Mr. Chris Wright reports

DEFIANCE SILVER CLOSES THIRD AND FINAL TRANCHE OF UPSIZED PRIVATE PLACEMENT

Defiance Silver Corp. has closed a third and final tranche of its non-brokered private placement of units of the company at a price of 20 cents per unit. Under the third tranche, the company issued 4,875,000 units for aggregate gross proceeds of $975,000.

In total, the company issued 16,339,000 units for aggregate gross proceeds of $3,267,800 under the offering.

Marketed offering

Each unit is composed of one common share of the company and one-half of one common share purchase warrant. Each warrant will be exercisable by the holder thereof to acquire one common share of the company at a price of 35 cents at any time on or before the date which is 24 months after the closing date.

The net proceeds of the offering will be used by the company for exploration and general working capital purposes. Under applicable securities legislation and the policies of the TSX Venture Exchange, the securities issued in this offering are subject to a four-month hold period from the issuance of the units.

In connection with the closing of the third tranche, the company paid finders' fees composed of an aggregate cash commission of $66,900 and an aggregate of 334,500 non-transferable warrants to arm's-length finders. In total, the company paid finders' fees composed of an aggregate cash commission of $166,368 and an aggregate of 831,840 finders' warrants in connection with the offering. Each finder's warrant entitles the holder thereof to purchase one common share of the company at a price of 20 cents per common share for a period of two years following its issuance, the whole in accordance with the rules and policies of the TSX Venture Exchange.

The offering remains subject to the final approval of the TSX Venture Exchange.

About Defiance Silver Corp.

Defiance is an exploration company advancing the district-scale Zacatecas project, located in the historic Zacatecas silver district, and the Tepal gold/copper project in Michoacan state, Mexico. Defiance is managed by a team of proven mine developers with a record of exploring, advancing and developing several operating mines and advanced resource projects. Defiance's corporate mandate is to advance its projects through capital-efficient exploration focused on resource growth and new mineral discoveries.