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South American Silver Intersects 12.19 g/t Gold in a New Gold Zone at the Escalones Copper-Gold Porphyry Project in Chile

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VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/02/13 -- South American Silver Corp. (TSX: SAC)(OTCQX: SOHAF) (the "Company") is pleased to announce results from diamond drill hole ES-43 at the Escalones copper-gold project in Chile. The hole intersected 12.19 g/t gold over 3.7 metres within a larger interval of 11.9 metres averaging 4.39 g/t gold. The gold mineralization is within a larger "gold-only" intercept of 50.2 metres averaging 1.16 g/t gold located above the large copper-gold skarn that comprises part of the 3.8 billion pound copper resource. Strong copper-gold mineralization averaging 1.9% copper and 0.32 g/t gold over 5.1 metres, occurs in the skarn below the "gold only" mineralization. Assays are pending for the remainder of the hole.

---------------------------------------------------------------------------Drill From To cum L Copper Molybdenum Gold Silver Copper Hole (m) (m) (m) % g/t g/t g/t Eq%---------------------------------------------------------------------------ES-43--------------------------------------------------------------------------- 32 35.7 3.7 0.00 21 12.19 0.10 8.14---------------------------------------------------------------------------within--------------------------------------------------------------------------- 23.77 35.7 11.9 0.00 22 4.39 0.10 2.94---------------------------------------------------------------------------the entire "gold only" intercept:--------------------------------------------------------------------------- 23.77 73.9 50.2 0.01 32 1.16 0.10 0.80---------------------------------------------------------------------------Copper-gold skarn located below the gold-only intercept:--------------------------------------------------------------------------- 73.92 79.0 5.1 1.87 77 0.32 14.12 2.28---------------------------------------------------------------------------The true width of these intercepts is not known but is believed to bebetween 80%-100% of lengths shown.



Ralph Fitch Executive Chairman, stated, "The new "gold-only" zone intercepted by hole ES-43 represents a potentially important additional mineralization type on the property, which could add to the 610,000 ozs of gold contained in the current resource. Hole ES-43 is located 250 metres from the nearest existing hole to the north and 200 metres from the nearest hole to the south, giving ample space to explore for this type of high grade gold mineralization both near the surface and to depth."

The drill program at Escalones continues to make good progress after the storm related interruption reported in February (see News Release NR 13-03 dated 13th February and NR 13-05 dated 7th March). Presently, holes ES-47, 48 and 49 are being drilled on the Meseta and additional results will be forthcoming in coming weeks.

Considerable interest was shown in Escalones at the recent PDAC mining investment show in Toronto and a number of companies have now indicated interest in joint venturing the project. Confidentiality Agreements have been prepared for several companies and discussions are underway.

The Escalones copper-gold project, a gold rich porphyry copper and skarn deposit, is located approximately 100 km southeast of Santiago, Chile and 35 km east of El Teniente, the world's largest underground copper mine. Escalones, as previously announced and supported by a NI 43-101 technical report, contains a defined Inferred Resource of 420 million tonnes of mineralized material containing 3.8 billion lbs of copper, 56.9 million lbs of molybdenum, 610,000 ozs of gold and 16.8 million ozs of silver using a 0.2% Cu Equivalent cut-off grade (see December 19, 2011 News Release). The detailed NI 43-101 Technical Report is available on SEDAR under the Company's profile and on the Company's website at www.soamsilver.com. This resource estimate will be updated following the completion of this season's drilling.

Maps showing the location of hole ES-43 can be found on the Company website. http://www.soamsilver.com/april-2013-news-release-escalones-image.asp.

The qualified person for this press release is Felipe Malbran, Executive VP of Exploration, South American Silver Corp., and he has reviewed and approved the content of this press release.

Samples were analyzed by Andes Analytical Assay Laboratory located in Santiago, Chile. Gold was analyzed using fire assay and the AA (Atomic Absorption) method while silver, copper, molybdenum and 38 additional elements were analyzed by ICP AES HF43 method with a four-acid digestion. The copper equivalent has been calculated using the following prices: copper $3.50/lb, gold $1,600/troy oz, silver $30.00/troy oz and molybdenum $11.00/lb. Values have not been adjusted for metallurgical recoveries.

About South American Silver Corp.

South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the large scale Escalones copper-gold project in Chile and the realization of value from the Malku Khota project in Bolivia. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTCQX market as "SOHAF". Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.

Forward-looking Statements

Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "will", "plan", "future", "could", "potentially", "indicated", "creating", "realization" and similar expressions. Information concerning mineral resource estimates and the interpretation of exploration results may also be considered forward-looking statements as such information constitutes a prediction of the mineralization that may be present at the project. This release contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.

Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to risks of the mineral exploration industry which may affect the advancement of the Escalones project, including possible variations in mineral resources or grade, metal prices, availability of sufficient financing to fund further required work in a timely manner and on acceptable terms, timely receipt of required permits, availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, road access to the property, changes in project parameters as plans continue to be refined and political, regulatory, environmental and other risks of the mining industry; the interest of potential joint venture partners for Escalones; the political and economic climate in Bolivia including the attitudes and actions of the Bolivian government related to foreign investment in Bolivia; the international arbitration process; and other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com.

The assumptions made in developing the forward-looking statements include: the execution of the Company's existing plans and further exploration and development programs for Escalones, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs including the availability of equipment and qualified personnel to advance the Escalones project, the timely receipt of required permits for Escalones, road access to the property, the continuing support for mining by local governments in Chile, the availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms to advance the Escalones property; the accuracy of current mineral resource estimates and interpretation of drill, metallurgical testing and other exploration results; the interest of potential joint venture partners for Escalones; and the ability of the Company to realize value from its investments in Bolivia. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of April 02, 2013.

Cautionary note regarding resource estimates

The information in this press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource estimates included in this press release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum Definitions for Mineral Resources and Mineral Reserves. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. The estimation of quantities of resources and reserves is complex, based on significant subjective assumptions and forward-looking information, including assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Changes in data and/or assumptions could cause estimates to substantially change from period to period. No assurance can be given that the indicated level of mineral will be produced. Actual production could differ from expected production and an adverse change in mineral prices could make a resource uneconomic to mine. Variations could also occur in actual ore grades and recovery rates from estimates.



Contacts:
South American Silver Corp.
Phillip Brodie-Hall
Chief Executive Officer
604-681-6926 or 1-855-681-6926 Toll Free

South American Silver Corp.
Robert Gill
Investor Relations
604-681-6926 or 1-855-681-6926 Toll Free
www.soamsilver.com



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