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SSV.V ·

SSVCL: Santiago Southern Silver Closes Second Tranche of Brokered and Non- Brokered Financing

Financings

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

“A Manex Resource Group Company”

This news release is intended for distribution in Canada only and is not intended for distribution to

United States newswire services or dissemination in the United States.

August 31, 2017

SSV: TSX.V

S S V F F : O T C Q B

S E G 1 : F r a n k f u r t

SSVCL: Santiago

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Southern Silver Closes Second Tranche of Brokered and Non-

Brokered Financing

Southern Silver Exploration Corp. (“Southern Silv er” or the “Company”; SSV-TSX.V) has closed the

second tranche of its previously reported private placement by issuing 1,170,000 units at a price of

$0.40 per unit for gross proceeds of $468,000. The pri vate placement was comprised of a brokered and

non-brokered component. Gravitas Securities Inc. (“Gravitas”) acted as lead agent of the brokered

portion of the private placement. Each unit cons ists of one common share and one share purchase

warrant exercisable to purchase one additional common share for a period of three years at an exercise

price of $0.55 per common share. On the closing of this tranche of the private placement, Gravitas

received a cash fee of $42,240 and 105,600 non-tran sferable compensation options with each

compensation option exercisable to purchase on e common share for a period of 36 months at an

exercise price of $0.40 per common share. Also paid upon closing were finder’s fees of $500 cash and

1,750 non-transferable finder’s warrants, with each finder’s warrant exercisable to purchase one

common share at $0.55 for three years. Securities issued pursuant to this tranche of the private

placement, including common shares, share purchas e warrants, finder’s warrants and compensation

options, carry a legend restricting trading of the securities until January 1, 2018.

Net proceeds from this private placement are inte nded to be used to contribute to the Company’s

proportionate share (40%) of the co sts associated with continuing ex ploration on the Cerro Las Minitas

property near Durango, Mexico together with the Joint Venture partner of the Company, Electrum

Global Holdings L.P. (60%), for advancement of the 100% owned Oro Project, New Mexico, and for

additional working capital. Further exploration work on the Cerro Las Minitas property in 2017 and 2018

is to be funded by the two Joint Venture partners and is expected to consist of RC, RAB and core

diamond drilling in order to:

(a) Extend the known mineralization at the Blind and Blind Shoulder targets to increase the current

resource.

(b) Explore for accumulations of potential new mineraliza tion elsewhere in the larger area of the Cerro

Las Minitas property.

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Further work is currently ongoing on the balance of the larger property area including continued surface

work and sampling, exploratory RAB/RC drilling and additional core drilling of certain defined targets.

The final closing to occur by September 15 th, 2017 is subject to certain conditions including, but not

limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

About Southern Silver Exploration

Southern Silver Exploration Corp. is a precious metal exploration and development company with a

focus on the discovery of world-class mineral deposi ts in north-central Mexico and the southern USA.

Our specific emphasis is the Cerro Las Minitas silver-l ead-zinc project located in the heart of Mexico’s

Faja de Plata, which hosts multiple world-class mine ral deposits such as Penasquito, San Martin, Naica

and Pitarrilla. We have assembled a team of highly experienced technical, operational and transactional

professionals to support our exploration efforts in de veloping, along with our partner, Electrum Global

Holdings LP, 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.

Robert Macdonald, MSc. P.Geo, is a Qualified Pe rson as defined by National Instrument 43-101 and

responsible for the supervision of the exploration on the Cerro Las Minitas Project and for the

preparation of the technical information in this disclosure.

About Gravitas Securities Inc.

Gravitas is known for sophisticated sector expert ise, tactical individuals with a commitment to

excellence, global integration and innovation, and as a leading independent wealth management and

capital markets firm. Gravitas provides a wide range of investment mandates and services for retail and

corporate clients globally from offices in Toronto, Calgary and Vancouver and is represented in the

United States through its FINRA representative, Gr avitas Capital International, in New York and San

Francisco.

The securities referred to in this news release have not been, nor will they be, registered under the

United States Securities Act of 1933, as amended, and may not be offered or sold within the United

States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable

exemption from the U.S. registration requirements. This news release does not constitute an offer for

sale of securities for sale, nor a solicitation for of fers to buy any securities. Any public offering of

securities in the United States must be made by means of a prospectus containing detailed information

about the company and management, as well as financial statements.

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 [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.

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This news release may contain forward-l ooking statements. Forward-looking statem ents address future events and conditions

and therefore involve inherent risks and uncer tainties. Actual results may differ materia lly from those currently anticipated i n

such statements. Factors that could cause actual results to di ffer materially from those in forward looking statements include

the timing and receipt of government and regulatory approvals, and continued availability of ca pital and financing and general

economic, market or business conditions. Southern Silver Explor ation Corp. does not assume any obligation to update or revise

its forward-looking statements, whether as a result of new info rmation, future events or otherwise, except to the extent

required by applicable law.