SNS Silver Corp.
TSX VENTURE : SNS

SNS Silver Corp.

February 26, 2009 10:03 ET

SNS Silver Corp.: Owners of Historic Sunshine Mine Clarify Status of the Sunshine Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 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 following the abandonment of the property by the past operators, Sterling Mining Company.

Sterling Mining Company (the prior lessees) abandoned the Sunshine Mine to SPMI on Thursday, February 19th because of funding problems and their inability to maintain the properties as required. At 3:00pm on Tuesday the 24th of February, Sterling Mining Company surrendered the keys and officially vacated the property known as the Sunshine Mine. SPMI has currently contracted the operators of the neighbouring Crescent Mine (Crescent Inc.) to provide security for the Sunshine Property. Security is being provided by qualified and MSHA certified persons 24 hours a day while the property remains strictly on Care & Maintenance status. The Sunshine Mine has been on a Care and Maintenance status for several weeks and proper precautions have been taken to mitigate damage or deterioration of the infrastructure during the next few months. All of the locks were immediately changed for security reasons.

When asked about the status of the mine lease, Mr. Mori, President of SPMI, commented, "The mine lease no longer exists -- Because of their insolvency, Sterling surrendered the lease and gave total control of the premises to SPMI on the 19th of February." He added, "Sterling has vacated the premises so neither Sterling nor any other party has any property interests." He further clarified, "We own and possess the property free and clear." Concerning the condition of the property, Mr. Mori explained, "SNS and a third party are assessing the situation to determine the damage to the mine and the infrastructure." He further added, "We are fortunate to have the mine secured with the capable hands of SNS, and because of their assistance, it would only be natural to enter into a lease or purchase agreement with them."

Further to the tentative agreement with SPMI and SNS to take over operation of the historic Sunshine Mine to preserve the integrity and safety of the mine, SNS is currently working with its legal team to finalise 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.

David Greenway, President and CEO, commented, "SNS' negotiations have been solely with the owners of the property, and we hope to reach a formal agreement by the end of the week."

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.

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