A Growth Focused Exploration & Development Company<br />Growing and advancing one of the world’s largest <br />undeveloped...
Forward Looking Statements<br />Certain statements contained herein constitute “forward-looking statements.”  Forward-look...
Investment Highlights<br />South American Silver Corp.<br /><ul><li>Experienced management team with track record of succe...
Two large-scale deposits in South America
Malku Khota: one of the world’s largest silver-indium resources
Escalones: high potential copper-gold deposit
Updated 2011 PEA study doubles estimated production to 13.2 M oz silver, 80 tonnes of indium and 15 tonnes of gallium per ...
Measured and Indicated resources expanded 60% to 230 M oz silver
Well definedbusiness plan to drive shareholder value
Leveraged to silver nearly 4 oz of silver per share
Attractive investment value relative to peers at low value per oz
Exposure to the high-tech indium and gallium market
Potential value from new copper-gold resource
Strong focus on community relations
Well financed into feasibility</li></ul>TSX:SAC<br />US OTC:SOHAF<br />1<br />
World-Class Deposits<br />Two large-scale assets in South America <br />Malku Khota, silver-indium project, Bolivia (100%)...
Low capital and operating costs as a heap leach or milling operation
Update resource increases M&I 60% to 230 M oz silver
Pre-Feasibility process to start in 2011 & Feasibility in 2012
Resource expansion potential with only 4 km of 50 sq km </li></ul>    property drill tested<br /><ul><li>Potential to be o...
Funded into Feasibility</li></ul>Escalones, copper-gold project, Chile (100%)<br /><ul><li>Large scale target in world-cla...
Exploration program and geophysics underway
Resource definition program in 2011
Potential significant copper, gold, silver deposit</li></ul> <br />Malku Khota<br />Escalones<br />*AgEq=total contained m...
Share Capitalization2<br />TSX:SAC, US OTC:SOHAF<br />Issued & Outstanding<br />Warrants<br />Options<br />Fully Diluted1<...
Private Swiss investors--19%
Management1 --15%</li></ul>Institutional Ownership<br /><ul><li>Sprott Asset Management
Front Street
K2 funds
Kudu Partners
Orell Capital Management
 ~$300 million Market Capitalization (1)
Average trading volume 500,000 shares/day
Well financed with +$30 million in cash at year end2
Potential NYSE-AMEX listing to increase visibility and liquidity</li></ul>As of November 8, 2010 with proposed $28 million...
Zamin Group - Strategic Investment<br />A Key Regional Player<br /><ul><li>Well funded regional player in South American r...
Strategic 19.7% investment positions SAC in strong financial and operational position to advance projects to feasibility
Track record of successfully facilitating South American project development through relationships with national and state...
Portfolio of South American projects with strong government support in permitting, rail and port infrastructure
Bamin Project-Brazil
Valintine Project-Uruguay
Acquiring assets in Bolivia over past year</li></ul>TSX:SAC<br />US OTC:SOHAF<br />4<br />
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South American Silver Q2, 2011 Corporate Presentation

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South American Silver Q2, 2011 Corporate Presentation

  1. 1. A Growth Focused Exploration & Development Company<br />Growing and advancing one of the world’s largest <br />undeveloped silver and indium resources.<br />TSX: SAC, US OTC: SOHAF<br />Corporate Presentation<br />Q2 2011<br />www.soamsilver.com<br />
  2. 2. Forward Looking Statements<br />Certain statements contained herein constitute “forward-looking statements.” Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “intends,” anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests,” “potential,” and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. <br />TSX:SAC<br />US OTC:SOHAF<br />
  3. 3. Investment Highlights<br />South American Silver Corp.<br /><ul><li>Experienced management team with track record of successful project development and value creation
