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VALUE.GROWTH.VISION

               Growing and advancing one of the world’s largest
                  undeveloped silver and indium resources.




Corporate Presentation                         TSX: SAC, US OTC: SOHAF
January 2012                                             www.soamsilver.com
Cautionary Notes
Forward-looking statements
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. Investors are advised to review the Company’s Annual Information
Form filed at www.sedar.com for a detailed discussion of investment risks. 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.

Cautionary note regarding reserve and resource estimates
The material in this presentation has been prepared in accordance with the requirements of the securities laws in effect in
Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve
estimates included in this presentation have been prepared in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects (―NI 43-101‖) and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101
is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer
makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ
significantly from the requirements of the United States Securities and Exchange Commission (―SEC‖), and resource and reserve
information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without
limiting the generality of the foregoing, the term ―resource‖ does not equate to the term ―reserves‖. Investors should also
understand that ―inferred mineral resources‖ have a great amount of uncertainty as to their existence and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all or any part of an ―inferred mineral resource‖ will ever be
upgraded to a higher category. The estimation of quantities of resources and reserves is complex, based on significant subjective
assumptions and forward-looking information, including assumptions that arise from the evaluation of
geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of
numerous factors, including new information gained from development activities, evolving production history and a reassessment
of the viability of production under different economic conditions.
Changes in data and/or assumptions could cause reserve estimates to substantially change from period to period. No assurance
can be given that the indicated level of mineral will be produced. Actual production could differ from expected production and an
adverse change in mineral prices could make a reserve uneconomic to mine. Variations could also occur in actual ore grades and
recovery rates from estimates.



                                                                 2
Investment Highlights
    South American Silver Corp.
       • Experienced management team with track record of successful project development
         and value creation
       • Two large-scale deposits in South America
            Malku Khota: one of the world‘s largest silver-indium-gallium resources
                  o 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 yrs
                  o NI 43-101-qualified Indicated resource of 230.3 million ozs silver, 1,481
                     tonnes of indium and 1,082 tonnes of gallium and an Inferred resource of
                     140 million ozs silver, 935 tonnes indium and 1,001 tonnes gallium.
            Escalones: high potential copper-gold-silver deposit with an Inferred resource
               of 3.8 billion lbs of copper and 610,000 oz of gold and 16.8 million ozs silver
       • Well defined business plan to drive shareholder value
       • More than $230 worth of metal in the ground per share (>$100 of silver, >$100 of
         copper, and >$30 of indium and gallium1
       • Attractive investment value relative to peers at low value per oz
       • Anticipated low cost silver production at approximately $2.94/oz of silver2
       • Strong focus on community relations to proactively facilitate mutually beneficial
         relationships


1) $25 /oz silver, $3 /lb copper, $700/kg indium and gallium
2) Net of base metal credits
                                                               3
World-Class Deposits
     Two large-scale assets in South America
               Malku Khota, silver-indium project, Bolivia
                (100%)
                        • Pre-Feasibility level update in Q2 2012 with
                          Feasibility work starting in H2 2012
                        • Bulk mineable open-pit, sediment hosted
                          deposit
                        • Low capital and operating costs as a heap
                          leach or milling operation
                        • Resource expansion potential with only 4 km
                          of a 15 km trend drill tested on the 50 sq km
                          property
                        • Potential to be one of the worlds top
                          producing silver and indium mines


                                           Silver        Indium      Gallium      Ag Eq1
                                           (Moz)        (tonnes)     (tonnes)      (Moz)
                              M&I            230         1,481        1,082        354
                           Inferred          140           935        1,001        240




1)Silver Equivalent (Ag Eq) calculated using total contained metal
using base case metal pricing (Ag at $18/oz, In at $500/kg , Ga at
$500/kg, Cu at $3/lb, Pb at $0.90/lb, and Zn at $0.90).
                                                                              4
World-Class Deposits
     Two large-scale assets in South America
                Escalones, copper-gold-silver project,
                 Chile (100%)
                        • Inferred Resource of 3.8 billion lbs of Cu, 56.9
                          million lbs of Mo, 610,000 ozs of Au and 16.8
                          million ozs of Ag
                        • Phase II exploration program underway to
                          include up to 7,000 meters of follow-up drilling
                        • Step-out testing of the known mineralized
                          zones and testing of new geophysical targets
                        • Located within a world-renowned copper
                          district near the world‘s largest underground
                          copper mine, El Teniente

                                                      Total Contained Metal
                                       Copper         Gold          Silver    Moly    Cu Eq1
                                         Mlbs          Ozs             Moz    Mlbs     Mlbs
                          Inferred        3,835      610,000           16.8    56.9    4,503

                                                              In Situ Grade
                          Tonnes       Copper         Gold        Silver      Moly    Cu Eq1
                          Millions         %            g/t         g/t       ppm       %
                            420.6           0.41        0.05        1.24      61.39     0.49

1)Copper Equivalent (Cu Eq) calculated using total contained metal
for copper ($3/lb), gold ($1200/oz), silver ($22/oz), and molybdenum
($16/lb) and has not been adjusted for metallurgical recoveries.
                                                                                 5
Share Capitalization1
   TSX:SAC, US OTC:SOHAF

           Issued &
          Outstanding                       Options2         Warrants3       Fully Diluted1

          101.9M                           11.0M             5.5M             118.4M
      • ~$160 million Market Capitalization (4)                     Major Shareholders
      • Average 3 mo. trading volume 150,000 shares/day             •Zamin --19%
      • $28 million in cash(1)                                      •Private investors--18%
                                                                    •Management5 -- 8%
                                                                    Institutional Ownership
                                                                    •Sprott Asset Management
                                                                    •Front Street
                                                                    •US Global



(1) As of Nov 17, 2011, (2) Weighted avg .exercise
 price $0.99 CAD (3) Weighted avg. exercise price        6
 $0.97 (4) As of Dec 5, 2011 (5) Direct ownership only
Adding Value Through Resource Growth
         Total resources with value shown relative to silver
                                          Ag Moz               In+Ga tonnes                                   Cu Mlbs

                                                         450                                                  6000

                                                                              Ag Eq Inferred Resource
                                                         400
                                                                              Ag Eq M&I Resource              5000
              Tonnes of Indium and Gallium2 (combined)




                                                                                                                     Million Pounds of Copper Equivalent3
                                                         350                  In & Ga Inferred Resource
                 Million Ounces of Silver Equivalent1/




                                                                              In & Ga M&I Resource
                                                         300                                                  4000
                                                                              Cu Eq Inferred Resource

                                                         250                  Cu Eq M&I Resource
                                                                                                              3000
                                                         200   6000


                                                         150   4500                                           2000


                                                         100   3000
                                                                                                              1000
                                                          50   1500


                                                           0     IPO                                          0




Total resources for both Malku Khota and Escalones
1) Ag Eq calculated using total contained metal for silver ($22/oz) and gold ($1200/oz) only
2) Total combined tonnes of indium and gallium
3) Cu Eq calculated using total contained metal for copper ($3/lb), lead ($0.90/lb), zinc                 7
($0.90/lb), and molybdenum ($16/lb) only
Comparative Silver Resources in the Americas
                             Second largest development stage silver resource
                            500

                            450                                                                             Additional value
                                                                                                            of Indium and Gallium
                            400                        Inferred Resources
Millions of Silver Ounces




                            350
                                                       M&I Resources
                            300

                            250

                            200

                            150

                            100

                            50

                              0
                                                                                                                                          South
                                  Alexco     Silvercrest   US Gold   Sulliden   MAG Silver    Orko     Golden     Sabina      Tahoe    So.American Bear Creek
                                                                                                                                        American
                                                                                                       Minerals              Resources    Silver
                                                                                                                                          Silver
                                   Yukon       Mexico      Mexico      Peru      Mexico       Mexico   Mexico      Nunavut   Guatemala    Bolivia     Peru
                                  (Canada)   El Salvador                                                Peru      (Canada)                 Chile




         Source: Canaccord Report resource numbers as of January 11, 2011
         Note: All companies have projects in South and/or North America
                                                                                          8
Enterprise Value per Silver Resource Oz
     By project development stage
                                                                                              Producer
  $14.00
                                                                                              Average
                                                                                               ~$10/oz
  $12.00

                       EV of >$0.80 base on 230.3 million M&I oz Ag   Advanced Development
  $10.00                                                               Stage Average ~$5/oz

   $8.00
                          Development Stage
                           Average ~$2.5/oz
   $6.00


