Agreements Reached To Mine San Luis Cordero Project

VANCOUVER, BC - Prospero Silver Corp. has entered into an agreement with Golden Minerals Company of Golden, Colorado to confirm the viability of and, if determined to be favorable, to conduct mining operations on the Santa Rosa vein system, located on Prospero's San Luis Cordero property in Durango State, Mexico. Golden Minerals owns the Velardeua Mine, presently on care and maintenance, located approximately 90 km from Cordero. This new arrangement contemplates Golden Minerals transporting ore from Cordero for processing at Golden Minerals' existing 300 tpd sulphide plant. The principal operational agreements for this arrangement are between each of the party's wholly-owned Mexican subsidiaries; Prospero's subsidiary Minera Fumarola, SA de CV, and Golden Minerals' subsidiary, Minera William SA de CV.

Golden Minerals will conduct studies on the Santa Rosa vein, which will likely include de-watering of the old mine, and collecting and assaying fresh samples from the exposed vein, followed by metallurgical test work. This metallurgical test work will be used to determine what changes might need to be made, if any, to the existing crushing, milling, and flotation circuits at Golden Minerals' existing processing facilities. Golden Minerals will also carry out drilling for mine planning, as well as seeking to establish an expanded resource. Upon completion of such confirmatory work over the coming months, and assuming it is satisfied with the outcome of its investigations, Golden Minerals will proceed with engineering and permitting for mining of the Santa Rosa vein system.

Golden Minerals already has an established mining workforce and owns most of the mining equipment required for underground mining at Cordero. Access to new ore shoots is expected to be either via rehabilitation of an existing shaft and/or development of new production ramps. Again, this remains subject to confirmatory engineering being completed.

The presently contemplated arrangement with Golden Minerals will deal only with the Santa Rosa vein system. Prospero plans to consider further exploration with a view to expanding the resource of the Santa Rosa East Skarn, with additional drilling if and when market conditions permit.

Golden Minerals and its Velardeua Mine. Golden Minerals owns the Velardeûa Mine, approximately 90 km by road from Cordero. The Velardeua Mine comprises two plants; a 500 tpd oxide plant and a 300 tpd sulphide plant. Initial test work has shown that the sulphide plant will likely be able to process the Santa Rosa vein material based on limited samples taken.