Great Panther Silver Reports First Quarter 2012 Financial Results

GREAT PANTHER SILVER LIMITED(TSX:GPR)(NYSE Amex:GPL) ("Great Panther" or the "Company") today reported financial results for the Company's first quarter ended March 31, 2012. The full version of the Company's financial statements and management discussion and analysis can be viewed on the Company's website at www.greatpanther.com or on SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in Canadian dollars unless otherwise indicated.

"First quarter revenue was directly in line with our expectations, considering the lower production and metal prices compared to Q1 of last year," statedRobert Archer, President and CEO. "This was also a timing issue for us related to a shipment of concentrate to a new smelter where the revenue will be recognized in Q2 this year. With the addition of this new customer, we have secured contracts for the sale of our concentrates for our 2012 planned production."

FIRST QUARTER 2012 FINANCIAL SUMMARY

1. "Adjusted EBITDA" is a non-IFRS measure in which standard EBITDA (earnings before interest, taxes, depreciation and amortization) is adjusted for share-based payments, foreign exchange gains or losses, and non-recurring items. Refer to the "Non-IFRS Measures" section for a reconciliation of standardized and adjusted EBITDA to the financial statements.
2. Silver equivalent ounces in 2012 were established using prices of US$28 per oz, US$1,680 per oz, US$0.85 per lb, and US$0.85 per lb for silver, gold, lead & zinc, respectively, and applied to the recovered metal content of the concentrates that were produced by the two operations.
3. "Cash cost per silver ounce" is a non-IFRS measure and is used by the Company to manage and evaluate operating performance at each of the Company's mines and is widely reported in the silver mining industry as a benchmark for performance, but does not have a standardized meaning. Refer to the "Non-IFRS Measures" section.

FIRST QUARTER 2012 OPERATIONAL HIGHLIGHTS Gold production reached a record 2,729 ounces; an increase of 20% over the fourth quarter of 2011 and 18% over the first quarter of 2011. Metal production increased 2% to 557,667 silver equivalent ounces ("Ag eq oz") from the fourth quarter of 2011, but declined 8% from the first quarter of 2011. Silver production increased 1% to 359,526 ounces from the fourth quarter of 2011, but declined 12% from the first quarter of 2011. Lead and zinc production was 202 tonnes and 312 tonnes respectively. This compares to 212 tonnes of lead and 327 tonnes of zinc produced in the fourth quarter of 2011, and the 241 tonnes of lead and 345 tonnes of zinc in the first quarter of 2011.

OUTLOOK

The Company is maintaining its guidance for metal production in the range of 2.50 to 2.75 million Ag eq oz for fiscal 2012, as compared to metal production of 2.2 million Ag eq oz for fiscal 2011.

First quarter production of 557,667 Ag eq oz, demonstrated only modest growth over the fourth quarter of 2011 but production for the remainder of the year is expected to continue to grow. There are a number of positive developments that support the growth estimate as follows:

AtGuanajuato:

• Ore grades for the first quarter of 2012, at 213g/t Ag and 2.30g/t Au, represent a 21% increase over the average for 2011. Mining of the high grade Deep Cata and the gold-rich Santa Margarita ore bodies has already demonstrated the potential to build on this improvement. Further expansions of production from these areas are planned during 2012.
  
  
  
  
• Plant metallurgy has already achieved record metal recovery and further improvements are anticipated with the addition of the re-grind mill at the Cata plant.
  
  
  
  
• Plant capacity is more than sufficient to handle any increase in throughput.

At Topia:

• The primary reason for the shortfall in production at Topia was a 20% reduction in ore grades in terms of silver equivalents for first quarter of 2012 as compared to first quarter of 2011. While ore grades were down for the quarter, grades improved in March to well above the average for 2011 and new vein developments support higher grades throughout 2012.
  
  
  
  
• Plant modifications and efficiencies, including additional flotation cells, have been completed to facilitate improved metallurgical performance.
  
