Defiance Silver Announces NI 43-101 Compliant Indicated and

Defiance Silver Announces NI 43-101 Compliant Indicated and Inferred
Mineral Resource for San Acacio Silver Project, Mexico 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/25/12 -- Defiance
Silver Corp. (TSX VENTURE:DEF) ("Defiance" or "the Company") is
pleased to announce that a National Instrument 43-101 ("NI")
compliant indicated and inferred resource estimate has been completed
for the San Acacio deposit by AGP Mining Consultants Inc. ("AGP").  
The base case for reporting the mineral resource estimate used a
silver equivalent ("AgEq")(i) cut -off grade of 65 grams tonne
("g/t"). Highlights of the estimate include: 

                        Tonnage     Ag     Au  Ag Eq.     Ag     Au  Ag Eq. 
Resource Category           (Mt)  (g/t)  (g/t)   (g/t)  (Moz)    Oz    (Moz)
Total Indicated            1.15   95.8   0.20  108.03   3.55  7,600    4.01 
Inferred (drill and chip                                                    
 sample supported)         2.16  100.0   0.16  109.73   6.94 11,300    7.64 
Inferred - Mineralized                                                      
 Fill                      0.72  236.7   0.21   249.2   5.49  4,800    5.78 
Total Inferred             2.89  134.1   0.17   144.6  12.45 16,170    13.4 

Bruce Winfield, President and CEO, comments, "We are extremely
pleased to have reached this milestone of a 43-101 compliant resource
for the San Acacio Mine. The high grade of the mineralized backfill
indicates the high grade nature of the ore shoots previously mined
within the deposit. We look forward to releasing additional news as
Defiance aggressively continues advancing the San Acacio Mine towards
production and expanding the resource base." 
The Zacatecas Silver District is one of the most prolific silver
producing areas in the world, having produced in excess of 681
million ounces of Silver during the period 1546 to 1895 (Geological
Mining Monograph of the State of Zacatecas). The San Acacio Mine
controls approximately 50% of the historic workings on the Veta
Grande system which has estimated past production of in excess of 200
million ounces of silver. With mineralization open to depth as well
as along strike for 4 kilometers with no modern exploration, Defiance
believes that excellent potential exists to expand the current
resource base.  
Mineral Resource Estimate 
The mineral resource estimate is based on 41 drill holes completed by
Silver Standard and Source Exploration Inc. and 371 drill core assay
values contained within the mineralized zones. This data was
complemented with 302 underground chip samples sourced from Silver
Standard and Sterling Mining level plans. Results at various silver
equivalent cut-off grades are tabulated below. 

                                         AgEq                     Contained 
                                      Cut-off   Tonnage  Ag Grade        Ag 
Mineral Resource Class                   (g/t)      (Mt)     (g/t)     (Moz)
Indicated                                 105      0.53     122.1      2.08 
                                           85      0.86     106.6      2.93 
                                           65      1.15      95.8      3.55 
                                           45      1.49      84.9      4.05 
                                           30      1.66      79.3      4.22 
                                           15      1.70      77.8      4.25 
Drill and Chip Supported Inferred         105      0.97     133.7      4.15 
                                           85      1.47     116.8      5.51 
                                           65      2.16     100.0      6.96 
                                           45      3.44      80.0      8.84 
                                           30      5.04      63.8     10.33 
                                           15      5.80      57.8     10.78 
Mineralize Fill Inferred                  105      0.70     241.5      5.43 
                                           85      0.71     239.2      5.46 
                                           65      0.72     236.7      5.49 
                                           45      0.74     232.6      5.51 
                                           30      0.82     214.4      5.62 
                                           15      0.82     213.3      5.62 
                                              Contained      AgEq Contained 
                                     Au Grade        Au     Grade      AgEq 
Mineral Resource Class                   (g/t)      (oz)     (g/t)     (Moz)
Indicated                                0.22     3,700    135.24      2.30 
                                         0.22     6,000    119.65      3.29 
                                         0.20     7,600    108.03      4.01 
                                         0.19     9,000     96.14      4.59 
                                         0.18     9,700     90.22      4.81 
                                         0.18     9,800     88.53      4.84 
Drill and Chip Supported Inferred        0.17     5,100    143.61      4.46 
                                         0.16     7,700    126.62      5.97 
                                         0.16    11,300    109.73      7.64 
                                         0.16    17,400     89.49      9.89 
                                         0.15    24,600     72.91     11.80 
                                         0.15    27,100     66.52     12.41 
Mineralize Fill Inferred                 0.21     4,700    254.16      5.72 
                                         0.21     4,800    251.83      5.75 
                                         0.21     4,800    249.24      5.78 
                                         0.20     4,800    244.82      5.80 
                                         0.18     4,800    225.50      5.91 
                                         0.18     4,800    224.37      5.91 

(i)Silver equivalent (AgEq) is calculated as the sum of the silver
content plus 60 times the gold content, based on prices of US$
14.75/oz for silver and US$ 885/oz for gold. (Note: total contained
AgEq values may not add exactly because of rounding). Metallurgical
recoveries are not taken into account. 
The resource estimate was completed by Pierre Desautels, P.Geo. of
AGP Mining Consultants Inc., using industry standard methods that
conform with the CIM Mineral Resource and Mineral Reserve definitions
referred to in National Instrument 43-101, Standards of Disclosure
for Mineral Projects, and utilizing Gemcom GEMS V. software.
The data and methodology utilized for the resource estimate is as
Resource Estimation Process 

