GREAT PANTHER SILVER LIMITED
(TSX: GPR)(NYSE MKT: GPL) (“Great Panther”; the “Company”)
today reported financial results for the Company’s three months ended March
31, 2014. 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 financial information is
prepared in accordance with IFRS and all dollar amounts are expressed in
Canadian dollars unless otherwise indicated.

“Compared to the first
quarter of 2013, Great Panther achieved 10% production growth, significant
reductions in cash costs, and a modest increase in revenues despite
significantly lower metal prices,” stated Robert Archer ,
President and CEO. “That said, our results were impacted by incursions of
illegal miners throughout the quarter, the illegal occupation of our facilities
at Guanajuato in
March, and lower grades at Guanajuato.”

“While I am extremely
grateful for the support and resilience of our employees and contractors during
this difficult period, we recognize there is still more work to do to bring the
operations at Guanajuato
back to an optimal state. We continued to have challenges with grades at Guanajuato
in April, which will impact the financial results of the second quarter, but we
expect operational results to markedly improve for the remainder of the year as
we return to proper mine sequencing and better grades at Guanajuato.
San Ignacio is
on track to commence production in this quarter as planned, and we are
maintaining our guidance for overall growth in 2014.”

First Quarter 2014
Financial and Operational Highlights (Compared to First Quarter 2013 unless
otherwise noted)

• Throughput
  totalled 72,631 tonnes, a 4% increase;

• Processing
  at Guanajuato
  included 8,037 tonnes of development ore from San
  Ignacio;

• Metal
  production of 667,349 silver equivalent ounces (“Ag eq oz”)
  increased 10% and included 52,477 Ag eq oz from San
  Ignacio;

• Gold
  production increased 17% to 3,665 ounces while silver remained steady at
  370,668 ounces;

• Cash
  cost per silver payable ounce (“cash cost”) decreased 28% to US $13.40;

• Cash
  cost per silver payable ounce decreased 30% to US $12.06 at
  Guanajuato and
  decreased 26% to US $15.19 at Topia;

• All-in
  sustaining cost (“AISC”) and All-in cost (“AIC”) per
  silver payable ounce decreased 35% and 26%, to US $24.06
  and US $27.66, respectively;

• Revenues
  totalled $12.9 million, an increase of 2% despite
  significantly lower average metal prices;

• Net loss
  was $0.6 million compared to net income of $1.3
  million;

• Adjusted
  EBITDA was negative $0.5 million compared to $0.5 million;

• Operating
  cash-flow before changes in non-cash working capital increased 168%;

• Cash and
  cash equivalents were $21.7 million compared to $21.8
  million at December 31, 2013; and

• Net
  working capital decreased to $36.9 million from $38.2
  million at December 31, 2013.

DISCUSSION OF FIRST
QUARTER 2014 FINANCIAL RESULTS

For the three months ended March
31, 2014, the Company earned revenues of $12.9 million
compared to $12.6 million for the same period of 2013, an
increase of 2%. The increase was the result of an 11% increase in metal sales
on a silver equivalent ounce basis and the appreciation of the USD against the
CAD which had the effect of increasing revenue reported in CAD by 12%. These
factors offset a 32% decline in the average realized silver price in USD terms
and a similar decline in the gold price.

Cost of sales before
non-cash items of $9.6 million (75% of revenue) for the three
months ended March 31, 2014 was consistent with $9.5
million (75% of revenue) for the same period in 2013. Cost of sales did
not increase despite an 11% increase in metal sales on a silver equivalent
ounce basis due to a reduction in unit production costs.

Gross profit before
non-cash items increased 5% to $3.3 million in the first quarter
of 2014 compared to the first quarter of 2013. The increase is the result of an
increase in metal sales on a silver equivalent ounce basis and lower unit
production costs which together offset the impact of lower realized metal
prices.

Amortization and depletion
of mineral properties, plant and equipment relating to cost of sales for the
three months ended March 31, 2014 was $3.6 million
compared to $2.7 million for the same period in 2013. The
increase in amortization and depletion expense is due to a reduction of the
Measured and Indicated (“M&I”) resource at Guanajuato,
based on the updated NI 43-101 Resource report issued in December 2013,
and the increase in sales on a silver equivalent ounce basis. The reduction of
the resource has the effect of shortening the amortization period and therefore
increasing the amortization expense per unit produced and sold.

Gross loss for the first
quarter of 2014 was $0.4 million compared to gross profit of $0.3
million for the first quarter of 2013. The primary reason for the
change was an increase in non-cash amortization and depletion of $0.7
million.

General and administrative
expenses were $1.6 million for the three months ended March
31, 2014 compared to $2.0 million for the same period in
2013. The decrease reflects the impact of cost reductions initiated late in the
second quarter of 2013.

