Santacruz Silver Completes Gavilanes Project Payment

TSX.V: SCZ

FSE: 1SZ

Santacruz Silver Completes Gavilanes Project Payment

August 10, 2017 – Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (“Santacruz”) announces,

further to its news release of August 8, 2017, that it has settled t he outstanding balance owing on certain of

the claims included in the Gavilanes Project (the “Gavilanes Outstanding Balance”) by making a cash payment

of US$500,000 and issuing 1,250,000 common shares of Santacruz , plus applicable value added taxes

(“VAT”), to the property vendor. The shares are subject to a hold period and may not be traded until December

11, 2017 except as permitted by applicable securities legislation and the rules and policies of the TSX Venture

Exchange.

Marlin Gold Mining Ltd. (“Marlin”) provided US$580,000 as a refundable deposit (the “Deposit”) to fund the

cash portion of the Gavilanes Outstanding Balance in accordance with the terms of the definitive agreement

between Marlin, Santacruz and their respective subsidiaries (see news release dated August 8, 2017) .

Pursuant to such agreement, Marlin, through its wholly -owned subsidiary, will acquire 100% of Santacruz’s

interest in the Gavilanes Project in Durango, Mexico (the “Gavilanes Transaction”), for total cash consideration

of US$3.5 million, plus applicable VAT.

On closing of the Gavilanes Transaction, the Deposit will be deducted from the purchase price otherwi se

payable by Marlin. The Gavilanes Transaction is expected to close in August 2017.

Completion of the Gavilanes Transaction is conditional upon, among other things, the approval of the TSX

Venture Exchange, the release of the security interest of JMET, LLC (“JMET”) over the Gavilanes Project and

additional customary closing conditions. Co ncurrently with completion of the Gavilanes Transaction,

Santacruz will use a portion of the proceeds therefrom to settle the remaining outstanding debt owing to

JMET.

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican focused silver company wit h two producing silver projects (Rosario Project, including

the Rosario Mine, Cinco Estrellas Property and Membrillo V ein, and the right to operate the Veta Grande

Project and milling facility); and two exploration properties, the Minillas Property and Zacatecas properties.

Santacruz is managed by a technical team of professionals with proven track records in developing, operating

and discovering silver mines in Mexico with a corporate objective to become a mid-tier silver producer.

For further information please contact:

Neil MacRae, Director, Investor Relations

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, including information concerning the the payment to settle

outstanding debt owing to JMET, the closing of the Gavilanes Transaction and the anticipated results of the

Gavilanes Transaction constitute "forw ard-looking information" as such term is used in applicable Canadian

securities laws. Forward- looking information includes, but is not limited to, plans, expectations and estimates

of management at the date the information is provided and is subject to cer tain factors and assumptions. In

making the forward- looking statements included in this news release, Santacruz has applied several material

assumptions, including, but not limited to, the assumptions that regulatory approval will be obtained;

satisfaction of all conditions precedent for the completion of the Gavilanes Transaction in a timely manner;

Santacruz’s financial condition and development plans do not change as a result of unforeseen events; 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 in 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;

delays in regulatory approval, receipt of third party consents and/or satisfaction of conditions precedent to

completion of the Gavilanes Transaction, as well as the other risks and uncertainties applicable to mineral

exploration and development activities and to each company as set forth in Santacruz and Marlin’s respective

continuous disclosure filings filed under their respective profiles at www.sedar.com. There can be no

assurance that any forward- looking information will pr ove to be accurate, as actual results 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. Santacruz undertakes no obl igation to update

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