   $4.00


   $2.00


   $0.00




Source: Canaccord & Intierra as of June 9, 2011,
Note: All companies have projects in South and/or North America
                                                                  9
Development Stage Value Curve
              Potential value growth with project advancement
                            Average Enterprise Value per Oz of Silver by Stage
                                                                                          Production
                                             Take-Over offers or
                                                Partnerships
                                                                              Construct   $10/oz
  Increasing Market Value




                             Increased value   common at this
                            through resource       stage
                                expansion                                 Permits
                                                           FS
                                                Malku Khota
                                                  Project         $5/oz
                                Escalones
                                                     PFS
                                 Project
                                Resource PEA
                                Definition

                                   $2.5/oz

                                         Early Stage              Advanced                Production
                   Discovery            Exploration &            Development
                                        Development            Stage (Reserves)
                                                   Increasing value with project advancement

Source: Recent average enterprise value per ounce of silver at
various development stages for North and South American based
                                                                 10
projects. Canaccord, Wellington West and Company reports.
Current Silver Company Market Valuations
                         by Resource Size & Development Stage
                         Size of circle represents market valuation premium in EV/oz
                                                             Developers              Adv. Developers                 Producers

                                                                                                                                             Allied Nevada
                                        MK Value at Avg Valuation                                          Silver Standard
                                       for each development stage                                                 Pan American Silver
                              1000
                                                                                                              2012             Coeur d`Àlene
Total Resource Size (Moz's)




                                               South American Silver Bear Creek 2011
                                                   Malku Khota
                                                                                                            PFS/FS                   Production
                              500                                               PEA                                           First Majestic
                                                  Current Value
                                                                                MK                             MK                               MK
                                      Silver Bull                  Sulliden                                                                           Tahoe
                                               Silvermex                                                                     Hecla
                                                                                            US Gold                                  Hochschild

                              100               Silver Quest                    MAG
                                                                                                                      Endeavour
                                      Esperanza US Silver                                          Int`l Minerals
                                                                           Aurcana
                                                                                            Troy
                                                                                                        Extorre
                                                Arian
                                      Castle                                           Alexco
                                                                          Great Panther

                                           Golden Predator
                               10
                                     $50           $100              $200        $300            $500               $1,000             $2,000             $5,000
                                                                                Enterprise Value (US$ Millions)
                Total Resource Ag Equivalent using (Ag +Au only at $25/oz and $1000/oz values)
                Source: Canaccord Report July, 2011 and Intierra, July, 2011
                Share prices as of Jan 3 2012,                                                                                                       11
                Note: All companies have projects in South and/or North America
Positive Silver Fundamentals
  A paradigm shift for silver?
   • Major shift in supply/demand dynamic over past several years
   • Silver still well below inflation adjusted highs of $140/oz ($50 in 1980)
   • Silver is a ―hybrid‖ precious and industrial metal due to its scarcity and unique
     properties including superior electrical and thermal
     conductivity, malleability, reflectance, and catalytic/biologic reactivity
   • Price increases driven by 40% increase in investment demand and 21% increase in
     industrial demand for a total increase of 17% in 2010
   • Total annual mine production growth only 2.5% last year with reduced contribution of
     by-product silver from copper and gold production
   • Projected new mine supply anticipated to be consumed by new industrial demand
     through at least 2015
   • Chinese imports up 4x since 2009 with change from net sellers of more than 100 M oz
     of silver in 2005 to net buyers of more than 120 M oz in 2010
   • Few major new deposit discoveries and growing time lag from time of discovery
     to metal production




Source: 1) GFMS World Silver Survey 2011
2) BMO Capital Markets Global Mining Research April 2011   12
Silver Supply/Demand Fundamentals
                   • Dramatically increased demand growth driven by strong investment demand plus
                     increased industrial consumption(1)
                   • Demand growth expected to continue to outstrip production growth(2)

                           World Silver Supply                                                         World Silver Demand   +17% total
                                                       +8% total                                                              demand
                                                        supply                         1200       Industrial Applications      growth
         1200             Mine production
                                                        growth                                    Photography
                          Secondary Supply and Scrap                                              Jewelry and Silverware             +40%
         1000             Government Sales                                             1000       Investment and Coins               investment
                                                                                                                                     demand

                 800                                                                        800
Million Ounces




                                                                           Million Ounces
                                                             +2.5%
                                                             mine                           600
                 600
                                                             production

                 400                                                                        400                                      +21%
                                                                                                                                     industrial
                                                                                                                                     demand
                 200                                                                        200



                  0                                                                           0




Source: 1) GFMS World Silver Survey 2011
2) BMO Capital Markets Global Mining Research April 2011              13
Growing Demand for Silver in Technology
                         Breakdown of key technology/industrial uses for silver
                        500

                                         Photovoltaic

                        400
                                         Catalysts, alloys, solders and biocides
Millions of Silver Oz




                        300
                                         Electronics


                        200




                        100




                         0
                              77   79        81       83        85      87   89   91   93   95   97   99   01   03   05   07   09   11p




               Source: CPM Silver Yearbook 2010
               Not for reproduction without written CPM Group consent
                                                                                       14
Silver Primary & By-Product Production(1)
    • 70% of silver is by-product production from base metals and gold
    • By-product silver production is largely silver price inelastic
    • Reduced by-product silver production anticipated going forward from base metals(2)
                                      300                                                                      25
                                               Lead/Zinc
                                               Primary
                                               Copper
                                      250
                                               Gold                                                            20
                                               Silver Price
       Millions of Ounces of Silver




                                      200




                                                                                                                    Silver Price (US$)
                                                                                                               15

                                      150

                                                                                                               10
                                      100


                                                                                                               5
                                      50



                                       0                                                                       0
                                            2003         2004   2005   2006        2007   2008   2009   2010

Source: 1) GFMS World Silver Survey 2005-2011
2) BMO Capital Markets Global Mining Research April 2011                      15
Indium & Gallium – Two Key Strategic Metals
   Rapidly growing market for high-tech uses
     Uses
     • Indium-tin oxide (ITO) a key component of flat panel displays (FPDs) and touch screens
     • High-efficiency CIGS (copper, indium, gallium, selenide) photo-voltaic thin-film solar
       panels, and LED lighting
     • Fiber optics, specialized and transparent semiconductors
     Supply
     • Global indium use growing rapidly and could surpass available supply from by-product
       zinc refining at current price range
     • One of the most scarce strategic metals due to low recycling and few primary producers




                                                                                              *




                flat panel displays        LED lighting                     thin film solar


* Image from http://gotpowered.com
                                             16
Indium & Gallium Fundamentals
   Compelling supply/demand dynamics
    Indium and Gallium Supply/Demand dynamics
       • 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
       • China is largest producer and consumer of indium and has imposed export quotas
         and tariffs like on other key high-technology specialty metals
       • Indium market estimated to see 15-20% annual growth with most indium produced
         as by product of zinc refining growing at 1-3% annually
       • Current indium and gallium price ~$900-1000/kg up from global economic lows
         during 2008-2009 of $400-500/kg
       • Gallium market estimated to be a conservative 15% annual growth rate which could
         increase significantly with more rapid growth in LED lighting and photovoltaics

    Malku Khota annual indium and gallium production
      • Malku Khota projected to be one of the world‘s largest indium & gallium producers
        (80 tonnes and 15 tonnes per year)
      • Potential to represent 10% or more of global mine supply of indium and over 5% of
        global supply for gallium
      • Opportunities for project financing from off-take agreements for indium & gallium


Sources: (1) US Dept. of Energy Critical Materials Strategy, Dec.
2010. (2)United Nations Environment Programme (UNEP) Special        17
Report on Strategic Metals ,May 2011 .
Indium Demand Growth
                                 Growing demand in high-tech markets
                                 2500
                                         Solar Energy
End-use Market Demand (tonnes)




                                         LED Lighting                                                                    5 year
                                 2000
                                         LCD Flat Panels                                                               projected
                                                                                                                        demand
                                                                                                                        growth
                                 1500


                                 1000
                                                                                                                      2010 total
                                                                                                                        indium
                                  500
                                                                                                                      production
                                                                                                                         level
                                    0
                                        2010     2011E         2012E             2013E        2014E   2015E   2016E


      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    18
      Energy Critical Minerals Strategy Report December 2010
Indium Fundamentals
                World indium demand vs price (1969-2011*)
                2500                                                                                2000


                                                                                                    1800




                                                                                                           Indium Price/kg ($US)
                2000                                                                                1600

                                               Demand
Indium Demand




                                                                                                    1400
                                               Price
                1500                                                                                1200
                                                                         Current Indium Price
                                                                                                X   1000


                1000                                                                                800


                                                                                                    600


                500                                                                                 400


                                                                                                    200


                   0                                                                                0




