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NEWS

August 1, 2006

Southern Silver Completes Phase I Drill Program on La Sorpresa
Southern Silver Exploration Corp. Southern Silver Exploration Corp reported today assay results from nine of twelve drill holes from Southern's first-phase diamond drill program on its La Sorpresa property, Jalisco , Mexico . Drilling totaled 1,645 metres in twelve drill holes and tested several shallow zones of potentially significant copper mineralization in three widespread target areas and two deeper zones outlined by geophysics.

Drilling at the Main Breccia and the South Breccia tested thick, highly anomalous zones of copper oxides and coarse disseminated chalcopyrite. The Main and South Breccias are about 800 metres apart and appear to form part of a more widespread mineral system which crops out throughout the property.

Commenting on the program, Southern Silver president Lawrence Page said, "drilling proceeded under difficult conditions. Core recovery was unsatisfactorily low through portions of the main mineralized zones due to significant grinding of the fragments and washing of the matrix material in some critical intervals. Chalcopyrite mineralization is contained mainly in matrix and washing and loss of this material may have resulted in reported values for these intervals that may not be truly representative of the mineralization in these zones." Page noted that the mineralized intervals from drill hole LS06-03, which tested beneath historic mine workings, are significantly lower than grades reported earlier (32 metres of 2.1% Cu and 9 g/t Ag) from underground sampling in the workings. (see news release dated November 29/05)

Southern Silver is working closely with the drill contractor, Major Drilling de Mexico, S.A. de C.V. to enhance core recovery. Options currently being considered include use of an RC drill rig or increasing core diameter from HQ to PQ.

Reportable assays of mineralized zones from the Main Breccia grade up to 0.26% Cu over 61.5 metres . Higher-grade intervals, which include 1.94% Cu over 2.4 metres and 0.37% Cu over 10.6 metres , may in part represent sub-vertical feeder structures to the manto-styled breccia zones. Breccia zones appear as resistivity lows in IP geophysical surveys and can be traced laterally from the area of the historic working. Mineralization in the area of the Main Breccia remains open to the north and to the southwest and sources for this upper level "manto" -styled mineralization have yet to be determined.

A second thick zone of mineralized quartz-tourmaline breccia was tested at the South Breccia and includes reportable higher-grade intervals of up to 0.55% Cu over 10.1 metres . This mineralization is associated with a broad IP geophysical anomaly that extends to the south and west under post-mineral cover.

Two drill holes, which tested the north extension of the Main Breccia also intersected copper mineralization; however, the drill holes were abandoned prior to completion due to poor drilling conditions. Results from these two holes are pending.

Page said that despite poor core recovery, Southern Silver is highly encouraged by the thick zones of mineralization encountered to date. "This conclusively demonstrates that we are involved in an extensive, strongly mineralized system," he said.

Continued work on the La Sorpresa project will include an immediate Phase II drill program on the original claims and surface exploration and drilling on Southern Silver's newly acquired, 9700ha, Magistral I claims which border the La Sorpresa property (see NR10-06). Widespread copper mineralization identified in recent drilling on the La Sorpresa claims, airborne geophysical data obtained as part of the Magistral I acquisition and reconnaissance mapping and sampling in the newly acquired property, highlight the district scale, exploration potential of the area. The geophysical data is currently being re-processed and evaluated by Southern's geophysical consultants and detailed mapping and sampling of the newly acquired property is scheduled to begin in August. Results of the recent drilling on the La Sorpresa project will be combined with this new data to establish the next set of targets for follow-up drill testing.

Table 1: Selected assays from La Sorpresa Project Phase I Drilling:


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On behalf of the Board of Directors,

"Lawrence Page"
Lawrence Page QC, President, Director
Southern Silver Exploration Corp.

For further information visit www.southernsilverexploration.com or please contact Jay Oness at 1-888-456-1112 / 604-684-9384 or by email at corpdev@mnxltd.com