inc        378.4  380.7       2.3    204    2.0    0.1    5.0    5.1    586
12CLM-041   138.5  143.1       4.6    203    0.0    0.3    4.9    4.2    472
 inc        141.9  143.1       1.2    499    0.1    0.4   10.4   10.4   1092
12CLM-051    50.9   70.9      20.0    143    0.0    0.0    2.4    0.6    228
 inc         60.7   66.9       6.2    238    0.1    0.0    3.2    0.1    332
 inc         63.0   63.9       0.9    833    0.1    0.0    8.8    0.1   1079
12CLM-054   169.0  170.7       1.7    230    0.0    0.2    6.2    9.3    663
12CLM-059    12.0   31.1      19.1     30    0.0    0.0    0.6    0.2     53
12CLM-061    86.3   96.8      10.6     76    0.0    0.0    1.9    0.6    145
 inc         86.3   87.5       1.3    382    0.0    0.2    9.9    5.1    799

To view accompanying map, visit the following link: 
About Southern Silver Exploration Corp. 
Southern Silver Exploration Corp. is a precious and base metal
exploration company and a member of the Manex Resource Group; a
private company comprised of an exceptional multi-disciplinary team
of professionals with specific expertise in all areas of exploration,
development, corporate finance and public company administration. 
The company's growth strategy is to acquire, explore and develop
high-quality properties in progressive jurisdictions within North
America. Its current projects include the silver-lead-zinc Cerro Las
Minitas project and the copper-gold-silver Minas de Ameca in Mexico,
the porphyry copper-molybdenum Dragoon project in Arizona and the
gold-silver-copper Oro project in New Mexico. 
Robert Macdonald (P.Geo) is a Qualified Person as defined by National
Instrument 43-101 and has reviewed and approved the technical
contents of this release.  
On behalf of the Board of Directors 
Lawrence Page Q. C., President, Southern Silver Exploration Corp. 
This news release may contain forward-looking statements including
but not limited to comments regarding the timing and content of
upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes, etc.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Actual results
may differ materially from those currently anticipated in such
statements. These statements are based on a number of assumptions,
including, but not limited to, assumptions regarding general economic
conditions, interest rates, commodity markets, regulatory and
governmental approvals for the company's projects, and the
availability of financing for the company's development projects on
reasonable terms. Factors that could cause actual results to differ
materially from those in forward looking statements include market
prices, exploitation and exploration successes, the timing and
receipt of government and regulatory approvals, and continued
availability of capital and financing and general economic, market or
business conditions. Southern Silver Exploration Corp. does not
assume any obligation to update or revise its forward-looking
statements, whether as a result of new information, future events or
otherwise, except to the extent required by applicable law. 
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. 
Southern Silver Exploration Corp.
Liana Shahinian
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