Mr. Lawrence Page reports

SOUTHERN ANNOUNCES RESOURCE ESTIMATE AT CERRO LAS MINITAS: INDICATED: 10.8MOZS AG, 189MLBS PB AND 207MLBS ZN (36.5MOZS AGEQ); AND INFERRED: 17.5MOZS AG, 237MLBS PB AND 626MLBS ZN (77.3MOZS AGEQ)

Kirkham Geosystems Ltd. has completed an independent mineral resource estimate on Southern Silver Exploration Corp.'s Cerro Las Minitas (CLM) project in Durango state, Mexico. Electrum Global Holdings LP is financing a broad range of exploration activities to earn a 60-per-cent interest in CLM.

The resource estimate provides initial grade and tonnage estimates for three mineral deposits on the property at the Blind, El Sol and Santo Nino zones, which have been the focus of much of Southern's exploration activities on the property since 2011, but does not include mineralization from the newly discovered Mina La Bocona zone.

The base-case mineral resource estimate utilizing a 150-gram-per-tonne-silver-equivalent cut-off value is as shown in the attached tables.

                           
                                      INDICATED

Zone                  Tonnes      Ag      Au      Pb      Zn      Cu    AgEq
                     (000s t)   (g/t)   (g/t)     (%)     (%)     (%)   (g/t)

Blind zone             2,641      99    0.07     2.4     2.1    0.10     303
El Sol zone            1,083      69    0.02     2.1     3.5    0.09     311
Total                  3,724      90    0.05     2.3     2.5    0.09     305

                                       INFERRED

Zone                  Tonnes      Ag      Au      Pb      Zn      Cu    AgEq
                     (000s t)   (g/t)   (g/t)     (%)     (%)     (%)   (g/t)

Blind zone             2,863      91    0.28     1.6     3.9    0.21     364
El Sol zone            2,909      71    0.09     1.9     4.1    0.11     339
Santo Nino zone          839      95    0.03     0.9     6.1    0.47     446
Total                  6,611      82    0.17     1.6     4.3    0.20     363

The 150-gram-per-tonne-silver-equivalent cut-off value was calculated
using average long-term prices of $15 per ounce silver, $1,100 per
ounce gold, $2.75 per pound copper, 90 cents per pound lead and 90 cents
per pound zinc and metal recoveries of 82 per cent silver, 86 per cent
lead and 80 per cent zinc. All prices are stated in U.S. dollars.

                                                                                                     
                                      INDICATED

Zone                      Ag          Au       Pb       Zn      Cu        AgEq
                    (000s oz)   (000s oz)    (Mlb)    (Mlb)   (Mlb)   (000s oz)

Blind zone             8,442         5.7    139.4    123.3     5.6      25,720
El Sol zone            2,392         0.6     49.8     83.6     2.0      10,812
Total                 10,834         6.3    189.2    206.9       8      36,532

                                      INFERRED

Zone                      Ag          Au       Pb       Zn      Cu        AgEq
                    (000s oz)   (000s oz)    (Mlb)    (Mlb)   (Mlb)   (000s oz)

Blind zone             8,370        25.9     98.0    249.0    13.1      33,498
El Sol zone            6,594         8.6    121.8    264.4     7.2      31,719
Santo Nino zone        2,568         0.8     17.5    113.0     8.6      12,036
Total                 17,533        35.4    237.3    626.4    29.0      77,252

The 150-gram-per-tonne-silver-equivalent cut-off value was calculated
using average long-term prices of $15 per ounce silver, $1,100 per
ounce gold, $2.75 per pound copper, 90 cents per pound lead and 90 cents
per pound zinc and metal recoveries of 82 per cent silver, 86 per cent
lead and 80 per cent zinc. All prices are stated in U.S. dollars.                      

Lawrence Page, QC, president of Southern Silver, stated: "Since May, 2011, Cerro Las Minitas has developed from a prospect into a resource with great potential to become a significant economic deposit. Continued growth is expected along the 25 kilometres length of the 13,700-hectare property. We have succeeded, during one of the most severe bear markets in recent history, in purchasing the property for a cost of $3.6-million (U.S.), conducted extensive geophysical evaluation and 32,719 metres of diamond drilling, at a cost of $7.5-million resulting in the resource announced today. Significantly, the property is not burdened with royalties, thus enhancing the economics of mining and processing.

"Aggregate acquisition and exploration expenses of $11.1-million, much of which has been contributed by our joint venture partners, equate to a finding cost of 10 cents per silver-equivalent ounce. Expenditure of an additional $3-million (U.S.) to be provided by Electrum on the next phases of drilling, exploration and development will undoubtedly further enhance the value of the property with programs to enhance both the class and quantity of current resources in the Blind, El Sol and Santo Nino deposits and, specifically, the recent high-grade discovery at Mina La Bocona."

