Gold Springs Resource Corp. (GRCAF)

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21 January 2013, Vancouver, British Columbia-
South American Silver Intersects Secondary Copper Enrichment Mineralization at the Escalones Porphyry Copper-Gold Project in Chile



21 January 2013, Vancouver, British Columbia-South American Silver Corp. (TSX: SAC, US OTCQX: SOHAF) (the "Company") is pleased to announce an update on drilling progress at the Escalones copper-gold porphyry project in Chile. The Company now has 3 diamond drills on the site and the first two holes have been completed. Results have been received for part of the first hole of this program. Hole 36 was drilled in the western part of the Meseta into porphyry style mineralization (see map: http://www.soamsilver.com/january-2013-news-release-escalones-image.asp). Below the glacial moraine the hole continued in partially leached bedrock with enhanced gold values. This is underlain by a mixed zone including both primary and secondary copper sulphides and copper oxides. The best 2 metres average 3.04% copper with 0.13 g/t gold. The better secondary enrichment averaged as follows:

0.99% copper with 0.15 g/t gold and 2 g/t silver over 27 metres

including

2.23% copper with 0.14 g/t gold and 1.4 g/t silver over 6 metres

This intercept continues for a total of 124 metres and averages 0.51% copper with 0.13 g/t gold and 1.1 g/t of silver which equates to a copper equivalent (CuEq*) of 0.62%. The entire mineralized interval to 358 metres averages 0.5% CuEq*. The remainder of the hole will be reported once assays are received.

Ralph Fitch, Executive Chairman of the Company stated "The significance of this intercept is that it represents the development of excellent grade mixed primary and secondary copper enrichment mineralization which previously we thought had mostly been eroded by the glacier that covered this area. If we can continue to expand this style of mineralization in other parts of the Meseta it will greatly enhance our previously reported 0.41% copper resource of 3.8 billion pounds (see December 19, 2011 News Release). It is also important that drill hole ES-36 was drilled into similar porphyry style mineralization from which the excellent 25% to 34% copper concentrates were produced in our previously reported laboratory tests (see December 10, 2012 News Release). The overlying partially leached rock also contains interesting gold values of 0.26 g/t gold with 1.5 g/t silver, a grade that could be sufficient to pay for stripping a potentially important economic benefit for the project."

The following table lists the results received to date for diamond drill hole ES 36:

From
To
Length
Copper
Molybdenum
Gold
Silver
CuEq*

metres
metres
metres
%
g/t
g/t
g/t
%

72.1
120.0
47.9
0.07
20.7
0.259
1.5
0.27

120.0
358.2
238.2
0.41
32.6
0.103
0.6
0.50

including








120.0
244.0
124.0
0.51
29.7
0.134
1.1
0.62

including








129.0
156.0
27.0
0.99
39.0
0.148
2.0
1.13

including








129.0
135.0
6.0
2.23
43.3
0.137
1.4
2.35


*copper equivalent -see end of PR



Escalones Drill Program:

Three diamond drills are now on-site as part of a substantial exploration program for the 2013 season, with the expectation that 10,000 metres will be drilled prior to the southern winter. At least six holes will be drilled in the Meseta area with a view to expanding the resource around ES 36 and the majority of the remainder will be drilled on the east side of the Meseta into the skarn mineralization with a view to expanding the resource to the East.

About Escalones:

The Escalones copper-gold project is approximately 100 km southeast of Santiago, Chile and 35 km east of El Teniente, the world's largest underground copper mine. Escalones, as previously announced and supported by a NI 43-101 technical report, contains a defined Inferred Resource of 420 million tonnes of mineralized material containing 3.8 billion lbs of copper, 56.9 million lbs of molybdenum, 610,000 ozs of gold and 16.8 million ozs of silver at a grade of 0.41% copper, 0.05 g/t gold, 1.24 g/t silver and 61 ppm molybdenum using a 0.2% copper equivalent cut-off grade. (see December 19, 2011 News Release). The detailed NI 43-101 Technical Report is available on SEDAR under the Company's profile and on the Company's website at www.soamsilver.com

Metallurgical testwork on Escalones material completed at SGS Laboratories in Ontario has shown positive results. The standard sulphuric acid leach test achieved average copper extraction of 77% from mixed copper oxide/sulphide mineralization. Copper flotation is also proving successful and rougher/cleaner flotation testing of the porphyry material achieved 25-34% copper concentrate grades at high recovery. Further metallurgical testing is underway.

Malku Khota Project, Bolivia - Update on Arbitration:

The Company's wholly-owned subsidiary South American Silver Limited continues to reiterate to the Bolivian Government its willingness to initiate negotiations to settle the dispute that arose as a result of acts and omissions of the Government of Bolivia, including the issuance of Supreme Decree No.1308 on August 1, 2012, revoking all of the mining concessions held by Compañia Minera Malku Khota S.A. (CMMK), a wholly-owned subsidiary of South American Silver Limited (the Malku Khota project). The six-month negotiation period in which the Government is expected to have discussions with the Company ends on April 23rd 2013, after which if no settlement can be reached, South American Silver Limited will formally file a Notice of 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.

Sample Analysis and Copper Equivalent Grade: (CuEq*)

Samples were analyzed by Andes Analytical Assay Laboratory located in Santiago, Chile. Gold was analyzed using fire assay and the AA (Atomic Absorption) method while silver, copper, gallium, indium, molybdenum and 38 additional elements were analyzed by ICP AES HF43 method with a four-acid digestion. The copper equivalent has been calculated using the following prices: copper $3.50 /lb, gold $1,600/troy oz, silver $30.00/troy oz, molybdenum $11.00/lb, lead $0.90/lb and Zinc $0.90/lb. Values have not been adjusted for metallurgical recoveries.

The qualified person for this press release is Felipe Malbran, Executive VP of Exploration, South American Silver Corp., and he has reviewed and approved the content of this press release.

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, the pursuit of new opportunities, 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 OTCQX as "SOHAF". Information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.



South American Silver Corp. Contact:

Robert Gill

Investor Relations

South American Silver Corp.

604-681-6926 or 1-855-681-6926 Toll Free



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