NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

South American Silver Corp. (TSX:SAC)(PINK SHEETS:SOHAF) today announced that it
proposes to issue approximately 24 million common shares of the Company, on a
committed private placement basis, at a price of $1.16 per common share (the
"Offering"), which represented the 5 day volume weighted average trading price
at the time the TSX accepted notice of the transaction. The gross proceeds of
the Offering would be approximately $28 million with an option to expand the
offering up to 27.5 million shares or approximately $32 million. 


The largest component of the Offering is a strategic investment by Zamin
Precious Minerals Limited, which has agreed to purchase a minimum of 18.3
million common shares of the Company. At the closing of the Offering, Zamin
would own approximately 19.9% of the issued shares of South American Silver
Corp., based on there being 68,025,100 common shares of the company in issue as
of 8 November 2010. The remainder of the offering is being placed with other
private investors, and with institutional investors through Wellington West
Capital Markets Inc. on a "bought deal" private placement basis for 3.5 million
shares or $4.06 million. 


"The Zamin group is a key regional player in the South American resource
industry with major projects in Brazil, Uruguay, Bolivia, and Chile. In 2005
they purchased Bahia Mineracao Limitada, a major mining project in Brazil. Zamin
sold an initial 50% stake in their investment in Bahia to the FTSE100 Kazakh
mining company ENRC in 2008 for US$300 million and sold the remaining 50% stake
in Bahia to ENRC in September of 2010 for US$735 million. We are pleased to have
the backing of Zamin as a strategic investor in the Company and look forward to
working with the group to continue to unlock the immense potential value of our
two South American assets," said Greg Johnson, President & CEO of South American
Silver Corp. "With this offering in place the Company is in a very strong
financial position to move forward with the rapid development of our world-class
Malku Khota silver-indium project in Bolivia to feasibility and to advance our
Escalones copper-gold project in Chile to the resource definition stage."


"This is the Zamin group's first major investment into the precious metals
sector and we are excited about the value and potential we see in the South
American Silver projects and management team," said Pramod Agarwal, founder of
the Zamin mining group. "We see a particularly promising investment environment
developing in Bolivia, a country with vast mineral potential, and we will look
to add value to our investment in South American Silver by leveraging our
track-record of successful relationship building with national and state
governments in the region."


The Company intends to use the net proceeds from this financing to fund
activities to accelerate the advancement of each of the Company's two
wholly-owned properties in South America, as well as for other general corporate
purposes.


Completion of the Offering will close upon receipt of regulatory approvals and
is anticipated to be on or about 3 December 2010. The common shares to be issued
pursuant to the Offering will be subject to a four-month restricted resale
period from the closing date.


About the Malku Khota Project

The Malku Khota Project is a recent discovery of a sediment host, bulk mineable,
silver, indium, lead, zinc and copper deposit located in the world-class silver
mining district of central Bolivia, approximately 200 kilometers north of
Potosi. The project is road accessible and has commercial scale power within 15
kilometers of the site. The project contains an Indicated Mineral Resource of
approximately 145M oz silver and 845 tonnes of indium and an additional Inferred
Mineral Resource of approximately 178M oz silver and 968 tonnes of indium. South
American Silver continues an ongoing exploration drill program at the project
and is conducting metallurgical and engineering studies to evaluate optimal
development scenarios. Current studies indicate that the Malku Khota project has
the potential to be one of the largest new silver and indium producing mines in
development.


As part of the Company's ongoing community relations approach to Malku Khota,
community relations personnel are working closely with the surrounding local
communities. Signed agreements of cooperation with these communities are in
place and the Company will look to facilitate local and regional economic
development through the various stages of development of the 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 100% owned Malku
Khota Silver-Indium project in Bolivia, one of the world's largest undeveloped
silver and indium deposits, and the 100% owned large-scale Escalones Copper-Gold
project in Chile. 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 effective community relations to increase shareholder
value. Management has over 100 years of combined experience in the global
exploration and mining industry with much of that focused in Bolivia, Chile,
Peru and Argentina. 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.


About Zamin Precious Minerals Limited

The Zamin group of companies is an international group with offices in London
(UK), Sao Paulo (Brazil), Montevideo (Uruguay) and Zug (Switzerland). Zamin has
a world-class portfolio of resource projects and investments primarily in Latin
America. The Zamin strategy is to create value through is its proven ability to
partner with regional and federal governments to develop assets and create
clearly defined infrastructure and logistics solutions.


The Zamin group was founded by Mr. Pramod Agarwal, who has over thirty years
experience in the global commodities business. The Zamin group was founded with
the recognition of the opportunities available to invest in one of the richest
resource hosting regions on earth. With long term relationships with Chinese,
Indian and Russian companies, Zamin has thrived by identifying and developing
resources in highly prospective areas in South America that have previously
received little inward investment.


Zamin acquired control and direction, directly or indirectly, of the common
shares to be issued to Zamin in connection with the Offering for investment
purposes. Zamin intends to review its investment in the Company on a continuing
basis. The common shares of the Company to be issued to Zamin in connection with
the Offering will be issued in reliance on the accredited investor exemption
under applicable Canadian securities laws.


Zamin Precious Minerals Limited 

Kingston chambers, PO Box 173

Road Town, Tortola, British Virgin Islands

Certain statements contained herein constitute "forward-looking statements".
These forward-looking statements include, but are not limited to, statements
regarding the proposed financing including the timing and terms thereof.
Forward-looking statements express, as at the date of this press release, the
Company's plans, estimates, forecasts, projections, expectations, or beliefs as
to future events or results. Forward-looking statements are based on certain
assumptions, including the key assumptions and parameters on which such
estimates are based, involve risks and uncertainties and there can be no
assurance that such statements will prove to be accurate. Therefore, actual
results and future events could differ materially from those anticipated in such
statements. 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 effect of capital market conditions and the
receipt of necessary regulatory approvals in a timely fashion or at all, as well
as the risks related to the development of the Company's properties and other
risks more fully described in the Company's Annual Information Form filed and
publicly available on SEDAR at www.SEDAR.com. Readers are cautioned not to place
undue reliance on the forward-looking statements contained in this press
release. 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.


This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States of America. The
securities have not been and will not be registered under the United States
Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the United States or to U.S. Persons (as
defined in the U.S. Securities Act) unless registered under the U.S. Securities
Act and applicable state securities laws, or an exemption from such registration
is available.