  4. 4. Two large-scale deposits in South America
  5. 5. Malku Khota: one of the world’s largest silver-indium resources
  6. 6. Escalones: high potential copper-gold deposit
  7. 7. Updated 2011 PEA study doubles estimated production to 13.2 M oz silver, 80 tonnes of indium and 15 tonnes of gallium per year, for first 5 years
  8. 8. Measured and Indicated resources expanded 60% to 230 M oz silver
  9. 9. Well definedbusiness plan to drive shareholder value
  10. 10. Leveraged to silver nearly 4 oz of silver per share
  11. 11. Attractive investment value relative to peers at low value per oz
  12. 12. Exposure to the high-tech indium and gallium market
  13. 13. Potential value from new copper-gold resource
  14. 14. Strong focus on community relations
  15. 15. Well financed into feasibility</li></ul>TSX:SAC<br />US OTC:SOHAF<br />1<br />
  16. 16. World-Class Deposits<br />Two large-scale assets in South America <br />Malku Khota, silver-indium project, Bolivia (100%)<br /><ul><li>Bulk mineable open-pit, sediment hosted deposit
  17. 17. Low capital and operating costs as a heap leach or milling operation
  18. 18. Update resource increases M&I 60% to 230 M oz silver
  19. 19. Pre-Feasibility process to start in 2011 & Feasibility in 2012
  20. 20. Resource expansion potential with only 4 km of 50 sq km </li></ul> property drill tested<br /><ul><li>Potential to be one of the top producing silver and indium mines
  21. 21. Funded into Feasibility</li></ul>Escalones, copper-gold project, Chile (100%)<br /><ul><li>Large scale target in world-class mining district near El Teniente
  22. 22. Exploration program and geophysics underway
  23. 23. Resource definition program in 2011
  24. 24. Potential significant copper, gold, silver deposit</li></ul> <br />Malku Khota<br />Escalones<br />*AgEq=total contained metal<br />2<br />
  25. 25. Share Capitalization2<br />TSX:SAC, US OTC:SOHAF<br />Issued & Outstanding<br />Warrants<br />Options<br />Fully Diluted1<br />99.9M<br />117.3M<br />7.2M<br />10.0M<br />Major Shareholders <br /><ul><li>Zamin—19.7%
  26. 26. Private Swiss investors--19%
  27. 27. Management1 --15%</li></ul>Institutional Ownership<br /><ul><li>Sprott Asset Management
  28. 28. Front Street
  29. 29. K2 funds
  30. 30. Kudu Partners
  31. 31. Orell Capital Management
  32. 32. ~$300 million Market Capitalization (1)
  33. 33. Average trading volume 500,000 shares/day
  34. 34. Well financed with +$30 million in cash at year end2
  35. 35. Potential NYSE-AMEX listing to increase visibility and liquidity</li></ul>As of November 8, 2010 with proposed $28 million financing<br />(1<br />(1) On a fully diluted basis<br />(2) As of March 31, 2011<br />3<br />
  36. 36. Zamin Group - Strategic Investment<br />A Key Regional Player<br /><ul><li>Well funded regional player in South American resources industry with major projects in Brazil, Uruguay, Bolivia, and Chile
  37. 37. Strategic 19.7% investment positions SAC in strong financial and operational position to advance projects to feasibility
  38. 38. Track record of successfully facilitating South American project development through relationships with national and state governments in the region
  39. 39. Portfolio of South American projects with strong government support in permitting, rail and port infrastructure
  40. 40. Bamin Project-Brazil
  41. 41. Valintine Project-Uruguay
  42. 42. Acquiring assets in Bolivia over past year</li></ul>TSX:SAC<br />US OTC:SOHAF<br />4<br />
  43. 43. Comparative Resources in the Americas<br />Second largest development stage silver resource<br />$1.71<br />Millions of Silver Ounces & (Enterprise Value Per Oz)<br />$0.72<br />$11.30<br />$3.37<br />Millions of Silver Ounces<br />$2.17<br />$2.44<br />$8.08<br />$1.87<br />$5.82<br />$17.89<br />$9.13<br />$39.35<br />Mexico<br />El. Salvador<br />Peru<br />Yukon<br />Peru<br />Mexico<br />Nunavut<br />Mexico<br />Mexico<br />Mexico<br />Argentina<br />Bolivia<br />Chile<br />Guatemala<br />Source: CanaccordReport resource numbers as of January 11, 2011<br />Based on Arpil 11, 2011 share price<br />Note: All companies have projects in South and/or North America<br />5<br />
