U.S. Silver Corporation     September 2011             TSXV             : USA             US OTC Markets   : USSIF
Forward Looking StatementsCertain statements contained in or incorporated by reference into thispresentation constitute fo...
Strong Silver Market TrendsIn 1980, when Nelson Bunker Hunt was asked as to why he haddeveloped a passion for silver, he s...
Strong Silver Market Trends60.00                                           100.00                                         ...
Company Overview                                 Established producer2.4                                 in prolific Silve...
Located in Historic Silver ValleyOver 1 billion         British Columbia                   Albertaounces producedModern an...
Company Overview• 100% interest in the producing Galena silver-copper-lead mine   – High grade narrow vein mining operatio...
Proved & Probable Reserves21.9Million oz Ag                                   Provides a 7 year                           ...
Recent Results                        Q2 2011                            YTD     Q2 2011     Q1 2011         2010        2...
Market Data                                52 week hi-lo $0.83 -                                $0.15$205Million          ...
Galena Mine              Page 11
Galena Mine – an impressive history2ndlargest                                    High grade, narrow                       ...
Galena – Past & Present179million                            Focusing on higher                            grade zones to ...
Mining Operations                                 LEGEND                                                                  ...
Galena Performance                          Silver ounces produced3,000,0002,500,0002,000,0001,500,0001,000,000 500,000   ...
Milling Operations                  Excess Capacity                  Galena Mill 900 tons/day and Coeur                  M...
Reserves Detail                                                              Contained                                    ...
Coeur Redevelopment               Page 18
Restarting The Coeur Mine                            • No permitting or5.9                              acquisition costs ...
Exploration Potential                  Page 20
Exploration Potential                        • Dominant land position14                        • Under explored, accessibl...
Significant Reserve Growth                    Proved and Probable Silver Reserves25,000,00020,000,00015,000,00010,000,000 ...
Surface and Underground Drill Targets  CDA “GAP”          Western            Argentine         Coeur Mine            Vein ...
Surface Drilling TargetsCommencing 12,000 foot surface drilling program• CDA Gap• Argentine VeinDrill ready targets identi...
Underground Drilling Targets•   Targets:        Western Coeur Mine        Deep Coeur Mine        Deep Silver Vein        C...
The Right People in Place                     Page 26
Experienced and Stable Workforce237employees                        33 with over 20 years of                        experi...
The Right Management TeamGordon E.           • Over 25 years experience in investment banking, capital markets, and corpor...
The Right BoardJohn S. Brock     • Geologist with over 40 years experience as an executive for 20 public, junior explorati...
SummaryIncreasedStrength              Opportunity to Capitalize                      on a proven and                      ...
Summary•   Highly leveraged silver producer,    85% revenue from silver, strong cash flow•   Stable and consistent product...
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US Silver Corporate Presentation - September 2011

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US Silver Corporate Presentation - September 2011

  1. 1. U.S. Silver Corporation September 2011 TSXV : USA US OTC Markets : USSIF
  2. 2. Forward Looking StatementsCertain statements contained in or incorporated by reference into thispresentation constitute forward-looking statements. The words "may","would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate","expect" and similar expressions as they relate to U.S. Silver or itsmanagement, are intended to identify forward-looking statements,however, other information may also constitute forward-lookingstatements. Such statements reflect the current views of U.S. Silver withrespect to future events and are subject to certain risks, uncertaintiesand assumptions. Many factors could cause the actual results,performance or achievements of U.S. Silver that may be expressed orimplied by such forward-looking statements to vary from those describedherein should one or more of these risks or uncertainties materialize.U.S. Silver does not intend, and does not assume any obligation, toupdate these forward-looking statements. Page 2
  3. 3. Strong Silver Market TrendsIn 1980, when Nelson Bunker Hunt was asked as to why he haddeveloped a passion for silver, he said; "Silver looked safer thanoverseas oil concessions, the way things were going. And preciousmetals were a good hedge against paper money". Silver Demand – Industrial and Investment Page 3