Source: (1) Indium: Global Industry Markets and Outlook, 9th Edition 2010 (Roskill)
*2011-2013 Data are estimates (2) 2011-2015 Estimates US Dept. Of Energy
Critical Materials Strategy Dec. 2010.                                                                                             16
Silver Mines in Bolivia
 One of the world’s premier silver mining districts

 • Historical district production of billions of
   ounces of silver
 • Highly prospective & under-explored
 • Increase from 9th largest global silver
   producer to 5th largest with completion of
   three major silver mines in past four
   years:
       Pan American Silver – San Vicente
       Coeur D‘Alene - San Bartolome
       Sumitomo - San Cristobal




TSX:SAC
                                               20
US OTC:SOHAF
Opportunity in Bolivia
 An emerging resource based economy
 • Bolivian government encouraging private investment
 • Member of Mercosur Regional trade organization with Brazil as largest trading partner
 • Government bond ratings upgraded by Moody‘s & Fitch
 • Mining second largest economic sector
 • One of the world‘s premier silver districts with billions of ounces of silver production
 • Planned $32 billion 5-7 year infrastructure build-out by Bolivian government for new rail and
   road corridors and hydropower generation
 • Three Major silver mines built within last four years by Pan American Silver, Coeur
   D‘Alene, and Sumitomo
  • Substantial resource industry investments in Bolivia
      Jindal Steel of India investing US$2.1 billion in giant El Mutun iron ore deposit
      Petrobras of Brazil—Latin America‘s largest publicly traded oil company – investing
       US$1 billion of new capital into the Bolivian gas fields
      Repsol of Spain investing $1.6 billion to increase gas production in Bolivia
      Petrobras and Repsol have announced new exploration initiatives in Bolivia in early 2011
      Kores of South Korea set to invest $210 million to develop the Corocoro copper project
      Recently announced investments by Citic of China and LG/Posco of South Korea to
       develop major lithium resources


TSX:SAC
                                             21
US OTC:SOHAF
Malku Khota Project
        One of the world’s largest silver-indium resources
         Malku Khota Project – 2011 Resource Estimate2
                               Silver             Indium            Gallium           Copper    Lead       Zinc       AgEq3
                               (Moz)             (tonnes)           (tonnes)          (MLbs)   (MLbs)     (MLbs)      (Moz)
             M&I                 230               1,481                 1,082         120      453         247         354
          Inferred               140                935                  1,001         102      362         246         240



     Host rock sandstone with disseminated                                                     Enrichment starts at surface
     silver, indium, gallium, lead, zinc and copper




 Average grade first five years:
      • Silver: 42.2 g/t (58 g/t Ag Eq)1
      • Indium: 7.55 g/t
      • Economic cut-off grade <15 g/t (at $18/oz Ag)2, 4

1)    Average for the first 5 years of production
2)    See March 31, 2011 News Release for detailed resource estimate
3)    Total contained metal using base case prices (Ag: $18/oz, In:
      $500/kg, Ga: $500/kg, Cu: $3/lb, Pb: $0.90/lb, Zn: $0.90/lb USD)
                                                                                 22
4)    Economic cut-off grade comprised only of silver and indium
Malku Khota Project
    Low projected capital and operating costs with established infrastructure
    •         50 square km, 100% owned, road accessible project
    •         Low capital and operating costs on a per ounce basis
    •         Potential to be one of the top primary silver and indium producing mines at 13.2 Moz
              silver per year and 80 tonnes of indium1
    •         Project base case annual cash flows and NPV‘s more than doubled
    •         Open pit, bulk mineable and very scalable
    •         Commercial electricity and natural gas nearby




1) Average for the first 5 years of production
                                                  23
Malku Khota Drilling
 Grade thickness map
  • 115 drill holes in current resource with        OPEN
    updated resource Q1-2011
  • 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                     Mineralized
    Ag oz                                                         Sandstones
  • 2012 program to target conversion from
    resources to reserves & expansion drilling
                                                           OPEN
  • Mineralization begins at surface
  • Deposit open along trend and down dip
    with excellent potential for expansion
  • New discovery of higher grade zones and
    down dip expansion of surface
    mineralization

                                                                         OPEN


TSX:SAC
                                               24
US OTC:SOHAF
Malku Khota Mineralization
 •     Broad zones of continuous sediment hosted mineralization
 •     Open at depth and along trend
     LMD048: 286 meters grading 76 g/t AgEq Grade thickness values of over 21,500 g-m AgEq




                                OPEN

                                                   OPEN




TSX:SAC
                                            25
US OTC:SOHAF
Production Processes
 From ore to metal
                                                                Open Pit Mining
 • Large scale shovel and truck open pit mine
 • Oxide ore crushed in preparation for direct                        Crushing
   leaching
 • Four years of metallurgical test work with SGS                     Leaching
   labs on acid leach process
 • Acid-chloride leaching captures
   silver, indium, copper, lead, zinc, gallium and gold          Metal Recovery
                                                                  & Processing
 • Metal recovery in several steps:
     • Acid recovery
     • Silver-gold-copper cementation                     Silver, Gold,
                                                             Copper
     • Indium-gallium precipitation
     • Lead and zinc sulfides                                           Indium &
                                                                      Gallium ingots
 • Downstream processing to metal products
                                                                                   Lead & Zinc
                                                                                   concentrates




TSX:SAC
                                             26
US OTC:SOHAF
2011 Economic Assessment1                                                                            Metal Prices ($US)4
                                                                                                      Base Case Mid Case Recent
    Mining Rate                              40,000 tpd                                                   (3 yr avg)    (2 yr avg)    (1 yr avg)
    Life of Mine                             15 years                                           Silver : $18/oz         $25/oz       $35/oz
    Ore Mined (LOM)2                         200 M tonnes                                       Indium : $500/kg        $570/kg      $650/kg
    Average Silver Grade 3                   42.4 g/t                                           Gallium: $500/kg        $570/kg      $730/kg
    Average Indium Grade3                    7.55 g/t
    Ag Eq grade                              58 g/t                                                  Share of Gross Revenue
                                                         First                          LOM           (at base case prices)
   Recovered Metals                         Total       5 years                        Annual
   Silver (oz)                              158 M                  13.2 M              10.5 M
   Indium (tonnes)                          1,184                  80.7                78.9               5% 3%                      Silver
   Lead (lbs)                               191 M                  12.48 M             12.7 M        6%
   Zinc (lbs)                               135 M                  4.42 M              9M
   Copper (lbs)
                                                                                                                                     Indium &
                                            88 M                   5.64 M              5.87 M
   Gallium (kgs)                                                                                                                     Gallium
                                            212,962                15,184              14,198        15%
                                                                                                                                     Copper
                         Base Case Mid Case                                            Recent
 First 5 years cash flow $185 M/yr $287 M/yr                                           $430 M/yr                       71%
 Net cash flow           $1,261 M $2,528 M                                             $4,298 M                                      Lead
 NPV (5% discount rate)1 $704 M    $1482 M                                             $2571 M
 Internal Rate of Return 37.7%     63%                                                 92.9%
 Payback period (years) 27 months 19 months
                                                                                                                                     Zinc
                                                                                       15 months

(1)In US dollars, March 2011, PEA (4) Base Case: 3 yr avg prices as of May 2011
(2)LOM = Life of Mine             Mid Case: 2 yr avg prices as of May 2011
(3)First 5 years of production    Recent Case: 1 yr avg prices as of May 2011     27
(avg/yr)
Malku Khota PEA Update Projected Production Levels
                                                  13-20 Moz Silver Equivalent Production first 11 years

                                                    22
Production - Silver Equivalent Ounces (Million)




                                                                                                                                             Copper
                                                    20
                                                                                                                                             Zinc
                                                    18
                                                                                                                                             Lead
                                                    16

                                                    14                                                                                       Indium & Gallium

                                                    12                                                                                       Silver

                                                    10
                                                                                                                                             Annual Average
                                                     8

                                                     6

                                                     4

                                                     2

                                                     0
                                                          1      2      3        4   5   6    7    8     9     10   11   12   13   14   15
                                                                                             Production Year

                                            Source: March 2011 Malku Khota PEA
                                            Values in US$                                              28
Actual/Anticipated Annual Ag Production (Moz)




                                                                         5.0
                                                                                10.0
                                                                                          15.0
                                                                                                    20.0
                                                                                                              25.0
                                                                                                                        30.0
                                                                                                                               35.0
                                                                                                                                                       40.0




                                                                   0.0
                                                                               Coeur d'Alene

                                                                               Pan American Silver




Source: CPM Silver Yearbook 2011
                                                                               Silver Standard Resources

                                                                               Silver Standard Resources
                                                                                                                                                                      Producing Mine




                                                                                Hecla

                                                                                  Hochschild




*Based on mine production of 13.2 Moz /year for first five years
                                                                                                                                      Development Stage Project




                                                                                   Cia De Minas Buenavertura

                                                                                       Yamana Gold

                                                                                       Etibank




29
                                                                                       Bear Creek Mining

                                                                                        Hochschild

                                                                                         Polymetal MNPO

                                                                                           Sabina Gold & Silver

                                                                                            South American Silver Corp.

