Southern Silver Exploration Corp. — Capital/Financing Update 2020

Dec 16, 2020

Southern Silver Confirms New Gold Zone at Cerro Las Minitas with a 28.5 Metre Intercept Averaging 1.41g/t Au and 36g/t Ag, (201g/t AgEq)

Vancouver, British Columbia--(Newsfile Corp. - December 16, 2020) - Southern Silver Exploration Corp. (TSXV: SSV) (OTCQB: SSVFF) ("Southern Silver") reported today further assay results from its 10,000 metre 2020-21 core drilling program on the Cerro Las Minitas project , Durango State, Mexico. These early results from the Mina La Bocona target include a near surface interval of strongly gold-enriched oxidized mineralization and a deeper poly-metallic sulphide zone from hole 20CLM-125 which returned:

• a 28.5m down hole interval averaging 1.41g/t Au and 36g/t Ag (201g/t AgEq) including a higher grade 2.8m interval averaging 5.1g/t Au and 72g/t Ag (552 AgEq) starting at 23.8m down-hole; and

• a 6.1m down-hole interval (4.0m est. TT) averaging 421g/t Ag, 0.45g/t Au, 5.5% Pb and 1.9% Zn (704g/t AgEq; 17.9% ZnEq) including a higher grade 0.9m (0.6m est. TT) grading 1420g/t Ag, 0.64g/t Au, 16.8% Pb and 0.6% Zn (2012g/t AgEq; 51.0% ZnEq) starting at 221.8 metres down-hole.

The upper gold-enriched oxide zone in hole 20CLM-125 correlates well with a previously reported oxide gold zone from hole 15CLM-078 with 7.8m (3.9m est. TT) averaging 13.5g/t Au, 37g/t Ag, 2.2% Pb and 1.7% Zn (1093g/t AgEq (see NR-10-15) and a deeper gold-enriched sulphide zone from hole 15CLM-082 with 10.1m (4.8m est. TT) averaging 1.4g/t Au and 88g/t Ag, 1.6% Pb and 2.1% Zn (378g/t AgEq) (see NR14-15) which together form a new gold-enriched oxide/sulphide target well outboard of the Central Intrusion and extending 120 metres along strike and up to 168 metres in depth. Mineralization is open to the southeast and at depth. Additional sampling has been completed both up hole and down hole of the oxide gold intervals in each of holes 20CLM-125 and 15CLM-078 to determine the full extent of the gold anomaly in each of these holes. Assays are pending.

The deeper silver-enriched polymetallic zone in hole 20CLM-125 is contained within the upper 19.8 metres of a semi-continuous mineralized zone extending from 216.8 metres to 272.0 metres downhole and is an approximate 25 metre down-dip step-out of similar mineralization first identified in the 2015 hole 15CLM-078 with 16.5m (8.2m est. TT) averaging 0.5g/t Au, 150g/t Ag, 3.7% Pb and 0.7% Zn (325g/t AgEq) ( see NR-10-15; October 1, 2015). Assays for the remaining 35 metres of the 55.2 metres mineralized interval are pending.

As well, two additional holes have been completed in this part of the Bocona Target and a further four holes tested the down-dip projection of the La Bocona chimney located approximately 135 metres to the northwest. Seven holes totaling 2,470 metres have now tested the Mina La Bocona target area with assays still pending from each hole.

Rob Macdonald, Vice President Exploration stated: "The confirmation of a shallow and potentially high-grade gold target continues to highlight the terrific exploration potential on the east side of the Cerro in the area of the historic Mina La Bocona chimney which was mined and developed by artisanal miners to more than 200 metres in depth and produced up to an estimated 400,000 tonnes of ore. Further drilling in the New Year will continue to test and extend this zone as it projects to the southeast and to depth. This new drilling has also confirmed the extension of high-grade polymetallic mineralization from hole 15CLM-078 providing yet another target for follow-up in 2021."

Approximately 7,500 metres of drilling have now been completed of the anticipated 10,000 metres of core drilling for the 2020-21 exploration program. Drilling has paused for the Christmas break and will continue early in January with one drill focused on the Mina La Bocona target and a second drill exploring the South Skarn target.

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Figure 1: Plan Map of the Area of the Cerro showing the distribution of the CLM deposits and the location for new drill targeting, at the Mina La Bocona, South Skarn and Las Victorias targets.

To view an enhanced version of Figure 1, please visit: https://orders.newsfilecorp.com/files/5344/70431_dd630291c41c880b_002full.jpg

Drilling on the east side of the Cerro will test an approximate 800 metre strike length of the South Skarn Target and Mina La Bocona Target mineralized zones to depths of up to 650 metres as well as a highgrade hanging wall zone in the Mina La Bocona Target area. These drill targets are designed to increase the current mineral resource estimate of 24 million tonnes by approximately 30%.

The CLM Project remains one of the larger undeveloped silver-lead-zinc projects in the World and is wholly owned, unburdened by royalties, fully financed and fully permitted.

Table 1: Select Assay intervals from Drill Hole 20CLM-125

Hole #	From (m)	To (m)	Interval (m)	Est Tr Thck (m)	Ag (g/t)	Au (g/t)	Cu (%)	Pb (%)	Zn (%)	AgEq (g/t)	ZnEq (%)	Notes
					Mina	La Bocona	Target
20CLM-125 inc. and inc. 20CLM-125	23.8 31.35 48.9 135	52.25 34.1 52.25 138.05	28.5 2.8 3.4 3.1	UNK UNK UNK UNK	36 72 57 17	1.41 5.09 2.59 0.66	0.02 0.08 0.03 0.03	0.7 1.0 1.2 0.8	0.6 0.5 1.7 0.5	201 552 377 122	5.1 14.0 9.6 3.1	0.5g/t Au Cutoff Open Ended

20CLM-125 inc. inc.	216.75 221.75 223.65	236.55 227.8 224.55	19.8 6.1 0.9	13.0 4.0 0.6	183 421 1420	0.25 0.45 0.64	0.03 0.01 0.01	2.3 5.5 16.7	0.8 1.9 0.6	308 704 2012	7.8 17.9 51.0	24.5% dilution Open at depth

Table 2: Previously Reported 2020 Assay Results from the South Skarn and Las Victorias Target areas

Hole #	From (m)	To (m)	Interval (m)	Est Tr Thck (m)	Ag (g/t)	Au (g/t)	Cu (%)	Pb (%)	Zn (%)	AgEq (g/t)	ZnEq (%)	Notes
			Previously Reported South Skarn Assay Results
20CLM-118 inc. and	170.1 174.2 188.8	177.0 175.4 190.0	6.9 1.2 1.1	4.0 0.9 0.8	109 412 132	0.14 0.14 0.12	0.02 0.06 0.02	1.8 7.8 2.8	2.1 9.2 2.0	259 1033 308	6.6 26.2 7.8	27.50%
20CLM-119 and inc. and inc. and inc. and	95.0 206.4 206.4 226.1 226.1 232.0 241.5	96.5 210.7 207.6 235.1 228.4 233.3 243.0	1.5 4.3 1.2 9.0 2.3 1.3 1.6	1.1 3.2 0.9 6.7 1.7 0.9 1.2	54 99 216 625 1338 1480 112	2.83 0.27 0.22 0.11 0.15 0.09 0.07	0.01 0.01 0.01 0.03 0.04 0.04 0.02	3.6 0.7 0.8 11.8 25.9 26.5 2.2	0.4 0.6 0.1 7.5 17.6 16.8 2.1	417 165 265 1298 2849 2973 272	10.6 4.2 6.7 32.9 72.3 75.4 6.9	41.9% dilution 40.8% dilution
20CLM-120 and inc. and and	343.8 429.0 431.8 441.0 450.8	345.7 432.6 432.6 442.3 452.9	1.9 3.7 0.9 1.3 2.1	1.4 2.7 0.6 1.0 1.6	101 511 902 51 182	0.08 0.10 0.05 0.07 0.23	0.00 0.13 0.16 0.06 0.21	0.9 5.0 7.8 1.5 4.4	0.2 3.7 8.4 1.1 4.1	145 835 1496 153 522	3.7 21.2 37.9 3.9 13.2
20CLM-122 and and inc.	390.7 417.8 435.0 442.1	391.9 419.0 442.8 442.8	1.2 1.2 7.8 0.6	0.9 0.9 5.8 0.5	97 247 66 237	0.18 0.19 0.05 0.07	0.01 0.07 0.02 0.02	0.2 4.7 0.4 0.9	0.2 1.2 0.2 0.2	124 463 92 281	3.1 11.7 2.3 7.1	39.4% dilution
20CLM-124 inc and	397.2 400.1 475.0	402.1 401.0 490.6	5.0 0.8 15.6	3.3 0.6 10.4	304 607 172	0.11 0.15 0.08	0.18 0.49 0.15	4.8 11.0 3.8	1.9 3.4 3.7	555 1146 458	14.1 29.1 11.6	31.1% Dilution

inc. inc. and inc.	475.0 475.0 498.0 499.0	483.7 475.9 499.9 499.9	8.7 0.9 1.9 0.9	5.8 0.6 1.2 0.6	286 975 303 544	0.11 0.05 0.05 0.05	0.27 1.27 0.02 0.02	6.4 21.2 7.1 13.1	5.8 18.5 5.8 9.1	749 2503 755 1313	19.0 63.5 19.2 33.3
Hole #	From (m)	To (m)	Interval (m)	Est. Tr. Thck. (m)	Ag (g/t)	Au (g/t)	Cu (%)	Pb (%)	Zn (%)	AgEq (g/t)	ZnEq (%)	Notes
						Previously Reported Las Victorias
20CLM-121 and and	678.6 682.6 685.9	679.1 683.4 687.6	0.5 0.9 1.8	0.4 0.7 1.4	155 51 188	1.79 0.02 0.07	2.28 0.29 0.53	0.1 0.1 0.2	22.8 3.0 4.1	1460 204 420	37.0 5.2 10.7
20CLM-123 and	134.6 199.3	140.8 205.3	6.2 5.9	4.3 4.1	33 63	0.94 1.58	0.00 0.07	0.3 0.8	0.4 0.9	136 259	3.4 6.6

