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

Santacruz Silver Mining Ltd announced 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.