Convertible Loan Update

February 2, 2012 TRADING SYMBOL “DEF: TSX.V”

CONVERTIBLE LOAN UPDATE

Vancouver, B.C., February 2, 2012 – Defiance Silver Corp. (TSX-V: DEF) (the “Company”).

Further to the Company’s news release dated January 27, 2012 announcing a shareholder loan for an aggregate amount of Cdn$120,000 (the “Loan”), if the Loan is to be repaid in shares, the number of shares will be determined utilizing a deemed price of $0.50 per common share.

All other terms remain the same.

The Loan is subject to TSX Venture Exchange approval.

Defiance Silver Corp. is a near-term silver producer in Mexico. With a strong team of proven mine developers, Defiance is focused upon being an aggressive explorer and acquirer of silver projects in the historic billion-ounce silver producing Zacatecas District.

On behalf of the Directors

“W.D. Bruce Winfield”

W.D. Bruce Winfield President and CEO

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.

____________________________________________________________________________________________ 1100 – 543 Granville Street www.defiancesilver.com Vancouver, BC V6C 1X8 Tel: (604) 681- 9501