Corporate Update

December 19th, 2011

Vancouver, B.C., December 19, 2011 — Defiance Silver Corp. (TSX-V: DEF) (the “Company”) is pleased to announce that as part of its initiative to become a near term silver producer in the historic Zacatecas Silver District, it has agreed with IMPACT Silver Corp to extend the period from December 8, 2011 to January 31, 2012 for execution of the initial closing of the Option Agreement for the purchase of the Santa Gabriela mill and 10 mining concessions.

The Annual General Meeting of the company was held on December 12, 2011. All motions at the meeting were passed resulting in the election of the proposed Board of Directors, reappointment of the current auditors, and approval of the existing stock option plan.

Defiance has also entered into a part-time consulting agreement (the “Agreement”) with Nathan Doubroff dated August 1, 2011 for the position for Manager of Investor Relations.

The term of the Agreement is 12 months expiring July 31, 2012. The Company will pay Mr. Doubroff a fee of $3,000 per month. Under the terms and conditions of the Agreement, Mr. Doubroff is to be granted 50,000 incentive stock options, exercisable at a price of $0.60 per share for a period of 5 years. The Agreement and the grant of stock options thereunder is subject to TSX Venture Exchange approval.

After further evaluation, Defiance has decided not to pursue the Santa Elena project and will allow the two option agreements to expire.

On behalf of the Directors

“W.D. Bruce Winfield”

W.D. Bruce Winfield
President and CEO

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.