Resource model highlights

Three separate deposits comprising sets of subparallel, northwest-trending and steeply dipping zones were modelled using mineralized intercepts and geological information from Southern's exploration work on the property from 2011 to 2015. The modelled deposits extend over a one-kilometre strike length and up to 600 metres depth. Thick intercepts of high-grade mineralization in the 2015 drill holes 15CLM-25 (12.8 metres estimated true thickness averaging 113 grams per tonne silver, 0.5 gram per tonne gold, 0.4 per cent copper, 0.9 per cent lead and 3.6 per cent zinc) and 15CLM-81 (8.7 metres estimated true thickness averaging 136 grams per tonne silver, 0.5 per cent copper, 0.3 per cent lead and 4.5 per cent zinc) highlight the continued exploration potential of the mineralizing system for an additional 500 metres along strike and to the southeast. Mineralization is open at depth in all three deposits.

Resources in the indicated category comprise approximately 36 per cent of the total tonnage calculated in this estimate, with much of the indicated resources near surface and within the upper 250 metres of the Blind and the El Sol deposits.

Significantly, the current resource does not include any drill results from the east side of the central intrusion in the area of the Mina La Bocona target, which to date remains unmodelled. Drilling at Mina La Bocona in 2015 returned thick high-grade zones of mineralization, including a 3.9-metre estimated true thickness of 13.5 grams per tonne gold, 37 grams per tonne silver, 2.2 per cent lead and 1.7 per cent zinc (1,093 grams per tonne silver equivalent) and an 8.2-metre estimated true thickness of 0.5 gram per tonne gold, 150 grams per tonne silver, 3.7 per cent lead and 0.7 per cent zinc (325 grams per tonne silver equivalent) in drill hole 15CLM-078 (see news release dated Oct. 1, 2015). Further drilling on the Mina La Bocona target is planned for the 2016 exploration program in order to properly delineate this target.

KGL suggests that an underground mining scenario is appropriate for the project at this stage and has recommended a 150-gram-per-tonne-silver-equivalent cut-off value for the base-case resource estimate. Also reported are 100-gram-per-tonne-silver-equivalent, 150-gram-per-tonne-silver-equivalent, 250-gram-per-tonne-silver-equivalent, 350-gram-per-tonne-silver-equivalent and 450-gram-per-tonne-silver-equivalent cut-off values, which demonstrate both a significant increase in tonnage and contained precious metals and base metals at the lower 100-gram-per-tonne-silver-equivalent cut-off value and significant increases in precious-metal and base-metal grades at incrementally higher cut-off values. A National Instrument 43-101 technical report will be posted on SEDAR within 45 days.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be classified as mineral reserves. There is no assurance that any part of the inferred resource will be converted to measured or indicated mineral resources or ultimately converted to a mineral reserve.

2016 exploration program

Management is pleased with the results received to date from the exploration and definition drilling program on the Cerro Las Minitas project. Compilation and analysis of the 2015 results continue toward planning of the 2016 exploration program on the property with Southern as the operator, the details of which will be announced shortly. Electrum has contributed a total of $2-million (U.S.) expended on exploration and earned a 30-per-cent indirect interest in the Cerro Las Minitas project. Electrum has the right to earn an additional 20-per-cent indirect interest by expending $1.5-million (U.S.) in exploration expenditures in the succeeding 30 months of the option term. A final 10-per-cent indirect interest may be earned by it expending an additional $1.5-million (U.S.) in exploration expenditures during this time period.

Priorities for the coming 2016 exploration program will continue to define the overall size of the project and include:

• Drill testing the downdip and the southeastern extensions of the Blind and El Sol mineralized zones;
• Further extension and delineation of high-grade, precious-metal-enriched mineralization at the Mina La Bocona target on the eastern side of the Central Intrusion;
• The identification of new discoveries throughout the district-wide property package.

Cerro Las Minitas resource parameters

The estimate was carried out using a block model constrained by 3-D wireframes of the individual mineralized zones. The block model comprises an array of blocks measuring 10 metres by two metres by 10 metres, with grades for silver, gold, copper, lead and zinc interpolated using inverse-distance-squared (ID2) weighting. Silver-equivalent values were subsequently calculated from the interpolated block grades.

The interpolation was carried out in three passes using progressively larger search radii to a maximum of 100 metres by 100 metres by 25 metres. For all passes, the interpolation was restricted to a minimum of one composite and a maximum of eight composites, with a maximum of four composites from any one drill hole (a minimum of two drill holes required for over four composites).

Bulk densities were based on a total of 106 individual measurements taken by Southern field personnel from nine mineralized zones ranging from 2.9 metres to 10.9 metres in thickness. These density values ranged from 2.51 tonnes per cubic metre to 4.15 tonnes per cubic metre. However, an average value of 2.85 tonnes per cubic metre was used as it was thought to be representative of the densities within the Blind, El Sol and Santo Nino zones.

Only silver values have been capped in order to remove the effects potential overestimation due to statistical outliers. The threshold chosen was 600 grams per tonne silver. Analysis was performed to determine if grade limiting was necessary for the other constituent metals, and it was determined that this was unnecessary.

