Mr. John Miniotis reports

ABRASILVER ANNOUNCES CLOSING OF C$20 MILLION STRATEGIC INVESTMENTS BY KINROSS GOLD AND CENTRAL PUERTO

Abrasilver Resource Corp. has completed its previously announced non-brokered private placement. The company issued 50 million common shares at a price of 40 cents per share for aggregate gross proceeds of $20-million. As a result, Kinross Gold Corp. and an affiliate of Central Puerto SA each own approximately 4.0 per cent of the outstanding common shares on an undiluted basis.

All common shares issued in connection with the closing of the private placement are subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.

The strategic investments by Kinross and Central Puerto call for the formation of a five-person technical advisory committee comprising two members from Abrasilver, two members from Kinross and one member from Central Puerto. The technical advisory committee will provide advice and guidance on the coming phase IV exploration campaign and the future development plans for the company's flagship Diablillos project in Salta province, Argentina. Separately, a strategic and operational committee will be formed, comprising two members from Abrasilver and two members from Central Puerto. The strategic and operational committee will provide advice and guidance on strategic, operational, financial, tax, infrastructure, government and regulatory affairs, among others matters.

John Miniotis, president and chief executive officer of Abrasilver, commented: "We are very pleased to welcome both Kinross and Central Puerto as key shareholders and strategic partners in Abrasilver. With a strong balance sheet consisting of approximately $25-million in cash, the company is now very well positioned to aggressively advance Diablillos and continue to unlock value for all shareholders. We now turn our focus to the upcoming drill program at Diablillos, which will be commencing over the coming weeks and additional details will be provided in the near future."

The company will use the proceeds of the private placement for exploration and development of Diablillos and for working capital and general corporate purposes. In connection with the completion of the private placement, the company will pay aggregate cash finders' fees of $900,000 to Infor Financial Inc. and Southern Cone Partners.

About Abrasilver Resource Corp.

Abrasilver is an advanced-stage exploration company focused on rapidly advancing its 100-per-cent-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina. The current proven and probable mineral reserve estimate for Diablillos consists of 42.3 million tonnes grading 91 grams per tonne silver and 0.81 gram per tonne gold, containing approximately 124 million ounces silver and 1.1 million ounces gold, with significant further exploration upside potential. In addition, the company has entered into an earn-in option and joint venture agreement with Teck on the La Coipita project, whereby Teck can finance up to $20-million (U.S.) in exploration expenditures and make certain other payments to earn up to an 80-per-cent interest. Abrasilver is listed on the TSX Venture Exchange under the symbol ABRA and in the United States on the OTCQX under the symbol ABBRF.

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