Great Panther Silver Reports Third Quarter 2016 Financial Results

VANCOUVER, Nov. 2, 2016

VANCOUVER, Nov. 2, 2016 /PRNewswire/ - GREAT PANTHER SILVER LIMITED (TSX: GPR; NYSE MKT: GPL) ("Great Panther"; the "Company") today reported financial results for the Company's three and nine months ended September 30, 2016.  The full version of the Company's unaudited condensed interim consolidated financial statements ("Interim Financial Statements), and Management's Discussion and Analysis ("MD&A") can be viewed on the Company's website at www.greatpanther.com, or on 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 Interim Financial Statements and MD&A, are in US dollars ("USD"), unless otherwise noted.  Prior periods were reported in Canadian dollars ("CAD"), and have been restated to USD using the July 1, 2016 CAD/USD exchange rate of 1.3052.  Accordingly, all dollar amounts expressed in this news release, and the associated Interim Financial Statements and MD&A, are in USD, unless otherwise noted.

"Great Panther's third quarter mine operating earnings, operating cash flow and net income all showed significant increases over the third quarter of 2015, reflecting improved metal prices and favourable foreign exchange rates," stated Robert Archer, President and CEO.  "In addition, we have seen a significant increase in operating cash flow on a year-to-date basis that, along with the completion of a $29.9 million bought deal financing in July, has contributed to a significant strengthening of our balance sheet.  The Company also continues to be debt free."

During the third quarter of 2016, the Company generated $7.2 million in mine operating earnings before non-cash items, and $4.2 million in operating cash flows before changes in non-cash net working capital, which represent increases of 64% and 254%, respectively, over the results from the third quarter of 2015.  These strong operating results were primarily attributable to a 22% increase in revenue and a slight decrease in cost of sales.  The Company reported net income of $2.1 million for the third quarter of 2016, and adjusted EBITDA increased by 197% to $4.7 million.

Cash and cash equivalents increased by $39.2 million from the start of the year to $52.9 million at September 30, 2016, and net working capital increased by $42.8 million to $68.2 million.  The increases in cash and net working capital are largely a function of the $29.9 million bought deal offering that was completed in July, significantly improved cash flows from operating activities, and other financing activities. 

Any references to "cash costs" in this news release should be understood to mean cash costs per payable silver ounce, net of by-products ("cash cost").  This news release also makes reference to cash cost per silver equivalent ounce ("cash cost per Ag eq oz"), EBITDA, adjusted EBITDA, cost of sales before non-cash items, mine operating earnings before non-cash items, all-in sustaining cost per payable silver ounce ("AISC") and all-in sustaining cost per Ag eq oz ("AISC per Ag eq oz").  These are all considered non-IFRS measures.  Please refer to the Non-IFRS Measures section of the MD&A for an explanation of these measures and reconciliations to the Company's reported financial results.