                                                                                             Goldcorp Inc.

                                                                                             Industrias Penoles

                                                                                                 Pan American Silver

                                                                                                       Tahoe Resources

                                                                                                           Sumitomo Corp.
                                                                                                                                                                          Target to increase production to 18-20 Moz




                                                                                                                     Barrick Gold Corp.
                                                                                                                                                                                                                                                                                         Primary Silver Project Annual Production Rates




                                                                                                                                                                  Fresnillo
                                                                                                                                                                                                                       Malku Khota one of largest emerging producers at over 13 Moz/yr




                                                                                                                                                                  BHP Billiton
Global Silver Industry Cash Cost Curve
       Anticipated low-cost silver production
                                Cumulative Percentile of Silver Mine Production Cost
                                                            Lowest 25% Percentile




                                                                                                                Total Cash Cost Per Ounce of Silver
                                                                Cash Costs


                                                                                   Malku Khota
                                                                                  13.2 Mozs/yr (1)
                                                                          ~ $2.94/oz at 3 yr avg prices(2)(3)
                                                                          ~ $2.01/oz at 2 yr avg prices(2)(3)
                                                                          ~ $0.86/oz at 1 yr avg prices(2)(3)

                         Industry Average
                            Cash Cost
                             $5.27/oz




 Source: GFMS World Silver Survey 2011
(1) Avg first 5 years of production (2) Silver cash costs after credits ($US)/oz
(3) 3 year average price: Ag $18, In $500, Ga $500, Cu $3, Pb $0.90, Zn $0.90      30
2 year average price: Ag $25, In $570, Ga $570, Cu $3.70, Pb $1, Zn $1
1 year average price: Ag $35, In $650, Ga $730, Cu $4.30, Pb $1.20, Zn $1.10 , all as of May 2011
Escalones Copper-Gold-Silver project, Chile
      High potential, large-scale target
 Inferred         Copper          Gold         Silver          Moly   Cu Eq   Copper    Gold     Silver    Moly    Cu Eq1
  Tonnes           (%)            (g/t)         (g/t)         (ppm)    (%)    (Mlbs)    (Ozs)    (Mozs)   (Mlbs)   (Mlbs)

   420 M             0.41          0.05         1.24          61.39   0.49    3,835    610,000    16.8    56.9     4,503



         • 70 square km, road accessible, large
           scale system in well established
           mining district
         • Located near one of the worlds
           largest underground copper mines at
           El Teniente
         • Inferred Resource of 3.8 billion lbs of
           copper, 56.9 million lbs of
           molybdenum, 610,000 ozs of gold
           and 16.8 million ozs of silver
         • Phase II exploration program
           underway



1) Cu Eq calculated using total contained metal at $3.00/lb
Cu, $1200/oz Au, $22/oz Ag, and $16/lb Mo and has not been
adjusted for metallurgical recoveries
                                                                       31
Escalones Project Logistics
 Excellent existing infrastructure

Ownership: 100% through lease           SAC property
Location:  35km E of El Teniente        Gas pipeline
                                        Access Road
Elevation: 3800m

• 70 square kilometer property
• Road accessible located 100 km
  southeast of Santiago
• Gas pipeline across property




TSX:SAC
                                   32
US OTC:SOHAF                                           31
Drill Results Grade Thickness Map
    Large-scale copper-gold-silver system
    • Open to expansion down dip
      and laterally
    • 30 diamond drill holes
      (12,666 meters) and 43
      channel and road cuts
      (>2,100 meters) with >10,934
      assay values collected
      through 2011
    • Limited testing of porphyry
      system with most holes in
      replacement /skarn style
      mineralization
   CuEq GT                       AuEq GT
Copper (%) x Thickness (m)   Gold (g/t) x Thickness (m)   Metal Prices
   0 – 10 CuEq% GT              0 – 17 AuEq GT
                                                          Copper - $1/lb
   10 – 50 CuEq% GT             17 – 85 AuEq GT
                                                          Gold - $1000/oz
   50 – 100 CuEq% GT            85 – 171 AuEq GT          Silver - $15/oz
                                171 – 342 AuEq GT         Moly - $15/lb
   100 – 200 CuEq% GT

   >= 200 CuEq% GT              >= 342 AuEq GT




TSX:SAC
                                                                            33
US OTC:SOHAF                                                                     32
Escalones
 Geological cross-section
 • Enriched zones with high grades of replacement style mineralization starting at surface
   at over >1% copper with significant gold and silver

 • Large scale porphyry target with intercept of 176 m @ 0.6% copper with additional
   credits from gold, silver, and molybdenum




    Alto
                   Bajo




TSX:SAC
US OTC:SOHAF                              34
Current Copper Company Market Valuations
   by Resource Size & Development Stage
   Size of circle represents market valuation premium in EV/lb
                                                            Developers               Adv. Developers                 Producers

                                   Avg Value               2.5cents/lb               5cents/lb                     15cents/lb

                100000                              Escalones Value at Avg Valuation
Total Resource Size (Mlbs Cu)




                                                      for each development stage
                                                                                             Augusta Resource                 Northern Dynasty

                                                                                               Taseko Mines                                      Quadra FNX

                                                                                                                      Minera Andes
                                                    Candente Copper
                                                                                               Lumina Copper
                                                                             Nevada Copper
                                                                                                                                      Imperial Metals
                                10000          Escalones
                                              Current Stage              Western Copper        PFS/FS                      Production
                                                                                                                               Capstone Mining
                                                                                      NGEx Resources
                                         Panoro Minerals          Hana Mining                                               Mercator Minerals
                                                                                                                             ESC
                                                                   ESC                          ESC
                                                                                                      Copper Fox

                                          Redhawk
                                                                                                                                     Copper Mountain

                                1000
                                        $50                $100                            $300                $500                  $1000       $2000
                                                                           Enterprise Value (US$ Millions)


Source: Canaccord Report November, 2011
                                                                                          35
Community Relations
 A key to successful project development
 • Recent key addition to community relations team:
     • Jim Mallory, VP Operations and Social Responsibility – 35 years industry experience
        previously with Silver Standard, NovaGold, & Barrick (Placer Dome)
 • Objectives to facilitate economic development in communities as part of project
   exploration, development and construction activities
 • Project construction will see workforce of over 1,000 with mine workforce of over 400 or
   more




TSX:SAC
US OTC:SOHAF                              36
Project Milestones
Value drivers over the next 6-12 months
 • Malku Khota, silver-indium-gallium project, Bolivia
     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*
     Cash flows, project valuations and rates of return significantly expanded over
       previous studies
     • Major camp expansion to support additional drills
     • Infill and expansion drilling program beginning Q1 2012
     • Updated Economic Assessment in Q2 2012
     • Feasibility work to begin in H2 2012

 • Escalones, copper-gold-silver porphyry project, Chile
     Phase I exploration and geophysics program complete
     Initial resource estimate completed
     Phase II drill program underway
     • Resource update mid-2012
     • Preliminary Economic Assessment in Q4 2012




*Average first five years of production   37
Leveraged to Silver                                                                                             Additional value
    Value of silver per dollar invested                                                                             of Indium and Gallium

                                                                                                                    Additional value
                                                                                                                    of Copper
                                                   Silver value per $1 invested
    70
                         SAC has some of the best leverage to silver of any development
                          stage company with over $65 of silver value per $1 invested
    60


    50


    40


    30
            Average value of silver ~$16 of silver per $1 invested*

    20


    10


      0
            Silver ETF      Sulliden       US Gold        Tahoe        MAG Silver Silvercrest   Sabina   Orko     Silver   Bear Creek   Golden South American
                                                                                                                                                 So.American
                                                        Resources                                               Standard                Minerals  Silver Corp.
                                                                                                                                                    Silver




Source: Canaccord as of January 17, 2011, Share prices updated Jan 3 2012
Note: all companies have projects in South and/or North America
Calculated using $25/oz Ag. Dollar value of silver per $1 invested = (silver
resource/shares outstanding) x $25/oz silver) divided by share price                      38
Value only shown for silver with no contribution from other metals. Cu value calculated
using $2.25
Why South American Silver?
     Investment highlights
      • World-class scale projects with excellent expansion potential
      • Track record of discovery and successful project development
      • Growing shareholder value through resource expansion and advancing projects up
        the development value curve toward feasibility
      • More than $230 worth of metal in the ground per share (>$100 of silver, >$100 of
        copper, and >$30 of indium and gallium)1
      • Attractive investment value relative to peers at low value per oz
      • Exposure to rapidly growing indium and gallium high-technology market
      • New copper-gold-silver resource and expansion at Escalones
      • Continued investor outreach to broaden market awareness of Company




