South American Silver Files Third Quarter 2012 Financial Statements and MD&A

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/09/12 -- South American Silver Corp. (TSX: SAC)(PINKSHEETS: SOHAF) reports the release of its unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2012 and the related management's discussion and analysis of financial position and results of operations ("MD&A"). In this press release, all amounts are expressed in U.S. dollars.

As at September 30, 2012, the Company had working capital of $29.0 million, including cash and cash equivalents of $29.5 million. With these funds in place, the Company is in a strong financial position to expand activities at its Escalones project, to pursue full compensation based on the fair market value of the Malku Khota project, and to pursue other corporate initiatives.

In Chile, the Company has commenced a drilling program at Escalones in the November-April window. The planned program will aim to confirm and expand the resource in the categories reported previously: oxide/sulphide, skarn and porphyry and will provide material for further metallurgical testing. The results from this drilling will be combined with earlier results and it is intended that an updated resource will be developed and reported in compliance with NI 43-101 in mid-2013.

In Bolivia, the Company is vigorously pursuing all options to maximize the value from the Malku Khota project and intends to pursue full compensation based on the fair market value of the project through international arbitration in the event that settlement cannot be reached with the government of Bolivia within the six-month cooling-off period which ends on April 23, 2013.

The Company has several essential components that position it well for the future including experienced leadership, a strong balance sheet, and proprietary acid chloride leach technology that gives it a competitive advantage for developing bulk mineable deposits that contain both precious and base metals as well as indium and gallium. The Company has the opportunity in the period ahead to also look at other projects in a market that is very challenging for many companies to raise capital.

Copies of the unaudited financial statements and related MD&A can be found on SEDAR at www.sedar.com and on the Company's website at www.soamsilver.com.

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. 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.com and on SEDAR at www.sedar.com.

Forward-looking statements

Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "will", "intends, "pursue", "expand", "maximize", "planning", "future", "ahead", "creating", "realization" and similar expressions. This release contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.

Readers are cautioned not to 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-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, the political and economic climate in Bolivia including the attitudes and actions of the Bolivian government related to foreign investment in Bolivia;the pursuit by the Bolivian government of stated courses of action; the international arbitration process; and risks of the mineral exploration industry which may affect the advancement of the Escalones project, including possible variations in mineral resources or grade; metal prices; availability of sufficient financing to fund further required work in a timely manner and on acceptable terms; timely receipt of required permits; availability of equipment and qualified personnel; failure of equipment or processes to operate as anticipated; changes in project parameters as plans continue to be refined; and other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the ability of the Company to realize value from its investments in Bolivia and that statements made by Bolivian government officials reflect the government's intentions; the timely receipt of assay results for Escalones; the accuracy of current inferred resources and the interpretation of drill and other exploration results for Escalones; the timely receipt of required permits for Escalones; the availability of equipment and qualified personnel to advance the Escalones project and execution of the Company's existing plans and further exploration and development programs for Escalones, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of November 9, 2012.

Contacts:

South American Silver Corp.

Robert Gill

Investor Relations

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