South American Silver Notifies Bolivian Government of an Investment Dispute over the Expropriation of Malku Khota mining concessions
October 23, 2012, Vancouver, British Columbia- South American Silver Corp. (TSX: SAC, US OTC: SOHAF) announced today that its wholly-owned subsidiary, South American Silver Limited, has delivered a formal letter to the Plurinational State of Bolivia notifying it of an investment dispute between South American Silver and Bolivia. The dispute has arisen as a result of acts of the Government of Bolivia including the issuance of Supreme Decree No.1308 on August 1, 2012. The Decree revoked mining concessions held by Compañia Minera Malku Khota S.A. (CMMK), a wholly-owned subsidiary of South American Silver Limited.
South American Silver Limited is a protected investor under the Bilateral Investment Treaty between the Government of the United Kingdom and the Government of Bolivia, and the actions of the Bolivian Government are in violation of that Treaty and of international law. Notification of the investment dispute triggers a six-month cooling-off period during which the disputing parties may negotiate a settlement. If settlement cannot be reached within the cooling-off period, South American Silver intends to file for international arbitration under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL) claiming full compensation based on fair market value of the Malku Khota project.
Phillip Brodie-Hall, President and CEO of South American Silver said, "We had made significant investments in Bolivia leading to the discovery of the Malku Khota silver-indium gallium deposit to which we added substantial value through the application of our exploration expertise and our unique processing technology. It is most unfortunate that development of the project has been cut short by the nationalization of our concessions but we are confident that the international arbitration process gives us the means to recover the full value of our project."
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the large scale Escalones copper-gold project in Chile and the realization of value from the Malku Khota project in Bolivia. South American Silver Limited is a company incorporated in the Bermuda Islands, an overseas territory of the United Kingdom, which through its wholly owned Bahaman subsidiaries: Malku Khota Ltd, G.M. Campana Ltd. and Productora Ltd., owns one hundred per cent of the outstanding shares of Compañía Minera Malku Khota S.A., a Bolivian company, holder of the Malku-Khota mining concessions until their nationalization by the Bolivian Government. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF". Additional information related to South American Silver Corp. is available at www.soamsilver.comand on SEDAR at www.sedar.com.
South American Silver Corp. Contact:
Phillip Brodie-Hall
Chief Executive Officer
Robert Gill
Investor Relations
South American Silver Corp.
604-681-6926 or 1-855-681-6926 Toll Free
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