To our Shareholders, Partners, and Communities we do business with.

We at Santacruz believe that in order to be successful in the long term, a company must have mineral deposits with geological and mineralogical characteristics that are economically feasible in both a positive and a negative cycle, in addition to experienced management with strong and proven technical and management skills.

Our efforts are focused on developing long-term and sustainable value for our shareholders, partners and communities that surround us.

We believe that our portfolio of properties, all of which are located in established historical mining districts, comply with our criteria and also have significant potential to develop into even larger resources.

The Rosario Mine in Charcas, San Luis Potosi is now a producing mine for the Company.

The Veta Grande Mine in Zacatecas.

The San Felipe Project in San Felipe Hermosillo.

The Gavilanes Project in San Dimas Durango has completed its Maiden Resource Estimate Report.

We believe that the mining industry has an obligation to contribute to the local communities where we do our work, and are privileged to do so especially when success on our part can be translated into tangible opportunities in terms of jobs and economic growth, including the development of much needed infrastructure projects, in some of Mexico's most disenfranchised rural areas.

At Santacruz, we have built an operational team of seasoned industry professionals and managers who understands the challenges of the industry in all areas, and has the ability to create solutions for each situation as it emerges. I am honored to be a part of our management team which has a proven track record and an honorable reputation for best industry practices.

We look forward to building a successful company together with all of our Investors, partners and communities, with whom we do business.

Respectfully,

Arturo Préstamo.

*The production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with this production decision. Production and economic variables may vary considerably, due to the absence of a complete and detailed site analysis according to and in compliance with National Instrument 43-101. The risks associated with this decision are set forth in the "Risk Factors" section of the Company's most recent Annual Information Form, filed on SEDAR.

**This potential or target range of silver equivalent is conceptual in nature and is based upon the continuation of the visible mineralization from the areas where drilling has occurred. There has been insufficient exploration to determine whether the conceptual amount of mineralization can be delineated as mineral resources in accordance with NI 43-101. It is uncertain whether further exploration will result in the conceptual amount being delineated as a mineral resource.
 
Information of a scientific or technical nature herein was prepared by or under the supervision of Donald Hulse (who is a qualified person as such term is defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects), who has reviewed and approved the contents hereof. Mr. Hulse is an independent consultants for Santacruz Silver Mining Ltd.