Defiance Raises $1.2M in First Tranche of Private Placement

Vancouver, British Columbia--(Newsfile Corp. - March 11, 2019) - Defiance Silver Corp. (TSXV: DEF) ("Defiance") is pleased to announce that it has closed the first tranche of its private placement in the amount of $1,229,500 and has issued in connection there with 6,147,500 units (the "Units") at a price of $0.20 per Unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to acquire an additional common share of Defiance at an exercise price of $0.30 until March 11, 2021. This closing of the first tranche forms part of a non-brokered private placement of up to 20 million Units for total gross proceeds of $4 M (the "Offering").

With the closing of the first tranche, Defiance has strengthened its balance sheet and significantly reduced its outstanding liabilities. Defiance intends to use the proceeds of the financing to permit and complete an aggressive drill program at its San Acacio Silver project that will drill test the recently defined silver-copper anomaly that starts at a depth of 200m and continues to over 1km in depth and measures 400m in wide and 300m in long. (See Press Release dated June 18, 2018).

Insiders of Defiance participated in the Offering and subscribed for a total of 1,237,500 Units. Participation of insiders of Defiance in the Offering constitutes a "related party transaction" as defined under National Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("NI 61-101"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of NI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders exceeds 25% of Defiance's market capitalization. Defiance did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of insiders had not been confirmed at that time.

"We would like to thank our shareholders and management for participating in this financing, the first following our successful merger with Valoro. We are excited to have both reduced our debts payable along with providing us the financial flexibility to advance our expanded project portfolio in Mexico" said Peter Hawley, CEO of Defiance Silver. "We look forward to drilling the large target we identified at the San Acacio Silver project."

Closing of the Offering is subject to receipt of all the required regulatory approvals including the approval of the TSX Venture Exchange. Finder's fees of $600 were paid in connection with the first tranche of the Offering. The securities issued under the Offering will be subject to a four month hold period expiring on July 12, 2019.

Mr. Peter J. Hawley, P.Geo. Interim President & CEO, Chairman of the Board to Defiance Silver Corp, is a Qualified Person within the meaning of National Instrument 43-101, and has approved the technical information in this press release.

About Defiance Silver Corp.

Defiance Silver Corp. (TSXV: DEF) (OTC: DNCVF) (FSE: D4E) is a district scale resource exploration company advancing the San Acacio Deposit, located in the historic Zacatecas Silver District and the 100% owned Tepal Gold/Copper Project in Michoacán state, Mexico. Defiance is managed by a team of proven mine developers with a track record of exploring, advancing and developing several operating mines and advanced resource projects. Defiance's corporate mandate is to expand the San Acacio and Tepal projects to become premier Mexican silver and gold deposits. Please visit our YouTube channel for more information on our projects.

On behalf of Defiance Silver Corp.

"Peter J. Hawley"

Interim President & CEO
Chairman of the Board, Director

For more information, please contact: Sunny Pannu - Corporate Development (604) 669 7315 or via email at [email protected]

2300 - 1177 West Hastings Street
Vancouver, BC V6E 2K3

www.defiancesilver.com
Tel: 604-669-7315 Email:[email protected]

Neither 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/43347