2. US Silver - Summary
• Annual silver production of 2.3 million ounces
• in production for 60 years
• excess hoisting and milling capacity
• 85% of revenue from silver – pure play
• Located in Silver Valley, Northern Idaho
• most prolific in the US, safe, mining friendly
• 14,000 acre, dominant under explored land position in the Silver Valley
• significant increase in exploration program
• Cash of approximately $27 million
• Market Cap $110 million
• TSX – USA and US OTC - USSIF
• trades actively
Page 2
3. US Silver Management Team
Gordon E. • Over thirty years of experience as a Global Finance Executive
Pridham • Extensive special committee and public board experience with a track record of creating value for shareholders
Executive • Serves on the public company boards of Newalta Corporation, NorRock Realty Finance Corporation and Titanium
Chairman & Interim Corporation, where he is Chairman of the Board
CEO
• Formerly with Chemical Bank and National Bank in the energy and minerals sector in New York, Calgary, Toronto and Hong
Kong
• Following Merrill Lynch Canada, he managed the Canadian Investment Banking groups at Deutsche Bank, Research Capital
and Raymond James
Steven Long • Over 33 years experience in mine engineering and management
Chief Operating • Direct senior management of underground mining operations for Newmont Mining Corporation in Elko, Nevada and Barrick
Officer Gold, Echo Bay and Homestake Mining
Chris J. Hopkins • Chartered Accountant with over 25 years experience in financial management, strategic planning, mergers and acquisitions,
Chief Financial corporate finance and financing and management reporting
Officer • Formerly with Rio Algoma, Suncor, and several junior mining and oil & gas companies
Mine • Many long service management end employees provide knowledge and continuity
Management • New management bring new thinking and approaches
Tom Ryley • Over 35 years experience in the natural resources sector
Director • He sits on the boards of several public, private and charitable organizations
• Mr. Ryley graduated from York University with a Bachelor of Arts and from Carleton University with a Master of Arts in
Public Administration.
Page 3
4. US Silver Board
John S. Brock • Geologist with over 40 years experience as an executive for 20 public, junior exploration companies
Director • 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 Group
James M. • Geologist and mining analyst with over 15 years experience
Macintosh • Served as an executive and a director of numerous public and private companies in Canada and the United States
Director • President and Chief Executive Officer, Continental Mining & Smelting Limited
Kevin D. Stulp • Served on the board of Aurora Oil & Gas since 1997
Director • 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 reengineering
Alan R. Edwards • Board of directors for Gammon Gold Inc., Entrée Gold Inc., and Copper One Inc.
Director • 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.
Tom H. Parker • Mining engineer with over 40 years experience in the mining industry
Director • Retired as CEO of US Silver in January 2012
• Former President and CEO of Gold Crest Mines and High Plains Uranium
• Worked for 10 years as an Executive VP of Anderson and Schwab, a New York based management consulting firm
• ARCO for 10 years where he was President of regional operations and VP for Engineering, Exploration and Business Development
Page 4
5. Company Overview
Established producer
2.3
in prolific Silver Valley
in Northern Idaho
Low cost incremental
growth potential
(excess mill capacity)
2011 revenue
Million oz Ag $93.4 million
Annual production 2011 Cash from Ops
$29.5 million
85% of revenue from silver
Cash of approx. $27
million (2011/12/31)
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6. Located in Historic Silver Valley
Over 1 billion
ounces produced British Columbia Alberta
Modern and
ample Spokane
infrastructure Washington Missoula
in place
Montana
Safe and friendly
jurisdiction Oregon
Boise
Region of Idaho
increasing
interest
Page 6
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 operating, excess capacity available
• Dominant land position in the Silver Valley
– Large under explored property
• No historic environmental liability with EPA
– Settled in 2001
• Fully un-hedged on silver and base metals
Page 7
8. Proven & Probable Reserves
23.2
Million oz. Ag
Reserves provides a 7
year mine life
Exploration consistently
exceeds annual
production
91 Million lbs. lead The Galena Mine has
12 Million lbs. copper produced for almost 60
years & ore continues to
be found
Page 8
9. Recent Results
2011 2010 2009
Revenue 93.4 62.4 45.9
Gross profit 34.8 10.4 3.0
Pre tax income 21.3 4.9 2.0
Cash from Ops 29.5 15.0 8.3
Silver production 2,318,194 2,275,817 2,427,156
Lead production 6,280,028 5,613,689 6,446,656
Copper production 1,103,507 1,000,319 1,075,307
Cash cost / ounce Ag 17.75 13.50 11.67
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10. Market Data
52 week high $4.15 – Low
$1.84
Graduated to TSX on Oct 3,
$110
2011
62 million
shares outstanding
69 million fully diluted
TSX and OTCQX combined
average daily volume 125
Million Thousand (post-consolidation)
Undervalued vs. peers on key
Current Market Cap metrics
(April 2012)
Page 10
11. Galena Mine – an impressive history
2nd
largest
High grade, narrow
vein, copper-silver &
lead-silver mine
Short term variability in
operating results, long
term proven producer
Primary silver producer No historic environmental
in the U.S. liability
Page 11
12. Galena – Past & Present
200
million
Focusing on higher
grade zones to increase
head grade
Examining production
expansion options with
high prices
Ounces produced
Continued exploration
success and mine life
extension
Page 12
14. Galena Performance
Silver ounces produced
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Forecast 2012 Forecast
Page 14
15. Milling Operations
Capacity
Galena Mill 900 tons/day
Coeur Mill 500 tons/day
Currently operating at 65% capacity
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 15
16. Reserves Detail
• 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 more than doubled since 2006
Page 16
17. Restarting The Coeur Mine
• No permitting or acquisition
6.0
costs
• Existing excess mill capacity
• Re-development started
February 2012
• First production expected by
million end of 2012
• Full production rates of
resource ounces 500,000 oz. per year by end of
targeted 2013
• 2012 Capital cost of
approximately $5 million
Page 17
24. Experienced and Stable Workforce
320
employees
33 with over 20 years of
experience
Page 24
25. Summary
Increased
Strength Opportunity to Capitalize
on a proven and
established asset
• Production growth
• Reserve Growth
• Exploration Expansion
• Opportunities outside of
core asset base
Page 25
26. Summary
• Highly leveraged silver producer,
85% revenue from silver, no hedges
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 26
27. Contact Us:
us-silver.com
Corporate Office
Tel: 416.907.5501
info@us-silver.com
401 Bay St. Suite 2702
Toronto, ON M5H 2Y4
Investor Relations
Heather Bailey-Foster, Manager
208-556-1535 Ex.2
hfoster@ussil.com
Editor's Notes
Cash costs do not benefit as much from by-product credits as a pure silver playBig earnings leverage
Hecla’s Lucky Friday the only other producing mine in the Valley
At March 2011 prices gross values of $740MM Ag, $100MM lead, and $45MM copper
2010 In Review Chairman's letter messages Summary financial and operating performance, hedge losses Fatality - production impact and resolution of issue with MSHA Equity Raise 2011 Hedge explanation & rationaleQ1 2011 Summary financial and operating performance Production challenges and solutionsLooking Ahead through 2011 Confirmation of guidance Explanation of how head grades will improve for the remainder of the year Coeur Status Exploration Program
