Vancouver, BC – Prospero Silver Corp. (TSXV:PSL) (the “Company”) is pleased to announce that it has signed option agreements enabling it to earn 100% of two additional claims, Sucara (71.53 hectares) and Dos Amigos (90.39 hectares), within the northern Cebollas target area of the Baborigame district. With these agreements in place the Baborigame district claim block is essentially 100% controlled and covers all exploration targets identified in the project area. Drilling is anticipated to commence in February.

Prospero signed the agreements for the two claims with underlying claimholder Compañia Minera Terciario, SA de CV (“Terciario”). These will be integrated into and funded under the joint venture agreement between Minera Fumarola, SA de CV (a 100% owned Mexican subsidiary of Prospero Silver Corp) and Minera Hochschild Mexico, SA de CV (see News Release of August 14, 2012). Under the terms, Terciario and the joint venture will have the option to earn a 100% interest in the mining rights of the two claims by making escalating cash payments totaling US$500,000 within 4 years.

The Cebollas target has potential to host both a disseminated style of deposit suited to open pit mining, as well as the vein style of deposit that has been historically identified and mined in the district. Work on the two new claims indicates a soil anomaly measuring 1,300m by 500m that includes gold values exceeding 100 ppb. Surface rock chip geochemistry within the same area indicates gold values ranging from 0.3 ppm to 16 ppm Au in 51 of the 130 samples taken. The presence of gold anomalies in soils and in rock chips is consistent with anomalies in the adjacent Cebollas area. The host of the anomalies appears to be the same felsic extrusive and intrusive dome complex which shows, where exposed, anomalous soil and rock chip geochemistry over a total identified area 2.5km long and 1.0km to 1.5km wide.

Hochschild and Prospero are preparing Baborigame for a drilling program. Proposals from drilling companies are currently under evaluation, and drilling is anticipated to start after a contractor is selected.

Tawn Albinson, M.Sc., the 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 and quality assurance of the exploration data and analytical results.

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). Following a project generator model to de-risk exploration and minimize dilution, the Company has a growing portfolio of high-quality projects and has been successful in finding strong partners.

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 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.