SNS Silver Corp.
TSX VENTURE : SNS

SNS Silver Corp.

December 16, 2009 15:50 ET

SNS Silver (TSX VENTURE:SNS) Enters Into Emerald Lake Option Agreement With NYSE Listed Paramount Gold & Silver (TSX:PZG)(NYSE:PZG)

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2009) - SNS Silver Corporation ("SNS" or the "Company") (TSX VENTURE:SNS) announces that is has entered into an option agreement dated December 4, 2009 with Paramount Gold & Silver Corp., (TSX:PZG)(NYSE:PZG) whereby SNS has granted Paramount the sole and exclusive right and option to earn up to 30% of SNS's interest in and to the Emerald Lake Gold project as SNS acquires its interest in the Claims under the Northern Nickel Agreement by Paramount spending and incurring Exploration Expenditures on the Claims in the amount of $1,400,000.

On the date Paramount incurs $1,400,000 of Exploration Expenditures on the Claims, the Earn-In Option shall have been exercised subject to and conditional upon the funds having been spent by Paramount for Exploration. In the event that Paramount, with the aid and assistance of SNS is unable to spend the entire $1,400,000 on Exploration Expenditures by December 31, 2009, Paramount shall have the option of either (a) reducing its percentage interest in and to the Claims to a lesser earned percentage calculated based on the actual amount spent divided by $1,400,000 multiplied by 30%; or (b) funding the unspent balance on Exploration Expenditures in the next ensuing year which Exploration Expenditures must then be incurred on or before December 31, 2010. Paramount shall have a project equity conversion right whereby it may later convert any and all sums spent by Paramount on the Exploration Program into shares of SNS at a price of C$0.23 per share.

David Greenway, President SNS Silver states: "The desires of Paramount to participate in the Emerald Lake Project under these terms are a testament to the caliber of the project and the favorable terms in which SNS was initially able to acquire the option. We are pleased to secure a NYSE listed partner that is well financed and has a highly experienced technical management team in place. SNS is certain to benefit from the expertise of Paramount as we aggressively advance our first phase exploration program. It is apparent that both SNS and Paramount share the same view of the project and we are elated that they have selected Emerald Lake to diversify their existing portfolio."

About the Emerald Lake project:

On November 27th 2009 SNS Silver entered into a definitive agreement to which SNS received the exclusive option to acquire 100 per cent of Northern Nickel Mining Inc.'s interest in the Emerald Lake gold project consisting of 15 mining leases and 31 mining claims located in Afton and Scholes townships in the Sudbury mining district of Ontario.

The project is easily accessible by highway 805, and has much existing site infrastructure that will be of benefit to advancing the project.

Historical information, derived from the records of Noramco Mining Corp., indicate that in 1986, the property is reported to have hosted a global geological resource of 617,000 ounces gold, contained within 2.4 million tonnes (grading 0.26 ounce per ton). The resource is considered historical in nature and as such is based on prior data and reports prepared by previous operators, not defined as required by NI 43-101. The work necessary to reclassify the resource has not been completed and the resource estimates therefore, cannot be treated as NI 43-101-defined resources verified by a qualified person. This resource should not be relied upon, and there can be no assurance that any of the resources, in whole or in part, will ever become economically viable.

The deepest intercept recorded on the property cut 84 feet of 14 grams per tonne gold below 1,000 feet vertically, with many other high-grade drill intersections (0.25 ounce to 0.35 ounce per ton) located between the 600-foot elevation and the lowest elevation level at 1,000 feet.

The property is developed by five levels off of a vertical shaft to 750 feet, and two levels off of an inclined winze to 1,000 feet. All of the past production took place above 700 foot elevation. Ramp development reaches to about 800 feet vertically providing good access to evaluate the high-grade areas.

Only a 1,600-foot length of a four-mile structure extensively explored, and with high-grade known below the 1,000-foot level at the east end of the developed areas.

The strategic plan moving forward will be to confirm, delineate and expand the mineral resource by initiating a surface drill program followed by dewatering and rehabilitation of the existing ramp that will allow for underground drilling. SNS will then commence an extensive program to test the unexplored targets of the Emerald Lake project.

The transaction:

SNS will earn 100 per cent of the Emerald Lake project by paying cash of $650,000, two million common shares of SNS over a period of three years, and by completing exploration commitments on the property in the amount of $750,000, the payments of cash, shares and exploration commitments falling due in installments.

In addition, as part of the terms of acquisition, SNS has to pay Scorpio Gold $250,000 cash and 400,000 shares as compensation for moneys advanced by Scorpio Gold for prior exploration work undertaken on the claims financed by Scorpio Gold and to obtain a release of Scorpio Gold's right of first refusal to acquire the Emerald Lake project.

About Paramount Gold & Silver Corp.:

A management team with in excess of 500 years mining experience

Paramount Gold and Silver Corp. is a well financed precious metals exploration company listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE.A) under the symbol "PZG", and quoted on the Deutsche Borse under the symbol "P6G" (WKN:A0HGKQ).

Paramount holds a 100% interest in the San Miguel Project and has completed over 50,000 meters of diamond drilling at San Miguel since 2006. Paramount has recently expanded its land holdings by acquiring a number of adjacent concessions. Paramount's land package now includes most of the ground surrounding Coeur d'Alene's Trogan project and is in excess of 180,000 hectares.

We Seek Safe Harbor

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.

SOURCE: SNS Silver Corp.

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