Caracara Silver Inc. Signs Option Agreement on Peruvian Projects

Caracara Silver Inc. (TSX VENTURE:CSV) (the "Company") is pleased to announce
that the Company has signed an option agreement with Inversiones Collodi SAC
("IC") with respect to Caracara's Peruvian exploration properties. IC is a
private Peruvian mineral exploration and development company based in Lima. 


Under the terms of the agreement, IC will have the right to earn a 65% interest
in Caracara's concessions by making exploration expenditures totalling US$12.5
million over a four-year period. In addition, IC will make cash payments to
Caracara's wholly-owned affiliate company in Peru, totalling $1.85 million plus
VAT taxes. Caracara has received the first $250,000 payment owing. 


"This is a tremendous step for Caracara, especially in light of the difficult
marketplace for financing mineral exploration. We are bringing together
Caracara's advanced stage silver-lead-zinc projects such as Princesa with IC's
strong financing capabilities and in depth expertise in operating in Peru's
mining industry", Nick Tintor, President and CEO of Caracara commented.


Transaction Highlights

The following are highlights of the transaction:



--  $12.5 million of exploration expenditures over a four-year period
       
    
--  $2 million exploration budget in year one
      
--  $1.85 million in cash payments to Caracara net of VAT taxes over the
    four year option period
      
--  IC can earn a 65% interest and an additional 5% by financing and
    completing a prefeasibility study on any of the projects in Caracara's
    portfolio
        
--  Key Caracara exploration staff will manage the field exploration
    programs with IC staff under the guidance of a Technical Committee
        
--  The option agreement will not be effective until Caracara has received
    the approval of the TSX Venture Exchange



Exploration Program 

Princesa 

Caracara and IC are planning a 2013 exploration program which will include 6,000
metres of drilling as part of a $2.0 million exploration budget. The first phase
of this program is expected to begin by late May with the start of a 3,000-metre
drill program at the Princesa project. 


Princesa is located 850 kilometres south east of Lima in Puno Province and hosts
a 43-101 compliant resource estimate totalling 4.6 million tonnes in the
inferred category, grading 90.88 grams silver per tonne and 1.69% zinc and 1.61%
lead. Princesa remains open along strike and at depth. 


The Princesa NI 43-101 Technical Report can be found on the Company's website
www.caracarasilver.com and on www.sedar.com. 


Pilunani 

The second part of the program, including 2,000 metres of drilling, will focus
on the Pilunani zinc-lead project located 20 kilometres southeast of the
Princesa project. Pilunani is a high priority target with potential for hosting
near surface zinc-lead mineralization. 


Drilling completed by previous operators intersected widespread zinc and lead
mineralization associated with a stratabound manto type deposit hosted in
Permian limestones and sediments including polymictic breccias. 


Some of the more encouraging intersections which require follow up investigation
include:




--  Hole PIL-1 - 20.2 metres grading 6.54% zinc and 5.14 % lead. (1)
        
--  Hole PIL-6 - 17.1 metres grading 5.18% zinc and 1.63% lead
       
--  Hole PIL-9 - 18.75 metres grading 5.71% zinc and 1.11% lead
        
--  Hole PIL-10 - 9.55 metres grading 6.8% zinc and 15.44% lead



(1) Intervals represent the down hole core intersection and, until more data is
available on the geometry of the mineralized zone, are not considered true
widths.


A complete list of historic drill results with corresponding cross sections and
plan maps from the Pilunani project is included in a NI 43-101 technical report
available on Caracara's website at www.caracarasilver.com and on www.sedar.com.


Parcuyo

The Parcuyo project, located approximately 28 kilometres northwest of the
Princesa project, is an early stage silver-lead-zinc prospect that will be
tested by a 1,000-metre drill program later this year. The target at Parcuyo has
been defined by surface mapping and sampling over a 200-metre by 100-metre area.



Mineralization is hosted by diatreme clastic breccias and includes high grading
grab samples such as 28% zinc and 18.8% lead and 16% zinc and 12.6% lead.
Parcuyo has never been drill tested. 


Qualified Person 

Mr. Alain Vachon, P.Geo, Caracara Silver's Vice President Exploration and the
Company's Qualified Person as defined by National Instrument 43-101, has
reviewed and approved the contents of this press release. 


About the Company 

Caracara Silver Inc. is focused on acquiring, exploring and developing silver,
zinc and lead resources to meet the world's growing demand. The Company holds 43
concessions totalling 29,099 hectares in Southern Peru. 


Caracara has 50,821,167 shares issued and outstanding and trades on the TSX
Venture Exchange under symbol: CSV. 


THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR
ADEQUACY OF THIS RELEASE 


This news release may contain forward-looking statements that are based on
Caracara Silver Inc.'s expectations, estimates and projections regarding its
business and the economic environment in which it operates. These statements are
not guarantees of future performance and involve risks and uncertainties that
are difficult to control or predict. Therefore, actual outcomes and results may
differ materially from those expressed in these forward-looking statements and
readers should not place undue reliance on such statements. Statements speak
only as of the date on which they are made, and Caracara Silver Inc. undertakes
no obligation to update them publicly to reflect new information or the
occurrence of future events or circumstances, unless otherwise required to do so
by law. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Caracara Silver Inc.
Nick Tintor
President and CEO
416-987-0855
ntintor@rgmi.ca


Caracara Silver Inc.
Leslie Haddow
Corporate Secretary
416-637-3523
lhaddow@rgmi.ca
www.caracarasilver.com
Caracara Silver Inc. (TSXV:CSV)
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