Exploration and evaluation,
and development expenses were $1.6 million for the three months
ended March 31, 2014 compared to $0.6 million for
the same period in 2013. The increase is primarily due to San
Ignacio development expenditures of $1.2 million
which are being expensed as these did not meet the criteria for capitalization
under IFRS. The Company made the decision to begin development based on
internal economic assessments and expects to begin production in the second
quarter of 2014.

Finance and other income
was $3.2 million for the quarter ended March 31, 2014,
compared to $4.4 million for the same period in 2013. The
decrease is primarily attributed to a $0.5 million decrease in
foreign exchange gains and $0.7 million in losses and
expenditures associated with the illegal occupation of the Guanajuato
mine, including the theft of concentrate worth $0.4 million.

A foreign currency gain of $3.8
million was recognized in the first quarter of 2014, compared to a
foreign currency gain of $4.3 million for the first quarter of
2013. The gains are the result of the depreciation of the Canadian dollar
against the Mexican peso and US dollar against the Canadian dollar.

The Company recorded an
income tax expense of $26,000 for the three months ended March
31, 2014 despite a loss before income tax due to new tax duties which
take effect in 2014 under the Mexican reform taxes. These new taxes were
partially offset by recoveries related to pre-tax losses incurred by the
Company’s operations in Mexico.
This compares to a $0.8 million expense in the same period in
2013 when the Company reported income before tax. During the first quarter of
2014, $0.2 million and $0.1 million of Special
and Extraordinary duties respectively were recorded in the income statement and
accrued for payment in March 2015. The Company has net operating
tax losses in Canada
and has not recognized the benefit of any of these losses in the financial
statements of the Company.

The net loss for the
quarter ended March 31, 2014 was $0.6 million
compared to net income of $1.3 million in the comparative
quarter of 2013. Reasons for the increase in net loss include the development
expenditures related to San
Ignacio, and the additional losses and expenditures related to the
illegal occupation of the Guanajuato
plant and office premises. These factors were partly offset by lower general
and administrative expenses, and a decrease in tax expense.

Adjusted EBITDA was negative
$0.5 million for the three months ended March 31, 2014,
compared to adjusted EBITDA of $0.5 million for the same period
in 2013. The decrease in EBITDA primarily reflects the development expenditures
made at San Ignacio,
and the additional expenditures associated with the illegal occupation of the Guanajuato
facilities.

CASH COST AND
ALL-IN COSTS

Cash cost per silver
payable ounce (“cash cost”) of US $13.40 for the first
quarter of 2014 decreased from US $18.60 in the first quarter of
2013, as declines in cash cost were realized at both Guanajuato
and Topia. The improvement in cash cost is attributable to the cost reduction
initiatives which reduced site costs per tonne, higher by-product credits from
increased gold production at Guanajuato,
improved silver grades at Topia, and a decrease in smelting and refining
charges.

All-in sustaining cost per
silver payable ounce (“AISC”) for the first quarter of 2014 decreased
to US $24.06 from US $36.84 in the first quarter
of 2013. The decrease is the result of the decrease in cash costs, sustaining
capital expenditures and general and administrative expenditures as a result of
cost reduction programs initiated in the second quarter of 2013.

All-in cost per silver
payable ounce (“AIC”) for the first quarter of 2014 decreased to US $27.66
from US $37.59 in the first quarter of 2013 as a result of the
same factors which reduced AISC.

Please refer to the
Company’s Management’s Discussion and Analysis for further discussion of cash
cost, AISC and AIC and for a reconciliation to the Company’s financial results
as reported under IFRS.

CASH AND WORKING
CAPITAL AT MARCH 31, 2014

At March 31, 2014,
the Company had cash and cash equivalents of $21.7 million
compared to $21.8 million (including short-term investments) at December
31, 2013.

At March 31, 2014,
the Company had working capital of $36.9 million compared to net
working capital of $38.2 million at December 31, 2013.
Working capital decreased by $1.3 million due to a comprehensive
loss in the period of $1.0 million, an increase in non-current
assets of $0.8 million primarily reflecting investments in
capital equipment and mine development and capitalized exploration activities.

OUTLOOK

The Company is maintaining
its 2014 guidance despite the challenges faced in the first quarter of 2014. At
this time, the Company expects that the second quarter will reflect the impact
of resuming normal operations at Guanajuato
after the illegal occupation in March and continued grade challenges at the
mine in April, some of which is associated with preparation necessary to return
the higher grade Guanajuato
zones to normal operation. A return to operations more closely reflecting the
results in the fourth quarter of 2013 and the start of production at San
Ignacio are expected to put the Company on track for meeting its
guidance.

