Freeport-McMoRan Exploration Corporation (FMEC) continues to finance Southern Silver’s exploration on the property and provide input on exploration programs.

The current program follows the second phase of drilling, completed in late January 2014, which was successful in identifying additional high-grade Ag-Pb-Zn mineralization at depth in the El Sol zone from hole 13CLM-071 and a potential new target along the southwestern margin of the central intrusive in the area of hole 13CLM-073 (see NR-01-14; February 27, 2014).

Current plans are for approximately 2,000 metres of core drilling in three or more holes designed to test at depth several previously identified copper anomalies on the project.

These include an extension of drill hole CLM-073, which terminated in anomalous copper mineralization at 708 metres depth; and a down-dip test of copper mineralization at the North Skarn target (CLM-003: 16.6 metres averaging 56g/t Ag, 0.8% Cu, 0.5%Pb and 1.6% Zn). Additional holes are planned for a deep test of the central intrusive and its southern margin (South Skarn target).

Since execution of an earn-in agreement on the Cerro Las Minitas project in October 2012, Southern Silver’s Mexican subsidiary, Minera Plata del Sur, S.A. de C.V., has completed 5,500 metres of diamond drilling, conducted soil and vegetation geochemistry surveys and a Reconnaissance IP (RIP) geophysical survey over the entire 15,125 hectare property.

Additional lines of deep-penetrating IP geophysics and a Gravity survey were completed over the area of historic mining which has led to the development of several new targets on the property.

FMEC has been providing funding to Southern Silver for Minera Plata del Sur’s exploration of the property since October 2012 and holds an option to earn a 70% indirect interest in the project by paying Southern Silver both option payments and program funding that could reach $25 million on the project over a ten year period if FMEC does not terminate earlier.

Included in the gross interest is an initial 51% interest to be earned in the first three years of the agreement by expenditure of $5 million. To date, FMEC has provided Southern Silver funding of approximately $4,100,000 for option payments and applicable taxes, and to fund exploration of the property.

Engagement of Golden Capital

Southern Silver has engaged Golden Capital Consulting Ltd. ("Golden Capital") to assist in formulating a capital markets strategic plan in Europe for an initial term of 12 months. Southern Silver has agreed to compensate Golden Capital with quarterly share issuances each valued at $25,000 using the Discounted Market Price of such shares (as determined in accordance with the policies of the TSX Venture Exchange) and each such share issuance is subject to TSX Venture Exchange acceptance. 500,000 common shares have been issued in respect of the first quarter and are subject to a hold period expiring July 25, 2014. Pursuant to the engagement, Southern Silver has also granted Golden Capital 500,000 incentive stock options at an exercise price of $0.05 for a term of 60 months.