Southern Silver Exploration Corp.

Southern Silver Exploration Corp.

February 28, 2005 10:00 ET

Southern Silver Announces $2.0 Million Non-Brokered Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SOUTHERN SILVER EXPLORATION CORP.

TSX VENTURE SYMBOL: SSV

FEBRUARY 28, 2005 - 10:00 ET

Southern Silver Announces $2.0 Million Non-Brokered
Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2005) - Southern
Silver Exploration Corp. (TSX VENTURE:SSV) reported today that the
company has arranged a non-brokered private placement of up to 4.0
million units at a price of $0.50 per unit.

The units will comprise of one common share and one-half of one common
share purchase warrant. Each full warrant can be exercised for one
common share at a price of $0.60 per share for a period of two years. In
the event the company's common shares trade at a closing price of
greater than $1.00 per share for a period of 20 consecutive days at any
time after six months from closing, Southern Silver may accelerate the
expiry date by providing notice, in which case the warrants will expire
30 days after such notice.

The proceeds of the offering will be used to fund exploration of the
company's "Pinabete" CRD (Carbonate Replacement Deposit) project in
Chihuahua State, Mexico. Southern Silver recently announced the
acquisition of the project from Anglo American (Canada) Ltd.

The "Pinabete" property is comprised of 4,620 hectares and is located
120 kilometers south of the city of Chihuahua in Chihuahua State, Mexico
and occurs in one of the most highly productive regions of Ag-Pb-Zn
Carbonate Replacement Deposits in the world.

Surface alteration and mineralization on the Pinabete Property is
similar to that found in world class CRD deposits in northern Mexico
such as Santa Eulalia (45MMT @ 310g/t Ag, 7.1% Zn and 8.2% Pb) and Nacia
(26MMT @ 213g/t Ag, 5.6% Zn and 5.9% Pb).

Previous mapping on the property by Anglo American identified
structurally controlled mantos, chimneys and pods of precious metal-rich
disseminated and massive sulphide mineralization within a 2500 metre,
northwest-trending structural zone of marbleized limestone, skarn and
skarnoid alteration.

Limited drilling on the largely unexplored property (three drill holes
for 950.7 metres) intercepted a 7.7 metre mineralized zone of 6.33% Zn,
4.52% Pb and 53.68 g/t Ag in one of several priority targets identified
for follow-up mapping, sampling and drill testing.

Southern Silver also reported today that a brokered private placement
announced on November 29th, 2004 did not proceed.

The new financing arrangements are subject to regulatory approval,
including payment of finder's fees.

Rob Macdonald, (P.Geo.), is the Qualified Person responsible for
reviewing the technical results reported in this release.

On behalf of the Board of Directors

Lawrence Page, Director, President

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
and has not authorized this release for distribution to United States
newswire services or for its dissemination in the United States.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Southern Silver Exploration Corp.
    Jay Oness
    (604) 684-9384 or Toll Free 1-888-456-1112
    corpdev@mnxltd.com