Great Panther Silver Achieves Several Production Records

VANCOUVER - Great Panther Silver reported third quarter production results at its two wholly owned Mexican silver mining operations, Guanajuato and Topia.

Third Quarter 2013 Operations Highlights were: Ore processed was up 32% to 76,898 tones, the highest quarterly throughput the Company has achieved; Metal production increased 33% to a record of 789,250 silver equivalent ounces ("Ag eq oz"), at a 60:1 silver: gold ratio; Silver production rose 24% to a record 459,924 silver ounces ("Ag oz"); A new high for quarterly gold production was achieved, at 4,695 gold ounces ("Au oz"), a 56% increase; and, Environmental Impact Assessment Permit received (subsequent to quarter end) for San Ignacio.

"We are pleased to report new records for total metal production and for each of our two mines for the third quarter of 2013, in addition to record production for silver and gold," stated Robert Archer, President and CEO. "With year-to-date production totaling 2,076,963 silver equivalent ounces, we expect to exceed our production guidance for the year. Our continued focus on grade control and operational efficiencies is having a meaningful, positive impact on production volumes while reducing unit costs. In light of lower metal prices, the Company has concentrated on reducing site costs and improving operating efficiencies, and has also focused capital expenditure and development programs on those with the greatest return on investment."

"The Rayas Shaft rehabilitation at the Guanajuato Mine Complex is almost complete. This will reduce transportation times of personnel to their work places and further improve operational efficiencies. Subsequent to the end of the quarter we received the final permit required for the development of our San Ignacio mine. Production from San Ignacio will commence in early 2014 and is expected to have a significant and positive impact on the Guanajuato operations."

For the third quarter, the Guanajuato operation processed 60,536 tones, up 38% compared to the same period in 2012, at ore grades of 166 g/t Ag and 2.54g/t Au. Metal production included 289,671 Ag oz, and 4,531 Au oz, or 561,544 Ag eq oz, which represented an increase of 36% over the same period in 2012 and the highest quarterly production yet. Plant metallurgical performance remained strong, with metal recoveries of 89.4% for silver and 91.8% for gold.

For the third quarter, 16,362 tones were processed at Topia, up 12% compared to the same period in 2012, at grades of 358g/t Ag, 0.55g/t Au, 1.96% Pb and 2.73% zinc Zn. Metal production included 170,254 Ag oz, 164 Au oz, 300 Pb tones, and 411 Zn tones, to a record 227,706 Ag eq oz, which is 26% up over the same period in 2012. Plant metallurgical performance was steady with metal recoveries of 90.4% for silver, 56.4% for gold, 93.5% for lead, and 91.8% for zinc.

Metal production for the quarter was principally derived from the Durangueno mine and increased production at the Argentina mine, followed by production from the El Rosario, 1522 and Hormiguera mines. Silver grades were up 13% compared to the same period in 2012; however, grades were lower than anticipated for the quarter due to the irregularity of ore vein formations, resulting in higher dilution.

Underground development at Topia in the quarter was down 27%, to 1,799 meters, compared to the same period in 2012 due to a focus on production and grade control at the 1522, San Gregorio, La Prieta, Argentina and Durangueno mines. Exploration drilling at Topia totaled 619 meters, down 5% compared to the same period in 2012.

The processing plant is being upgraded by the installation of a new cone crusher and extensive metallurgical tests are being carried out to improve recoveries. In addition, the metallurgical investigation laboratory was reconditioned and upgraded equipment was installed.

With Year-to-date production totaling 2,076,963 silver equivalent ounces, the Company expects to exceed its guidance of 2.4 to 2.5 million silver equivalent ounces for fiscal 2013.

Although precious metals prices recovered slightly in the third quarter from their lows at the end of June, the Company continues to focus on improving and strengthening the operational efficiency of its mines. As a result of these efforts, cash costs are expected to be significantly lower in the second half of the year, as compared to the first half.

Road construction and site preparation are underway at San Ignacio and will set the stage for ramp and mine development that will continue into the first quarter of 2014. Production from San Ignacio, commencing at about 100 tones per day and increasing to about 250 by the end of 2014, will be trucked to and processed at the Company's Cata plant at the main Guanajuato Mine Complex, 22 kilometers away. The ability to increase throughput at Guanajuato with no further capital expenditures at the plant, will have an immediate and positive impact on cash costs.