  44. 44. Enterprise Value per Resource Oz <br />By project development stage<br />Producers<br />Average >$25/oz<br />EV of $0.81 base on 230.3 million M&I oz Ag<br />Advanced Development Stage Average >$9/oz<br />Development Stage <br />Average >$4/oz<br />Producing Companies<br />Source: Canaccord & Intierra as of April 11, 2011,<br />Note: All companies have projects in South and/or North America<br />*EV/oz truncated to $25<br />6<br />
  45. 45. Development Stage Value Curve<br />Potential value growth with project advancement<br />Production<br />Average Enterprise Value per Oz of Silver by Stage<br />Take-Over offers or Partnerships common at this stage<br />$25/oz<br />Construct<br />Increased value through resource expansion <br />Increasing Market Value<br />Permits<br />FS<br />$9/oz<br />PFS<br />Resource<br />Definition<br />PEA<br />$4/oz<br />Advanced<br />Development Stage (Reserves)<br />Early Stage<br />Exploration & Development<br />Production<br />Discovery<br />Increasing value with project advancement<br />Source: Recent average enterprise value per ounce of silver at various development stages for North and South American based projects. Canaccord, Wellington West and Company reports.<br />7<br />
  46. 46. Current Silver Company Valuations by Stage<br />Circle size represents EV/oz<br />500<br />EARLY DEVELOPER STAGE<br />ADVANCED DEVELOPER STAGE<br />PRODUCER STAGE<br />$2,000<br />Source: Canaccord Report January 17, 2011<br />Intierra, February 8, 2011<br />Share prices as of March 28 2011,<br />Note: All companies have projects in South and/or North America<br />8<br />
  47. 47. Silver Supply/Demand<br />Surging investment demand plus industrial consumption resulting in significant demand growth. Supply increase resulting from rising silver prices driving producer hedging and increased mine production of 2.5% to help satisfy increasing demand.<br />Total Global SilverSupply<br />Total Global SilverDemand<br />Source: GFMS World Silver Survey 2011<br />9<br />
  48. 48. Silver Fundamentals Positive<br />For continued higher prices<br /><ul><li>One of the only precious metals not yet to hit all-time nominal highs of ($50/oz) in 1980’s
  49. 49. Bullish supply/demand outlook with investment and industrial demand increase
  50. 50. Annual mine production vs total demand remains in short-fall
  51. 51. Silver bullion is now the more scarce precious metal than gold from investment supply perspective
  52. 52. US mint has sold only approximately three times more value in gold than in silver in 2010 coin sales, despite having to sell 131 times more gold for the market to stay in balance
  53. 53. Chinese went from net sellers of more than 100 million oz of silver in 2005</li></ul> to net buyers of more than 120 million oz in 2010 with imports up <br />4X since 2009<br /><ul><li>Ratio of silver to gold ETF trade volumes an </li></ul>average of 5.4:1 since early April, 2011<br /><ul><li>Few new major deposit discoveries</li></ul>Source: Silver Institute, Feb, 2011<br />10<br />
  54. 54. Indium & Gallium—two key strategic metals<br />Rapidly growing market for high-tech uses <br />Uses<br /><ul><li>Indium-tin oxide (ITO) a key component of flat panel displays (FPDs) and touch screens
  55. 55. High-efficiency CIGS (copper, indium, gallium, selenide) photo-voltaic thin-film solar panels, and LED lighting
  56. 56. Fiber optics, specialized and transparent semiconductors</li></ul>Supply<br /><ul><li>Global indium use growing rapidly and could surpass available supply from by-product zinc refining at current price range
  57. 57. One of the most scarce strategic metals due to low recycling and few primary producers</li></ul>TSX:SAC<br />US OTC:SOHAF<br />11<br />
  58. 58. Indium & Gallium Fundamentals<br />Compelling supply/demand dynamics<br />Indium and Gallium Supply/Demand dynamics<br /><ul><li>Indium and gallium highlighted in UN and US DOE studies as a critical technology metals in potential shortage, along with several key rare earth metals, due to rapidly increasing growth, low recycling rates and low primary production
