Prospero Silver Corp. Provides Drilling Update for El Petate Project Hole 5 Cuts 18.5m at 0.8g/t Au

Assay results have been received for 5 holes to date. Drill highlights include:

NB: The true width of the mineralized intercepts is uncertain.

Tawn Albinson, the President of Prospero Silver commented: "We were very pleased to encounter gold grades in some of the early shallow reconnaissance holes. The drill plan developed with Fortuna was designed to get a handle on structural controls on the highest priority targets before deeper drilling. We now see a strong correlation between the presence of black jasperoids after limestone and grade. A few more shallow holes will be required over the next two weeks to get a decent picture of the strike and dip of what we think are the controlling structures."

Hole PET-17-05 returned highly encouraging gold grades over 3 separate intervals (18.3m, 12.2m and 18.5m intervals respectively), with grades increasing downhole, and a best intercept of 0.80g/t gold over 18.5 metres from 48.6m downhole, albeit with poor core recoveries. Hole PET-17-06 is a re-drill of hole #5 using PQ diameter core at a slightly steeper dip of 55º. Hole PET-17-01 tested the Apartadero SE target. Holes 02, 03 and 04 tested the Apartadero Central target. Hole 05 and 06 tested the El Tajo target. Cross sections for all holes, and a table of drill collar locations, dips and azimuths are available on Prospero's website here: http://www.prosperosilver.com/s/ElPetate.asp.

The drilling at Petate is being carried out as part of its reconnaissance drill campaign evaluation financed by strategic partner Fortuna Silver Mines Inc. over three of Prospero's projects.

El Tajo Target

Hole PET-17-05

Drilled on section line G-G´ to test beneath extensive outcrops of jasperoids at the El Tajo zone, PET-17-05 is mineralized over most of its 67m length. Highly encouraging gold grades were cut over 3 separate intervals (18.3m, 12.2m and 18.5m intervals respectively), with grades increasing downhole. Difficult drilling conditions with broken jasperoidal ground and poor recoveries forced the abandonment of the hole at a final depth of 67.1m. The highest grades are associated with intervals of black jasperoidal breccias; for example from 63.35m to 64.05m which assayed 3.66g/t Au + 14.5 g/t Ag. Hole PET-17-06 was subsequently drilled from the same collar location with the same azimuth but at a dip of 55 degrees as a redrill of 05. Assays are pending for hole PET-17-06. Key weighted average intervals from hole 05 are:

Apartadero SE Target

Hole PET-17-01

PET-17-01 was stopped at 178.9m. Gold-mineralized jasperoid zone was intersected over a 3.4m interval from 81.85m to 85.25m which returned 3.5g/t Au, although core recoveries at (32%) were low due to the presence of voids, not bad ground. The jasperoid is similar to a zone mapped at surface which may be its upward projection. From 124.5m to 151.8m (27.3m) the hole intersected calcite-veined, brecciated, and variably decalcified limestone. One sample returned a weak gold anomaly (0.18ppm) in this zone.

It now appears that the hole was drilled in the hanging wall or footwall of a jaseroidal structure and parallel to it rather than perpendicular to its strike. Prospero and Fortuna are considering drilling a second short hole at the Apartadero SE target from north to south in order to test for the presence of an east-west structural control for the Apartadero SE jasperoids.

Apartadero Central Target

Hole PET-17-02

PET-17-02 was drilled due north under the Apartadero Central target to test for its down dip extension. The best candidate to represent the Apartadero Central zone is a brecciated interval from 22.40 to 30.35 meters which hosts grey silicified limestone fragments supported in a soft orange reddish matrix. Only one sample (W680086) returned weakly anomalous gold (0.13 ppm Au over 1.5m).

Hole PET-17-03

PET-17-03, which was stopped at 63.5m depth, was drilled along the same section as PET-17-02 but from north to south and returned no significant results. The purpose of this hole was to clarify if all the brecciated zones of PET-17-01 are related to manto-like sub-horizontal zones or are related to steeper northwest-southeast striking structures. The hole cut fresh limestone with calcite veinlets and stockworks, and no brecciation suggesting the later case is more likely. It is considered likely that hole PET-17-03 was drilled entirely in the footwall of the Apartadero Central occurrence.

Hole PET-17-04

Hole 04, drilled to a final depth of 113m, was collared to test the Apartadero Central target from east to west. The hole cut fossiliferous limestones with local calcite veining, and is also suspected to have drilled the footwall of the Apartadero Central target. No significant assays were received.

Future Drilling at El Petate

An additional 5-6 holes are planned for El Petate in the current round of drilling. The Company hopes to complete this before Christmas. After El Petate, in the New Year Prospero and Fortuna are planning to drill the Pachuca SE and Bermudez projects.

Qualified person

Tawn Albinson, MSc, president of the company, is a qualified person, as defined in National Instrument 43-101, and is responsible for the technical content of this news release. Mr. Albinson is a member of the American Institute of Professional Geologists and a certified professional geologist (CPG) No. 11368.

About Fortuna Silver Mines Inc.

Fortuna is a growth-oriented, precious metals producer focused on mining opportunities in Latin America. The company's primary assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the Lindero gold project in Argentina.

About Prospero Silver Corp.

Prospero is a Mexico-focused project generator listed on the TSX.V under the symbol PSL.V. Prospero's aim is to discover world-class precious metal projects in the major mineral belts of Mexico. The Company applies a unique blend of practical exploration experience, cutting-edge mineral deposit science, and an extensive knowledge of Mexico´s geology to find new gold and silver systems. Our exploration programs are run by a small but highly-focused geological team based in Mexico.

For further information please contact:

Ralph Rushton
Exec VP Business Development
Tel: 604 307 0055

William Murray
Chairman
Tel: 604 288 2553

Forward-Looking Statement Cautions:

This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to, among other things, the Company's drilling update. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, possible, accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise the additional funds in the future to continue to carry out its business plans, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.

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