Construction of Santacruz's Rosario Mill on Schedule for December Commissioning / Update on Rosario Drill Program

Vancouver, B.C. -- Santacruz Silver Mining Ltd. ("Santacruz" or the "Company") (TSX.V:SCZ) is pleased to announce that the mill construction at the Rosario Project in the Charcas Mining District, San Luis Potosi, Mexico is proceeding on schedule and on budget towards commissioning of the mill facility in December, 2012.

As reported on June 7, 2012, Santacruz purchased a mill from Goldcorp Inc.'s Mexican subsidiary, Minera Nukay. The mill infrastructure will be set for an 800 ton/day capacity. Mill site preparations were completed including leveling of the ground at the mill location and pouring of concrete foundations for both the mill and the crushing facilities. The mill arrived onsite as scheduled during the second week of September 2012 and the Company commenced the assembly of the mill components including the flotation cells and thickeners. The Company has successfully achieved all of its Rosario mill schedule milestones to date and is forecasting all construction to be completed in late November, with commissioning of the mill facility anticipated to begin in December. Achievement of these milestones would position the Company to reach commercial production in the first quarter of 2013.

Please click on the Rosario Mill construction photos link in the middle of our website below to see the current mill construction photos.

www.santacruzsilver.com

President, Arturo Préstamo stated "We would like to thank our Chief Operating Officer, Francisco Ramos and our dedicated team at the Rosario property for their continued hard work in setting up and constructing the mill to date. As a result the mill construction is on schedule and within our specified budget. Rosario combined with our two other advanced-stage properties, Gavilanes and San Felipe, provide us with great confidence that we will achieve our targeted goal of becoming a mid-tier silver producer."

Rosario Exploration Update - Drilling Extends High Grade Silver Mineralization

Exploration drilling north-west of the current resource at the Rosario project in San Luis Potosi, Mexico, continues to extend the high grade silver mineralization within the Rosario I & II veins.

At present, two drill rigs are active on the Rosario property. Results from the first three holes have been received, all of which successfully intersected the Rosario vein:

• Drill hole RS-01 consisting of 504.48 grams per tonne (gpt) silver equivalent.
• Drill hole RS-02 consisting of 823.36 gpt silver equivalent.
• Drill hole RS-03 consisting of 721.14 gpt silver equivalent.

Drill results are as follows:

Where the symbols represent

President, Arturo Préstamo stated "The results of the current drilling program prove the potential for additional resources at Rosario. This will allow us to extend the operational mine-life and fits with our strategy of continuing to replenish the known resources as we bring the project into production."

Over the next twelve months at the Rosario project, the Company will focus on increasing production, improving the present resource classification, developing additional resources to the north-west of the known mineralized areas and adding mine-life to the project. Exploration planned over this time period will include 30 drill holes consisting of 4,000 metres in depth. The Company is also working to develop a new NI 43-101 Technical Report on the Rosario project.

Laboratory

Samples were prepared at the ALS Chemex facility in Durango, Mexico, and were assayed at ALS Chemex in Vancouver, Canada.

Qualified Person

Donald E. Hulse P.E., SME-RM of Gustavson Associates LLC, is a qualified person under NI 43-101 and has reviewed the technical information contained in this press release.

About Santacruz Silver Mining Ltd.

Santacruz Silver is focused on three advanced stage silver projects 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.

'signed'

Arturo Prestamo Elizondo,
President, Chief Executive Officer and Director

For further information please contact:

Neil MacRae
Santacruz Silver Mining Ltd.
Email: info@santacruzsilver.com
Telephone: (604) 569-1609

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.

Forward looking information

Certain statements contained in this news release, such as potential mineralization on the Company's properties, 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.