Columbus Silver - News Release ( http://www.columbussilvercorp.com/ ) Silver District Property Optioned to Magellan Gold Vancouver, BC, Canada; August 29, 2012 � Columbus Silver Corporation (CSC: TSX-V) ("Columbus Silver or the "Company") is pleased to announce that it has entered into an option agreement (the "Agreement") with Magellan Gold Corporation ("Magellan")("MAGE: OTCBB"), under which Magellan may earn all of the Companys interest in the Silver District property located in Arizona (the "Property") for an aggregate purchase price of US$1,013,200.

Magellan paid Columbus Silver US$63,200 on signing the Agreement, and is required to pay a further US$50,000 on or before December 31, 2012, US$400,000 by the end of 2013, and a final $500,000 by the end of 2014 to exercise the option.

As of October 1, 2012, Magellan will also be required to maintain the Property in good standing by making all underlying lease and maintenance payments during the course of the option.

The Silver District Property consists of 108 unpatented mining claims, 4 patented claims and one state lease, totaling over 2,000 acres.

The property covers a portion of the historic Silver District in La Paz County, approximately 80 kilometers (50 miles) north of Yuma in southwest Arizona.

Subject to third party net smelter royalties, Columbus Silver controls a 100% interest in the Property.

ON BEHALF OF THE BOARD, Robert F.

Giustra President & CEO, Director Neither the 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.

For more information contact: Investor Relations 604-634-0970 or 1 888 818-1364
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This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements").

In particular, and without limitation this news release contains forward-looking statements pertaining to Magellans obligations under the option including making payments to the Company and maintaining the Property in good standing.

Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation whether Magellan has the desire and ability to make payments to Columbus Silver and in connection with maintaining the Property; that Magellan will maintain the option in good standing and will not terminate the Agreement in connection with dropping the option; cost increases; unforeseen circumstances; risks associated with the exploration projects or title thereto held by Columbus Silver; mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general business and economic conditions.

Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: that Magellan will have sufficient funds and desire to continue earning into the Property and maintaining it in good standing; the timing and receipt of required approvals; that required service providers will be available; general business and economic conditions; availability of financing; and ongoing relations with employees, partners and joint venturers.

Although the foregoing forward-looking statements are considered reasonable at the time of preparation, the aforementioned assumptions and factors may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

The aforementioned factors and assumptions are not exhaustive.

Columbus Silvers actual results, performance, or achievement could differ materially from those expressed in, or implied by, these forward-looking statements.

We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits we will derive from them.

The forward-looking information contained in this document is expressly qualified by this cautionary statement.

The foregoing list is not exhaustive and Columbus Silver undertakes no obligation to update any of the foregoing except as required by law. You are subscribed to this mailing list as .

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