  
  
  
• The extreme dry season affecting central Mexico, resulting in a water shortage, has caused plant capacity to be limited to 160 tonnes per day during the last month of the quarter, a reduction of almost 30%. Custom milling throughput has been reduced temporarily and any excess ore will be stockpiled for processing later in the year after the rainy season starts. There is currently no plant capacity shortfall anticipated for the remainder of the year.

CONFERENCE CALL TO DISCUSS FIRST QUARTER 2012 FINANCIAL RESULTS

The Company will hold a conference call to discuss the financial results onMay 15, 2012, at7:00 AM Pacific Daylight Time,10:00 AM Eastern Daylight Time. Hosting the call will be Mr.Robert Archer, President and Chief Executive Officer and Mr.Martin Carsky, Executive Vice President and Chief Financial Officer.

Interested shareholders, analysts, investors and media are invited to join the live conference call by dialing in just prior to the start time.

Dial in number (Toll Free): 1-877-407-9205

Dial in number (International): +1-201-689-8054

No passcode is required

A replay of the teleconference call will be available onMay 15, 2012from10:00 AM Pacific Daylight Time,1:00 PM Eastern Daylight TimeuntilMay 31, 2012by dialing the numbers below. In addition, the call will be archived on the Company's website.

Replay number (Toll Free): 1-877-660-6853

Replay number (International): +1-201-612-7415

Replay Passcodes (both are required for playback): Account #: 286

Conference ID #: 377042

INTERNATIONAL FINANCIAL REPORTING STANDARDS

The financial results discussed in this press release have been prepared in accordance with IFRS standards applicable to the preparation of financial information as required for all publicly traded companies inCanada. Readers should note that some comparative figures in this press release and the Company's financial statements and Management Discussion and Analysis ("MD&A") have been restated to reflect IFRS. Please refer to the Company's Consolidated Financial Statements and MD&A for the year endedDecember 31, 2011for a detailed description of the Company's accounting policies under IFRS and for disclosures and reconciliation of the impact of IFRS on previously reported results.

NON-IFRS MEASURES

The discussion of financial results in this press release includes reference to EBITDA, Adjusted EBITDA and Cash Cost per Ounce which are non-IFRS measures. The Company provides these measures to provide additional information regarding Company's financial results and performance. Please refer to the Company's MD&A for the three months endedMarch 31, 2012for a definition and reconciliation of these measures to reported IFRS results.

ABOUT GREAT PANTHER

Great Panther Silver Limitedis a profitable, primary silver mining and exploration company listed on theToronto Stock Exchange, trading under the symbol GPR and on the NYSE MKT, trading under the symbol GPL. The Company's current activities are focused on the mining of precious metals from its two wholly-owned operating mines inMexico. The Company also owns a development stage property,San Ignacio, which is approximately 20 kilometres by road from itsGuanajuatoprocessing plant, and an exploration stage property,Santa Rosa, which is located approximately 15 kilometres northeast ofGuanajuato. In addition, the Company is also pursuing acquisition opportunities throughoutLatin Americato add additional mines to its portfolio of properties. Great Panther's mission is to become a leading primary silver producer by acquiring, developing and profitably mining precious metals.

All shareholders have the ability to receive a hard copy of the Company's complete audited financial statements free of charge upon request. Should you wish to receive Great Panther Silver'sFinancial Statements or the Annual Report on Form 20-F in hard copy, please contact the Company toll free at 1-888-355-1766 or 604-608-1766, or e-mail info@greatpanther.com.

For further information, please visit the Company's website at www.greatpanther.com, e-mail info@greatpanther.com.

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its GuanajuatoandTopia Minesin Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2011and reports on Form 6-K filed with the Securities and Exchange Commissionand available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Contact: Rhonda Bennetto
Company Name: Great Panther Silver Limited
Contact Title: Vice President Corporate Communications
Phone: 1-888-355-1766

Contact: Martin Carsky
Company Name: Great Panther Silver Limited
Contact Title: Executive Vice President & CFO
Phone: 1-888-355-1766
Other1: www.greatpanther.com