Argentum Silver Corp.
TSX VENTURE : ASL

Argentum Silver Corp.

April 26, 2011 10:16 ET

Argentum Finalizes Option of Victoria and Coyote Silver Gold Projects From Soltoro

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 26, 2011) -Argentum Silver Corp. (TSX VENTURE:ASL) and Soltoro Ltd. (TSX VENTURE:SOL) have entered into an option agreement whereby Argentum has the right to earn a 100% interest in two individual claim groups (Victoria & Coyote) located in Jalisco, Mexico in exchange for issuing an aggregate total of 5 million common shares of Argentum Silver to Soltoro in one year, paying an additional $120,000 in cash and financing a maximum of $1.5 million of exploration expenditures on the properties within a two-year period. All terms of this agreement are subject to approval by the TSX Venture Exchange.

Andrew Thomson, President and C.E.O. of Soltoro Ltd., stated: "Argentum Silver has advised Soltoro they plan on conducting a summer drill program at their Lachiguiri property in Oaxaca State while defining drill targets at the Coyote and Victoria projects under option from Soltoro. At Coyote, Argentum Silver plans to drill test numerous historic silver mines with minor gold credits. At Victoria, Argentum is considering underground drilling at the high-grade silver-gold Lupita Mine. The arrangement with Argentum Silver provides Soltoro shareholders with exposure to any discovery made on all of Argentum's projects in southern Mexico."

Warren McIntyre, President of Argentum Silver Corp., stated: "The Coyote and Victoria properties are drill ready where both host numerous historic high-grade silver mines and offer a great opportunity for further discovery. Argentum optioned these claims prior to Soltoro's recent high grade silver drill results. Soltoro's El Rayo property is located east of the Victoria property and north-east of the Coyote property. Soltoro recently announced a near-surface drill hole which intercepted 7 metres of 1010 grams per ton silver and 6.9 metres of 527 gpt silver further down hole. The southern states of Jalisco and Oaxaca are under-explored and Argentum has secured significant land positions in each. We intend to be aggressive in our exploration and drilling programs."

The option agreement allows Argentum Silver to acquire a 100% undivided interest in Soltoro's Victoria and Coyote silver gold projects by paying an additional CDN$120,000 in year 1, issuing an aggregate 5,000,000 common shares of Argentum Silver in year 1 and spending a total of CDN$1.1 million on exploration over 2 years. Soltoro retains a 3% NSR interest in each project whereby 1% can be purchased for US$1.5 million to a maximum of 2% for each project. The earn-in period can be accelerated at the discretion of Argentum Silver. Argentum Silver made a CDN$130,000 payment in cash and agreed to issue 1,500,000 common shares on receipt of approval by the TSX Venture Exchange.

The 11,105 hectare Victoria Silver Gold Project covers a large portion of the historic Mascota-Navidad mining district in Jalisco, Mexico. Mining of this gold silver district dates back to the mid 1500's and was most active at the turn of the 19th century. A series of north south trending quartz veins were mined in numerous historic high-grade gold silver mines. At the Lupita Mine near surface high-grade gold silver mineralization was mined historically over 1 to 2 metre widths at surface. High-grade veins up to 6 metres wide at 87 metres below surface were reported in historical data. The high-grade gold–silver veins were mined down to a depth of 230 metres over 11 levels.

The 1,053 hectare Coyote Silver Gold Project hosts silver mineralization with lesser gold in banded and brecciatied quartz veins. The mineralized zone extends over an area of about 2500m by 2000m. Five principal veins systems with a cumulative strike length of at least 5 km are known which appear to be related to a set of strike slip faults and their subsidiary dilation zones. Mineralization is known to exist over at least 100m vertical distance. The historic El Tajo silver mine last operated between the 1890's through to the Mexican revolution. Two other underground mines are known on the property in addition to numerous smaller surface workings. The area was placed into a Mexican National Mineral Reserve in the 1970's and mapping and sampling was completed by the Consejo de Recursos Minerales in the late 1970's. Soltoro acquired the El Tajo mine area in December of 2010.

About Argentum Silver

Argentum holds the right to acquire a 100% interest in the Lachiguiri, Silacayoapan and Nino Perdido properties, all located in Oaxaca, Mexico, under an option agreement with Arco Resources Corp. The Company also holds the right to acquire a 100% interest in the Victoria and Coyote properties in Jalisco State, Mexico from Soltoro Ltd. For further information, please go to www.argentumsilvercorp.com.

About Soltoro:

Soltoro is engaged in exploration for bulk tonnage gold and silver deposits in Mexico. The Company continues to expand the existing NI 43-101 compliant primary silver resource on its El Rayo project. Soltoro has optioned a portion of its Quila claim to Timmins Gold Corp., optioned its Victoria and Coyote claims to Argentum Silver Corp. and is actively advancing its La Tortuga, Chinipas, El Santuario and Peña Grande projects. Soltoro has 49,378,768 shares outstanding and trades on the TSX Venture Exchange under the symbol SOL.

Mr. Patrick Toth, P. Geo., Vice President of Operations, Soltoro Mexico is a qualified person as defined by NI 43-101 and has reviewed and approved the contents of this press release.

This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, 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.

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.

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