SNS Silver Corp.
TSX VENTURE : SNS

SNS Silver Corp.

September 16, 2009 16:11 ET

SNS Silver Enters LOI With Syringa Exploration Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 16, 2009) - SNS Silver Corp. (TSX VENTURE:SNS) and Syringa Exploration Inc. (Syringa) are pleased to announce the signing of a letter of intent to enter into a Joint Venture Agreement to reopen SNS Silver's wholly-owned Crescent Silver Mine in Idaho's famed Silver Valley for development, exploration and production.

Under terms of the Agreement, Syringa will expend $2,000,000 in each of the first two years of the Agreement, and $4,160,000 in the third year toward continued exploration and development of the Crescent Mine for a total of $8.16 million, earning Syringa a 50 percent interest in the Crescent Silver Mine at the end of the third year. Additionally, Syringa will issue 900,000 shares of its stock to SNS. Syringa also will have the right to purchase an additional 1 percent of the Joint Venture by making an additional payment of $200,000 to SNS.

Syringa Exploration Inc. President and CEO Kurt Hoffman said, "This was a carefully thought out agreement with SNS and we both look forward to a long and productive relationship. This is a win-win for our companies as well as for the Silver Valley. As a native of the Silver Valley, it is personally very rewarding to be involved in putting Silver Valley miners back to work as we re-start work at the Crescent."

SNS Silver CEO David Greenway stated: "The Joint Venture Agreement will expedite SNS Silver's desire to return the Crescent to sustained silver production. We had a fine crew with us during our 2007-2008 exploration and rehabilitation program and look forward to seeing many of them back at the mine."

The Crescent Silver Mine is strategically situated, adjoining the Sunshine Mine to the east and the Bunker Hill Mine to the west and comprises 24 patented mining claims covering about 350 acres. Historical production of 26 million of ounces was from two structures: the Alhambra vein and the South vein. Upon purchasing the Crescent in 2006, SNS Silver's geological team identified areas with high potential to host silver mineralization above the main haulage level. An exploration program was designed to test these theories and a surface and underground diamond drill program was conducted during 2007 - 2008. The program successfully identified new silver mineralization on both the Alhambra vein and the South vein as well as several other structures. SRK Consulting (US) Inc., evaluated the data and on the Alhambra and South veins calculated a Canadian N.I. 43-101 compliant resource containing 6.1 million ounces in the indicated category and 4.1 million ounces in the inferred category.

"The beauty of developing these new resources in the Crescent's 'upper country' which SNS began in 2007 is that all development and mining will be conducted above the main haulage level, eliminating the need to install and maintain expensive hoisting facilities. Gravity will be our friend and asset in moving ore and development waste out of the mine," Hoffman said.

"Initial production is expected to begin at a rate of 50 tonnes per day (t.p.d), ramping-up to 250 t.p.d., producing about 70,000 ounces of silver per month and approximately 840,000 ounces per year, of which 428,400 ounces will accrue to Syringa's account," Mr. Hoffman said, adding "that arrangements are being made to process the Crescent's silver-copper and lead ores at a nearby mill."

About Syringa Exploration, Inc.

Syringa Exploration, Inc. is a privately-held Idaho company focused on the exploration and development of highly prospective silver, gold and base-metal properties within the State of Idaho. The company believes that the mineral potential of Idaho is unsurpassed and the probability of new mineral discoveries is one of the highest of any state in the U.S. Syringa Exploration's directors and officers include:

Kurt Hoffman, Chairman and Director

Mr. Hoffman is an officer, director and shareholder of several Mining Companies. He is a Director of Sundance Diamonds Corporation, a privately held company engaged in the exploration for diamonds in the U.S., and South Africa. In 2003, Mr. Hoffman co-founded High Plains Uranium, a publicly traded advanced exploration uranium mining company, and served as Vice President and a Director prior to the acquisition by Energy Metals Corporation (TSX:EMC) for over $150 million in early 2007. From 1998 through 2004 Mr. Hoffman served as President, Chief Executive Officer, and a Director of Trend Mining Company. From 1998 to 2007, Mr. Hoffman served as a Director of Atlas Mining Company a Silver Valley-based contract mining and drilling company. In 2007 he was named to the Board of Directors of SNS Silver, owners of the Crescent Mine in Idaho. Mr. Hoffman is a co-founder, director and chairman of United Mines Services. A North Idaho based contract mining and environmental reclamation firm. United Mine Services is also the owners of Stewart Contracting and Mine Fabrication and Machine.

Dr. Ishiung Wu, Director

Dr. Wu is a director of IW Exploration Co. since 1992. Dr. Wu is also the President of Great Wall Gold Corporation, a private company with a focus on mineral exploration in China.