  4. 4. Strong Silver Market Trends60.00 100.00 90.00 Silver Gold Ratio50.00 80.00 70.0040.00 60.0030.00 50.00 40.0020.00 Silver up 110% since January 1, 2010 30.00 20.0010.00 10.00 - - Page 4
  5. 5. Company Overview Established producer2.4 in prolific Silver Valley in Northern Idaho Low cost incremental growth potential (excess capacity) Revenue projections inMillion oz Ag excess of $90 million at current pricesAnnual production85% of revenue from silver Page 5
  6. 6. Located in Historic Silver ValleyOver 1 billion British Columbia Albertaounces producedModern and ample Spokaneinfrastructure Washington Missoulain place MontanaSafe and friendlyjurisdiction Oregon Boise Idaho Page 6
  7. 7. Company Overview• 100% interest in the producing Galena silver-copper-lead mine – High grade narrow vein mining operation, opened in 1953• 100% interest in the Coeur Silver mine – Redevelopment plans underway• 2 mills (Galena and Coeur) – Both in use, excess capacity available• Dominant land position in the Silver Valley – Large under explored property• No historic environmental liability with EPA – Settled in 2001• Hedged 20% of production in 2011 to protect CapEx program • 80% unhedged, 100% unhedged in 2012 and after Page 7
  8. 8. Proved & Probable Reserves21.9Million oz Ag Provides a 7 year mine life Exploration consistently replaces annual production 86 Million lbs. lead Has produced for almost 11 Million Lbs. copper 60 years and still keep finding ore Page 8
  9. 9. Recent Results Q2 2011 YTD Q2 2011 Q1 2011 2010 2009Revenue 49.9 30.8 19.1 62.4 45.9Gross profit 20.5 12.3 8.2 10.4 3.0Pre tax income 15.6 9.4 6.2 4.9 2.0Cash from Ops 19.5 12.3 7.2 15.0 8.3Silver production 1,142,685 648,322 494,363 2,275,817 2,427,156Lead production 2,994,419 1,717,218 1,277,201 5,613,689 6,446,656Copper production 581,125 321,724 259,401 1,000,319 1,075,307Cash cost / ounce Ag 16.50 15.39 17.97 13.50 11.67 Page 9
  10. 10. Market Data 52 week hi-lo $0.83 - $0.15$205Million 307 million shares outstanding 335 fully diluted TSX.V and OTCQX average daily volume 1 Million Current Market Cap (September 2011) Undervalued vs. peers on key metrics Page 10
  11. 11. Galena Mine Page 11
  12. 12. Galena Mine – an impressive history2ndlargest High grade, narrow vein, copper-silver & lead-silver mine Short term variability in operating results, long term proven producerPrimary silver producer No historic environmentalin the U.S. liability Page 12
  13. 13. Galena – Past & Present179million Focusing on higher grade zones to increase head grade Examining production expansion options with high pricesOunces produced Continued exploration success and mine life extension Page 13
  14. 14. Mining Operations LEGEND Caladay Shaft Ag - Pb Veins Callahan Shaft Ag - Cu Veins No. 3 Shaft Galena Shaft Coeur Shaft 1200 2400 2800 3000 Sea Level 400 3400356 483 Silver 117-215 3700 Coeur Vein 4000 3700 4300 4600 4900 175 5200 72 5500 Page 14
  15. 15. Galena Performance Silver ounces produced3,000,0002,500,0002,000,0001,500,0001,000,000 500,000 - 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Forecast Page 15
  16. 16. Milling Operations Excess Capacity Galena Mill 900 tons/day and Coeur Mill 500 tons/ day = total capacity of 1,400 tons/day Ores 2 ore types (silver-copper and silver-lead) have separate crushing, milling and flotation circuits Recoveries Consistent mill recovery rates of 96% for silver-copper and 92% for silver-lead ores Smelters Silver-copper concentrates railed to Quebec and silver-lead cons trucked to Trail, BC Page 16
  17. 17. Reserves Detail Contained Ag Lead Copper Tons Ag (oz/t) (MM oz) (MM lb) (MM lb) Proven & Probable Reserves 1,615,700 13.6 21.9 85.6 11.1 Measured & Indicated Resources 560,600 15.6 8.7 14.4 4.8 Inferred Resource 1,026,300 13.4 13.7 103.3 5.4 Total 44.4 203.3 21.3• Current 43-101 based mine life of approximately 7 years• U.S. Silver continues to cost effectively add reserves well in excess of its production, continually extending mine life• Reserves increased by 115% since 2006 Page 17
  18. 18. Coeur Redevelopment Page 18
  19. 19. Restarting The Coeur Mine • No permitting or5.9 acquisition costs • Existing excess mill capacity • Examining alternative mining methods & scalemillion • Additional drilling underway to betterresource ounces define deposittargeted • Significant exploration upside Page 19
  20. 20. Exploration Potential Page 20
  21. 21. Exploration Potential • Dominant land position14 • Under explored, accessible • Strong cash flow funding all plans, 50% increase in footage in 2011 • Identified 6 surface &Thousand underground targets that are ready for drillingacres of land • Historical success of increasing reserves well in excess of production Page 21
  22. 22. Significant Reserve Growth Proved and Probable Silver Reserves25,000,00020,000,00015,000,00010,000,000 5,000,000 - 2005 2006 2007 2008 2009 2010 Page 22
