Esperanza Silver Corporation
TSX VENTURE : EPZ

Esperanza Silver Corporation

November 02, 2005 16:37 ET

Esperanza Silver Corporation: Successful Completion of $3,396,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 2, 2005) - Esperanza Silver Corporation (the "Company") (TSX VENTURE:EPZ) is pleased to announce that it has completed its previously announced private placement of 5,660,000 units at a price of $0.60 each for proceeds of $3,396,000. Each unit consisted of one common share (a "Share") and one-half of a non-transferable share purchase warrant (each whole warrant being a "Warrant"). Each Warrant entitles the holder thereof to acquire one additional Share for a period of two years at a purchase price of $0.85. If, after the expiry of all resale restrictions, the closing price of the Shares on the TSX Venture Exchange equals or exceeds $1.15 or greater for a period of 20 consecutive trading days, the Company may provide notice of an earlier expiry of the Warrants, in which case the Warrants shall expire 21 trading days after giving such notice.

A finder's fees of 7% is payable in cash or units to certain finders in consideration of their efforts in locating investors. In addition, brokers will be entitled to receive broker warrants (the "Broker Warrants") which is equal to 10% of the number of units sold by them. The Broker Warrants will be exercisable at $0.65 per Share and will expire 18 months after closing. The Shares and any shares issued on exercise of the Warrants, and the Broker Warrants are subject to restrictions on transfer for a period of four months from closing.

The proceeds from the private placement will be used to continue exploration on the Company's San Luis (Peru), La Esperanza (Mexico) and generative exploration programs and general working capital purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws of the United States and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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