Vancouver, B.C., January 27, 2012 - Defiance Silver Corp. (TSX-V: DEF) (the “Company”) is pleased to announce that it has entered into loan agreements (“Loan Agreements”) with certain insiders of the Company (the “Lenders”) for an aggregate amount of Cdn$120,000 (the “Loan”).

The purpose of the Loan is to provide the Company with further working capital. The Loan will accrue interest at a rate of 10% per year, which will be payable in cash or common shares of the Company, at the Lenders’ option. If payable in shares, they will be valued at a discounted market price, subject to TSX-V approval.

The Loan is due in full on January 27, 2013, or upon earlier events specified in the Loan Agreements.

The Loan is subject to TSX Venture Exchange approval.

Defiance Silver Corp. is a near-term silver producer in Mexico. With a strong team of proven mine developers, Defiance is focused upon being an aggressive explorer and acquirer of silver projects in the historic billion-ounce silver producing Zacatecas District.

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.