Prospero Silver Corp.: Surface Sampling Yields Highly Anomalous Precious and Base Metals in Santa Maria del Oro Project's Matorral Zone; Drill Targets Identified

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/23/12 -- Prospero Silver Corp. (TSX VENTURE: PSL) ("Prospero" or the "Company") is pleased to announce completion of an area wide mapping and sampling survey of the Matorral dike and vein system in the northeastern sector of its Santa Maria del Oro project in Durango State, Mexico. The following features emerge from this survey:

--  The survey shows three major structures in the 4km long Matorral target
    zone, representing a combined strike length of 7km of NW striking
    structures with associated high-level epithermal silicification (see
    figure 1);
--  Multi-elemental geochemistry along the trend revealed elevated precious
    metal (Ag, Au), base metal (Zn, Pb, Mo, Fe), and pathfinder elements
    (Hg, Sb, As);
--  The Northern zone exhibits the best geochemistry in a 5m deep working
    where 9 channel samples average 27.2 g/t Ag and 0.12 g/t Au over a width
    of 2.3m, with assays up to 178 g/t Ag and 0.42 g/t Au in a sample 0.5m
    wide. These are associated with multistage banded veins, and represent a
    precious metal-bearing hot spot and the best drill target for testing
    the system at depth;
--  The structural complexity, large size, and elevated geochemical
    anomalies of the Matorral target area suggest the system could represent
    the upper portions of a deeper productive mineralized zone;
--  Six targets have been identified with Phase 1 drilling planned to test
    at least three of them.

Geology and Geochemistry

Within the 4km Matorral hydrothermal system (Figure 1), a total of 7km of high-level outcropping epithermal structures were mapped and sampled. These systems are closely associated with a felsitic dike complex and occur within a Jurassic volcanic and sedimentary rock sequence. The host rocks are similar to those containing the historic high-grade Magistral del Oro veins, situated on an adjacent third party property 10km to the south, where the veins are also situated in proximity to felsitic dikes.

The area of highest interest is located in the centre of the northern structural regime, in the vicinity of the location labelled "North Matorral Pit" (Figure 2). In this historic pit 5m deep 9 channel samples averaged 27.2 g/t Ag and 0.12 g/t Au over a width of 2.3m, and a 0.5m wide sample of multibanded quartz with abundant oxides assayed 178 g/t Ag and 0.42 g/t Au.

Base metal anomalies are particularly high. Zinc is commonly anomalous in the 100's and 1000's of ppm and present up to 0.46% (Figure 3), lead is commonly anomalous in the 100's of ppm and present up to 0.12%, molybdenum is anomalous in the 100's of ppm and present up to 0.11%, and iron is highly anomalous with values commonly on the order of 10% and up to 41%. The iron occurs both as oxide (hematite) and sulfide (pyrite), the latter visible in patches of unoxidized jasperoid. Molybdenum and zinc are commonly anomalous in structures between coordinates 2,881,500N to 2,882,500N (along the Matorral West and East zones). Lead, iron, zinc and barium are particularly anomalous in the northernmost jasperoid of the northern Matorral structural regime.

Alteration consists mainly of low temperature reddish jasperoid development, either as massive brecciated bodies or in veins and stockworks. Fluid inclusion petrography on the crystalline quartz indicates low temperatures of formation, generally less than 200 degrees C and up to 230 degrees C at the North Matorral Pit. There are several small, probably mercury exploration pits along the western margins of the dike system of the Matorral West zone. Anomalous mercury values are typically greater than 10 ppm and less than 100 ppm. Other pathfinder elements such as antimony, arsenic and barium exhibit anomalous values in the 1000's of ppm's.

Structural Setting

Three distinct structural regimes have been mapped in the Matorral system (Figure 1). The largest zone (Matorral East) is 2.5km long and exhibits both N20 degrees W to N40 degrees W structures, and a conjugate set of N50 degrees W to N65 degrees W striking structures. This structural set dips predominately NE. A second structural zone is the 1 km long Matorral West and occurs along the western border and within a set of felsites dikes which strike N-S to N60 degrees W and dip SW. The third structural zone occurs to the north (Matorral North), is 1.5km in length, strikes N20 degrees W to N55 degrees W, exhibits a weaker NNE striking trend, and dips predominately SW. This third set may represent a large cymoid loop that originates at the large jasperoid at its northern tip, and terminates 1.5km to the southeast, just south of coordinate 2,883,500N.

All of the mapped structures which host alteration and evidence of hydrothermalism add up to over 7km of length. The Company believes this structurally complex system has potential to host multiple veins at depth within a mineralized zone. The limestone horizons are replaced by jasperoids at the present surface but may zone to replacement style, precious and base metal bearing mantos at depth.

Ground Magnetic Survey

Prospero initiated a ground based magnetic survey over the Matorral area in April of this year. This survey is expected to be completed in June and will help the Company finalize drill targets.

"Given the strong geochemical signatures in 4km of this system, we believe the Matorral target has the right high-level epithermal geology and characteristics to host a major epithermal deposit at depth, particularly considering that it is located in the backyard of a known historic high-grade gold producer," said Tawn Albinson, President and CEO of Prospero. "The geochemical signatures suggest it could represent both a precious metal and base metal rich (polymetallic) mineralized zone at depth. Combined with the Magistral Lineament present in the western portion of the district (as described in the news release of April 22, 2012), the Santa Maria del Oro project exhibits potential to represent a mineralized region of much larger size than indicated by the portion of the district where historic production took place."

In summary, the Matorral structural and hydrothermal setting is typical of a high-level epithermal environment. The elevated geochemical anomalies in precious metals, base metals and pathfinder elements suggest the system could represent the upper portions of a large productive mineralized zone at depth. The elevated geochemical signatures on this target compare favourably with the geochemical responses documented in other high-level epithermal environments which are known to overlie productive, high-grade, epithermal ore bodies in major epithermal districts (eg. Fresnillo and Guanajuato).

The precious metal values in the North Matorral Pit area are more than geochemically anomalous. Metal grades found at surface in multistage banded veins suggest proximity to the top of a mineralized zone. The Company has identified six attractive targets both from structural and geochemical standpoints that warrant drilling. The most attractive target is the North Matorral Pit area, where outcropping open-space filling veins with elevated precious metal values could indicate close proximity to the top of a mineralized system.

Tawn Albinson, M.Sc., President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this press release.

About Prospero Silver Corp.:

Prospero is a Canadian resource company with the majority of its staff based in Mexico and who work for its wholly owned subsidiary Minera Fumarola, SA de CV (Fumarola). Prospero's objective is to quickly evaluate the properties currently optioned for their suitability to provide size potential and/or amenability for strategic joint ventures.

To view Figures 1-3, click on the following link: http://media3.marketwire.com/docs/p522p.pdf

Cautionary Statement:

This news release contains forward-looking statements within the meaning of the Canadian provincial securities laws that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements, including statements regarding future exploration plans. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's inability to obtain any necessary permits, consents or authorizations required for its planned activities, and the Company's inability to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company's public disclosure record which is available on SEDAR (www.sedar.com), including the risk factors discussed in Prospero's November 27, 2009 prospectus. Although Prospero believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except as required by securities laws and the policies of the TSX Venture Exchange, Prospero disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Prospero Silver Corp.

William Murray

Chairman

(604) 248-0797


Contact Financial

Peter Murray

(604) 689-7422