Initial Mineral Resource Estimate at San Ignacio Project 

VANCOUVER, BC - Great Panther Silver Limited reported the initial mineral resource estimate at the Company's 100% owned San Ignacio Project in Guanajuato, Mexico. The 2011 mineral resource estimate comprises Inferred Mineral Resources of 611,000 tonnes at 127g/t silver and 2.05g/t gold (4,494,000 Silver Equivalent Ounces (Ag Eq Oz)), using a 118g/t Ag Eq cut-off grade. Drilling is continuing, with a total of 40 holes now completed, and the resource will be updated on a periodic basis.

The San Ignacio mineral resource is located in seven sub-parallel veins, namely, from west to east, Melladito, Intermediate, Intermediate 5, Intermediate 2, Nombre de Dios, Nombre de Dios Foot Wall 1 ("FW 1") and Nombre de Dios Foot Wall 2 ("FW 2"). The mineral resource estimate included drill holes ESI10-001 to ESI11-024, which covered a strike length of approximately 300 metres between sections 600N to 900N. Current drilling is ongoing between 450N to 600N, while well mineralized vein structures have been mapped and sampled as far south as section 0N. As such, the initial resource estimate represents only one third of the known strike extent of the mineralization. The veins trend down the eastern half of the San Ignacio Property with a potential strike length of four kilometres.

"The initial resource estimate at San Ignacio is an excellent start in proving up this new discovery for Great Panther Silver," stated Robert Archer, President & CEO. "Past production on the Plateros Vein on the western side of the property was only 617,455 tonnes at 113g/t Ag and 1.01g/t Au over a period of 24 years (1977-2001) so the new zones are already showing much greater potential and significantly higher gold grades."

The Company will be adding a second drill to the project, now scheduled for the first quarter of 2012, in order to continue drilling along strike. Permitting procedures are underway for the collaring of a portal to drive a ramp down to the veins in order to conduct underground exploration, including mapping, sampling and detailed drilling. The property is within easy trucking distance to the plant at the main Guanajuato Mine Complex so any mineralization encountered in the early stages of development can be conveniently taken to the plant where excess capacity exists.