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$20/oz silver, US$1650/oz gold, US$3.25/lbs copper and US$0.9/lbs lead and US$1.15/lbs zinc. AgEq and ZnEq calculations did not account for relative metallurgical recoveries of the metals. Oregrade 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.

Cerro Las Minitas Project

The Cerro Las Minitas project is an advanced exploration stage polymetallic Ag-Pb-Zn-Cu Skarn/CRD project located in southern Durango, Mexico.

The Cerro Las Minitas project as of May 9[th] , 2019 contains a Mineral Resource Estimate, at a 175g/t AgEq cut-off, of[(1)]

• Indicated - 134Moz AgEq: 37.5Moz Ag, 40Mlb Cu, 303Mlb Pb and 897Mlb Zn Inferred - 138Moz AgEq : 45.7Moz Ag, 76Mlb Cu, 253Mlb Pb and 796Mlb Zn

A total of 133 drill holes for 59,000 metres have been completed on the CLM Project with exploration expenditures of approximately US$25.5 million equating to exploration discovery costs of approximately C$0.09 per AgEq ounce to the end of 2019.

About Southern Silver Exploration Corp.

Southern Silver Exploration Corp. is an exploration and development company with a focus on the discovery of world-class mineral deposits. Our specific emphasis is the 100% owned Cerro Las Minitas silver-lead-zinc project located in the heart of Mexico's Faja de Plata, which hosts multiple world-class mineral deposits such as Penasquito, Los Gatos, San Martin, Naica and Pitarrilla. We have assembled a team of highly experienced technical, operational and transactional professionals to support our

exploration efforts in developing the Cerro Las Minitas project into a premier, high-grade, silver-lead-zinc mine. The Company engages in the acquisition, exploration and development either directly or through joint-venture relationships in mineral properties in major jurisdictions. Our property portfolio also includes the Oro porphyry copper-gold project located in southern New Mexico, USA.

1. The 2019 Cerro Las Minitas Resource Estimate was prepared following CIM definitions for classification of Mineral Resources. Resources are constrained using mainly geological constraints and approximate 10g/t AgEq grade shells. The block models are comprised of an array of blocks measuring 10m x 2m x 10m, with grades for Au, Ag, Cu, Pb, Zn values interpolated using ID3 weighting. Silver and zinc equivalent values were subsequently calculated from the interpolated block grades. The model is identified at a 175g/t AgEq cut-off, with an indicated resource of 11,102,000 tonnes averaging 105g/t Ag, 0.10g/t Au, 1.2% Pb, 3.7% Zn and 0.16% Cu and an inferred resource of 12,844,000 tonnes averaging 111g/t Ag, 0.07g/t Au, 0.9% Pb, 2.8% Zn and 0.27% Cu. AgEq cut-off values were calculated using average long-term prices of $16.6/oz. silver, $1,275/oz. gold, $2.75/lb. copper, $1.0/lb. lead and $1.25/lb. zinc. Metal recoveries for the Blind, El Sol and Las Victorias deposits of 91% silver, 25% gold, 92% lead, 82% zinc and 80% copper and for the Skarn Front deposit of 85% silver, 18% gold, 89% lead, 92% zinc and 84% copper were used to define the cut-off grades. Base case cut-off grade assumed $75/tonne operating, smelting and sustaining costs. All prices are stated in $USD. Silver Equivalents were calculated from the interpolated block values using relative recoveries and prices between the component metals and silver to determine a final AgEq value. The same methodology was used to calculate the ZnEq value. Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. The current Resource Estimate was prepared by Garth Kirkham, P.Geo. of Kirkham Geosciences Ltd. who is the Independent Qualified Person responsible for presentation and review of the Mineral Resource Estimate. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

Robert Macdonald, MSc. P.Geo, is a Qualified Person as defined by National Instrument 43-101 and supervised directly the collection of the data from the CLM Project that is reported in this disclosure and is responsible for the presentation of the technical information in this disclosure.

On behalf of the Board of Directors "Lawrence Page" Lawrence Page, Q.C. President & Director, Southern Silver Exploration Corp. For further information, please visit Southern Silver's website at southernsilverexploration.com or contact us at 604.641.2759 or by email at ir@mnxltd.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements. 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. Factors that could cause actual results to differ materially from those in forward-looking statements include the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Southern Silver Exploration Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

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