Overall metal production
for 2014 is expected to increase gradually through the year as the San
Ignacio mine and mill feed comes on stream. The project is expected
to commence production in the second quarter of 2014 at a rate of about 100
tonnes per day, ramping up to approximately 250 tonnes per day by year-end, and
will complement the steady stream of production from the main Guanajuato
Mine Complex and the Topia Mine.

The Company expects to
invest approximately $10 to $13 million in capital expenditures
in 2014. These investments include the development of the San Ignacio
Project, continued mine development and diamond drilling at both Guanajuato
and Topia, rehabilitation of the Cata Shaft at Guanajuato,
and the acquisition of new mining and plant equipment to drive efficiencies and
reduce production costs in the future.

The Company also plans to
perform approximately 16,500 metres of exploration drilling in 2014 to further
define resources, look for vein extensions, and test new targets. Planned
drilling for the year consists of 11,000 metres at Guanajuato,
3,500 metres at San Ignacio
and 2,000 metres at Topia.

WEBCAST AND
CONFERENCE CALL TO DISCUSS FISCAL YEAR 2013 FINANCIAL RESULTS

The Company will hold a
live webcast and conference call to discuss the financial results on May
8, 2014, at 7:00 AM Pacific Daylight Time, 10:00
AM Eastern Daylight Time. Hosting the call will be Mr. Robert
Archer , President and CEO, and Mr. Jim Zadra , CFO
and Corporate Secretary.

Shareholders, analysts,
investors and media are invited to join the live webcast and conference call by
logging in or dialing in just prior to the start time.

Great Panther’s archived
webcast can be accessed by visiting the Investors section (http://www.greatpanther.com/Investors/Events/default.aspx)
of the Company’s website at www.greatpanther.com.

NON-IFRS MEASURES

The discussion of financial
results in this press release includes reference to Gross profit before
non-cash items, Adjusted EBITDA, Cash cost per silver payable ounce, All-in
sustaining cost per silver payable ounce, and All-in cost per silver payable
ounce which are non-IFRS measures. The Company provides these measures as
additional information regarding the Company’s financial results and
performance. Please refer to the Company’s MD&A for the quarter ended March
31, 2014, for definitions and reconciliations of these measures to the
Company’s financial statements.

ABOUT GREAT PANTHER

Great
Panther Silver Limited is a primary silver mining and exploration company
listed on the Toronto Stock Exchange trading under the symbol GPR,
and on the NYSE MKT trading under the symbol GPL. The Company’s current
activities are focused on the mining of precious metals from its two
wholly-owned operating mines in Mexico,
Guanajuato and Topia.
Great Panther is also in the process of developing its San Ignacio Project
with a view to production in 2014, and has two exploration projects, El Horcon
and Santa Rosa.
The Company is also pursuing additional mining opportunities within the Americas,
with the goal of adding to its portfolio of mineral properties.

All shareholders have the
option to receive a hard copy of the Company’s financial statements free of
charge upon request. Should you wish to receive Great
Panther Silver’s Financial Statements in hard copy, please contact us at
the Company toll free at 1-888-355-1766 or 604-608-1766, or e-mail [email protected].

CAUTIONARY
STATEMENT ON FORWARD-LOOKING STATEMENTS

This news release contains
forward-looking statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward-looking information within
the meaning of Canadian securities laws (together, “forward-looking
statements”). Such forward-looking statements may include but are not
limited to the Company’s plans for production at its Guanajuato
and Topia Mines in Mexico,
exploring its other properties in Mexico,
the overall economic potential of its properties, the availability of adequate
financing and involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements expressed or
implied by such forward-looking statements to be materially different. Such
factors include, among others, risks and uncertainties relating to potential
political risks involving the Company’s operations in a foreign jurisdiction, uncertainty
of production and cost estimates and the potential for unexpected costs and
expenses, physical risks inherent in mining operations, currency fluctuations,
fluctuations in the price of silver, gold and base metals, completion of
economic evaluations, changes in project parameters as plans continue to be
refined, the inability or failure to obtain adequate financing on a timely
basis, and other risks and uncertainties, including those described in the
Company’s Annual Information Form for the year ended December 31, 2013
and Material Change Reports filed with the Canadian Securities Administrators
available at www.sedar.com and reports on
Form 40-F and Form 6-K filed with the Securities and Exchange Commission
and available at www.sec.gov.

Contact Information:
Great Panther Silver Limited
Robert A. Archer President & CEO
1-888-355-1766

Great Panther Silver Limited
Rhonda Bennetto Vice President Corporate Communications
1-888-355-1766
[email protected]
www.greatpanther.com