SNS Silver Corp.
TSX VENTURE : SNS

SNS Silver Corp.

February 23, 2009 16:10 ET

SNS Enters Into an Agreement to Assume Operation of the Historic Sunshine Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2009) - Mr. David Greenway, President and Chief Executive Officer of SNS Silver Corp. ("SNS" or the "Company") (TSX VENTURE:SNS) announces that it has entered into an agreement with Sunshine Precious Metals, Inc. ("SPMI") to assume operation of the Sunshine Mine.

Sterling Mining Company, the prior lessees, abandoned the Sunshine Mine to SPMI on Thursday, February 19th at their 9:00 a.m. board meeting because of their lack of funds and inability to maintain the properties as required.

Immediately following the abandonment, SPMI reached a tentative agreement with SNS to take over operation of the historic Sunshine Mine to preserve the integrity and safety of the mine. SNS is currently negotiating a formal lease or purchase of the property, and will provide care, maintenance and security of the mine on behalf of SPMI until negotiations are concluded. Effective February 19, 2009 at 1:00 p.m., SNS assumed all utility expenses and provided personnel and security to the mine site.

Robert Mori, President of SPMI, commented, "Preserving the safety and integrity of the mine has always been our primary concern." He further commented: "We are pleased to be working with the owners of the Crescent Mine, as they share our concern for the integrity of the property, protection of the environment and the economic value that the mine can provide to the local economy and the State of Idaho. Mr. Mori further commented: "We are pleased to be working with the owners of the Crescent, as they are an adjacent mine, and exhibit the utmost in honesty and integrity both as professional businessmen and their stewardship of the beautiful properties that make up north Idaho."

In addition to Sterling Mining Company's financial inability to maintain the Sunshine Mine, it is understood that various creditors have filed legal actions against Sterling Mining Company. When asked as to the impact of these actions by the Creditors, David Greenway, President and CEO, commented, "It is my understanding that these actions have no impact on SNS. Our negotiations have been solely with the owners of the property, and they (SPMI) have informed us that as far as assignment of the lease between SPMI and Sterling have never been approved by SPMI." (as required by the agreement between Sterling and SPMI)

Changes to the Board of Directors

John Ryan has resigned from the Company's Board of Directors effectively February 18th, 2009. Mr. Ryan has decided to focus his attention on his responsibilities with Sterling Mining Company and has, therefore, decided to step down as a director of the Company. All options granted to Mr. Ryan will be cancelled immediately. David Greenway, CEO, commented, "We are sorry to lose Mr. Ryan from our board of directors and wish him success in his future endeavours."

SNS Silver Corporation (TSX VENTURE:SNS) is an exploration mining company, whose primary asset is the 100% owned Crescent Mine located in Kellogg, Idaho - one of the largest silver districts in North America with over one billion ounces of silver produced. The property consists of 24 patented mining claims over approximately 350 acres, alongside 40 acres of surface rights. The Company currently has a comprehensive and well-funded drill program underway. Their main focus is on upper country surface drilling and underground drilling on the Alhambra and South Veins, as well as restoration of the Hooper Tunnel, drifting and cross-cutting. Silver Wheaton currently owns approximately 12%. The Company has approximately $3 million in cash in addition to the outstanding $2.0 million receivable from Andover Ventures.

Historical resource estimates quoted herein are based on data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to independently verify the classification of the mineral resource estimates and is not treating the mineral resource estimates as National Instrument 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. The Crescent Mine will require considerable further evaluation, which the Company's management and consultants are in the process of completing.

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

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