GREAT PANTHER SILVER LIMITED (TSX: GPR) (NYSE MKT: GPL) ("Great Panther"; the "Company") today reported financial results for the Company's three and six months ended June 30, 2014. The full version of the Company's unaudited condensed interim consolidated financial statements, and Management's Discussion and Analysis ("MD&A") can be viewed on the Company's website at www.greatpanther.com, or SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in Canadian dollars unless otherwise indicated.

"Great Panther's operations processed a record amount of ore in the second quarter of 2014 as a result of starting commercial production at San Ignacio. This is a significant milestone for Great Panther as San Ignacio will make a growing contribution to the future of the Guanajuato operation", stated Robert Archer , President and CEO. "Although we showed quarterly production growth and improvement in quarterly cash costs on a year-over-year basis, our financial results were negatively impacted due to the gradual resumption of normal operations at Guanajuato after the disruptions in Q1 and continued challenges with grade control. This resulted in cash cost for the quarter that was higher than our guidance for 2014. We are working hard to rectify this and we believe that our results will improve in the second half of 2014 as we ramp up production at San Ignacio and improve grade and cost controls at Guanajuato."

HIGHLIGHTS (Second Quarter 2014 compared to Second Quarter 2013 unless otherwise noted)

• Throughput totalled 80,964 tonnes, a quarterly record and 20% increase;

• Commercial production commenced at San Ignacio in June and processing at Guanajuato included 12,880 tonnes of ore from the new satellite mine;

• Metal production of 718,794 silver equivalent ounces ("Ag eq oz") increased 6% and included 87,705 Ag eq oz from San Ignacio;

• Cash cost per silver payable ounce decreased 18% to US $14.85;

• All-in sustaining cost and All-in cost per silver payable ounce decreased 24% and 27%, to
  US $24.73 and US $25.12, respectively;

• Revenues increased 30% to $14.5 million, despite significantly lower metal prices;

• Net loss was $4.5 million, compared to net loss of $5.1 million;

• Adjusted EBITDA was $0.2 million, compared to negative $3.3 million;

• Cash and cash equivalents were $18.0 million compared to $21.8 million at December 31, 2013;

• Net working capital decreased to $34.2 million from $38.2 million at December 31, 2013.

DISCUSSION OF SECOND QUARTER 2014 FINANCIAL RESULTS

For the second quarter of 2014, the Company earned revenues of $14.5 million compared to $11.2 million for the same period of 2013, an increase of 30%. Included in the second quarter of the current year is a $0.9 million positive revaluation adjustment on concentrate shipments that occurred in the prior quarter which were still subject to final settlement due mainly to higher closing silver and gold prices at the end of the second quarter of 2014 relative to those at the close of the first quarter of 2014. The second quarter of the prior year included a negative revaluation adjustment of$1.3 million. Excluding the impact of these revaluation adjustments, revenue increased by 9% compared to the second quarter of the prior year. The increase is primarily the result of a 6% appreciation of the US dollar against the Canadian dollar (which positively impacts CAD-denominated metal prices), a reduction in smelting and refining charges and a slight increase in metal sales on a silver equivalent ounce basis.

Gross profit before non-cash items increased to $2.4 million in the second quarter of 2014 compared to a loss of $0.2 million in the second quarter of 2013, primarily as a result of the 30% increase in revenues, but was partially offset by the 6% increase in cost of sales before non-cash items.

Amortization and depletion of mineral properties, plant and equipment relating to cost of sales increased from $3.5 million in the second quarter 2013 to $3.9 million in the second quarter 2014. This was due to a reduction of the Measured and Indicated ("M&I") resource at Guanajuato, based on the updated NI 43-101 Resource report issued in December 2013, and the marginal increase in sales on a silver equivalent ounce basis. The reduction of the resource estimate has the effect of shortening the amortization period and therefore increasing the amortization expense per unit produced and sold.