  23. 23. Surface and Underground Drill Targets CDA “GAP” Western Argentine Coeur Mine Vein Deep Calady Mine Coeur Mine Deep Lead-Silver Silver Vein Page 23
  24. 24. Surface Drilling TargetsCommencing 12,000 foot surface drilling program• CDA Gap• Argentine VeinDrill ready targets identified by• Surface and underground showings• Geochemical profile matching that of Galena/Coeur• Strong correlation between surface tetrahedrite showings and deeper silver vein systems Page 24
  25. 25. Underground Drilling Targets• Targets: Western Coeur Mine Deep Coeur Mine Deep Silver Vein Caladay Lead-Silver• Targets are extensions of known vein systems Page 25
  26. 26. The Right People in Place Page 26
  27. 27. Experienced and Stable Workforce237employees 33 with over 20 years of experience Additional 30 contract miners Page 27
  28. 28. The Right Management TeamGordon E. • Over 25 years experience in investment banking, capital markets, and corporate bankingPridham • President and CEO of Edgewater Capital and Chairman of Titanium CorporationChairman • Serves as a Director for Newalta Income Fund • Formerly with Chemical Bank and National Bank, in the energy and minerals sector in New York, Calgary, and Toronto • Formerly with Merrill Lynch Canada and Midland Walwyn and managed the Investment Banking groups at Deutsche Morgan Grenfell, Research Capital, and Raymond JamesTom H. Parker • Mining engineer with over 40 years experience in the mining industryPresident , CEO & • Former President and CEO of Gold Crest Mines and High Plains UraniumDirector • Worked for 10 years as an Executive VP of Anderson and Schwab, a New York based management consulting firm • Former CEO of Contain Minerals which owned 22 coal mines, the Brewer gold mine, and Montana Talc • Worked for 10 years for ARCO where he was President of Beaver Creek Coal Mines, General Manager of Nevada Molly, President of Thunder Basin Coal and VP for Engineering, Exploration and Business Development • Former General Manager of Jacobs Ranch mine for Kerr McGee Coal and served as Project Manager for ConocoSteven Long • Over 33 years experience in mine engineering and managementChief Operating • Direct senior management of underground mining operations for Newmont Mining Corporation in Elko, Nevada and BarrickOfficer Gold, Echo Bay and Homestake MiningChris J. Hopkins • Chartered Accountant with over 25 years experience in financial management, strategic planning, mergers and acquisitions,CFO corporate finance and financing and management reporting • Formerly with Rio Algoma, Suncor, and several junior mining and oil & gas companiesMine Management • Many long service management end employees provide knowledge and continuity • New management bring new thinking and approaches Page 28
  29. 29. The Right BoardJohn S. Brock • Geologist with over 40 years experience as an executive for 20 public, junior exploration companiesDirector • Participated in 12 major mineral deposit discoveries in north and western Canada, Nevada, Mexico, and Ecuador • Served six years as governor of the Vancouver Stock Exchange (TSX Venture Exchange) and CDNX Exchange and 2 years on the TSX Venture Exchange Advisory Board • Currently CEO of Pacific Ridge Exploration and Senior Consultant to the Manex Resources GroupJames M. • Geologist and mining analyst with over 15 years experienceMacintosh • Served as an executive and a director of numerous public and private companies in Canada and the United StatesDirector • President and COO of Innovium Capital, a company that invests in innovative opportunitiesKevin D. Stulp • Served on the board of Aurora Oil & Gas since 1997Director • Worked as a consultant with Forte group, • Held various positions with Compaq Computer Corporation, including industrial engineer, new products planner, manufacturing manager, director of manufacturing and director of worldwide manufacturing reengineeringAlan R. Edwards • Board of directors for Gammon Gold Inc., Entrée Gold Inc., and Copper One Inc. • President and Chief Executive Officer of Copper One Inc. • Senior management positions with Frontera Copper, Apex Silver Mines, Kinross, Cyprus Amax, Phelps Dodge • Mr. Edwards holds an MBA from the University of Arizona and a B.S. Mining Engineering also from the University of Arizona. Page 29
  30. 30. SummaryIncreasedStrength Opportunity to Capitalize on a proven and established asset • Production growth • Reserve Growth • Exploration Expansion Page 30
  31. 31. Summary• Highly leveraged silver producer, 85% revenue from silver, strong cash flow• Stable and consistent production• Infrastructure in place with excess capacity• Dominant land position with significant exploration upside with in a highly prospective region• No debt, sufficient financial capacity to execute growth plan• No historic environmental liability Page 31

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