  59. 59. China is largest producer and consumer of indium and has imposed export quotas and tariffs like other key high-technology specialty metals
  60. 60. Zinc market growing at 1-3% annually with indium market estimated to be 15-20% annual growth
  61. 61. Current indium price ~$600/kg with five-year prices from $400/kg to over $1000/kg
  62. 62. Roskill estimates a conservative 15% annual growth rate for gallium which could increase significantly with any successes in photovoltaics or as a rare earth substitute</li></ul>Malku Khota annual indium and gallium production<br /><ul><li>Malku Khota projected to be one of the world’s largest indium & gallium producers (80 tonnes and 15 tonnes per year
  63. 63. Potential to represent 10% or more of global mine supply of indium and over 5% of global demand for gallium</li></ul>12<br />
  64. 64. Indium & Gallium Demand<br />Growing demand in high-tech markets<br />5 year projected demand growth <br />End-use Market Demand (tonnes)<br />2010 total indium production level<br />Growth assumptions based on data from Displaybank in LCD TV Association “LCD TV Matters”-Volume 3, Issue 2, February 2010 , Strategies Unlimited, August 2009 , Solarbuzz, Photon International, GFMS , Nanomarkets, and the US Department of Energy Critical Minerals Strategy Report<br />13<br />
  65. 65. Indium Fundamentals<br />World indium demand vs price (1969-2013*)<br />Indium Demand<br />Indium Price/kg ($US)<br />Source: Indium: Global Industry Markets and Outlook, 9th Edition 2010 (Roskill)<br />*2011-2013 Data are estimates only<br />14<br />
  66. 66. Opportunity in Bolivia<br />An emerging resource based economy<br /><ul><li> Bolivian gov’t encouraging private investment
  67. 67. Member of Mercosur Regional trade organization with Brazil as largest trading partner
  68. 68. Gov’t bond rating upgraded by Moody’s & Fitch
  69. 69. Mining second largest economic sector representing 40% of GDP
  70. 70. One of the world’s premier silver districts with billions of ouncesof historical production
  71. 71. Planned $32 billion 5-7 year infrastructure build-out by Bolivian government for new rail and road corridors and hydropower generation
  72. 72. Three Major silver mines built within last four years by Pan American Silver, Coeur D’Alene, and Sumitomo
  73. 73. Substantial resource industry investments in Bolivia
  74. 74. Jindal Steel of India investing US$2.3 billion for 50% interest in El Mutun iron ore deposit
  75. 75. Petrobras of Brazil—Latin America’s largest publicly traded oil company – investing US$1 billion of new capital into the Bolivian gas fields
  76. 76. Repsol of Spain investing $1.6 billion to increase gas production in Bolivia</li></ul>TSX:SAC<br />US OTC:SOHAF<br />15<br />
  77. 77. Silver Mines in Bolivia<br />One of the world’s premier silver mining districts<br /><ul><li>Historical district production of billions of ounces of silver
  78. 78. Highly prospective & under-explored
  79. 79. Increase from 9th largest global silver producer to 5th largest with completion of three major silver mines in past four years:
  80. 80. Pan American Silver – San Vicente
  81. 81. Coeur D’Alene - San Bartolome
  82. 82. Sumitomo - San Cristobal</li></ul>TSX:SAC<br />US OTC:SOHAF<br />16<br />
  83. 83. Malku Khota Project<br />One of the world’s largest silver-indium resources<br /><ul><li>50 square km, 100% owned, road accessible project
  84. 84. Low capital and operating costs on a per ounce basis
  85. 85. Potential to be one of the top primary silver and indium producing mines at 13.2 M oz silver per year and 80 tonnes of indium1
  86. 86. Project base case annual Cash flows and NPV’s more than doubled
  87. 87. 60% expansion of Measured and Indicated Resources2
  88. 88. Pit model 80% M&I resources for conversion to reserves with PFS
  89. 89. Excellent resource expansion potential with just 4 km tested of trend
