Prospero Silver Re-Files March 31, 2011 and June 30, 2011 Financial Statements to Add Additional IFRS Disclosure

VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Aug. 31, 2011) - Prospero Silver Corp. (TSX VENTURE: PSL) ("Prospero" or the "Company") announced today that as a result of a review by the British Columbia Securities Commission, the Company has filed amended financial statements for the three months ended March 31, 2011 and six months ended June 30, 2011 on SEDAR to clarify the disclosure contained therein. The amended financial statements include the following changes:

- to include a statement of changes in equity for the interim period (March 31) and comparative information for the corresponding interim period in the prior year;

- to include a comment with respect to the reconciliation of equity as at the comparative date (March 31 and June 30, 2011) from generally accepted accounting principles;

- to include a comment with respect to the statement of comprehensive income reconciliation for the year ended December 31, 2010 in both the March 31, 2011 and June 30, 2011 financial statements;

- to remove all references to "Group functional currency";

- the removal of certain disclosures and reconciliations included in Note 13 relating to the transition to IFRS that are no longer applicable;

- to remove IFRS transition adjustments under Reconciliation of Liabilities for trade payables and accrued liabilities;

- to include Share Purchase Warrants as equity and not a financial liability; and

- the financial statements have been restated as described in Note 14.


About Prospero Silver Corp.:

Prospero is a Canadian resource company with the majority of its staff based in Mexico and who work for its wholly owned subsidiary Minera Fumarola, SA de CV (Fumarola). Prospero's objective is to quickly evaluate the properties currently optioned for their suitability to provide size potential and/or amenability for early production.



Forward-Looking Statement Cautions:

This news release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to the closing of a non-brokered Private Placement. 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. Factors that could cause actual results to differ materially from these forward looking statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's inability to obtain any necessary permits, consents or authorizations required for its planned activities, and the Company's inability to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, including the risk factors discussed in Prospero's November 27, 2009 prospectus. Except as required by securities laws and the policies of the TSX Venture Exchange, Prospero disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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.



Contact Information

Prospero Silver Corp.
William Murray, Chairman
604-248-0797
http://www.prosperosilver.com

Contact Financial
Peter Murray
604-689-7422