Corporate Strategy and Objectives

"Southern's growth strategy is to focus on the development of quality assets, in significant mineralized trends, close to infrastructure. The company is engaged in the acquisition, exploration and development of high-grade precious/base metals properties within North America. Southern Silver's high potential exploration projects combined with a low market capitalization, a commitment to the joint venture business model and low operating costs represent an excellent opportunity for future corporate growth and an increase in shareholder value.

In Mexico the company's copper/gold Minas de Ameca project encompasses a 337 sq. km claim package in a 25 kilometre long mineralized trend in Jalisco State as well as the Pinabete project, a silver-zinc-lead Carbonate Replacement Deposit (CRD) deposit located in Chihuahua State.

The Minas de Ameca project represents an outstanding high-grade copper/gold/silver exploration opportunity that is located along the western margin of the Sierra Madre Occidental terrane. Geological reconnaissance has identified several strongly mineralized, copper-rich breccias located at volcanic-intrusive contacts and numerous structurally controlled, quartz-hematite vein systems which occur along a 25 km long mineralized trend extending southeast through the La Sorpresa, Magistral 1, El Magistral and Quila properties. The company has completed a Phase I, 1,645 metre drill program testing these breccias on La Sorpresa with a Phase II drill program continuing to test targets within the original breccia zones as well as targets in the Magistral I copper prospect. Initial assays from the Phase II drilling program are pending.

The company is advancing exploration on multiple highly prospective targets in the region and has just completed a preliminary reconnaissance drill program designed to guide a more comprehensive drilling campaign in the spring of 2007.

The silver-zinc-lead Carbonate Replacement (CRD) Pinabete project, located nearby to the world class Santa Eulalia and Naica deposits attest to the company's exceptional potential within this highly prolific district.

As well, the company's other substantial property is the Tombstone prospect a multi-target, porphyry/skarn exploration property located in Arizona. Southern Silver president Lawrence Page said "this recent acquisition complements the company's Mexican projects and continues management's strategy of creating upside leverage through exposure to aggressive exploration programs targeted to the discovery of significant gold/silver, base metal deposits."

Southern Silver Exploration Corp.: A low risk junior exploration company with substantial upside potential.

Goldletter December 2007