  90. 90. Moving into Pre-Feasibility in 2011 and Feasibility in 2012</li></ul>on average for the first 5 years of production<br />See March 31, 2011 News Release for detailed resource estimate<br /> Total contained metal<br />17<br />
  91. 91. Established Infrastructure<br />Low projected capital and operating costs<br /><ul><li>Open pit, bulk mineable
  92. 92. Accessible by road
  93. 93. Commercial power within 15km
  94. 94. Access to water</li></ul>TSX:SAC<br />US OTC:SOHAF<br />18<br />
  95. 95. Mineralization<br />Open pit, bulk mineable deposit <br />Host rock sandstone with disseminated <br />silver, indium, gallium, lead, zinc and copper<br />Enrichment starts at surface <br />Average grade first five years:<br /><ul><li> Silver: 42.2 g/t (58 g/t Ag Eq) 1
  96. 96. Indium: 7.55 g/t
  97. 97. Economic cut-off grade <15 g/t(at $18/oz Ag) 2</li></ul>AgEq comprised of all contained metals<br /> Economic cut-off grade comprised only of silver and indium<br />19<br />
  98. 98. Mineralization<br />High Grade Sandstone1160 g/t Silver<br />Geological formations looking south from Limosna<br />Malku Khota<br />Sandstone<br />Aroifilla Fm<br />WaraWara<br />Sandstone<br />TSX:SAC<br />US OTC:SOHAF<br />20<br />
  99. 99. Malku Khota Drilling<br />Grade thickness map<br /><ul><li>115 drill holes in current resource with updated resource Q1-2011
  100. 100. Updated resource results increase total M&I oz to 230 Moz Ag (a 60% increase in M&I oz) plus an additional 140 M inferred Ag oz
  101. 101. 2011 program to target conversion from resources to reserves & expansion drilling
  102. 102. Mineralization begins at surface
  103. 103. Deposit open along trend and down dip with excellent potential for expansion
  104. 104. New discovery of higher grade zones and down dip expansion of surface mineralization</li></ul>21<br />
  105. 105. New Exploration Results<br />Discovery of broad continuous mineralization horizon<br />LMD048: 286 meters grading 76 g/t Ag Eq Grade thickness values of over 21,500 g-m AgEq<br />OPEN<br />OPEN<br />TSX:SAC<br />US OTC:SOHAF<br />22<br />
  106. 106. Malku Khota Deposit<br />Only 4km of 50 sqkm property drill tested<br /><ul><li>2010 program focused on in-fill and confirmation drilling for March 2011PEA Update
  107. 107. Excellent potential to expand resources</li></ul>Wara Wara Area<br />Sucre Area<br />Concession Boundary<br />Limosna Area<br />Continuation of favourable sedimentary host rocks<br />TSX:SAC<br />US OTC:SOHAF<br />23<br />
  108. 108. Production Processes<br />From ore to metal<br />Open Pit Mining<br /><ul><li>Large scale shovel and truck open pit mining operation
  109. 109. Ore crushed in preparation for leaching
  110. 110. Acid-chloride leaching in captures silver, indium, copper, lead, zinc, gallium and gold
  111. 111. Metal recovery in several steps:
  112. 112. Acid recovery
  113. 113. Silver-gold-copper cementation
  114. 114. Indium-gallium precipitation
  115. 115. Lead and zinc sulfides
  116. 116. Downstream processing to metal products</li></ul>Crushing<br />Leaching<br />Metal Recovery <br />& Processing<br />Silver, Gold, Copper <br />Indium ingots<br />Lead and Zinc concentrates<br />TSX:SAC<br />US OTC:SOHAF<br />24<br />
  117. 117. 2011 Economic Assessment<br />Metal Prices ($US)<br />Mid Case<br />Recent<br />Base Case<br />Mining Rate<br />Life of Mine <br />Ore Mined (LOM)3<br />Average Silver Grade 2<br />Average Indium Grade2<br /> Ag Eq grade<br />40,000 tpd<br />15 years<br />200M tonnes<br />42.2 g/t<br />7.55 g/t<br />58 g/t<br />$35/oz<br />$650/kg<br />$730/kg<br />Silver : $18/oz<br />Indium : $500/kg<br />Gallium: $500/kg <br />$25/oz<br />$570/kg<br />$570/kg<br />LOM <br />Annual<br />First <br />5 years<br />Total<br />Recovered Metals<br />Silver (oz)<br />Indium (tonnes)<br />Lead (lbs)<br />Zinc (lbs)<br />Copper (lbs)<br />Gallium (kgs)<br />158 M<br />1,184<br />191M<br />135 M<br />88 M<br />212,962 <br />13.2 M<br />80.7 <br />12.48M<br />4.42M<br />5.64M<br />15,184<br />10.5 M<br />78.9 M <br />12.7 M<br />9 M<br />5.87 M<br />14,198<br />Base Case<br />Mid Case<br />Recent<br />First 5 years cash flow <br />Net cash flow <br />NPV (5% discount rate)1<br />Internal Rate of Return<br />Payback period (years)<br />$185M/yr<br />$1,261M<br />$704M<br />37.7%<br />27 months<br />$287M/yr<br />$2,528M<br />$1482M<br />63%<br />19 months<br />$430M/yr<br />$4,298M<br />$2571M<br />92.9%<br />15 months<br />In US dollars, March 2011, PEA<br />First 5 years of production (average)<br />LOM = Life of Mine<br />25<br />