For over 35 years, Dr. Wu worked and/or consulted for world-wide majors and junior mining companies and new start-ups on projects in various regions of the world. Dr. Wu was a Director of High Plains Uranium until the company merged into Energy Metals Inc. in 2007, which in turn was merged later in 2007 into Uranium One, a member of the index for Toronto Stock Exchange. From 2000 to 2007, Dr. Wu was a director and/or Chairman of Trend Mining Company, a public US company. From June 1994 to January 2002, Dr. Wu was an officer and a director of General Minerals Corporation, a US-based, Canadian natural resources public company that he co-founded. In mid-1990s and early 2000s, he was Chairman of two Sino-Canadian JVs, in Sichuan and Xinjiang, respectively. From 1974 to 1992, Dr. Wu worked for Kennecott (now a subsidiary of Rio Tinto PLC) and the North and South American mineral subsidiaries of Exxon (now Exxon-Mobil) and Chevron in various capacities, including the Exploration Manager-Chile for Chevron.

Dr. Wu holds a M.A. (1971) and Ph.D. (1975) in economic geology from Harvard University, where he was a Teaching Fellow in Geology from 1971 to 1973. He is also a Fellow of the Society of Economic Geologists.

Erik Panke, Chief Financial Officer and Director

Mr. Panke has worked as a Senior Manager of Business Administration for Washington Group International, Inc., one of the world's foremost engineering, construction, contract mining, and management firms. Washington Group operates in more than 30 countries, has a market cap in excess of $1.5 billion, and annual sales in excess of $3 billion. Assignments over his 20-year career have included Business Management, Administration, and Project Controls support on construction projects throughout the United States, ranging in size from $10,000 to more than $1 billion. In addition, he functioned as the Controller for several Washington Group subsidiaries in Hawaii and the South Pacific. Mr. Panke holds a B.S. in Business Administration Management from The College of Idaho.

Michael Reagan, Secretary and Director

Mr. Reagan is a graduate of the Gonzaga University Law School (J.D.1986). He holds a Master of Law in Taxation from the University of Florida (1987). Mr. Reagan practices Real Estate, Corporate, Commercial and Probate Law. He is a member of the Kootenai County Bar Association, the Idaho State Bar Association and the American Bar Association. Mr. Reagan is a former President of the Concerned Business of North Idaho organization. He is a director and secretary of Sundance Diamonds Corp.

John Gunter, Director

Mr. Gunter is an independent mining consultant who assists mining companies in property negotiations, investor relations and corporate marketing. Mr. Gunter holds position as Vice President of Corporate Development for Sundance Diamonds, a privately held company engaged in the exploration for diamonds in North America and Africa. He is a recognized expert worldwide in retail Internet vehicle sales. He previously helped to develop and managed the world's largest Internet auto sales outlet. His department regularly achieved gross sales in excess of $100 million per year. Mr. Gunter's sales division held title as World's Largest Internet auto sales division 5 consecutive years.

Wade Black, Director

Wade Black is Chief Operating Officer of Scarsdale Equities LLC, a FINRA-member broker-dealer based in midtown New York City. Mr. Black has more than ten years of experience managing operations for broker/dealers and investment advisory firms, as well as financing and advising small mining and exploration companies. Mr. Black began his career at Brimberg & Co., L.P., in 1994 as Manager of Operations, left to form Leeb Brokerage Services, Inc. in 1998, where he stayed until January of 2004 as Chief Financial Officer, having successfully built an institutional agency trading desk. Mr. Black graduated cum laude with a bachelor's degree in philosophy and economics from Columbia University in 1999, and earned a master's degree in business administration from Columbia Business School in 2005. He is also a trustee of the Mary McDowell Center for Learning, a Quaker school for learning-disabled children in Brooklyn, New York. Mr. Black is also a Director of U.S. Silver Corp. owners of the Galena and Coeur Mines in Idaho's Silver Valley.

John McGee, Director

John McGee serves in the Idaho State Senate representing the 10th Legislative District. He chairs the Senate Transportation Committee and serves as a member of the Legislative Council and the Joint Legislative Oversight Committee. He served in a variety of policy positions with then-Gov. Dirk Kempthorne prior to his election to the Senate in 2004, specializing in federal land use regulations and transportation infrastructure, and is principal author of the Federal Lands Task Force Working Group Report, "Breaking the Gridlock: Federal Land Pilot Projects in Idaho." This report identified potential pilot projects in Idaho that would test land management practices to be used by the Forest Service and Bureau of Land Management. He also serves as Vice-Chairman of the College of Idaho Board of Trustees; Sen. McGee is Marketing & Public Relations Director for West Valley Medical Center, Caldwell, Idaho.

SNS Silver Corporation (TSX VENTURE:SNS) is an exploration mining company, whose assets include a number of near term production projects in geopolitically secure Idaho, USA. The 100% owned Crescent Mine consists of 24 patented mining claims over approximately 350 acres. These adjacent properties operated independently to produce nearly 400 million ozs of silver historically and their recent merger is expected to enhance exploration opportunities on their once disputed boundary.

This press release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

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