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SCZ.V ·

Santacruz Commences Drilling at Veta Grande Project

Exploration Programs

TSX.V: SCZ

FSE: 1SZ

January 24, 2018

Santacruz Commences Drilling at Veta Grande Project

Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that

Carrizal Mining, S.A. de C.V. (“Carrizal”) has initiated a 6,000-meter surface diamond drilling campaign at the

Veta Grande Project located in Zacatecas, Mexico pursuant to the terms of the binding LOI (the “Carrizal LOI”)

between the Company and Carrizal (see press release dated December 14, 2017).

The initial 6,000-meter campaign over 15 drill holes will be focussed on drilling the Veta Grande vein at depth

below the current level being mined by the Company and is expected to also intersect the La Flor, San Jose

and Armados veins that run parallel to the Veta Grande vein.

Carlos Silva, COO of Santacruz, stated “This drill program will allow Santacruz to establish a maiden resource

estimate on the Veta Grande vein in the first half of 2018 ,” Mr. Silva continued “ Following this Phase 1

program the Company’s plan is to broaden the exploration program along the northern strike of the Veta

Grande vein as we are eager to test the strike extent of this important historical vein system.”

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican focused silver company with two producing silver projects (Rosario, including the

Cinco Estrellas property and Membrillo Prospect, and the Veta Grande proje ct and milling facility); and two

exploration properties including the Minilla s property and Zacatecas properties. The Company is managed by

a technical team of professionals with proven track records in developing, operating and discovering silver

mines in Mexico. Our corporate objective is to become a mid-tier silver producer.

About Carrizal Mining, S.A. de C.V.

Carrizal Mining is a Mexican privately owned Company which operates the Zimapan mine in Zimapan Hidalgo

Mexico. The Company operates a 3,200 tpd mill and produces lead-silver, zinc and copper concentrates.

‘signed’

Arturo Préstamo Elizondo,

President, Chief Executive Officer and Director

For further information please contact:

Arturo Prestamo

Santacruz Silver Mining Ltd.

Email: [email protected]

Telephone: (604) 569-1609

Neither the 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.

Forward looking information

Certain statements contained in this news release constitute "forward -looking information" as such term is

used in applicable Canadian securities laws. Forward -looking information is based on plans, expectations and

estimates of management at the date the information is provided and is subject to certain factors and

assumptions. In making the forward -looking statements included in this news release, the Company has

applied several material assumptions, that the Company's financial condition and development plans do not

change as a result of unforeseen events, that the Company will receive all required regulatory approvals, and

that future metal prices and the demand and market outlook for metals will remain stable or improve.

Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause

plans, estimates and actual results to vary materially from those projected in such forward -looking information.

Factors that could cause the forward -looking information i n this news release to change or to be inaccurate

include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable,

which could result in lower revenue, higher cost, or lower production levels; delays and/ or cessation in planned

work; changes in the Company's financial condition and development plans; delays in regulatory approval;

risks associated with the interpretation of data (including in respect of the third party mineralized material)

regarding the g eology, grade and continuity of mineral deposits; the possibility that results will not be

consistent with the Company's expectations, as well as the other risks and uncertainties applicable to mineral

exploration and development activities and to the Comp any as set forth in the Company's continuous

disclosure filings filed under the Company's profile at www.sedar.com. There can be no assurance that any

forward-looking information will prove to be accurate, as actual re sults and future events could differ materially

from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on

forward-looking information or statements. The Company undertakes no obligation to update forward -looking

information or statements, other than as required by applicable law.

Rosario Project

The decisions to commence production at the Rosario Mine , Cinco Estrellas Property and Membrillo Prospect

were not based on a feasibility study of mineral reserves dem onstrating economic and technical viability, but

rather on a more preliminary estimate of inferred mineral resources. Accordingly, there is increased

uncertainty and economic and technical risks of failure associated with this production decision. Producti on

and economic variables may vary considerably, due to the absence of a complete and detailed site analysis

according to and in accordance with NI 43-101.

Veta Grande Project

The decision to commence production at Veta Grande Project was not based on a fe asibility study on mineral

reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and

economic and technical risks of failure associated with this production decision. Production and economic

variables may vary considerably due to the absence of a complete and detailed site analysis according to and

in accordance with NI 43-101.