  118. 118. Near Term Mine Development Projects<br />SAC one of largest near-term producers at 40,000 tpd<br /><ul><li>Annual estimated potential silver production of new development projects anticipated in the next 2-4 years</li></ul>Barrick<br /> 25<br />Bear Creek<br />Millions of Ounces<br />Alexco Resource Corp<br />Fresnillo Plc<br />Pan American<br />Gold Resource<br />Andean Resources<br />Wildcat Silver Corp<br />Bear Creek<br />Minmetals, Jiangxi Copper<br />Fortuna Silver<br />Augusta Resource<br />Silvermex Resources<br />South American Silver*<br />Greystar Resources<br />Yukon Zinc Corp.<br />Antofagasta plc<br />Gabriel Resources<br />CobarConsilidated<br />China Minmetals<br />Norsemont Mining<br />Chariot Resources<br />Jinchuan Group<br />Antofagasta plc<br />Intrepid Mines<br />Oxiana<br />Vale<br />Source: CPM Silver Yearbook 2010<br />*Data based on life of mine production rate of 10.5M oz/per year<br />Production rate of 13.2 Moz /year for first five years<br />26<br />
  119. 119. Global Silver Industry Cash Cost Curve<br />Anticipated low-cost silver production<br />Cumulative Percentile of Silver Mine Production Cost<br />Malku Khota<br />13.25 Mozs/yr (1) <br />~ $2.94/oz (2) <br />Total Cash Cost Per Ounce of Silver<br />Industry AverageCash Cost<br />$5.27/oz<br />Source: GFMS World Silver Survey 2011<br />Average first 5 years of production<br />Silver cash costs after credits ($US)/oz<br />27<br />
  120. 120. Advancing to Production<br />Development Timeline<br />The project is at the PEA stage and may change substantially in terms of size and cost<br />as further exploration, engineering and metallurgical testing are completed <br />2013-14<br />2012<br />2011<br />Pre-Feasibility Studies<br />Feasibility <br />Study<br />Projected<br />Mine Development<br />TSX:SAC<br />US OTC:SOHAF<br />28<br />
  121. 121. Escalones-Copper-Gold project, Chile<br />High potential, large-scale target<br /><ul><li>70 square km, road accessible, large scale system
  122. 122. Located in world-class copper mining district near El Teniente
  123. 123. Historic drilling shows >1% copper grades at surface and untested porphyry system grading 0.6% copper
  124. 124. Additional significant gold, silver and molybdenum credits
  125. 125. Exploration program underway
  126. 126. Resource estimate targeted for 2nd half of 2011</li></ul>TSX:SAC<br />US OTC:SOHAF<br />29<br />
  127. 127. Escalones<br />Exploration<br />Ownership: 100% through Lease<br />Location: 35km E of El Teniente<br />Elevation: 3800m<br />6,889 hectares <br />Escalones porphyry prospect located 97 km southeast of Santiago in central Chile<br />12,666m drilled in 30 DDH <br /><ul><li>10,159m in the skarn
  128. 128. 500m in the porphyry</li></ul>SAC property<br />Gas pipeline<br />Access Road<br />TSX:SAC<br />US OTC:SOHAF<br />30<br />
  129. 129. Drill Results Grade Thickness Map<br />Large-scale porphyry system<br /><ul><li>Open in all directions
  130. 130. Strong historic results</li></ul>TSX:SAC<br />US OTC:SOHAF<br />31<br />
  131. 131. Escalones<br />Geological cross-section<br /><ul><li>Enriched zones with high grades at surface at over >1% copper with significant gold and molybdenum
  132. 132. Large scale porphyry target intercept of 176 m @ 0.6% copper with additional gold, silver and molybdenum</li></ul>Alto<br />Bajo<br />TSX:SAC<br />US OTC:SOHAF<br />32<br />
  133. 133. Community Relations<br />A key to successful project development<br /><ul><li>Assistance of BSR* to develop proactive community relations strategy
