Southern Silver Closes Final Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/29/11 -- Southern Silver Exploration Corp. ('Southern Silver') (TSX VENTURE: SSV)(FRANKFURT: SEG) announces that it has closed the final tranche of its previously reported non-brokered private placement by issuing 43,534 units at a price of $0.17 per unit for gross proceeds of $7,400.78. Each unit consists of one common share and one share purchase warrant exercisable to purchase one additional common share for a period of two years at an exercise price of $0.22 per share. Together with the first tranche closing on July 20, 2011 and the second tranche closing on August 16, 2011, Southern Silver has raised an aggregate $3,274,785.

Net proceeds from the private placement will be utilized for exploration and property maintenance expenses incurred on the Cerro Las Minitas and Minas de Ameca projects in Mexico and the Oro project in the USA. Securities issued pursuant to this tranche of the private placement, including common shares, share purchase warrants and finder's warrants issued as finder's fees, carry a legend restricting trading of the securities until December 30, 2011. The private placement and finder's fees are subject to regulatory approval.

On behalf of the Board of Directors

Lawrence Page, Q.C., President

Southern Silver Exploration Corp.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for Southern Silver's projects, and the availability of financing for Southern Silver's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Southern Silver Exploration Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

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.

Contacts:

Southern Silver Exploration Corp.

Liana Shahinian

1.888.456.1112
liana@mnxltd.com
www.southernsilverexploration.com