GREAT PANTHER SILVER UPDATES MINERAL RESOURCES AT SAN IGNACIO MINE

2014-07-02 09:17 ET - News Release

Mr. Robert Archer reports

Great Panther Silver Ltd. is providing an update to its mineral resources at its 100-per-cent-owned San Ignacio silver-gold mine in Guanajuato, Mexico.

The April, 2014, mineral resource estimate totals 1,245,000 silver-equivalent ounces of indicated mineral resources and 5,645,000 AgEq ounces of inferred mineral resources at a cut-off of 125 grams per tonne silver-equivalent.

The indicated mineral resource is a new addition, comprising 103,000 tonnes at 165 g/t silver and 3.54 g/t gold, and incorporates detailed infill drilling completed in the fourth quarter of 2013 (see news release dated Dec. 16, 2013) and data from mine development along the Intermediate vein. The inferred mineral resource totals 737,000 tonnes at 115 g/t silver and 2.04 g/t gold. The breakdown for the estimate is provided in the table.

                    SAN IGNACIO MINERAL RESOURCE ESTIMATE

                                  Ag      Ag      Au      Au    AgEq    AgEq
                     Tonnage    (g/t)   (Moz)   (g/t)    (oz)   (g/t)   (Moz)
Indicated resource
INT vein             103,000     165   0.543    3.54  12,000     377   1.245
Inferred resource
DIOS1 vein           178,000     103   0.591    1.99  11,000     224   1.287
DIOS2 vein           147,000     141   0.663    2.38  11,000     285   1.346
INT vein             241,000     135   1.042    2.12  16,000     262   2.026
MELL vein            171,000      77   0.425    1.68   9,000     180   0.987
Total inferred       737,000     115   2.721    2.04  48,000     238   5.645

Notes:

1. Base-case cut-off grade of 125 g/t silver-equivalent;
2. Silver-equivalent calculated using a 60-to-1 ratio of silver to gold value;
3. Rock density for all veins is 2.63 tonnes per cubic metre;
4. Totals may not agree due to rounding;
5. Grades in metric units;
6. Contained silver and gold in troy ounces;
7. Vein names abbreviated as follows: INT stands for Intermediate vein; DIOS1 stands for Nombre de Dios 1 vein; DIOS2 stands for Nombre de Dios 2 vein; and MELL stands for Melladito vein.

Recent drilling enabled upgrading a portion of the inferred mineral resource from the Intermediate vein to the indicated mineral resource category. The upgrade resulted in an 18-per-cent decrease in inferred resources when compared with the 2012 estimate. Inferred mineral resources are unchanged for the Melladito and Nombre de Dios 1 and 2 veins.

The goal of recent exploration work was to increase confidence in the mineral resources of the Intermediate vein. The company completed 13 infill drill holes into the vein development (see news release dated Dec. 16, 2013) and collected 112 chip samples from 200 metres of underground mine development. Overall mineral resources at San Ignacio considered 91 drill holes completed between sections 450N and 1100N (up to hole ESI13-116) as well as 112 underground chip samples.

The mineralization at San Ignacio is hosted in classic epithermal quartz-calcite veins. The geologic interpretation was based on diamond drilling, and surface and underground mapping. Veins were modelled to a 1.5-metre minimum width and raw assays were composited to the intersection width of the wireframes. The drill hole and underground composites were used in the estimate of block grades using inverse distance squared. Volumes were converted to tonnages using 2.63 t/cubic m, which were based on results from density tests completed on 313 drill core samples captured by the wireframes.

This mineral resource estimate has an effective date of April 6, 2014, and was classified as indicated and inferred according to the the Canadian Institute of Mining, Metallurgy and Petroleum definition standards on mineral resources and mineral reserves, and is consistent with the requirements of National Instrument 43-101. Analysis of underground mine samples and drill core samples was performed by SGS Minerals Services in the company's Guanajuato, Mexico, laboratory.

Areas of interest for the 2014 drill program will be the extension of the drilling south along the Intermediate vein and some infill drilling on the Melladito, and Nombre de Dios 1 and 2 veins.

Block model graphics, maps, sections and previous news releases can be viewed on the company's website.

The company's quality assurance/quality control program includes the regular insertion of blanks, duplicates and standards into the sample shipments. Robert Brown, PEng, vice-president of exploration for Great Panther Silver and its wholly owned Mexican subsidiary, Minera Mexicana El Rosario SA de CV, and Michael Waldegger, PGeo, senior resource geologist, MFW Geoscience Inc., are designated as the qualified persons for the San Ignacio mine project under the meaning of NI 43-101 and have reviewed this news release.