Defiance Silver Corp. Modifies Terms and Closes First Tranche of Private Placement

Defiance Silver Corp ("Defiance") (TSX VENTURE:DEF) announces that the terms of
the non-brokered private placement ("the Offering") announced on June 6, 2012
have been revised. Under the new terms Defiance will offer up to 2,500,000 units
("Units") at a price of $0.20 per Unit for gross proceeds of $500,000. The
Offering is subject to an overallotment option whereby the Offering may be
increased by up to 50%. 


Defiance is also pleased to announce that it has closed the first tranche of its
amended private placement with the issuance of 2,741,500 units at a price of
$0.20 per Unit for gross proceeds of $548,300. These units are subject to a four
month hold period expiring four months from the date of issue. Defiance
management and directors have subscribed for a total of 678,500 Units; and
IMPACT Silver Corp. (Defiance's single largest shareholder) acquired 452,000
Units. 


Each Unit consists of one common share of the Company, one full common share
purchase warrant ("Warrant") and one Silver Participation Right ("SPR"). Each
Warrant will entitle the holder to purchase one common share of the Company for
a period of 12 months at a price of $0.40 per share. Each Silver Participation
Right will entitle the holder to receive 0.003 ounces of silver bullion or the
equivalent value in Canadian dollars (being C$0.09 based on a C$30 per ounce
silver price) from the Company's future silver production. Defiance believes
that the innovative Silver Participation Right will provide a mechanism for
participating investors to gain direct access to physical silver bullion and
direct exposure to future upside in the price of silver. 


Closing of the Offering, including the first tranche, is subject to receipt of
all required regulatory approvals including the approval of the TSX Venture
Exchange. The Company may pay finder's fees in compliance with TSX Venture
Exchange policies on some or all of the Offering. Finder's fees of $8,134 are
payable in connection with the first tranche of the private placement. 


The proceeds from the Offering will be used at the discretion of the Company
for: general working capital purposes, the ongoing refurbishment of the Santa
Gabriela Mill and the development of the San Acacio Silver Mine. 


About Defiance Silver: 

Defiance Silver Corp. is a near term silver producer engaged in the acquisition,
exploration, and development of advanced silver projects in Zacatecas Mexico.
The Company's efforts are focused on: (1) the purchase and refurbishment of the
200 tpd Santa Gabriela Mill, (2) the exercising of an option to purchase the San
Acacio Silver Mine, and (3) the definition of feed for the Santa Gabriela Mill
from surface dumps and the San Acacio Silver Mine with its historical resource
(see Defiance News Release dated November 1, 2011) and excellent potential for
defining additional resources. 


On behalf of Defiance Silver Corp. 

Bruce Winfield, President and CEO

Forward-Looking Statements. This Defiance News Release may contain certain
"forward-looking" statements and information relating to Defiance that are based
on the beliefs of Defiance management, as well as assumptions made by and
information currently available to Defiance management. Such statements reflect
the current risks, uncertainties and assumptions related to certain factors
including but not limited to, there being no assurance the private placement
will be fully subscribed on the terms outlined above. Should any one or more
risks or uncertainties materialize or change, or should any underlying
assumptions prove incorrect, actual results and forward-looking statements may
vary materially from those described herein. Defiance does not assume the
obligation to update any forward-looking statement.

Defiance Silver (TSXV:DEF)
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