1)   $25 /oz silver, $3 /lb copper, $700/kg indium and gallium
                                                                 39
                                                                                           37
TSX: SAC
                                OTC: SOHAF




                          Phone: 604.681.6926
                               1.855.681.6926
                             www.soamsilver.com
               Appendix




TSX:SAC
                  40
US OTC:SOHAF
Resource Summary
     MALKU KHOTA                                               In Situ Grade                                                            Total Contained Metal
Approx. 10 g/t Ag Cutoff1               Ag        In       Ga        Cu        Pb        Zn      Ag Eq2         Ag            In     Ga               Cu         Pb          Zn Ag Eq2
Resource        Tonnes                  g/t       g/t      g/t       %         %         %        g/t           Moz         tonnes tonnes             Mlbs       Mlbs        Mlbs Moz
Category        Millions
Measured                       31.0 33.40          6.10       4.50    0.02       0.07     0.02       49.00         33.32      188.00          139.0      13.9           49     16     48.55
Indicated                    224.0 27.30           5.80       4.30    0.02       0.07     0.05       43.20       196.96 1,293.00              943.0     106.4         405     231 311.45
Total M&I                    255.0 28.10           5.80       4.30    0.02       0.07     0.04       43.77       230.28 1,481.00 1,082.0                120.3         453     247 358.80
Inferred                     230.0 18.90             4.1       4.3    0.02       0.07     0.05       33.04       140.03           935         1,001      102          362     246 244.36
Mineral resources in the above table were estimated as of March 30, 2011 for the Preliminary Economic Assessment Update Technical Report for Malku Khota by Allan Armitage, Ph.D., P.Geo, of
GeoVector Management Inc.
1) The resource cut-off grade of 10 g/t silver equivalent is based only on the values of silver at $16/oz and indium at $550/kg.
2) The silver equivalent calculation uses base case metal pricing ( Ag at $18/oz, In at $500/kg , Ga at $500/kg, Cu at $3/lb, Pb at $0.90/lb, and Zn at $0.90).

     ESCALONES                                                 In Situ Grade                                             Total Contained Metal
 Approx. 0.2% Cu Cutoff3                   Cu           Au         Ag        Mo               Cu Eq4          Cu          Au      Ag     Mo Cu Eq4
Resource       Tonnes                      %            g/t        g/t      ppm                 %            Mlbs         Ozs    Moz Mlbs Mlbs
Category       Millions
Inferred                       420.6          0.41         0.05         1.24         61.39           0.49       3,835 610,160             16.8        56.9      4,503
Mineral resources in the above table are as reported in the Dec 19 2011 Press Release using estimates prepared by Allan Armitage, Ph.D., P.Geo, and J. Campbell, BSc, PGeo of GeoVector Management Inc.
3) An economic cut-off grade of 0.2% copper equivalent represents a metal price of approximately $2.50/lb copper.
4) Copper Equivalent (Cu Eq %) calculations use $3.00/lb Cu, $1200/oz Au, $22/oz Ag, and $16/lb Mo and have not been adjusted for metallurgical recoveries

 TOTAL RESOURCES                                                  Total Contained Metal - Malku Khota and Escalones Combined
                                       Ag             Au          Ag Eq5      In      Ga      In + Ga     Cu       Pb      Zn                                         Moly Cu Eq6
Resource                               Moz           Kozs          Moz      tonnes tonnes tonnes         Mlbs     Mlbs    Mlbs                                        Mlbs Mlbs
Category
M&I                                      230.28                        230.3 1,481.00            1,082.0        2,563.0               120.3       453           247                 330
Inferred                                 156.83      610.16          190.11         935.00       1001.00        1936.00         3937.02        362.16        246.15   56.87    4,423
5) Ag Eq is calculated using total silver and gold contained metals at $1200/oz Au and $22/oz Ag
6) Cu Eq is calculated using total Cu, Pb, Zn, and Mo contained metals at $3/lb (Cu), $0.90/lb (Pb), $0.90/lb (Zn) and $16/lb (Mo).




                                                                                               41
Relative Stock Performance
SAC vs. key silver & gold indices

                                    SAC



  Producer and Explorer/Developer
  Equities Peak December 2010                     Silver price peak          Gold Price Peak




                                          Silver Producers peak       Correction in Explorer/Developers
                                                                      Accelerates into the end of the year




TSX:SAC
                                                 42
US OTC:SOHAF
Relative performance of Gold/Silver and the
Producer/Development stage equity indices
Explorer/Developers and Producer Equities undervalued relative to metals                          Gold Price Peak


                                                              Silver price peak
                            Producer and Explorer/Developer
                            Equities Peak December 2010
 Historically, metals and
 miners move together




                                                                Correction in Explorer/Developers
                                                                Accelerates into the end of the year

                                                                                  Potential value gain to equities
                                                                                  to catch up with metals prices




TSX:SAC
                                            43
US OTC:SOHAF
Long Term Silver Ratios with Copper & Gold
   Traditional benchmarks being challenged




                                                        Silver showing
                                                       relative strength




Source: 1) Ian McAvity‘s Deliberations On World
Markets, May 4 2011                               44
Criticality Index for Clean Energy/Technology Development
Showing Forecast Supply Shortages of Most Important Metals

                        Short Term (0-5 Years)                                                    Long Term (5-15 Years)




                                                                                   high
         high




                  4                                            Dy                            4                  Nd     Dy
to clean energy




                                                                           to clean energy
                                  Ce La          In        Nd Tb                                          In
  Importance




                                                                             Importance
                       Ga                                                                        Ga             Eu Y   Tb
                  3                Te            Eu          Y                               3          Li Te

                                                                                                        Ce Co
                        Li       Co Pr
                  2                                                                          2          La Pr


                                    Sm                                                                   Sm
         low




                                                                                    low
                  1                                                                          1
                        1           2            3             4                                  1       2      3     4

                      low       Supply Risk                    high                              low    Supply Risk     high

                                         Important                     Near Critical               Critical

Sources: (1) US Dept. of Energy Critical Materials Strategy,
Dec. 2010.                                                            45
Indium Supply
       Mine Production and Refining
                    Indium Mine Production                                                        Indium Refining
                                                                                   Peru, 1%
                                                                                Russia, 3%
                                                                                               Others, 6%
                                                                               Germany, 3
                                                                                   %
                                                              China                                                      China

                                                              Peru                                                       S.Korea
                   Other
                Countries, 23                                                      BLEU, 6%                              Canada
                     %                                        Canada
                                     China, 45%                                   Japan, 8%                              Japan
          Mexico, 3%                                          Australia                                     China, 52%
                                                                                                                         BLEU
         USA, 4%                                              USA
                                                                                  Canada, 8%
                                                                                                                         Germany
                                                              Mexico
                                                                                        S.Korea, 13                      Russia
                                                              Other                         %
                            Peru, 9%                          Countries                                                  Peru
Australia, 6%
                                                                                                                         Others
       Canada, 9%




