Southern Silver Amends and Increases Private Placement

1100-1199 West Hastings Street, Vancouver, BC, V6E 3T5

“A Manex Resource Group Company”

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June 30, 2011 FRANKFURT-SEG NR-09-11

Southern Silver Amends and Increases Private Placement

Southern  Silver  Exploration  Corp.  (“Southern  Silver”)  reported  today  that  it  has  increased  its previously announced private placement (see news release NR‐07‐11) and now plans to issue up to 23,530,000 units in a non‐brokered private placement at a price of $0.17 per unit to raise $4,000,100. Each  unit  will  now  consist  of  one  common  share  and  one  whole  share  purchase  warrant.    Each warrant will be exercisable to purchase one additional common share for a period of two years at an exercise price of $0.22 per share.

The proceeds from the private placement will be utilized for exploration and property maintenance expenses  incurred  on  the  Cerro  Las  Minitas  and  Minas  de  Ameca  projects  in  Mexico  and  the  Oro project in the USA and for working capital. Specifically, Southern Silver intends to expand its current exploration program on its Cerro Las Minitas project in Mexico to develop mineralization identified though  geophysical  surveys  and  diamond  drilling.  The  proposed  expanded  exploration  program shall  consist  of  up  to  10,000  metres  of  diamond  drilling  in  up  to  30  drill  holes  to  test  high‐grade targets in a +40 metre thick skarn horizon adjacent to a central causative intrusion. Additional drill holes will test for high‐grade silver veins, under gravel cover, outboard of the intrusive.

Finder’s  fees  may  be  payable.    The  private  placement  and  finder’s  fees  are  subject  to  regulatory approval.

On behalf of the Board of Directors

“Lawrence Page”

Lawrence Page, Q.C.

President, Southern Silver Exploration Corp.

For  further  information,  please  visit  Southern  Silver’s  website  at  southernsilverexploration.com  or contact Liana Shahinian at 1.888.456.1112 or by email at [email protected].

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 may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. 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. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for Southern Silver’s projects, and the availability of financing for Southern Silver’s development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, 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.