Returning 12.5m (est. TT) Grading 154g/t Ag, 2.0g/t Au, 3.2% Pb, and 3.9% Zn (558g/t AgEq; 15.7% ZnEq) in Recent Drilling

Vancouver, British Columbia--(Newsfile Corp. - July 25, 2017) - Southern Silver Exploration Corp. (TSXV: SSV) (OTCQB: SSVFF) (FSE: SEG1) ("Southern Silver") reported today that it continues to identify high-grade mineralization from the current core drilling program on the Cerro Las Minitas project, Durango State, Mexico. Recent drilling has identified two thick intervals of mineralization in hole 17CLM-101 opening up the potential for significant extensions to the Blind Zone and Skarn Front deposits to the southeast of their currently drill extents. Highlights from hole 17CLM-101 include:

• a 17.6m down hole interval (12.5m est. True Thickness) averaging 154g/t Ag, 2.0g/t Au,3.2% Pb and 3.9% Zn (558g/t AgEq; 15.7% ZnEq)starting at 229.9m downhole, including a higher grade4.2m interval (3.0m est. TT) averaging 329g/t Ag,4.6g/t Au,7.4% Pb and 7.3% Zn (1175g/t AgEq; 33.2% ZnEq); and
• a 10.1m down hole interval (9.2m est. TT) averaging 220g/t Ag, 0.3% Cu, 3.6% Pb and 5.4% Zn (574g/t AgEq; 16.2% ZnEq) starting at 462.5m down hole, including a higher grade 2.3m interval (2.1m est. TT) averaging 373g/t Ag, 0.9% Cu, 7.4% Pb and 10.3% Zn (1089g/t AgEq; 30.7% ZnEq).

The upper mineralized intercept in hole 17CLM-101 is spatially related to thick intervals of monzonite/felsite and appears to be the southeast extension of the Blind Zone deposit. The deeper intercept is an approximate 125 metre lateral offset from mineralization in 11CLM-025 (10.8m down hole of 182g/t Ag, 0.5% Cu, 1.6% Pb and 6.4% Zn) and is localized along the leading edge of the skarn surrounding the Central Intrusion (Skarn Front zone). Neither hole 11CLM-025 nor the hole located immediately to the southeast of 17CLM-101 (12CLM-040) tested the Blind Zone target.

Results from hole 17CLM-101 are significant in:

• the identification of relatively shallow, precious-metal-enriched mineralized intervals in two separate zones which remain open and largely untested for over 500 metres laterally to the southeast and for up to 500m down dip from hole 17CLM-101; and

• the identification of gold values (up to 4.6g/t Au over 3.0m est. TT) in the upper interval which is of particular geological interest in further enhancing the value of the newly discovered intercept.

Approximately 10,650 metres in 14 drill holes has now been completed in the planned US$2 million 2017 exploration program. Drilling will continue through July on both the North Skarn target and extensions of the Blind and Skarn Front zones to the southeast.

Table 1: Select Composites from 2016-17 Drilling on the Cerro Las Minitas Property

Analyzed by FA/AA for gold and ICP-AES by ALS Laboratories, North Vancouver, BC. Silver (>100ppm), copper, lead and zinc (>1%) overlimits assayed by ore grade ICP analysis, High silver overlimits (>1500g/t Ag) and gold overlimits (>10g/t Au) re-assayed with FA-Grav. High Pb (>20%) and Zn (>30%) overlimits assayed by titration. AgEq and ZnEq were calculated using average metal prices of: US$18.2/oz silver, US$1240/oz gold, US$2.8/lbs copper and US$0.91/lbs lead and US$0.94/lbs zinc. AgEq and ZnEq calculations did not account for relative metallurgical recoveries of the metals. Ore-grade composites calculated using a 80g/t AgEq cut-off and <20% internal dilution, except where noted; anomalous intercepts calculated using a 10g/t AgEq cut-off.