VANCOUVER, BRITISH COLUMBIA, May 15, 2012 (MARKETWIRE via COMTEX) — Columbus Silver Corporation /quotes/zigman/505997 CA:CSC -22.73% (“Columbus Silver” or the “Company”) provides an update on the proposed acquisition (the “Acquisition”) of the Company by Santa Fe Gold Corporation (“Santa Fe”). Under the definitive agreement governing the Acquisition, the Company and Santa Fe agreed to use best efforts to complete the Acquisition on or before March 31, 2012, with a final deadline of May 31, 2012 (the “Deadline”). Though Columbus Silver has successfully completed all of its obligations to close the Acquisition, Santa Fe has not yet completed the conditions necessary to draw-down funds under its financing agreement with Waterton Global Value (Luxembourg) Sarl. Santa Fe has informed the Company that it is evaluating the aforementioned financing conditions and also exploring alternative methods of financing the Acquisition. Because Santa Fe has yet to provide funding for the Acquisition, it is unclear whether the Acquisition will complete by the Deadline or at all. The Company will provide further updates when additional information becomes available.

ON BEHALF OF THE BOARD,

Robert F. Giustra, President & CEO, Director

This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995 (“forward-looking statements”), respecting the proposed Acquisition, proposed date of completion thereof, and transactions ancillary thereto. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation the ability to acquire necessary authorizations; Santa Fe’s ability to raise necessary financing to complete the Acquisition and in a timely fashion; obtaining final approval of the TSX Venture Exchange; obtaining court approval; obtaining applicable US approvals; cost increases; possibility of a competing offer arising; unforeseen circumstances; risks associated with the exploration projects or title thereto held by Columbus Silver; mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: that the required approvals mentioned above will occur; that Santa Fe will be able to obtain required financing in a timely fashion; the timing and receipt of required approvals; that required service providers will be available to assist with the transaction; that items required for mandated disclosure are available; general business and economic conditions; availability of financing; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

        Contacts:

        Columbus Silver Corporation

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www.columbussilvercorp.com