Santacruz Announces Filing on SEDAR of the San Felipe NI 43-101 Resource Estimate Report

VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/31/12)- Santacruz Silver Mining Ltd. ("Santacruz" or the "Company") (SCZ.V) is pleased to announce the filing of a National Instrument 43-101 ("NI43-101") Mineral Resources Estimate for the San Felipe project located in Hermosillo Sonora, Mexico. The Report was completed by Zachery Black SME-RM, under the supervision Donald E. Hulse, PE, of Gustavson Associates, LLC (Gustavson), both of whom are independent "qualified persons" under NI 43-101.

Highlights are as follows:

-- Measured and Indicated Resources of 39mm oz AgEq; Inferred Resources of 11mm oz AgEq. -- Resources are defined on only 3 of 8 known veins (La Ventana, San Felipe and Las Lamas). -- Three primary veins remain open along strike in at least one direction and to depth. -- Excellent potential to expand resources at Las Lamas, Cornucopia, Artemisa, Santa Rosa and Transversales veins.

For resource categories and further details, please refer to the Company's news release dated July 16, 2012 and the Report.

San Felipe is a late stage exploration project, located in the State of Sonora, approximately 130 kilometers north-west of Hermosillo City, the state capital of Sonora. Previously, Minera Hochschild Mexico SA de CV ("MHM") explored and developed the property from 2001 to 2008, with more than 18,500 meters of diamond drilling and significant development work completed on the project at the La Ventana, San Felipe and Las Lamas veins.

During 2011 Santacruz began conducting an exploration program in the area to confirm and support MHM's previously discovered resources at the La Ventana, San Felipe and Las Lamas veins. Additional resources have been delineated in the Las Lamas, Cornucopia, Artemisa, Santa Rosa and Transversales veins. In addition, to the south-west of the project is a target named Los Locos, which has exploration upside. This has led to new exploration potential on the project.

Shareholders and interested parties are encouraged to read the Report which will be available on SEDAR (www.sedar.com) and on the Company's website at www.santacruzsilver.com.

About Santacruz Silver Mining Ltd.

Santacruz Silver is focused on three advanced stage silver deposits in Mexico with a corporate objective to reach production by first quarter 2013. The Company aims to become a mid-tier silver producer in Mexico.

Arturo Prestamo Elizondo, President, Chief Executive Officer and Director

All scientific or technical nature information herein was approved by Harald Hoegberg and Randy Henkle (both of whom are qualified persons as such term is defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects). Mr. Hoegberg and Mr. Henkle are independent consultants for Santacruz Silver Mining Ltd.

Forward looking information

Certain statements contained in this news release, such as potential mineralization on the Company's properties and the Company's exploration and development plans and anticipated production dates on the Company's mineral properties, constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events, that the Company obtains regulatory approval, future metal prices and the demand and market outlook for metals. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change,delays in regulatory approval, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company's expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company's Filing Statement filed under the Company's profile at www.sedar.com The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable securities laws or an exemption from such registration is available.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.