   Source: 1)Roskill ‗s Indium: Global Industry Markets and
   Outlook ,2010                                                          46
   BLEU: Belgium, Luxembourg Economic Union
Management & Directors                                                         Ralph Fitch (Executive Chairman) is an explorationist with over 40
                                                                                   years of global experience, a co-founder of South American Silver and
Greg Johnson (President/CEO & Director) has over 25 years mining                   former Chief Geologist for Chevron Minerals credited with several
    industry experience in corporate finance, project development and              major discoveries in South America.
    exploration. A s a co-founder of NovaGold, he played a key role in          Antonio Canton (Director) is consultant and director to a number of
    growing that company from $50 million in value to over $2 billion market       international companies in marketing, finance and real estate.
    capitalization advancing 3 major projects through to Feasibility.           Tony Cau (Director) is COO at Zamin Ferrous. With over 30 years of
Phillip Brodie-Hall (Chief Operating Officer) has over 35 years experience         experience in the mining, construction and heavy manufacturing
    in engineering construction and project development. He has participated in    industries, he has been involved in mine development and expansion
    nearly every aspect of evaluation, feasibility studies and project             projects around the world for groups like BHP, SNC-Lavalin, and
    development in the mining industry.                                            Bateman Engineering.
William Filtness (Chief Financial Officer) is a Chartered Accountant with       Jeffrey Couch (Director) is the Managing Director and Head of
    over 20 years of financial experience in the mining industry.                  Investment & Corporate Banking, Europe and London for BMO
David Dreisinger (Vice President of Metallurgy) is Professor and Industrial        Capital Markets. He has held various financial and business
    Research Chair in Hydrometallurgy at the University of British Columbia.       development positions and has extensive investment banking and
    He is actively involved in developing and commercializing                      capital markets experience with groups such as Credit
    hydrometallurgical process at a number of mines worldwide.                     Suisse, Citigroup, and Klienwort Benson.
Felipe Malbran (Vice President of Exploration) has over 25 years                Paul Haber (Director) is a Chartered Accountant and a Certified Public
    experience in exploration management in South America including key            Accountant, and previously CFO of a TSX-V company and Chairman
    roles in the discovery of Malku Khota, Vizcachitas, and Escalones.             of the Audit Committee for South American Silver.
James Mallory (Vice President of Operations & Social Responsibility)            Peter Harris (Director) is a mining engineer with over 40 years of
    has over 30 years of mining industry experience in large-scale mine            industry experience including construction and operation of over 20
    management, operations and construction for companies including Barrick        mines around the world with groups such as Barrick (Placer Dome)
    (Placer Dome), Silver Standard, and NovaGold.                                  and NovaGold.
Andrew Clark (Manager of Project Implementation) has over 30 years              William Murray (Director) is an engineer in the mining industry with
    global industry experience in the development, design, management and          over 35 years of experience in construction management and project
    construction of industrial mining projects.                                    evaluation with groups including Fluor Daniel, Denison
Richard Doran, (Vice President & Corporate Secretary) has extensive                Mines, Optimum Project Services and Anglo American Corp.
    industry experience including with General Minerals and as Marketing        John Watson (Director) is President of a TSX -V listed company and
    Manager for Chevron Minerals.                                                  Manager of a limited liability corporation in commercial real-estate.
Xavier Gonzales Yutronic (General Manager Compañía Minera Malku Tina Woodside (Director) is the head of Gowlings’ corporate finance
    Khota S.A.) has experience in management, finance, and community               department and practices corporate and securities law focused on
    relations in the mining industry including with Glencore, and Comsur S.A.      corporate finance, M&A and corporate governance matters.

  TSX:SAC
                                                                      47
  US OTC:SOHAF

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SAC January 2012 Corporate Presentation

