Southern Silver Exploration Corp.

Southern Silver Exploration Corp.

September 21, 2005 14:53 ET

Southern Silver Announces $1.0 Million Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 21, 2005) - Southern Silver Exploration Corp. (TSX VENTURE:SSV)(FWB:SEG) reported today that the company has arranged a non-brokered private placement of up to 4.0 million units at a price of $0.25 per unit.

The units will comprise of one common share and one common share purchase warrant. Each warrant can be exercised for one common share at a price of $0.30 per share for a period of two years.

The proceeds of the offering will be used for acquisitions, to fund exploration on the company's projects in Mexico and the United States and for working capital.

The financing arrangements are subject to regulatory approval, including payment of finder's fees computed as 8% cash of gross proceeds and a 10% brokers warrant exercisable into units.

On behalf of the Board of Directors

Robert E. Swenarchuk, Director

Southern Silver Exploration Corp.

This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Southern Silver Exploration Corp. relies upon litigation protection for forward-looking statements.

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