Great Panther Silver Reports First Quarter 2017 Financial Results

VANCOUVER, May 3, 2017

VANCOUVER, May 3, 2017 /PRNewswire/ - GREAT PANTHER SILVER LIMITED (TSX: GPR) (NYSE MKT: GPL) ("Great Panther"; or the "Company") today reported financial results for the Company's three months ended March 31, 2017.  The full version of the Company's unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") can be viewed on the Company's website at www.greatpanther.com or SEDAR at www.sedar.com.  All shareholders can receive a hard copy of the Company's complete audited financial statements free of charge upon request.  All financial information is prepared in accordance with IFRS, except as noted under the Non-IFRS Measures section. 

Great Panther commenced reporting its financial results in US dollars as of the third quarter of 2016.  Accordingly, all dollar amounts expressed in this news release, and the associated financial statements and MD&A, are in US dollars ("USD"), unless otherwise noted.  Periods prior to the third quarter of 2016 were reported in Canadian dollars ("CAD"), and have been restated to USD using the July 1, 2016 CAD/USD exchange rate of 1.3052. 

"I am pleased to report a significant increase in net income for the first quarter of 2017", stated Robert Archer, President & CEO.  "This is particularly notable given that we suspended processing at Topia to complete plant upgrades and prepare for the transition to a new tailings storage facility, and therefore only had nominal production from Topia during the quarter.  The Topia upgrades were completed under budget and commissioning of the plant is expected to be complete by mid-May.  Great Panther remains focused on capitalizing on growth opportunities and, as at the end of the first quarter of 2017, the Company had $69.3 million in net working capital, including $53.2 million in cash and short-term deposits, and no long-term debt."

Great Panther reports net income of $3.0 million for the first quarter of 2017, compared to a net loss of $3.4 million in the same quarter of 2016.  Improved metal prices and favourable exchange rates offset the impact of lower production and sales volumes associated with the temporary suspension in Topia's milling operations.  The Company also recorded a non-cash $1.8 million foreign exchange gain, predominantly associated with Mexican peso ("MXN") foreign currency forward contracts.

Cash cost per payable silver ounce ("cash cost") of $3.54 for the first quarter of 2017 was well below the Company's full-year guidance for 2017, and represented reductions of 16% and 39% relative to the first and the fourth quarter of 2016, respectively.  All-in sustaining cost per payable silver ounce ("AISC") for the first quarter of 2017 came in at $19.55 and was higher than 2017 full-year guidance, as the Company absorbed the impact of the capital expenditure and fixed overhead costs associated with the construction of the Topia tailings filtration plant, Phase II storage facility, and plant upgrades (the "Topia Project"), while milling operations at Topia were halted.  With the Topia Project now largely completed, AISC is projected to decline over the balance of 2017 such that the Company expects to meet its 2017 guidance (refer to Outlook section).

Highlights of the first quarter 2017 compared to first quarter 2016, unless otherwise noted: