TSX Symbol: SACUS OTC: SOHA

            TSX Symbol: SACUS OTC: SOHAF NEWSRELEASE: 12-20  SouthAmerican Silver Files Third Quarter 2012FinancialStatements and MD&A 9 November 2012, Vancouver, British Columbia—South American Silver Corp. (TSX: SAC, US OTC: SOHAF) reports therelease of its unaudited condensed interim consolidated financial statementsfor the three and nine months ended September 30, 2012 and the relatedmanagement’s discussion and analysis of financial position and results ofoperations (“MD&A”). In this press release, allamounts are expressed in U.S. dollars.As at September 30, 2012, the Company had working capital of $29.0million, including cash and cash equivalents of $29.5 million. With these fundsin place, the Company is in a strongfinancial position to expand activities at its Escalones project, to pursue full compensation based on the fairmarket value of the Malku Khota project, and to pursue other corporateinitiatives.In Chile, the Company hascommenced a drilling program at Escalones in the November-April window. Theplanned program will aim to confirm and expand the resource in the categoriesreported previously: oxide/sulphide, skarn and porphyry and will providematerial for further metallurgical testing. The results from this drilling willbe combined with earlier results and it is intended that an updated resourcewill be developed and reported in compliance with NI 43-101 in mid-2013. In Bolivia, the Companyis vigorously pursuing all options to maximize the value from the Malku Khotaproject and intends to pursue full compensation based on the fair market valueof the project through international arbitration in the event that settlementcannot be reached with the government of Bolivia within the six-monthcooling-off period which ends on April 23, 2013.The Company has severalessential components that position it well for the future including experiencedleadership, a strong balance sheet, and proprietary acid chloride leachtechnology that gives it a competitive advantage for developing bulk mineable depositsthat contain both precious and base metals as well as indium and gallium. TheCompany has the opportunity in the period ahead to also look at other projectsin a market that is very challenging for many companies to raise capital.Copies of the unauditedfinancial statements and related MD&A can be found on SEDAR at www.sedar.com and on the Company’swebsite at www.soamsilver.com. About South American Silver Corp.South American Silver Corp. is a growth focused mineralexploration company creating value through the exploration and development ofthe large scale Escalones copper-gold project in Chile and the realization ofvalue from the Malku Khota project in Bolivia. The Company’s approach tobusiness combines the team’s track record of discovery and advancement of largeprojects, key operational and process expertise, and a focus on communityrelations and sustainable development. Management has extensive experience inthe global exploration and mining industry. The Company’s shares are listed onthe Toronto Stock Exchange under the symbol “SAC” and on the US OTC market as“SOHAF”. Additionalinformation related to South American Silver Corp. is available at www.soamsilver.com and on SEDARat www.sedar.com.SouthAmerican Silver Corp. Contact: Robert GillInvestor RelationsSouth American Silver Corp. 604-681-6926            or 1-855-681-6926 Toll Free  Forward-looking statements Forward-lookingstatements look into the future and provide an opinion as to the effect ofcertain events and trends on the business. Forward-looking statements mayinclude words such as “will”, “intends, “pursue”, “expand”, “maximize”,  “planning”, “future”, “ahead”, “creating”,“realization”  and similar expressions.This release contains forward-looking statements. These forward-lookingstatements are based on current expectations and various estimates, factors andassumptions and involve known and unknown risks, uncertainties and otherfactors. Readers are cautioned notto place undue reliance on these statements as the Company’s actual results,performance or achievements may differ materially from any future results,performance or achievements expressed or implied by such forward-lookingstatements if known or unknown risks, uncertainties or other factors affect theCompany’s business, or if the Company’s estimates or assumptions proveinaccurate. Therefore, the Company cannot provide any assurance thatforward-looking statements will materialize. Factors that could cause resultsor events to differ materially from current expectations expressed or impliedby the forward-looking statements, include, but are not limited to, thepolitical and economic climate in Bolivia including the attitudes and actionsof the Bolivian government related to foreign investment in Bolivia;the pursuitby the Bolivian government of stated courses of action; the internationalarbitration process; and risks of the mineral exploration industry which mayaffect the advancement of the Escalones project, including possible variationsin mineral resources or grade; metal prices; availability of sufficientfinancing to fund further required work in a timely manner and on acceptableterms; timely receipt of required permits; availability of equipment andqualified personnel; failure of equipment or processes to operate asanticipated; changes in project parameters as plans continue to be refined; andother risks more fully described in the Company's Annual Information Form filedand publicly available on SEDAR at www.sedar.com. The assumptions made indeveloping the forward-looking statements include: the ability of the Companyto realize value from its investments in Bolivia and that statements made byBolivian government officials reflect the government’s intentions; the timelyreceipt of assay results for Escalones; the accuracy of current inferredresources and the interpretation of drill and other exploration results forEscalones; the timely receipt of required permits for Escalones; theavailability of equipment and qualified personnel to advance the Escalonesproject and execution of the Company’s existing plans and further explorationand development programs for Escalones, which may change due to changes in theviews of the Company or if new information arises which makes it prudent tochange such plans or programs. Subjectto applicable laws, the Company assumes no obligation to update or revise anyforward-looking statement, whether as a result of new information, futureevents or any other reason. Unless otherwise indicated, forward-lookingstatements in this release describe the Company’s expectations as of November 9,2012.

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