Great Panther Silver Reports Production Results At Mexican Silver Mining Operations

VANCOUVER - Great Panther Silver reported strong production results for the first quarter (Q1) 2015 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.

First Quarter 2015 Consolidated Production Highlights (Compared to Fourth Quarter (Q4) and First Quarter (Q1) 2014): Metal production increased 8% and 48%, respectively, to a record 987,887 silver equivalent ounces (Ag eq oz): Silver production rose 9% and 61%, respectively, to a record 597,111 silver ounces (Ag oz): Gold production decreased 2% and rose 28%, respectively, to 4,703 gold ounces (Au oz): Ore processed increased 7% and 37%, respectively, to a quarterly record of 99,252 tonnes.

"Great Panther's mines had an excellent start to the year, setting several new records for metal produced and ore processed, and putting us on-track to meet our annual guidance", stated Robert Archer, President & CEO. "These records primarily reflect the continuing ramp-up at San Ignacio as well as a 17% quarter-over-quarter increase in metal production at Topia. The larger than normal increases compared to Q1 of last year were also influenced by the reduced output in that quarter due to the illegal mining activities at Guanajuato. San Ignacio is now producing at a rate of about 370 tonnes per day and represented 30% of metal production at the GMC in the first quarter of this year compared to 20% in the fourth quarter of 2014. We anticipate the ramp-up at San Ignacio to continue as we expand into the new South Extension zone discovered last fall."

At the Guanajuato Mine Complex total ore processed during the first quarter at the GMC was a record 82,026 tonnes, representing an increase of 48% compared to the same period in 2014. Metal production for Q1 2015 was also a record, at 713,371 Ag eq oz, and represented an increase of 74% compared to the same period in the prior year. This was primarily due to the positive contribution of San Ignacio since production began in June 2014, but also reflected the elimination of illegal mining activities, which negatively impacted production at Guanajuato in Q1 2014. Plant throughput and metal production increased 7% and 5%, respectively, over Q4 2014 reflecting the continuing ramp-up at San Ignacio.

At San Ignacio, production was initiated on the wider southern extension of the Melladito vein while continuing to increase from previously prepared stopes on the Intermediate vein. As a result, San Ignacio accounted for 30% of the metal production at the GMC in the first quarter of 2015 and represented a 64% increase compared to the fourth quarter of 2014.

During the first quarter of 2015, silver grades recovered substantially compared to the same period of 2014, and were relatively consistent when compared to the previous quarter.

Gold grades were slightly lower at the GMC when compared to the same period last year and the fourth quarter of 2014. The shortfall is attributed primarily to local grade variability at San Ignacio and in the gold-rich Santa Margarita zone of Guanajuato. The higher grades expected in the Southern Extension at San Ignacio have not yet made an impact.

At San Ignacio, exploration and development was focused in the south Extension in support of further definition of the new ore zones discovered in late 2014. Underground drilling at Guanajuato was conducted at the Valenciana mine to explore the Veta Madre and two footwall zones. The drilling results are under review and further follow up is expected in the second quarter of 2015.

Ore processed at Topia was consistent with the corresponding quarter last year, but increased 9% to 17,225 tonnes when compared to the fourth quarter of 2014. Record metal production of 274,515 Ag eq oz in the first quarter 2015 represented increases of 6% and 17%, respectively, compared to the first and fourth quarters of 2014.

Topia achieved the new quarterly production record due to a combination of operational improvements that yielded better silver grades and improved recoveries. Efforts at the mines were directed at dilution control and placement of new development headings into production. At the plant, two new flotation cells were placed into operation.