Forward Looking Statement2Certain information in this presentation may contain forward‐looking statements. This information is based on current expectations that are subject to significant risks, assumptions and uncertainties that are difficult to predict. Potential risks include: that U.S. Silver & Gold may not achieve anticipated synergies; loss of key personnel; reduction in the anticipated cash levels; and, not achieving production goals stated. Actual results might differ materially from results suggested in any forward‐looking statements. All statements, other than statements of historical fact, included in the presentation, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of U.S. Silver & Gold, are forward‐looking statements. Words such as “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “intend”, “believe” and other similar expressions are forward‐looking statements. Forward‐looking statements are not guarantees of future results and conditions but rather reflect our current views with respect to future events and are subject to risks, uncertainties, assumptions and other factors, and actual results and future events could differ materially from those anticipated in such statements. There can be no assurance that such forward‐looking statements will prove to be accurate. U.S. Silver & Gold assumes no obligation to update the forward‐looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking‐statements unless and until required by securities laws applicable to the U.S. Silver & Gold. Additional information identifying risks and uncertainties is contained in filings by U.S. Silver & Gold with the Canadian securities regulators, which filings are available at www.sedar.com.An additional Cautionary Note to Investors – In the event that we use certain terms in this presentation, such as “resource”, “measured resource”, “indicated resource” and “inferred resource”. U.S. investors are cautioned that, while such terms are recognized and required by Canadian Securities Laws, the United States Securities and Exchange Commission does not recognize them. Under U.S. standards,mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination has been made. U.S. investors should not assume that all or any part of measured or indicated resources will ever be converted into reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Accordingly, information concerning descriptions of mineralization in this presentation may not be comparable to information made public by companies that are subject to the SEC’s Industry Guide 7.Mr. Jim Atkinson, Vice President, Exploration and a Qualified Person under Canadian Securities Administrators guidelines has approved the applicable contents of this presentation.
AGENDA2012 Financial and Operating ResultsDelivering on Caladay’s PotentialRoadmap to Success3
2012 Financial Highlights5$94.9MRecord RevenueProduction of 2.31 million Ag oz and 5,700 Au ozNet loss for the year of $17.8M or $0.29 per share with the inclusion of one‐time expenses Adjusted net income for the year of $4.7M or $0.08 per shareSilver cash costs of $18.33/oz Realized silver prices of $31.30, down from $35.65Non‐cash impairment charges to Drumlummon mineral properties and goodwill totaling $14.4MCash as at December 31, 2012 of $18.9M
2012 Operating HighlightsAg Productionoz in MMAu production of 5,700 ozPb production of 5.2 MM lbsCu production of 1.0 MM lbs, up 9.4%608 09 10 11 122.3
2012 Exploration Highlights7135,000feet of drilling106%increase over 2011Exploration continues to cost effectively add reservesand resources at modest expenditure levelsSuccessful drill program with discovery of new high-grade mineralization area in the Caladay ZoneDedicated team focused on advancing the CaladayZoneContinue to explore identified brownfield targets withaggressive drilling program in 2013
81 Basket of comparable silver and gold junior producers include: Alexco Resources (AXR), Excellon (EXN), Golden Minerals (AUMN), Great Panther Silver (GPR), JaguarMining (JAG), Lachlan Star (LSA), Lake Shore Gold (LSG), Patagonia Gold (PAT), Revett Minerals (RVM), Richmont Mines (RIC), San Gold (SGRCF), and ScorpioMining (SPM).USA Relative Performance vs Silver Price and Basket of Producers1Aug 14, 2012 to May 24, 2013Silver Price Junior ProducersUSA‐65.0%‐45.0%‐25.0%‐5.0%15.0%35.0%55.0%Aug‐12 Sep‐12 Oct‐12 Nov‐12 Dec‐12 Jan‐13 Feb‐13 Mar‐13 Apr‐13 May‐13
17Caladay Mine DevelopmentGalena site personnel are actively working toward the accelerateddevelopment of Caladay and Silver Halo• All development is coming off of the 4900 level• Silver Halo is their first priority• Fits in with the focus on Ag-Cu ore• Highest grade potential• Drilling is currently underway to confirm and expand newly definedresource• First production anticipated around mid-year• Caladay Zone will immediately follow• Site is waiting to see designs turned out by PEA• Drifting from 4900 decline will allow access to the 49-390 block• Initial production expected in late Q3• Mining in either of these zones will draw workers away fromproduction areas currently in the plan• The economic incentive to produce is still to be evaluated• No estimate of 2013 production from Caladay is being circulated
Roadmap to Success19Execute on operational improvementsFast track the Caladay ZoneProtect the balance sheetAssess exploration, processing and capitalsynergies with geographically-focusedassetsSeek accretive acquisition opportunities5.0Moz Agby end of 2015
2013 Silver Guidance202.6-3.0Moz Ag$16-$18Ag Cash Costs/ozChange in previous guidance from 2.7-3.0M oz Ag atcash costs of $17-19 to account for discontinuation ofDrumlummon Mine operationsGalena Complex P+P reserve base of ~23 million ozAg, supporting a minimum 8-9 year mine life
2013 Milestones21Near-termCatalystsQ1 2013 Q2 2013 Q3 2013 Q4 2013 Filed Reserve& ResourceUpdate,Including FirstResourceEstimate forCaladayPreliminaryEconomicAssessmenton “Fill TheMill” and testmining atCaladaybeginsMining of Ag-Cu ore at4900 Levelwith 100 tonsper day targetDevelop fromAg-Cu oreover to highgrade Ag-Pbstopes for2014production
Invest in U.S. Silver & Gold22Producing 2.6-3.0 million Ag oz100% owned, royalty freeFully permittedCaladay Zone near existing infrastructureExcess hoisting and milling capacityIncreasing production and reducing costsExperienced management teamCatalysts in place for improved valuationExecuting onlow risk brownfieldexpansion
Contact Us23Darren BlasuttiPresident and CEO416‐848‐9503www.us‐silver.com
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