Santacruz Silver Mining Ltd. announced production results for the second half ended December 2013 and month ended January 2014. In the second half of 2013 the operations team undertook a number of initiatives including the development of a sub-level to intersect the newly discovery R-30 mineralized zone. Two working faces have been prepared on this zone which is providing mill feed at a grade in excess of the average resource estimate grades. The Company is using a different mining method at level I and sub-level I of the R-30 mineralized zone so as to increase the number of high-grade producing stopes and working faces in the Rosario Mine. Currently there are 8 high-grade producing stopes located at the Rosario I and Rosario II veins. The main access ramp development has now reached Level 2 and initial stope development on this level has begun. This work is scheduled to be completed during the second quarter of 2014 at which point the Rosario Mine will be able to produce at its targeted rate of 500 tpd. Dilution from mining the Rosario I and II veins has been approximately 15%, with head grades of 260 g/t Ag, 0.44 g/t Au, 2.80% Zn, and 1.01% Pb on average. The company's production of Ag ounces was 18,329, Au ounces were 31, Lead (lb) was 74,911, Zinc (lb) was 161,700 and Ag equivalent ounces were 27,439.

For the month, the company reported production of Ag ounces of 31,525, Au ounces of 63, Lead (lb) of 132,142, Zinc (lb) of 292,030 and Ag equivalent ounces of 55,449.

For the second quarter of 2014, the company intends to maintain production from the Rosario Mine at 500 tpd and utilize the excess capacity to source third party ore from local miners in order to increase overall production and generate further cash flow from operations.