Mr. Robert Drago reports

MILLENNIUM SILVER CORP. ANNOUNCES SHARES FOR DEBT TRANSACTION

Millennium Silver Corp. has entered into shares-for-debt agreements to satisfy $337,622 in debt owed to certain creditors of the company.

Under the terms of the debt settlement agreements, the company will issue 22,508,132 common shares at a deemed price of 1.5 cents per share to certain creditors of the company. The indebtedness includes $190,375 of debt owed to directors, former directors and officers of the company; $122,247 of debt owed to a firm where the chief financial officer of the company is a partner; and $25,000 of debt owed to a family trust related to the former chief executive officer of the company. The company determined to satisfy the indebtedness with common shares to preserve its cash for working capital.

The issuance of the shares to the creditors is subject to a number of conditions, including the approval of the exchange. All securities issued will be subject to a four-month hold period, which will expire on the date that is four months and one day from the date of issue.

As certain insiders participated in the debt settlement, it is considered to be a related-party transaction under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company intends to rely on the exemptions from the valuation and the minority approval requirements of MI 61-101 provided for in subsections 5.5(a) and 5.7(a) of MI 61-101, respectively, as the fair market value of the subject and the consideration paid in the debt settlement, in each case, in relation to the interested parties, will not represent more than 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101. All of the independent directors of the company, acting in good faith, considered the transactions and have determined that the fair market value of the securities being issued to insiders, and the consideration being paid, is reasonable.

Millennium Silver is focused on the exploration and development of its Nevada projects. The company's common shares trade on the TSX Venture Exchange under the symbol MSC.

We seek Safe Harbor.