South American Silver Announces Change in President and CEO

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2012) - South American Silver Corp. (TSX:SAC)(PINKSHEETS:SOHAF) (the "Company") announces that Gregory Johnson has stepped down from his role as President and Chief Executive Officer and as a director of the Company effective August 13, 2012 in order to pursue other interests. The Company thanks him for his contributions and tenure as President and CEO and wishes him well.

The Company is pleased to announce that Phillip Brodie-Hall has been appointed interim President and Chief Executive Officer. Mr. Brodie-Hall has been the Company's Chief Operating Officer since November 2011, before which he was a key member of the project development team on a consulting basis.

Ralph Fitch, Executive Chairman of the Company stated "We thank Greg for his contributions to the Company and welcome Phillip in his new role as President and CEO during this period of significant transition in our business".

In Chile, the Company will expand activities at the Escalones copper-gold project and in Bolivia the Company is aggressively pursuing all options to maximize the value from the Malku Khota project. The Company has several essential components that position it well for the future including experienced leadership, a strong balance sheet and proprietary acid chloride leach technology that gives it a competitive advantage for developing bulk mineable deposits that contain both precious and base metals as well as indium and gallium. The Company has the opportunity in the period ahead to also look at other projects in a market that is very challenging for many companies to raise capital.

About South American Silver Corp.

South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the large scale Escalones copper-gold project in Chile and the realization of value from the Malku Khota project in Bolivia. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF". Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.

Forward-looking statements

Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "will", "expand", "maximize", " future", "ahead", "creating", "realization" and similar expressions. This release contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.

Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, the political and economic climate in Bolivia including the attitudes and actions of the Bolivian government related to foreign investment in Bolivia; the international arbitration process; and risks of the mineral exploration industry which may affect the advancement of the Escalones project, including possible variations in mineral resources or grade; metal prices; availability of sufficient financing to fund further required work in a timely manner and on acceptable terms; timely receipt of required permits; availability of equipment and qualified personnel; failure of equipment or processes to operate as anticipated; changes in project parameters as plans continue to be refined; and other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the ability of the Company to realize value from its investments in Bolivia; the availability of equipment and qualified personnel to advance the Escalones project; the timely receipt of required permits for Escalones and execution of the Company's existing plans and further exploration and development programs for Escalones, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of August 13, 2012.