Gross loss decreased to $1.5 million in the second quarter of 2014 compared to a gross loss of $3.8 million in the second quarter of 2013, primarily due to the increase in revenues of $3.3 million. The impact of the increase in revenue was partially offset by an increase in cost of sales by $1.0 million as a result of factors discussed above.

General and administrative ("G&A") expenses were $1.9 million for the second quarter of 2014 compared to $2.5 millionfor the same period in 2013. The decrease reflects the impact of cost reductions initiated late in the second quarter of 2013, and severance costs incurred in the second quarter of 2013.

Exploration and evaluation ("E&E") expenses were $0.5 million for the second quarter of 2014 compared to $1.0 million for the same period in 2013. The decrease is primarily due to a $0.4 million reduction in consulting and contractor fees related to the surface drill program at El Horcon in 2013, partially offset by of $0.1 million expenditures related to San Ignacio development in 2014. San Ignacio development expenditures were expensed as they did not meet the criteria for capitalization under IFRS. The Company made the decision to begin development based on internal economic assessments and production of development ore began in the first quarter of 2014.

Finance and other expense was $2.8 million for the second quarter of 2014, compared to $0.1 million of income for the same period in 2013. The increase in expense is primarily attributed to a $2.7 million increase in foreign exchange losses resulting from the weakening of the Mexican peso and US dollar compared to the Canadian dollar. Foreign exchange gains and losses arise from the translation of foreign-denominated transactions and balances relative to the functional currency of the Company's subsidiaries and the Company's reporting currency. The Company has significant Canadian and US dollar loans receivable from one of its Mexican subsidiaries and fluctuations in the Mexican peso create significant unrealized foreign exchange gains and losses on the loans owing to the Canadian parent. These unrealized gains and losses are recognized in the consolidated net income of the Company.

The Company recorded an income tax recovery of $2.2 million for the second quarter of 2014 compared to $2.1 million in the second quarter of 2013, an increase of 4%. The income tax recovery comprised $0.2 million recovery of special mining duties due to the year-to-date losses incurred, $0.2 million in current income tax expense, and a $2.2 million deferred tax recovery. The net recovery realized during the second quarter of 2014 relates to pre-tax losses by the Company's operations in Mexico recognized in the period. The Mexican subsidiary is able to deduct mine development costs immediately; however, the deduction of these items for tax purposes creates a deferred tax liability as the costs are capitalized for accounting purposes. The Company has net operating tax losses in Canada and has not recognized the benefit of any of these losses in the financial statements of the Company.

The net loss for the second quarter of 2014 was $4.5 million compared to net loss of $5.1 million in the comparative quarter of 2013. The decrease in net loss is attributable to the $2.3 million increase in gross profit, the $0.6 millionreduction in G&A expenses, and the $0.4 million reduction in E&E expenses. These were partially offset by the $2.7 millionincrease in foreign exchange losses.

Adjusted EBITDA was $0.2 million for the second quarter of 2014, compared to adjusted EBITDA of negative $3.3 million for the same period in 2013. The increase in EBITDA primarily reflects the $2.3 million improvement in gross profit as well as lower G&A and E&E expenses.

CASH COST AND ALL-IN COSTS

Cash cost per silver payable ounce ("cash cost") of US $14.85 for the second quarter of 2014 decreased from US $18.14 in the second quarter of 2013, as declines in cash cost were realized at both Guanajuato and Topia. The improvement in cash cost is attributable to higher by-product credits from increased gold sales at Guanajuato and a decrease in smelting and refining charges. By-product credits are based on sales during the period (rather than production) and, as such, the amount of the credit may not directly correlate to the production reported for the period.

All-in sustaining cost per silver payable ounce ("AISC") for the second quarter of 2014 decreased to US $24.73 from US$32.61 in the second quarter of 2013. The reduction is the result of the decrease in cash cost, sustaining capital expenditures, and a significant reduction in exploration and evaluation costs, compared with the second quarter of 2013.

