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NEWS

August 31, 2010

Southern Silver Wins Auction for State Land Leases at Oro and Renews Exploration Program

Southern Silver Exploration Corp (SSV.V) reported that it was the successful bidder for two parcels of New Mexico State Land, which are critical to the further evaluation of its Oro property.  This lease acquisition increases the project area to 1,127 hectares.  The Company ceased exploration activities after completing a five-hole, 1645-metre diamond drill program earlier this year and delayed release of drill results pending the outcome of the New Mexico land auction, which had been postponed by the State several times.

The newly acquired leases will allow testing of several targets that historically has been hampered by fragmented land holdings in the District. In 2006 the Company commenced a program of land consolidation with an option to purchase BLM claims and a contract to purchase patented claims upon which historic mines have been worked to the water table. With the acquisition of the two interlaying State Leases, the Company has essentially consolidated the land package over this historic district to allow a comprehensive and systematic geological evaluation of the district.

The Company’s previous work, which included geological mapping, surface sampling and the drilling program, identified three types of potential deposits at Oro: bulk-tonnage, intrusion-related gold mineralization; deeply buried copper porphyry; and polymetallic replacement/skarn deposits.

Southern Silver’s work on the project to date has identified strong surface alteration and distinct geochemical zoning in rock and bio-geochemical samples throughout the property.  The widely spaced drill holes provide an initial test of five exploration areas, but several important areas could not be tested because the Company did not hold the State leases at that time.  Two of the holes are particularly encouraging because they intersected thick intervals of anomalous metals associated with silicified and pyritized hornfels, skarn, and intrusions.

Hole OR10-001 tested an area close to an exposed intrusion, which is believed to be genetically related to mineralization, and it intersected strong skarn and hornfels alteration with anomalous Zn, Pb, Ag, and Cu near the top of the hole and a thick zone of anomalous Cu deeper; the bottom 61m of the hole averages 0.028% Cu, with low concentrations of Ag, Pb and Zn.  This zoning is consistent with a copper porphyry or a copper-rich skarn deposit at depth.

Hole OR10-002 intersected strongly silicified limestone and altered dikes that contain several intervals of anomalous gold, including 5.2m of 1.15g/t Au and 0.38% Zn (true thickness unknown due to limited drill data).  Arsenic, a pathfinder element, is also strongly anomalous in this hole.  The hole was located at the northern end of the target area and did not intersect the structures that contain the highest gold values in surface samples; however, the newly acquired State Leases will allow these structures to be properly drill tested.

Other holes intersected generally lower concentrations of anomalous metals. See the company’s website for details of this drill program (www.southernsilverexploration.com).

The Company plans to conduct geophysical surveys upon the mobilization of the contractors, and follow-up with diamond drilling after new sites have been chosen and permitted. This program is expected to be completed by late Winter of 2011.

Elliott Crist (P.Geo) is the Qualified Person responsible for reviewing the technical data of the Oro Project.

On behalf of the Board of Directors
“Lawrence Page”
Lawrence Page, President, Southern Silver Exploration Corp.

For further information, please visit the company’s website at southernsilverexploration.com or contact Liana Shahinian at 1.888.456.1112 or by email at liana@mnxltd.com.

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