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Great Panther Silver Limited (GPR)
Market: CDN Consolidated
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Great Panther Silver Reports Initial Mineral Resource Estimate at San Ignacio Project, Guanajuato

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2011) - GREAT PANTHER SILVER LIMITED (TSX:GPR)(NYSE Amex:GPL) ("the Company") is pleased to report the initial mineral resource estimate at the Company's 100% owned San Ignacio Project in Guanajuato, Mexico. The 2011 mineral resource estimate comprises Inferred Mineral Resources of 611,000 tonnes at 127g/t silver and 2.05g/t gold (4,494,000 Silver Equivalent Ounces (Ag Eq Oz)), using a 118g/t Ag Eq cut-off grade. Drilling is continuing, with a total of 40 holes now completed, and the resource will be updated on a periodic basis.

The San Ignacio mineral resource is located in seven sub-parallel veins, namely, from west to east, Melladito, Intermediate, Intermediate 5, Intermediate 2, Nombre de Dios, Nombre de Dios Foot Wall 1 ("FW 1") and Nombre de Dios Foot Wall 2 ("FW 2") (see table below). The mineral resource estimate included drill holes ESI10-001 to ESI11-024, which covered a strike length of approximately 300 metres between sections 600N to 900N. Current drilling is ongoing between 450N to 600N, while well mineralized vein structures have been mapped and sampled as far south as section 0N (see Company news release September 29, 2011). As such, the initial resource estimate represents only one third of the known strike extent of the mineralization. The veins trend down the eastern half of the San Ignacio Property with a potential strike length of four kilometres.

"The initial resource estimate at San Ignacio is an excellent start in proving up this new discovery for Great Panther Silver," stated Robert Archer, President & CEO. "Past production on the Plateros Vein on the western side of the property was only 617,455 tonnes at 113g/t Ag and 1.01g/t Au over a period of 24 years (1977-2001) so the new zones are already showing much greater potential and significantly higher gold grades."

The Company will be adding a second drill to the project, now scheduled for the first quarter of 2012, in order to continue drilling along strike. Permitting procedures are underway for the collaring of a portal to drive a ramp down to the veins in order to conduct underground exploration, including mapping, sampling and detailed drilling. The property is within easy trucking distance to the plant at the main Guanajuato Mine Complex so any mineralization encountered in the early stages of development can be conveniently taken to the plant where excess capacity exists.

The initial resource estimate was based on a minimum cut-off grade of 118g/t Ag Eq Oz, and used a minimum true width of 0.5 metre, with no dilution. The base case cut-off grade was estimated, utilizing mining and processing experience gained at Great Panther's Guanajuato Mine, 20km by road to the east, an assumed 50:1 Ag:Au ratio, and metal prices of US$28.00/ounce silver and US$1,400/ounce gold. The mineral resource estimate was based solely on drill-core samples and assays and was prepared in-house by the Company's qualified mineral resource person, Janelle Smith, AIG.

The resource was estimated using version 6.10 of MineSight 3D software, with model block dimensions of 12.5m x 12.5m x 5m. The database used for the estimate comprised diamond drill core composite assays of vein material. All samples were collected by Company personnel. A top cut was applied to the silver and gold vein composite grades, prior to grade interpolation into model blocks using Ordinary Kriging. The effective date of the estimate is August 30, 2011.

San Ignacio Project Inferred Mineral Resource by vein as of August 30, 2011 using a 118g/t Ag Eq cutoff grade

VEIN NAME Tonnes Grade Grade Contained Contained Contained
Category Ag g/t Au g/t Ag oz Au oz Ag Eq Oz
MELLADITO
Inferred 139,000 73 1.72 326,000 7,650 709,000
INTERMEDIATE
Inferred 102,000 153 2.33 503,000 7,620 884,000
INTERMEDIATE 2
Inferred 82,300 142 2.58 375,000 6,810 715,000
INTERMEDIATE 5
Inferred 155,000 115 2.11 572,000 10,500 1,095,000
NOMBRE DE DIOS
Inferred 51,000 76 1.44 125,000 2,360 243,000
NOMBRE DE DIOS
FW1
Inferred 53,000 209 0.63 357,000 1,080 410,000
NOMBRE DE DIOS
FW2
Inferred 28,900 245 4.51 227,000 4,190 437,000
TOTAL INFERRED 611,000 127 2.05 2,485,000 40,200 4,494,000

Notes:

  1. CIM definitions and guidelines were followed for Mineral Resources
  2. Mineral Resource was estimated at the cut-offs stated in Table 1
  3. Mineral Resource was estimated using an average gold price of US$1,400 per ounce and an average silver price of US$28 per ounce
  4. Dry bulk density is 2.65t/m3
  5. Gold: silver equivalence ratio for cut-off and reporting purposes was 50:1
  6. Totals may not agree due to Rounding

San Ignacio Project Inferred Mineral Resource Using 100g/t, 118g/t, and 136g/t cut-offs.

Cut-Off Tonnes Grade Grade Contained Contained Contained
Ag Eq g/t Ag g/t Au g/t Ag oz Au oz Ag Eq Oz
100 773,000 110 1.87 2,724,000 46,400 5,046,000
118 611,000 127 2.05 2,485,000 40,200 4,494,000
136 508,000 141 2.18 2,308,000 35,600 4,085,000

The estimated blocks were classified according to the Canadian Institute of Mining and Metallurgy and Petroleum Definition Standards for Mineral Resources and Reserves (CIM definitions). At the time of the estimate, the drill hole spacing was 50 metres or greater and geostatistical analysis showed little continuity between samples at greater than 50 metre spacing. There was however, sufficient confidence to assign material to the inferred category and current drilling will tighten the drill-hole spacing to improve the assigned category in the next mineral resource estimation.

Analysis of San Ignacio Project samples was completed by SGS Minerals Services in the Company's Guanajuato, Mexico laboratory with check assays by ALS Chemex in Vancouver, B.C., Canada. The Company's QA/QC program includes the regular insertion of blanks, splits and standards into the sample shipments, and rigorous oversight of procedures. Robert F. Brown, P.Eng., and Vice President of Exploration for Great Panther and its wholly owned Mexican subsidiary, Minera Mexicana El Rosario, S.A. de C.V., is designated as the Qualified Person for the San Ignacio Project under the meaning of NI 43-101, and has reviewed this news release.

For further information please visit the Company's website at www.greatpanther.com.

ON BEHALF OF THE BOARD

Robert A. Archer, President & CEO

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 Guanajuato and Topia Mines in 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, 2010 and reports on Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

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