All-in cost per silver payable ounce ("AIC") for the second quarter of 2014 decreased to US $25.12 from US $34.20 in the second quarter of 2013, as a result of the same factors which reduced AISC.

Please refer to the Company's Management's Discussion and Analysis for further discussion of cash cost, AISC and AIC and for a reconciliation to the Company's financial results as reported under IFRS.

CASH AND WORKING CAPITAL AT JUNE 30, 2014

At June 30, 2014, the Company had cash and cash equivalents of $18.0 million compared to $21.8 million at December 31, 2013. Cash decreased by $3.7 million from the end of 2013 primarily due to $4.2 million of expenditures on capital equipment, mine development and capitalized exploration activities and a $0.4 million increase in non-cash working capital items. These factors were partially offset by $0.3 million of cash generated from operating activities (before non-cash working capital changes), $0.4 million in proceeds from the exercise of options and $0.1 million related to favourable foreign currency translation on US dollar and Mexican peso cash deposits.

At June 30, 2014, the Company had working capital of $34.2 million compared to net working capital of $38.2 million atDecember 31, 2013. Working capital decreased by $3.9 million primarily due to the decrease in cash.

OUTLOOK

The second quarter reflected the impact of resuming normal operations at Guanajuato after the illegal occupation in March and continued grade challenges at the mine, some of which were associated with preparation necessary to return the higher grade zones to normal operation. The Company expects operations to improve at Guanajuato and production atSan Ignacio to continue to ramp up as new stopes are brought into production. While every effort will be made to make up for the lower than expected production in the first two quarters, the Company feels that it is prudent to slightly lower the production guidance for the year to 3.0 - 3.1 million silver equivalent ounces. Based on this guidance, the Company will still show production growth on a year-over-year basis.

Although the Company expects cash cost to decline in the second half of the year, cash cost guidance is being increased slightly to US $12.00 - 13.00 per silver payable ounce as the expected decrease in cash cost in the second half is not anticipated to completely make up for the higher than expected cash cost in the first half of 2014. Accordingly, guidance for AISC and AIC is also being adjusted as shown in the table above.

The Company expects to be at the lower end of its previous guidance of $10 to $13 million for capital expenditures. Capital expenditures during the second half of 2014 will focus on continued mine development and diamond drilling at bothGuanajuato and Topia, rehabilitation of the Cata shaft at Guanajuato, and the acquisition of new mining and plant equipment to drive efficiencies and reduce production costs in the future.

The Company's drilling plans for 2014 remain unchanged at approximately 16,500 metres of exploration drilling to further define resources, look for vein extensions, and test new targets. Planned drilling for the year consists of 11,000 metres atGuanajuato, 3,500 metres at San Ignacio and 2,000 metres at Topia. Year to date, 6,960 metres of exploration drilling has been completed, comprising 5,923 metres at Guanajuato and 1,037 metres at Topia. There has been no exploration to date in 2014 at San Ignacio.

WEBCAST AND CONFERENCE CALL TO DISCUSS SECOND QUARTER 2014 FINANCIAL RESULTS

The Company will hold a live webcast and conference call to discuss the financial results on August 7, 2014, at 7:00 AM Pacific Daylight Time, 10:00 AM Eastern Daylight Time. Hosting the call will be Mr. Robert Archer , President and CEO, and Mr. Jim Zadra , CFO and Corporate Secretary.

Shareholders, analysts, investors and media are invited to join the live webcast and conference call by logging in or dialing in just prior to the start time.

A replay of the webcast will be available on the Investors section of the Company's website approximately one hour after the conference call.

NON-IFRS MEASURES

The discussion of financial results in this press release includes reference to Gross profit before non-cash items, Adjusted EBITDA, Cash cost per silver payable ounce, All-in sustaining cost per silver payable ounce, and All-in cost per silver payable ounce which are non-IFRS measures. The Company provides these measures as additional information regarding the Company's financial results and performance. Please refer to the Company's MD&A for the three and six months endedJune 30, 2014, for definitions and reconciliations of these measures to the Company's financial statements.