Santacruz Silver Mining Ltd. (TSX.V: SCZ) (“Santacruz”) reports that its wholly-owned subsidiary, Impulsora Minera Santacruz, S.A. de C.V. (together with Santacruz “the Company”), has entered into an agreement with a private Mexican company based in Hermosillo, Mexico(the “Hermosillo Group)” to sell 100% of its interest in the San Felipe Project located in Sonora, Mexico to the Hermosillo Group for cash consideration of US$15.0 million (plus value added tax (“VAT”) of US$2.4 million) (the “Transaction”). The Transaction is scheduled to close on or about December 19, 2016.