Great Panther Reported Improved Operating Margins

VANCOUVER, Great Panther Silver reported financial results for the Company's three and nine months ended September 30, 2013.

"We are very pleased to report that the cost cutting and grade control initiatives undertaken throughout the year have resulted in a significant improvement in our operating margins and cash-flow compared to the second quarter of 2013," stated Robert Archer, President & CEO. "The improved financial results were achieved alongside a second successive quarterly record in total metal production. While I recognize and appreciate the efforts and dedication of all our employees and contractors, we realize that there is still more to do and we will continue to pursue cost reductions across all of our operations to further improve margins."

Overall cash cost per payable ounce decreased to US $9.89 from $18.14 in the prior quarter and gross profit, or income from mining operations (before non-cash items), improved to $5.5 million or 39% of revenues from break-even levels in the second quarter of 2013. Furthermore, cash flow from operating activities rose to $5.7 million from negative $0.7 million in the prior quarter. Guanajuato's cash cost per payable ounce saw the most significant improvement, declining to US$3.92 from US $17.26 in the prior quarter.

Initiatives taken to reduce operating costs included a reduction in the number of mining contractors at Guanajuato, renegotiation of mining contracts to create greater accountability for material and labor costs, improvements in mine planning and coordination with geology, and overall improvement of grade control.

Topia's operating costs have also been reduced but by a smaller margin than Guanajuato's. The Company will continue to focus on cost reductions at Topia with a primary focus on grade control. The number of operating mines at Topia has been reduced to eleven (from fourteen) and will be further reduced to nine by year-end. Production at the remaining mines in Mexico will be increased in order to maintain overall production levels and improve efficiency.

The Company also made reductions to exploration, general and administrative expenditures, and reduced capital expenditure and development programs, focusing on those with the greatest return on investment. These initiatives all contributed to improved cash flow in the third quarter of 2013 as compared to the prior quarter.