  • 1. VALUE.GROWTH.VISION Growing and advancing one of the world’s largest undeveloped silver and indium resources. Corporate Presentation TSX: SAC, US OTC: SOHAF January 2012 www.soamsilver.com
  • 2. Cautionary Notes Forward-looking statements 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. Investors are advised to review the Company’s Annual Information Form filed at www.sedar.com for a detailed discussion of investment risks. 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. Cautionary note regarding reserve and resource estimates The material in this presentation has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this presentation have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (―NI 43-101‖) and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (―SEC‖), and resource and reserve information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term ―resource‖ does not equate to the term ―reserves‖. Investors should also understand that ―inferred mineral resources‖ have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an ―inferred mineral resource‖ will ever be upgraded to a higher category. The estimation of quantities of resources and reserves is complex, based on significant subjective assumptions and forward-looking information, including assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Changes in data and/or assumptions could cause reserve estimates to substantially change from period to period. No assurance can be given that the indicated level of mineral will be produced. Actual production could differ from expected production and an adverse change in mineral prices could make a reserve uneconomic to mine. Variations could also occur in actual ore grades and recovery rates from estimates. 2
  • 3. Investment Highlights South American Silver Corp. • Experienced management team with track record of successful project development and value creation • Two large-scale deposits in South America Malku Khota: one of the world‘s largest silver-indium-gallium resources o 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 yrs o NI 43-101-qualified Indicated resource of 230.3 million ozs silver, 1,481 tonnes of indium and 1,082 tonnes of gallium and an Inferred resource of 140 million ozs silver, 935 tonnes indium and 1,001 tonnes gallium. Escalones: high potential copper-gold-silver deposit with an Inferred resource of 3.8 billion lbs of copper and 610,000 oz of gold and 16.8 million ozs silver • Well defined business plan to drive shareholder value • More than $230 worth of metal in the ground per share (>$100 of silver, >$100 of copper, and >$30 of indium and gallium1 • Attractive investment value relative to peers at low value per oz • Anticipated low cost silver production at approximately $2.94/oz of silver2 • Strong focus on community relations to proactively facilitate mutually beneficial relationships 1) $25 /oz silver, $3 /lb copper, $700/kg indium and gallium 2) Net of base metal credits 3
  • 4. World-Class Deposits Two large-scale assets in South America Malku Khota, silver-indium project, Bolivia (100%) • Pre-Feasibility level update in Q2 2012 with Feasibility work starting in H2 2012 • Bulk mineable open-pit, sediment hosted deposit • Low capital and operating costs as a heap leach or milling operation • Resource expansion potential with only 4 km of a 15 km trend drill tested on the 50 sq km property • Potential to be one of the worlds top producing silver and indium mines Silver Indium Gallium Ag Eq1 (Moz) (tonnes) (tonnes) (Moz) M&I 230 1,481 1,082 354 Inferred 140 935 1,001 240 1)Silver Equivalent (Ag Eq) calculated using total contained metal using base case metal pricing (Ag at $18/oz, In at $500/kg , Ga at $500/kg, Cu at $3/lb, Pb at $0.90/lb, and Zn at $0.90). 4
  • 5. World-Class Deposits Two large-scale assets in South America Escalones, copper-gold-silver project, Chile (100%) • Inferred Resource of 3.8 billion lbs of Cu, 56.9 million lbs of Mo, 610,000 ozs of Au and 16.8 million ozs of Ag • Phase II exploration program underway to include up to 7,000 meters of follow-up drilling • Step-out testing of the known mineralized zones and testing of new geophysical targets • Located within a world-renowned copper district near the world‘s largest underground copper mine, El Teniente Total Contained Metal Copper Gold Silver Moly Cu Eq1 Mlbs Ozs Moz Mlbs Mlbs Inferred 3,835 610,000 16.8 56.9 4,503 In Situ Grade Tonnes Copper Gold Silver Moly Cu Eq1 Millions % g/t g/t ppm % 420.6 0.41 0.05 1.24 61.39 0.49 1)Copper Equivalent (Cu Eq) calculated using total contained metal for copper ($3/lb), gold ($1200/oz), silver ($22/oz), and molybdenum ($16/lb) and has not been adjusted for metallurgical recoveries. 5
  • 6. Share Capitalization1 TSX:SAC, US OTC:SOHAF Issued & Outstanding Options2 Warrants3 Fully Diluted1 101.9M 11.0M 5.5M 118.4M • ~$160 million Market Capitalization (4) Major Shareholders • Average 3 mo. trading volume 150,000 shares/day •Zamin --19% • $28 million in cash(1) •Private investors--18% •Management5 -- 8% Institutional Ownership •Sprott Asset Management •Front Street •US Global (1) As of Nov 17, 2011, (2) Weighted avg .exercise price $0.99 CAD (3) Weighted avg. exercise price 6 $0.97 (4) As of Dec 5, 2011 (5) Direct ownership only
  • 7. Adding Value Through Resource Growth Total resources with value shown relative to silver Ag Moz In+Ga tonnes Cu Mlbs 450 6000 Ag Eq Inferred Resource 400 Ag Eq M&I Resource 5000 Tonnes of Indium and Gallium2 (combined) Million Pounds of Copper Equivalent3 350 In & Ga Inferred Resource Million Ounces of Silver Equivalent1/ In & Ga M&I Resource 300 4000 Cu Eq Inferred Resource 250 Cu Eq M&I Resource 3000 200 6000 150 4500 2000 100 3000 1000 50 1500 0 IPO 0 Total resources for both Malku Khota and Escalones 1) Ag Eq calculated using total contained metal for silver ($22/oz) and gold ($1200/oz) only 2) Total combined tonnes of indium and gallium 3) Cu Eq calculated using total contained metal for copper ($3/lb), lead ($0.90/lb), zinc 7 ($0.90/lb), and molybdenum ($16/lb) only
  • 8. Comparative Silver Resources in the Americas Second largest development stage silver resource 500 450 Additional value of Indium and Gallium 400 Inferred Resources Millions of Silver Ounces 350 M&I Resources 300 250 200 150 100 50 0 South Alexco Silvercrest US Gold Sulliden MAG Silver Orko Golden Sabina Tahoe So.American Bear Creek American Minerals Resources Silver Silver Yukon Mexico Mexico Peru Mexico Mexico Mexico Nunavut Guatemala Bolivia Peru (Canada) El Salvador Peru (Canada) Chile Source: Canaccord Report resource numbers as of January 11, 2011 Note: All companies have projects in South and/or North America 8
  • 9. Enterprise Value per Silver Resource Oz By project development stage Producer $14.00 Average ~$10/oz $12.00 EV of >$0.80 base on 230.3 million M&I oz Ag Advanced Development $10.00 Stage Average ~$5/oz $8.00 Development Stage Average ~$2.5/oz $6.00 $4.00 $2.00 $0.00 Source: Canaccord & Intierra as of June 9, 2011, Note: All companies have projects in South and/or North America 9
  • 10. Development Stage Value Curve Potential value growth with project advancement Average Enterprise Value per Oz of Silver by Stage Production Take-Over offers or Partnerships Construct $10/oz Increasing Market Value Increased value common at this through resource stage expansion Permits FS Malku Khota Project $5/oz Escalones PFS Project Resource PEA Definition $2.5/oz Early Stage Advanced Production Discovery Exploration & Development Development Stage (Reserves) Increasing value with project advancement Source: Recent average enterprise value per ounce of silver at various development stages for North and South American based 10 projects. Canaccord, Wellington West and Company reports.
  • 11. Current Silver Company Market Valuations by Resource Size & Development Stage Size of circle represents market valuation premium in EV/oz Developers Adv. Developers Producers Allied Nevada MK Value at Avg Valuation Silver Standard for each development stage Pan American Silver 1000 2012 Coeur d`Àlene Total Resource Size (Moz's) South American Silver Bear Creek 2011 Malku Khota PFS/FS Production 500 PEA First Majestic Current Value MK MK MK Silver Bull Sulliden Tahoe Silvermex Hecla US Gold Hochschild 100 Silver Quest MAG Endeavour Esperanza US Silver Int`l Minerals Aurcana Troy Extorre Arian Castle Alexco Great Panther Golden Predator 10 $50 $100 $200 $300 $500 $1,000 $2,000 $5,000 Enterprise Value (US$ Millions) Total Resource Ag Equivalent using (Ag +Au only at $25/oz and $1000/oz values) Source: Canaccord Report July, 2011 and Intierra, July, 2011 Share prices as of Jan 3 2012, 11 Note: All companies have projects in South and/or North America
  • 12. Positive Silver Fundamentals A paradigm shift for silver? • Major shift in supply/demand dynamic over past several years • Silver still well below inflation adjusted highs of $140/oz ($50 in 1980) • Silver is a ―hybrid‖ precious and industrial metal due to its scarcity and unique properties including superior electrical and thermal conductivity, malleability, reflectance, and catalytic/biologic reactivity • Price increases driven by 40% increase in investment demand and 21% increase in industrial demand for a total increase of 17% in 2010 • Total annual mine production growth only 2.5% last year with reduced contribution of by-product silver from copper and gold production • Projected new mine supply anticipated to be consumed by new industrial demand through at least 2015 • Chinese imports up 4x since 2009 with change from net sellers of more than 100 M oz of silver in 2005 to net buyers of more than 120 M oz in 2010 • Few major new deposit discoveries and growing time lag from time of discovery to metal production Source: 1) GFMS World Silver Survey 2011 2) BMO Capital Markets Global Mining Research April 2011 12
  • 13. Silver Supply/Demand Fundamentals • Dramatically increased demand growth driven by strong investment demand plus increased industrial consumption(1) • Demand growth expected to continue to outstrip production growth(2) World Silver Supply World Silver Demand +17% total +8% total demand supply 1200 Industrial Applications growth 1200 Mine production growth Photography Secondary Supply and Scrap Jewelry and Silverware +40% 1000 Government Sales 1000 Investment and Coins investment demand 800 800 Million Ounces Million Ounces +2.5% mine 600 600 production 400 400 +21% industrial demand 200 200 0 0 Source: 1) GFMS World Silver Survey 2011 2) BMO Capital Markets Global Mining Research April 2011 13
  • 14. Growing Demand for Silver in Technology Breakdown of key technology/industrial uses for silver 500 Photovoltaic 400 Catalysts, alloys, solders and biocides Millions of Silver Oz 300 Electronics 200 100 0 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11p Source: CPM Silver Yearbook 2010 Not for reproduction without written CPM Group consent 14
  • 15. Silver Primary & By-Product Production(1) • 70% of silver is by-product production from base metals and gold • By-product silver production is largely silver price inelastic • Reduced by-product silver production anticipated going forward from base metals(2) 300 25 Lead/Zinc Primary Copper 250 Gold 20 Silver Price Millions of Ounces of Silver 200 Silver Price (US$) 15 150 10 100 5 50 0 0 2003 2004 2005 2006 2007 2008 2009 2010 Source: 1) GFMS World Silver Survey 2005-2011 2) BMO Capital Markets Global Mining Research April 2011 15
