Caracara Silver Inc. (TSX VENTURE:CSV) (the "Company") is pleased to announce
that ongoing drilling at the Company's Princesa silver-lead-zinc project in Peru
has intersected 15.2 metres grading 86.1 grams silver per tonne, 2.56% lead and
0.77% zinc in hole PRIN13-07. A second hole, PRIN13-08 drilled on the same
section intersected the mineralized structure at a depth of 200 m, the deepest
intersection to date on the Princesa project.


The 3,000-metre drilling program is part of a $2 million exploration campaign
being managed in joint venture with SMC Solex del Peru S.A.C ("SMC"), a private
Peruvian mining company based in Lima. For terms of the option agreement with
SMC, please see our press release dated May 3, 2013 at www.caracarasilver.com.


Exploration Program Highlights

Princesa Program

Hole's PRIN13-07 and PRIN13-08 were drilled on the same section to in-fill a
part of the Princesa mineralized structure which has been tested by widely
spaced holes completed by a previous operator. 


Partial results of the drilling program are listed in the table below.



----------------------------------------------------------------------------
                                 Intersection                               
Hole             From (m) To (m)      (m) (2) Silver (g/t) Lead (%) Zinc (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PRIN13-04           145.0  151.9          6.9         25.5     1.26     1.53
----------------------------------------------------------------------------
PRIN13-06            79.9   82.9          3.0         53.1     2.10     1.50
----------------------------------------------------------------------------
PRIN13-07(1)        126.0  141.2         15.2         86.1     2.56     0.77
----------------------------------------------------------------------------
including           134.0  136.7          2.7          370     0.57     0.29
----------------------------------------------------------------------------
no core recovery    136.7  139.7          3.0            0        0        0
----------------------------------------------------------------------------
                    139.7 141.20          1.5         36.9     3.15     2.31
----------------------------------------------------------------------------
                    183.2  185.7          2.5          138     1.37     0.36
----------------------------------------------------------------------------
PRIN13-08           189.2  208.6         19.4         64.4     0.75     1.57
----------------------------------------------------------------------------

1.  3 m of core within the intersection from 136.7 m - 139.7 m was lost and
    as a result there is no assay data available for this section. A zero
    grade was assigned to this portion of the intersection. 
2.  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. 



Hole PRIN13-08, intersected the Princesa mineralized structure 100 metres below
the intersection in hole PRIN13-07 and 200 metres below the surface, which is
the deepest significant mineralized intersection to date. Silver-lead-zinc
mineralization is hosted in a steeply dipping structure striking on surface for
more than 1.6 kilometres and which had been drill tested by previous operators
to an average depth of 160 metres. 


The drill program is designed to test for strike and depth extensions to known
mineralization and in fill between holes completed in previous drill campaigns
with the objective of improving resource categories from inferred to indicated.
The drill program will also test new targets defined by IP anomalies and splays
off of the main Princesa mineralized structure.


Princesa 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. The Princesa NI 43-101 Technical Report along with a detailed
plan map can be found on the Company's website www.caracarasilver.com and on
www.sedar.com 


Parcuyo Program

A surface mapping, sampling and trenching program is scheduled to begin in
August at the Parcuyo project, located approximately 28 kilometres northwest of
the Princesa project.


Parcuyo 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 and
IP anomalies. 


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.


Pilunani Program

Environmental permitting is under way for a drill program on the Pilunani
project located 20 kilometres southeast of the Princesa project. Pilunani is a
high priority target with potential for hosting near surface zinc-lead
mineralization.


Drill operating permits and community agreements are expected to be received
sometime in the fourth quarter of this year with a 3,000-metre drill program
scheduled to begin in early 2014.


Drilling completed by previous operators in 2006 and 2007 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.


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.


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 and has in no way
passed upon the merits of the qualifying transaction and has neither approved
nor disapproved of the contents of this press release. 


To view the Princesa Project Current Drilling map, please visit the following
link: http://media3.marketwire.com/docs/csv%201.jpg


To view Princesa Property Section 6530, please visit the following link:
http://media3.marketwire.com/docs/csv%202.jpg


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