Oro Silver Resources Ltd.

Oro Silver Resources Ltd.

February 27, 2008 10:12 ET

Oro Silver Options Mihuatlan Property to Silvrex

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2008) - Oro Silver Resources Ltd. ("Oro Silver") (TSX VENTURE:OSR) has entered into an agreement with Silvrex Ltd. ("Silvrex"), an unlisted UK-based exploration company that is building a portfolio of silver/gold assets with near-term production potential in Mexico, Europe and Africa. Under the agreement Silvrex can acquire a 60% interest in the Mihuatlan property from Oro Silver by spending US$3.0 million on the property and issuing one million common shares of Silvrex to Oro Silver over a three year period. The Mihuatlan property is located in Mexico State, Mexico.

The transaction is subject to the parties entering into a long-form agreement within 90 days and Silvrex completing a public offering and being listed on the AIM Exchange or the PLUS-quoted Market in London, or the TSX Venture Exchange. Silvrex is required to incur US$500,000 in property expenditures and issue 600,000 common shares to Oro Silver by the first year anniversary date. Oro Silver will receive an upfront non-refundable payment of US$85,000 by Silvrex to cover expenses related to ongoing exploration costs and property commitments. Silvrex will be the operator on the property, and will pay Oro Silver a 15% management fee if it is engaged for certain technical or administrative services.

"Optioning out this property is part of our business plan to focus our efforts and resources in increasing value at the El Compas and Vetagrande mines, and we will continue to entertain other joint venture partners in advancing selected properties in our portfolio," stated Greg Cox, president and chief executive officer of Oro Silver.

A National Instrument 43-101 report, entitled "Technical Report for the Mihuatlan Property, Mexico State, Mexico", is available through the following link: www.orosilver.com/main/projects-technical-reports. This report presents the technical work completed by Oro Gold Resources Ltd., and the recommended exploration program to test targets on the property.

Oro Silver Resources Ltd. is a new silver exploration company pursuing under-developed and under-explored silver assets with near-term production potential. The company is focused on creating value by (i) developing resources and reserves at its El Compas and Vetagrande mine projects in Zacatecas, Mexico, (ii) optimizing and expanding the mill at Vetagrande and (iii) completing strategic acquisitions. Oro Silver's goal is to become a mid-tier silver producer.


Gregory Cox, President and CEO

Some statements in this release may contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, development and production activities and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the time and success of future exploration, development and production activities and the timing and amount of expenditures.

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

Contact Information

  • Oro Silver Resources Ltd.
    Gregory Cox
    President and CEO
    (604) 646-1580
    (604) 642-2411 (FAX)
    Website: www.orosilver.com