  134. 134. Full-time community relations team working in region
  135. 135. Objectives to facilitate economic development in communities
  136. 136. Project construction will require a peak construction workforce of over 1,000 with operational workforce of around 400, most of whom will be sourced from surrounding communities</li></ul>*Business for Social Responsibility, San Francisco, CA<br />33<br />
  137. 137. Project Milestones<br />Value drivers over the next 6-12 months<br /><ul><li>Malku Khota, silver-indium-gallium project, Bolivia
  138. 138. Updated resource estimate & PEA more than doubles annual production to 13.2 M oz of silver, 80.7 tonnes of indium and 15 tonnes of gallium per year*
  139. 139. Updated resource results show 60% increase in M&I ounces to 230 M oz of silver with an additional 140M oz inferred, and indium to 1,481 tonnes M&I and 935 tonnes inferred
  140. 140. Cash flows, project valuations and rates of return significantly expanded over previous studies
  141. 141. Pre-Feasibility work beginning in second half of 2011
  142. 142. Feasibility work to begin in 2012
  143. 143. Escalones, copper and gold porphyry project, Chile
  144. 144. Exploration and Geophysics program underway
  145. 145. Target for initial resource estimate in 2nd half of 2011
  146. 146. Potential for significant deposit of copper, gold and silver</li></ul>*Average first five years of production<br />34<br />
  147. 147. Leveraged to Silver<br />Value of silver per dollar invested<br />Silver value per $1 invested<br /> SAC has some of the best leverage to silver of any development stage company with nearly$40 of silver value per $1 invested<br />Average value of silver <$8 of silver per $1 invested*<br />Source: Canaccord as of January 17, 2011, Share prices updated April 11, 2011<br />Note: all companies have projects in South and/or North America<br />Calculated using $25/oz Ag. Dollar value of silver per $1 invested = (silver resource/shares outstanding) x $25/oz silver) divided by share price<br />Value only shown for silver with no contribution from other metals<br />35<br />
  148. 148. Why South American Silver?<br />Investment highlights<br /><ul><li>World-class scale projects with excellent expansion potential
  149. 149. Track record of discovery and successful project development
  150. 150. Growing shareholder value through resource expansion and advancing projects up the development value curve toward feasibility
  151. 151. Leveraged to silver with nearly 4 oz of silver per share
  152. 152. Attractive investment value relative to peers at low value per oz
  153. 153. Exposure to rapidly growing indium and gallium high-technology market
  154. 154. Potential new value from copper resource definition and expansion
  155. 155. Continued investor outreach to broaden market awareness of Company
  156. 156. Potential near-term NYSE-AMEX listing in the U.S.</li></ul>TSX:SAC<br />US OTC:SOHAF<br />36<br />
  157. 157. TSX: SAC<br />OTC: SOHAF<br />Phone: 604.681.6926<br />1.855.681.6926<br />www.soamsilver.com<br />Greg Johnson<br />President & CEO<br />TSX:SAC<br />US OTC:SOHAF<br />
  158. 158. Relative Stock Performance<br />SAC outperforming key silver & gold indices<br /><ul><li>Trading liquidity increasing with average volume of 500,000 shares/day
  159. 159. SAC undervalued relative to peers at >$0.80 Enterprise Value/oz vs average of more than $4/oz for early stage resources</li></ul>TSX:SAC<br />US OTC:SOHAF<br />
  160. 160. Management Team<br />A track record of success<br />Ralph Fitch, Executive Chairman<br /><ul><li>Co-founder of South American Silver, High Desert Gold, and General Minerals
  161. 161. Key role in discovery of Collahuasi copper porphyry , Malku Khota, Vizcachitas, and Escalones deposits</li></ul> Greg Johnson, President and CEO<br /><ul><li>Co-founder of NovaGold, key role in growing company from $50 million to $2 billion market capitalization
