VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 28, 2008) - Oro Silver Resources Ltd. ("Oro Silver") (TSX VENTURE:OSR) , through its 100% owned subsidiary Minera Oro Silver de Mexico S.A. de C.V. ("Oro Mexico"), has executed a Binding Letter of Intent ("LOI") which establishes the terms of an option to purchase six concessions from Exploraciones Del Altiplano S.A de C.V. The LOI was signed on August 22, 2008. The six concessions to be included in the final agreement and covered by the LOI, are Don Luis Del Oro, La Virgen 2, La Casi Virgen 2, La Casi Virgen 3 Fracc. A & B, and La Casi Virgen 6, totaling some 1,285 hectares. All concessions are located some 5 km south of the City of Zacatecas, Zacatecas State, Mexico.

The acquisition terms require Oro Mexico to pay US$10,000 and 75,000 common shares of Oro Silver within 10 business days after the signing of the LOI, followed by cash payments totaling US$1,475,000 over a 4 year period and to make work expenditures on the concessions totaling US$1,000,000 and to conduct 1,000m of drilling over the 4 year period. The 75,000 common shares of Oro Silver will be issued at $0.315, the closing price of Oro Silver shares on August 27, 2008. At Oro Mexico's sole discretion, 25% of the required cash payments can be paid in common shares of Oro Silver. Oro Mexico will acquire a 51% interest in the properties by the end of year 3 and a 100% interest by the end of year 4, subject to a 3% NSR, half of which can be purchased by Oro Mexico for a total of US$1,500,000.

The LOI is subject to satisfactory results of Oro Mexico's technical and legal due diligence and the approval of the TSX Venture Exchange.

ON BEHALF OF THE BOARD OF DIRECTORS,

Herve Thiboutot, Chief Executive Officer

Some statements in this release may contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, resource estimation, development and production activities and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the time and success of future exploration, development and production activities and the timing and amount of expenditures.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.