February 19, 2013

Santacruz Silver Mining Closes $40,422,500 Bought Deal Common Share Financing

VANCOUVER, B.C -- February 19, 2013 -- Santacruz Silver Mining Ltd. (TSXV:SCZ) ("Santacruz Silver" or the "Company") is pleased to announce the closing of its prospectus offering announced on January 23, 2013 (the "Offering") through a syndicate of underwriters led by Canaccord Genuity Corp. ("Canaccord") and including Raymond James Ltd. and Cormark Securities Inc. (together, the "Underwriters"). The Company issued 19,000,000 common shares (the "Common Shares") at a price of $1.85 per Common Share for gross proceeds of $35,150,000. The Underwriters also exercised their over-allotment option to acquire an additional 2,850,000 Common Shares for additional gross proceeds of $5,272,500. Including the proceeds from the exercise of the over-allotment option, the total gross proceeds of the Offering were $40,422,500. The underwriters received a cash fee equal to 6% of the gross proceeds of the Offering, as well as 1,311,000 warrants, each of which is exercisable to purchase one Common Share for a price of $1.85 for a period of 24 months. Canaccord was issued an additional 60,000 Common Shares as a corporate finance fee.

The Company intends to use the proceeds from the Offering to make property payments and to advance the exploration of its San Felipe and Gavilanes projects in Mexico, and for general working capital and corporate purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States and may not be offered or sold within the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

About Santacruz Silver Mining Ltd.

Santacruz Silver is focused on three advanced stage silver deposits in Mexico with a corporate objective to reach production by first quarter 2013. The Company aims to become a mid-tier silver producer in Mexico.


Arturo Prestamo Elizondo,
President, Chief Executive Officer and Director

For further information please contact:

Neil MacRae
Santacruz Silver Mining Ltd.
Email: info@santacruzsilver.com
Telephone: (604) 569-1609

Neither the 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.

Forward looking information

Certain statements contained in this news release, such as statements regarding the anticipated use of proceeds from the Offering and corporate objectives and aims of the Company, constitute "forward-looking information" as such term is used in applicable Canadian securities laws. The forward-looking information herein is based on plans, expectations and estimates of management as at the date hereof and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans will not change as a result of unforeseen events, the Company will receive the required regulatory approvals in a timely manner, future metal prices and the demand and market outlook for metals will be consistent with management's forecasts and expectations. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions outlined above prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, that there are delays in regulatory approval, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company's expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company's Filing Statement and other continuous disclosure filings filed under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.