Caracara Silver Inc. (TSX VENTURE:CSV) ("Caracara" or the "Company") is pleased
to announce that the Company has received environmental permits required to
commence drilling at the Marcia-Nilda-Rica Miel targets, collectively known as
the Marcia Property, which is part of the larger Princesa-Pilunani Project
located 850 kilometres southeast of Lima in Puno Department, Peru. 


Caracara has signed a contract for a 3,000-metre drill program with Bradley-MDH,
the largest drilling contractor in Peru. The drilling program is scheduled to
begin on April 23rd and is expected to take approximately three months to
complete. 


Nick Tintor, President and CEO of Caracara said: "After almost a year of field
exploration work and permitting efforts by our team in Peru, I am excited to be
starting Caracara's first drill program which will be testing new targets
identified by our geologists." 


Marcia Drilling 

Drilling at Marcia will test a moderate Induced Polarization ("IP") target which
has been identified on the concession. Four holes are planned to test a broad
400 metre-wide chargeability anomaly which strikes for more than 700 metres and
is proximal to the lateral extensions of the Marcia 1 and 2 zinc-lead showings.
(See Marcia Drill Plan Map below). 


The Company completed a reconnaissance exploration program last year which
identified two areas of zinc-lead mineralization which returned several
higher-grade values such as 22.1% zinc ("Zn") and 2.29% lead ("Pb") in a 1.7
metre-wide channel sample. (See Caracara December 15, 2011 press release). 


At the Marcia 1 showing, the site of historic small scale mining, mineralization
is manto-like and consists of galena-pyrite-secondary zinc minerals. Alteration
minerals include limonite, jarosite, iron, manganese and barite.


Nilda Drilling 

Located approximately 4 kilometres north of the Marcia 1 drill target, Nilda is
characterized by a zone of silver-zinc-lead mineralization covering an area
measuring 400 metres x 400 metres including a high-grade northeast-striking
structure known as the Nilda structure. 


IP surveys completed by Caracara last year identified a moderate chargeability
anomaly approximately 200 metres southwest of these mineralized outcrops, which
has a strike length of more than 400 metres. Four holes will test this IP
anomaly and three to four holes will test the Nilda structure surface zone
mineralization. 


Sampling completed in 2006-2007 over the mineralized area outlined an area of
elevated lead-zinc values with several chip samples running greater than 20% Zn
and 10% Pb. A trench completed over an area known as the Nilda Mine returned
2.40 metres grading 6.9 g/t Ag, 5.50% Pb and 31.5% Zn. 


Two of the four holes drilled in 2007 by another company, intersected the Nilda
Structure: DDH NIL-02 intersected 6 metres grading 2.33 g/t Ag, 0.38% Pb and
8.9% Zn. DDH NIL-01 returned 21.8 g/t Ag, 8.9% Pb and 24.4% Zn over 1.4 metres. 


Rica Miel Drilling 

Two drill platforms have been planned to test the Rica Miel chargeability
anomaly located approximately 1 km northeast of the Nilda target area. This
anomaly strikes for more than 700 km and is associated with low grading
silver-zinc-lead mineralization which outcrops on the flanks of a slope
approximately 300 metres east of the chargeability anomaly.


Princesa Project 

Caracara is in the process of negotiating agreements with local communities in
the Princesa work area. The Company anticipates having final permits for
drilling by May, with drilling commencing immediately following the completion
of the Marcia drilling program. Caracara has budgeted 5,000 metres of drilling
for Princesa in 2012 to test for extensions of silver-zinc-lead mineralization
along the main Princesa structure. 


Princesa hosts NI 43-101 inferred resources of 4.6 million tonnes grading 90.88
g/t Ag and 1.66% Pb and 1.69% Zn.


The Princesa-Pilunani Project Area 

Caracara's silver and zinc-lead portfolio in Peru is comprised of three
non-contiguous blocks of claims totalling 24,600 hectares known as the Potoni
Group (eight claims), the Princesa Group (eight claims), and the Pilunani Group
(18 claims). These concessions cover more than 20 silver-zinc-lead showings,
including the Princesa deposit and are within a 40 kilometre-long belt named the
Pilunani-Nicaragua belt (Dr. Alan Clark, 2006), which is home to several
silver-zinc-lead deposits. Mineralization is associated with swarms of
magmatic-hydrothermal vein/stockwork/replacement systems associated with major
diatreme breccias emplacements adjacent to the Picotani volcanic centre. 


Qualified Person 

Mr. Alain Vachon, P.Geologist, 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 for these metals.
The Company holds 34 concessions totalling 24,600 hectares in Southern Peru and
is actively exploring its holdings in Peru and assessing new projects. 


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


Forward-Looking Statements

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.


To view the maps associated with this release, please visit the following link:
http://media3.marketwire.com/docs/409csv.pdf.