Research Pit

[Mr. Zen]

Silver District Property Optioned to Magellan Gold

Vancouver, BC, Canada; August 29, 2012 – Columbus Silver Corporation (CSC: TSX-V) ("Columbus Silver or the "Company") is pleased to announce that it has entered into an option agreement (the "Agreement") with Magellan Gold Corporation ("Magellan")("MAGE: OTCBB"), under which Magellan may earn all of the Company's interest in the Silver District property located in Arizona (the "Property") for an aggregate purchase price of US$1,013,200.

Magellan paid Columbus Silver US$63,200 on signing the Agreement, and is required to pay a further US$50,000 on or before December 31, 2012, US$400,000 by the end of 2013, and a final $500,000 by the end of 2014 to exercise the option. As of October 1, 2012, Magellan will also be required to maintain the Property in good standing by making all underlying lease and maintenance payments during the course of the option.

The Silver District Property consists of 108 unpatented mining claims, 4 patented claims and one state lease, totaling over 2,000 acres. The property covers a portion of the historic Silver District in La Paz County, approximately 80 kilometers (50 miles) north of Yuma in southwest Arizona. Subject to third party net smelter royalties, Columbus Silver controls a 100% interest in the Property.

ON BEHALF OF THE BOARD,

Robert F. Giustra
President & CEO, Director