                     SUMMARY OF MINERAL RESOURCES AT THE
              CERRO LAS MINITAS PROJECT, DURANGO STATE, MEXICO

                        Tonnes      Ag      Au      Pb      Zn      Cu    AgEq
                       (000s t)   (g/t)   (g/t)     (%)     (%)     (%)   (g/t)

100 g/t AgEq cut-off
Indicated                5,499      74    0.06     1.9     2.0    0.08     247
Inferred                 7,958      75    0.14     1.5     3.7    0.19     322

150 g/t AgEq cut-Off
Indicated                3,724      90    0.05     2.3     2.5    0.09     305
Inferred                 6,611      82    0.17     1.6     4.3    0.20     363

250 g/t AgEq cut-off
Indicated                1,658     125    0.04     3.4     4.0    0.14     452
Inferred                 4,434      98    0.17     1.9     5.5    0.25     446

350 g/t AgEq cut-off
Indicated                1,086     143    0.05     4.0     5.0    0.16     536
Inferred                 2,692     120    0.13     2.1     7.0    0.31     543

450 g/t AgEq cut-off
Indicated                  641     169    0.05     4.9     5.7    0.16     630
Inferred                 1,909     131    0.12     2.3     7.9    0.37     605

Notes:
(1) The current resource estimate was prepared by Garth Kirkham, PGeo,
    of Kirkham Geosystems Ltd.
(2) CIM definitions were followed for classification of mineral resources.
(3) Mineral resources were constrained using mainly geological constraints
    and approximately 10-gram-per-tonne-silver-equivalent-grade shells.
(4) Mineral resources were estimated using long-term prices of $15 per
    ounce silver, $1,100 per ounce gold, $2.75 per pound copper, 90 cents
    per pound lead and 90 cents per pound zinc, as well as metal
    recoveries of 82 per cent silver, 86 per cent lead and 80 per cent
    zinc. All prices are stated in U.S. dollars.

  
                     SUMMARY OF MINERAL RESOURCES AT THE 
              CERRO LAS MINITAS PROJECT, DURANGO STATE, MEXICO                                  

                              Ag          Au       Pb       Zn      Cu        AgEq
                        (000s oz)   (000s oz)    (Mlb)    (Mlb)   (Mlb)   (000s oz)
                         
100 g/t AgEq cut-off
Indicated                 13,060        10.1    225.8    241.8     9.8      43,635
Inferred                  19,170        36.9    258.3    650.2    33.1      82,448
150 g/t AgEq cut-off 
Indicated                 10,834         6.3    189.2    206.9     7.7      36,532
Inferred                  17,533        35.4    237.3    626.4    29.0      77,252
250 g/t AgEq cut-off   
Indicated                  6,686         2.3    124.6    146.8     5.1      24,072
Inferred                  13,962        24.3    182.9    539.9    24.7      63,642
350 g/t AgEq cut-off
Indicated                  4,997         1.6     95.7    119.2     3.9      18,724
Inferred                  10,378        11.0    126.3    414.1    18.5      47,002
450 g/t AgEq cut-off
Indicated                  3,477         1.0     69.5     80.9     2.3      12,995
Inferred                   8,021         7.4     95.2    333.6    15.4      37,112

Notes:                                                                      
(1) The current resource estimate was prepared by Garth Kirkham, PGeo,  
    of Kirkham Geosystems Ltd.                                                    
(2) CIM definitions were followed for classification of mineral resources.
(3) Mineral resources were constrained using mainly geological constraints   
    and approximately 10-gram-per-tonne-silver-equivalent-grade shells.                               
(4) Mineral resources were estimated using long-term prices of $15 per 
    ounce silver, $1,100 per ounce gold, $2.75 per pound copper, 90 cents 
    per pound lead and 90 cents per pound zinc, as well as metal 
    recoveries of 82 per cent silver, 86 per cent lead and 80 per cent
    zinc. All prices are stated in U.S. dollars.       

The mineralized zones were initially defined by Southern personnel and then validated and refined by KGL. The mineralized wireframes were defined using a combination of geological constraints, grade threshold of an approximately 10-gram-per-tonne-silver-equivalent-grade cut-off and no minimum thickness.

For all zones, blocks are classified as inferred if they fell within 100 metres of a drill hole intercept. Blocks within 50 metres of the nearest intercept and estimated by at least two drill holes were classified as indicated. However, an interpreted boundary is the final determination of indicated resources in order to remove a "spotted dog" effect.

Robert Macdonald, MSc, PGe., is a qualified person as defined by NI 43-101, and he is responsible for the supervision of the exploration on the Cerro Las Minitas project and for the preparation and review of the technical results in this disclosure. Garth Kirkham, PGeo, and principal of Kirkham Geosciences Ltd. is the independent qualified person responsible for the preparation and disclosure of the mineral resource estimate.

We seek Safe Harbor.