Mexican Mining Operations Have 12% Increase In Production

VANCOUVER, Great Panther Silver, Ltd. reported on production results at its two wholly-owned Mexican silver mining operations, the Guanajuato Mine Complex (GMC), which includes the new San Ignacio satellite mine, and the Topia Mine.

The company achieved record metal production of 3,187,832 silver equivalent ounces (Ag eq oz), a 12% increase. Silver production increased 11% to a record 1,906,645 silver ounces (Ag oz). Gold production rose 5% to an annual record of 16,461 gold ounces (Au oz). Ore processed increased 18% to a record 335,199 tonnes.

The San Ignacio Mine produced 18,373 tonnes of ore in the fourth quarter of 2014 and accounted for 20% of the overall metal production from the Guanajuato Mine Complex. This included 64,400 Ag oz and 1,136 Au oz, or 132,594 Ag eq oz, representing a 28% increase compared to the third quarter of 2014.

Silver and gold grades were lower at the GMC in the fourth quarter of 2014 compared to the same period in 2013. This was attributed to San Ignacio silver grades, which were lower than the average from the rest of the GMC, and lower gold grades from the Santa Margarita zone at Guanajuato. In 2015, production at San Ignacio will focus on the newly identified, higher grade southern extension of the Intermediate vein.

Mining commenced late in the fourth quarter from recently developed ore zones at the Santa Margarita area that are supported by encouraging results from a combination of underground drilling and exploration development. In addition, exploration development and underground drilling was carried out at the Cata area on the 525 and 540 meter levels, verifying drilling results and exploring the depth extensions of the Veta Madre. Surface exploration drilling at San Ignacio comprised 3,728 meters for the fourth quarter of 2014.

Topia Mine

In the fourth quarter of 2014 ore processed at Topia increased 12%, to 15,735 tonnes, compared to the corresponding quarter in 2013. Total metal production also increased 12% compared to the same period in 2013, to 233,732 Ag eq oz, mainly due to the difference in base metal versus silver prices year over year.

Production at San Ignacio is scheduled to continue to increase in 2015 as the focus shifts to the new high grade and thicker vein zones to the south of the current workings. This, in addition to a continuing effort to improve grades at the main Guanajuato mines and at Topia, is expected to deliver 3.5 to 3.6 million Ag eq oz in 2015. This represents an approximate 10% increase over 2014, including a small impact from the change in ratios to determine Ag eq oz to account for the movement in metal prices over the past year. Consolidated cash costs are anticipated to be in the range of US$11.50-12.50/oz of payable silver, while All-In Sustaining Costs are projected to be US$18.50-19.85/oz of payable silver. Naturally, the Company will strive to achieve costs, which are lower than guidance.