Vancouver, B.C. – Prospero Silver Corp. (TSXV: PSL) (“Prospero” or the “Company”) is pleased to announce the results of an additional 512 rock chip sampling program principally on a new reef at the Petate Southwest target zone. El Petate is a 6,530 hectare project in Hidalgo, Mexico some 35 Km to the SW of Pachuca. The new “Petate SW Reef” target has extended the Petate West zone by 1.2 km to the south. The Petate West zone now measures 5 km long in the north-south direction and up to 2 km wide in the east-west direction (geologic map Figure 1). 

Highlights of the new sampling and mapping program in the Petate SW Reef include:

• The new Petate SW reef is a structurally controlled tabular body 800 meter long, striking NW and steeply dipping to the SW comprising silicified limestone and jasper breccias which are up to 30 meters wide.
• The more anomalous geochemistry is found in the hanging wall jasper breccias, which contain higher and variable amounts of iron oxides.
• Out of 71 samples obtained along the reef 21 samples carry strongly anomalous gold values in fractions of a ppm gold.
  • 2 samples carry values between 1.05 to 3.6 ppm Au (Figure 2).
  • 12 samples out of the 71 carry silver values between 5 to 25.1 ppm Au.
• 25 Lead and 30 zinc samples provided values ranging from 100 ppm up to 1470 ppm.
• Multi-elemental pathfinder geochemistry revealed highly anomalous As, Hg, and Sb.
  • As values in the range of 400 ppm to 10,000 ppm,
  • Hg values in the range 5 to 36.4 ppm, and
  • Sb values in the range 100 to 3680 ppm.
• One outcrop exhibited un-oxidized mineralization with visible pyrite, stibnite and sphalerite; assaying 0.18 ppm Au, 8.8 ppm Ag, 1470 ppm Zn and 720 ppm Sb.

Mineralization and hydrothermal alteration in the Petate SW area is also associated with the termination towards the NW of a complex andesitic intrusive body (Figures 1, 2). Strong kaolin clay alteration occurs locally along the margins of the body and has been channel sampled at two locations. The first location is located in the NE corner of Figure 2 and is a 40 meter long section where 18 continuous samples assayed an average 0.13 ppm Au. The second location is located in the middle portion of Figure 2 and averages 0.20 ppm Au over a length of 37 meters. Highly anomalous values of Ag, As, Hg, Sb, Pb and Zn all show a close association with the gold mineralization.

Petrographic observation of the silica phases in the reef indicate the presence of predominant originally amorphous silica recrystallized to jigsaw quartz, and lesser amounts of fine to medium grained vuggy crystalline quartz. Fluid inclusion petrography indicates temperatures of formation of <200°C. Both fluid inclusion petrography and the multi-elemental geochemistry indicate the new reef is related to high level epithermal hydrothermalism. This is similar to the other previously reported zones of silicification in the project area such as the Apartadero, Tecolotes and Petate East target zones and could host a precious metal deposit, and given the elevated Pb and Zn geochemistry, potentially a polymetallic deposit at greater depth

Summary
The new mapping and sampling of the southern extension of the Petate West zone has substantially increased the size of the overall Petate system indicating the presence of a larger than anticipated area of hydrothermalism and mineralization. Highly anomalous precious metal, base metal, and pathfinder geochemistry occurs throughout the project. The Apartadero and the Petate SW Reef zone stand out with the highest gold geochemistry of up to 6.62 ppm Au (Figure 3). The Petate East target zones have the highest silver geochemistry with up to 595 ppm Ag (see January 21, 2012 News Release). 

The new Petate SW Reef also stands out as a clear target from the structural standpoint since it represents a tabular body of significant longitudinal extent, dipping steeply to the SW, which can be readily drilled from the hanging wall side. Good target definition combined with very encouraging anomalous gold and multi-elemental geochemistry make this reef a high priority exploration target. 

In addition, the altered and mineralized margins of the andesitic intrusive 500 meters north of the Petate SW Reef, further associate the mineralization with the emplacement of intrusive bodies. Other examples of this relationship occur at Apartadero Central and in the Tecolotes system where a recently mapped small intrusive body outcrop assays in two samples 0.90 and 0.76 ppm Au, indicating that intrusive bodies and their contact zones represent viable exploration targets on a district-wide scale.

Tawn Albinson, M.Sc., President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this press release. Samples were collected by Company employees as well as by Minas Julcani, SA de CV and Braeval Mining Corporation, and represent chip-grab, mostly chip-channel, as well as continuous channel samples, either in outcrops or sub-outcrops of jasperiod. Most samples were obtained along lengths of 1.0 to 2.0 meters. The samples are shipped by Company employees in sealed bags to ALS-Chemex Laboratory preparation facilities in Zacatecas City. Sample pulps are shipped to ALS-Chemex Laboratories in North Vancouver, B.C. for analysis. All samples were assayed by multielemental ME-ICP41, and gold ICP21. 

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 strategic joint ventures.

For further information please contact:

William Murray
Chairman
Tel: (604) 248–0797

or

Kirk Gamley
Contact Financial
Tel: (604)561-3642

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 secure sufficient subscriptions from subscribers to complete the above-described private placement, or otherwise 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.