SNS Silver Corp.
TSX VENTURE : SNS

SNS Silver Corp.

August 25, 2009 12:17 ET

SNS Announces Bankruptcy Court Ruling

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2009) - SNS Silver Corporation ("SNS" or the "Company") (TSX VENTURE:SNS) publicly announces a ruling from the Bankruptcy Court for the United States District Court, District of Idaho, granting a significant administrative claim against Sterling Mining Company ("Sterling").

Following the abandonment of the Sunshine Mine in Kellog, Idaho, by Sterling on February 19, 2009, SNS assumed responsibility for the mine. Based in part on representations made by management for Sterling, SNS entered a temporary and then final lease for the mine in hopes that the mine could once again be a contributor to the economy and employment in the Silver Valley. On May 15, 2009 the Bankruptcy Court for the United States District Court, District of Idaho, entered the Memorandum of Decision on Motion to Assume Lease and Motion for Approval of Post-Petition Financing determining that Sterling had not unequivocally abandoned the mine and had the right to retake possession. In July, based upon the Court's ruling SNS left the premises refusing to continue care and maintenance for property that it had no continuing right to. Recently, the Court has determined that Sterling has the right to take possession of the mine.

On August 21, 2009, the Court ruled that SNS is entitled to an administrative claim against Sterling. As a result, SNS has a priority right to recover its costs and expenses related to the care and maintenance of the Sunshine Mine from Sterling. The Court awarded the majority of the reimbursement categories requested by SNS.

According to lead trial counsel for SNS, Bradley J. Dixon of Stoel Rives LLP, "The Court ruling takes a substantial step in reimbursing SNS for its stewardship of the Sunshine Mine. SNS had significant and exciting plans for the mine. It is unfortunate for the miners and economy in the Silver Valley that this mine continues to be the subject of litigation. However, for SNS, this ruling makes the first major move in assuring that SNS's efforts and willingness to protect this piece of Idaho history is not overlooked. This benchmark similarly signals the end of SNS's need for meaningful involvement in the Sterling Bankruptcy."

Chief Executive Officer for SNS, David Greenway, echoed Mr. Dixon's sentiments stating that "SNS would have loved to have executed upon its realistic and different strategy at moving the Sunshine mine back into production. We were looking forward to working with Mr. Mori and Sunshine Precious Metals. This ruling begins to take care of the costs we expended in caring for the mine in the short time we held the property."

Mr. Greenway also advises that Andrew Grundman has resigned from the SNS Board of Directors. Mr. Greenway states, "SNS appreciates the substantial efforts contributed by Mr. Grundman and wishes him the best of luck in his new undertakings."

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.

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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