--  Mineral resources were estimated in conformance with the CIM Mineral
    Resource and Mineral Reserve definitions referred to in NI 43-101,
    Standards of Disclosure for Mineral Projects. 
--  The Resource Estimate database contains 8147 m of diamond drill hole
    data and supplemented by 457 underground chip samples. Trench data was
    available but not used in the estimation. Data was sourced from the 1997
    Silver Standard exploration program, a 2004-2006 Sterling Mining Company
    work program, and work performed by Source Exploration in 2009-2010. 
--  All of the Source samples were analyzed using fire assay with AA finish.
    For samples grading greater than 100 g/t Ag the samples were reanalyzed
    using fire assay with gravimetric finish. 
--  All drill holes are diamond drill core and were sampled mostly at 1.3 m
    intervals. A comprehensive QA/QC program was in place during the Source
    drill program, which included the insertion of standards and duplicates
    at regular intervals. The QA/QC program on the Silver Standard and
    Sterling Mining Company data is not known. 
--  Historical density of 2.55 for the in-situ material and 1.75 for the
    mineralized fill was used for the resource. 
--  An estimated 10% void space was factored in for the Mineralized fill
--  The development of the 3D mineralized domain models used in the resource
    estimate were primarily on the lithological contacts and partially on a
    grade value above 25 g/t silver. Exceptions were made in consideration
    to lithological controls and zonal continuity. 
--  The mineralized fill 3D wireframe was constructed using the stope and
    fill intercepts in the drill hole database and supplemented from
    information provided by the underground level plans. The resultant
    mineralized fill solid was subsequently cut by a series of polygons of
    the old stopes digitized from a historical long section and adjusted
    with known mined out areas deducted from the level plans and surface
--  The composite intervals selected were 2.0 meters. When present, true
    gaps in the sampling were composited at zero grade. Voids, stope and
    fill intervals were ignored in the interpolation of the in-situ resource
    but used in the interpolation of the fill material. 
--  For the treatment of outliers at San Acacio, the Veta Grande domain was
    evaluated for both silver and gold mineralization. A combination of high
    grade capping and search restrictions imposed on a low threshold values
    was used to restrict their influence. The procedure used allows the
    deposit to retain the high grade assays while limiting their influence
    during the interpolation. 
--  A three-dimensional (3D) geological and block model was generated using
    GEMS(c) software. The block model matrix size of 5 x 5 x 4 meters was
    selected with consultation with the engineering team from AGP to allow
    for better definition of the grade within some of the narrow mineralized
    domains. It was also based on the size that was suitable for a selective
    mining unit to mine "ore" versus "waste" for both an open-pit and
    underground mining scenarios. 
--  Ordinary kriging was used for all domains. The interpolation was carried
    out in multiple passes with increasing search ellipsoid dimensions.
    Inverse distance and nearest neighbor models were used for validation. 
--  Classification was based primarily on the pass number and distance to
    the nearest sample. The area evaluated as indicated resources in the
    model supported mainly by chip samples was downgraded to inferred

A NI 43-101 report will be filed on SEDAR with a copy available on
the Company's website. 
About Defiance Silver: 
Defiance Silver Corp. is a near term silver producer engaged in the
acquisition, exploration, and development of advanced silver projects
in Zacatecas Mexico. The Company's efforts are focused on: 1) the
purchase and refurbishment of the 200 tpd Santa Gabriela Mill, 2) the
exercising of an option to purchase the San Acacio Mine, and 3) the
definition of feed for the Santa Gabriela Mill from surface dumps and
the San Acacio Mine with its historical resource (reference Defiance
Silver Corp New release dated November 1, 2011). 
For more information on the property please visit Defiance's website
Mr. Bruce Winfield, P.Geo., President of Defiance Silver Corp, is the
Qualified Person for information contained in this press release and
is a Qualified Person within the meaning of National Instrument
About AGP Mining Consultants 
AGP Mining Consultants Inc. is a group of experienced geologists and
engineers specialized in underground and open pit mining,
processing/metallurgy, and project management. The AGP team has a
broad range of operations and consulting experience and skills.
Further information can be found at AGP Mining's website at 
On behalf of Defiance Silver Corp. 
Bruce Winfield, President and CEO 
Forward-Looking Statements. This Defiance News Release may contain
certain "forward-looking" statements and information relating to
Defiance that are based on the beliefs of Defiance management, as
well as assumptions made by and information currently available to
Defiance management. Such statements reflect the current risks,
uncertainties and assumptions related to certain factors including
but not limited to, exploration and development risks, expenditure
and financing requirements, title matters, operating hazards, metal
prices, political and economic factors, competitive factors, general
economic conditions, relationships with vendors and strategic
partners, governmental regulation and supervision, seasonality,
technological change, industry practices, and one-time events. Should
any one or more risks or uncertainties materialize or change, or
should any underlying assumptions prove incorrect, actual results and
forward-looking statements may vary materially from those described
herein. There is no assurance the estimates of indicated or inferred
resources will ultimately prove to be correct or will at any time in
the future become or be classified as reserves. Defiance does not
assume the obligation to update any forward-looking statement. 
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. 
Defiance Silver Corp.
Bruce Winfield
President and CEO
Defiance Silver Corp.
1500 - 409 Granville Street
Vancouver, BC V6C 1T2
Press spacebar to pause and continue. Press esc to stop.