  162. 162. Recognized for discovery and advancement of the 40 M oz Donlin Creek gold deposit for NovaGold and Barrick</li></ul>William Filtness, Chief Financial Officer<br /><ul><li>Chartered Accountant with twenty plus years of financial experience, including Manager, Corporate Development at Aurizon Mines</li></ul>Felipe Malbran, Vice President of Exploration<br /><ul><li>Extensive experience in exploration management in Bolivia, Chile, Peru and Argentina
  163. 163. Key role in discovery of MalkuKhota, Vizcachitas, and Escalones deposits</li></ul>Phillip Brodie-Hall, Vice President of Project Development<br /><ul><li>Global industry experience in engineering construction and project development experience covering nearly every aspect of evaluation, feasibility studies and project development in the mining and mineral processing industries</li></ul>David Dreisinger,Vice President of Metallurgy<br /><ul><li>Professor and Industrial Research Chair in Hydrometallurgy at the University of British Columbia (UBC)
  164. 164. Actively involved in developing and commercializing hydrometallurgical process at a number of operating mines in Australia and Southeast Asia.</li></ul>Richard Doran, Vice President and corporate secretary<br /><ul><li>Former VP Investor Relations for General Minerals and Marketing Manager for Chevron Resources</li></ul>Andrew Clark,Manager of Project Implementation<br /><ul><li>Global industry experience in the design and management of industrial, mining, materials handling, chemical and petrochical projects from feasibility studies through to commissioning and handover of completed facilities. </li></ul> Xavier Gonzales Yutronic,General Manager Compañía Minera Malku Khota S.A.<br /><ul><li>Mining Industry experience in finance, accounting, logistics, human resources and community relations at Comsur S.A., SinchiWayra (Glencore) from 2005-2007, and CompañíaMinera Malku Khota S.A. from October 2008 to date</li></ul>TSX:SAC<br />US OTC:SOHAF<br />
  165. 165. Board of Directors<br />Strong industry and financial experience<br />Ralph Fitch, Executive ChairmanGreg Johnson, President and CEO<br />Antonio Canton, Director - Mr. Canton is an independent consultant for international companies in marketing, finance and real estate. He is a director of a number of Swiss companies and brings to the board extensive experience in accounting and finance.<br />Peter Harris, Director - Mr. Harris is an engineer with over 40 years of mining industry experience including as Senior VP and Chief Operating Officer at Nova Gold Resources Inc., and Senior VP of Project Development at Placer Dome Inc. He has been involved in the construction and operation of over 20 different mines in North and South America, Africa, Australia and Papua New Guinea. <br />William Murray, Director - Mr. Murray is an engineer in the mining industry with over 33 years of experience in construction management and project evaluation in North America and Africa. He currently serves as the executive chairman and director of Polymet Mining Corp. Mr. Murray has been involved in numerous successful projects while working at Fluor Daniel, Denison Mines, Optimum Project Services and Anglo American Corp. in South Africa. <br />Paul Haber, Director - Mr. Haber is a Chartered Accountant and a Certified Public Accountant with a strong background in US/Canadian accounting and finance. Presently manages Haber & Co. Ltd. Has previously been Chief Financial Officer and Corporate Secretary of a TSX Venture listed company. <br />John Watson, Director - Mr. Watson has been the President of a TSX Venture Exchange listed company since 2002. He is also the manager/member of a limited liability corporation that owns and manages commercial real-estate.<br />Tina Woodside, Director - Ms. Woodside is currently the head of the corporate finance department in Gowlings’ Toronto office and a member of the firm’s National Executive Committee. Ms. Woodside practices corporate and securities law with particular emphasis on corporate finance, mergers and acquisitions and corporate governance matters. <br />TSX:SAC<br />US OTC:SOHAF<br />
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