  • 16. Indium & Gallium – Two Key Strategic Metals Rapidly growing market for high-tech uses Uses • Indium-tin oxide (ITO) a key component of flat panel displays (FPDs) and touch screens • High-efficiency CIGS (copper, indium, gallium, selenide) photo-voltaic thin-film solar panels, and LED lighting • Fiber optics, specialized and transparent semiconductors Supply • Global indium use growing rapidly and could surpass available supply from by-product zinc refining at current price range • One of the most scarce strategic metals due to low recycling and few primary producers * flat panel displays LED lighting thin film solar * Image from http://gotpowered.com 16
  • 17. Indium & Gallium Fundamentals Compelling supply/demand dynamics Indium and Gallium Supply/Demand dynamics • 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 • China is largest producer and consumer of indium and has imposed export quotas and tariffs like on other key high-technology specialty metals • Indium market estimated to see 15-20% annual growth with most indium produced as by product of zinc refining growing at 1-3% annually • Current indium and gallium price ~$900-1000/kg up from global economic lows during 2008-2009 of $400-500/kg • Gallium market estimated to be a conservative 15% annual growth rate which could increase significantly with more rapid growth in LED lighting and photovoltaics Malku Khota annual indium and gallium production • Malku Khota projected to be one of the world‘s largest indium & gallium producers (80 tonnes and 15 tonnes per year) • Potential to represent 10% or more of global mine supply of indium and over 5% of global supply for gallium • Opportunities for project financing from off-take agreements for indium & gallium Sources: (1) US Dept. of Energy Critical Materials Strategy, Dec. 2010. (2)United Nations Environment Programme (UNEP) Special 17 Report on Strategic Metals ,May 2011 .
  • 18. Indium Demand Growth Growing demand in high-tech markets 2500 Solar Energy End-use Market Demand (tonnes) LED Lighting 5 year 2000 LCD Flat Panels projected demand growth 1500 1000 2010 total indium 500 production level 0 2010 2011E 2012E 2013E 2014E 2015E 2016E Growth assumptions based on data from Displaybank in LCD TV Association ―LCD TV Matters‖-Volume 3, Issue 2, February 2010 , Strategies Unlimited, August 2009 , Solarbuzz, Photon International, GFMS , Nanomarkets, and the US Department of 18 Energy Critical Minerals Strategy Report December 2010
  • 19. Indium Fundamentals World indium demand vs price (1969-2011*) 2500 2000 1800 Indium Price/kg ($US) 2000 1600 Demand Indium Demand 1400 Price 1500 1200 Current Indium Price X 1000 1000 800 600 500 400 200 0 0 Source: (1) Indium: Global Industry Markets and Outlook, 9th Edition 2010 (Roskill) *2011-2013 Data are estimates (2) 2011-2015 Estimates US Dept. Of Energy Critical Materials Strategy Dec. 2010. 16
  • 20. Silver Mines in Bolivia One of the world’s premier silver mining districts • Historical district production of billions of ounces of silver • Highly prospective & under-explored • Increase from 9th largest global silver producer to 5th largest with completion of three major silver mines in past four years:  Pan American Silver – San Vicente  Coeur D‘Alene - San Bartolome  Sumitomo - San Cristobal TSX:SAC 20 US OTC:SOHAF
  • 21. Opportunity in Bolivia An emerging resource based economy • Bolivian government encouraging private investment • Member of Mercosur Regional trade organization with Brazil as largest trading partner • Government bond ratings upgraded by Moody‘s & Fitch • Mining second largest economic sector • One of the world‘s premier silver districts with billions of ounces of silver production • Planned $32 billion 5-7 year infrastructure build-out by Bolivian government for new rail and road corridors and hydropower generation • Three Major silver mines built within last four years by Pan American Silver, Coeur D‘Alene, and Sumitomo • Substantial resource industry investments in Bolivia  Jindal Steel of India investing US$2.1 billion in giant El Mutun iron ore deposit  Petrobras of Brazil—Latin America‘s largest publicly traded oil company – investing US$1 billion of new capital into the Bolivian gas fields  Repsol of Spain investing $1.6 billion to increase gas production in Bolivia  Petrobras and Repsol have announced new exploration initiatives in Bolivia in early 2011  Kores of South Korea set to invest $210 million to develop the Corocoro copper project  Recently announced investments by Citic of China and LG/Posco of South Korea to develop major lithium resources TSX:SAC 21 US OTC:SOHAF
  • 22. Malku Khota Project One of the world’s largest silver-indium resources Malku Khota Project – 2011 Resource Estimate2 Silver Indium Gallium Copper Lead Zinc AgEq3 (Moz) (tonnes) (tonnes) (MLbs) (MLbs) (MLbs) (Moz) M&I 230 1,481 1,082 120 453 247 354 Inferred 140 935 1,001 102 362 246 240 Host rock sandstone with disseminated Enrichment starts at surface silver, indium, gallium, lead, zinc and copper Average grade first five years: • Silver: 42.2 g/t (58 g/t Ag Eq)1 • Indium: 7.55 g/t • Economic cut-off grade <15 g/t (at $18/oz Ag)2, 4 1) Average for the first 5 years of production 2) See March 31, 2011 News Release for detailed resource estimate 3) Total contained metal using base case prices (Ag: $18/oz, In: $500/kg, Ga: $500/kg, Cu: $3/lb, Pb: $0.90/lb, Zn: $0.90/lb USD) 22 4) Economic cut-off grade comprised only of silver and indium
  • 23. Malku Khota Project Low projected capital and operating costs with established infrastructure • 50 square km, 100% owned, road accessible project • Low capital and operating costs on a per ounce basis • Potential to be one of the top primary silver and indium producing mines at 13.2 Moz silver per year and 80 tonnes of indium1 • Project base case annual cash flows and NPV‘s more than doubled • Open pit, bulk mineable and very scalable • Commercial electricity and natural gas nearby 1) Average for the first 5 years of production 23
  • 24. Malku Khota Drilling Grade thickness map • 115 drill holes in current resource with OPEN updated resource Q1-2011 • 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 Mineralized Ag oz Sandstones • 2012 program to target conversion from resources to reserves & expansion drilling OPEN • Mineralization begins at surface • Deposit open along trend and down dip with excellent potential for expansion • New discovery of higher grade zones and down dip expansion of surface mineralization OPEN TSX:SAC 24 US OTC:SOHAF
  • 25. Malku Khota Mineralization • Broad zones of continuous sediment hosted mineralization • Open at depth and along trend LMD048: 286 meters grading 76 g/t AgEq Grade thickness values of over 21,500 g-m AgEq OPEN OPEN TSX:SAC 25 US OTC:SOHAF
  • 26. Production Processes From ore to metal Open Pit Mining • Large scale shovel and truck open pit mine • Oxide ore crushed in preparation for direct Crushing leaching • Four years of metallurgical test work with SGS Leaching labs on acid leach process • Acid-chloride leaching captures silver, indium, copper, lead, zinc, gallium and gold Metal Recovery & Processing • Metal recovery in several steps: • Acid recovery • Silver-gold-copper cementation Silver, Gold, Copper • Indium-gallium precipitation • Lead and zinc sulfides Indium & Gallium ingots • Downstream processing to metal products Lead & Zinc concentrates TSX:SAC 26 US OTC:SOHAF
  • 27. 2011 Economic Assessment1 Metal Prices ($US)4 Base Case Mid Case Recent Mining Rate 40,000 tpd (3 yr avg) (2 yr avg) (1 yr avg) Life of Mine 15 years Silver : $18/oz $25/oz $35/oz Ore Mined (LOM)2 200 M tonnes Indium : $500/kg $570/kg $650/kg Average Silver Grade 3 42.4 g/t Gallium: $500/kg $570/kg $730/kg Average Indium Grade3 7.55 g/t Ag Eq grade 58 g/t Share of Gross Revenue First LOM (at base case prices) Recovered Metals Total 5 years Annual Silver (oz) 158 M 13.2 M 10.5 M Indium (tonnes) 1,184 80.7 78.9 5% 3% Silver Lead (lbs) 191 M 12.48 M 12.7 M 6% Zinc (lbs) 135 M 4.42 M 9M Copper (lbs) Indium & 88 M 5.64 M 5.87 M Gallium (kgs) Gallium 212,962 15,184 14,198 15% Copper Base Case Mid Case Recent First 5 years cash flow $185 M/yr $287 M/yr $430 M/yr 71% Net cash flow $1,261 M $2,528 M $4,298 M Lead NPV (5% discount rate)1 $704 M $1482 M $2571 M Internal Rate of Return 37.7% 63% 92.9% Payback period (years) 27 months 19 months Zinc 15 months (1)In US dollars, March 2011, PEA (4) Base Case: 3 yr avg prices as of May 2011 (2)LOM = Life of Mine Mid Case: 2 yr avg prices as of May 2011 (3)First 5 years of production Recent Case: 1 yr avg prices as of May 2011 27 (avg/yr)
  • 28. Malku Khota PEA Update Projected Production Levels 13-20 Moz Silver Equivalent Production first 11 years 22 Production - Silver Equivalent Ounces (Million) Copper 20 Zinc 18 Lead 16 14 Indium & Gallium 12 Silver 10 Annual Average 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Production Year Source: March 2011 Malku Khota PEA Values in US$ 28
  • 29. Actual/Anticipated Annual Ag Production (Moz) 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 0.0 Coeur d'Alene Pan American Silver Source: CPM Silver Yearbook 2011 Silver Standard Resources Silver Standard Resources Producing Mine Hecla Hochschild *Based on mine production of 13.2 Moz /year for first five years Development Stage Project Cia De Minas Buenavertura Yamana Gold Etibank 29 Bear Creek Mining Hochschild Polymetal MNPO Sabina Gold & Silver South American Silver Corp. Goldcorp Inc. Industrias Penoles Pan American Silver Tahoe Resources Sumitomo Corp. Target to increase production to 18-20 Moz Barrick Gold Corp. Primary Silver Project Annual Production Rates Fresnillo Malku Khota one of largest emerging producers at over 13 Moz/yr BHP Billiton
  • 30. Global Silver Industry Cash Cost Curve Anticipated low-cost silver production Cumulative Percentile of Silver Mine Production Cost Lowest 25% Percentile Total Cash Cost Per Ounce of Silver Cash Costs Malku Khota 13.2 Mozs/yr (1) ~ $2.94/oz at 3 yr avg prices(2)(3) ~ $2.01/oz at 2 yr avg prices(2)(3) ~ $0.86/oz at 1 yr avg prices(2)(3) Industry Average Cash Cost $5.27/oz Source: GFMS World Silver Survey 2011 (1) Avg first 5 years of production (2) Silver cash costs after credits ($US)/oz (3) 3 year average price: Ag $18, In $500, Ga $500, Cu $3, Pb $0.90, Zn $0.90 30 2 year average price: Ag $25, In $570, Ga $570, Cu $3.70, Pb $1, Zn $1 1 year average price: Ag $35, In $650, Ga $730, Cu $4.30, Pb $1.20, Zn $1.10 , all as of May 2011
  • 31. Escalones Copper-Gold-Silver project, Chile High potential, large-scale target Inferred Copper Gold Silver Moly Cu Eq Copper Gold Silver Moly Cu Eq1 Tonnes (%) (g/t) (g/t) (ppm) (%) (Mlbs) (Ozs) (Mozs) (Mlbs) (Mlbs) 420 M 0.41 0.05 1.24 61.39 0.49 3,835 610,000 16.8 56.9 4,503 • 70 square km, road accessible, large scale system in well established mining district • Located near one of the worlds largest underground copper mines at El Teniente • Inferred Resource of 3.8 billion lbs of copper, 56.9 million lbs of molybdenum, 610,000 ozs of gold and 16.8 million ozs of silver • Phase II exploration program underway 1) Cu Eq calculated using total contained metal at $3.00/lb Cu, $1200/oz Au, $22/oz Ag, and $16/lb Mo and has not been adjusted for metallurgical recoveries 31
  • 32. Escalones Project Logistics Excellent existing infrastructure Ownership: 100% through lease SAC property Location: 35km E of El Teniente Gas pipeline Access Road Elevation: 3800m • 70 square kilometer property • Road accessible located 100 km southeast of Santiago • Gas pipeline across property TSX:SAC 32 US OTC:SOHAF 31
  • 33. Drill Results Grade Thickness Map Large-scale copper-gold-silver system • Open to expansion down dip and laterally • 30 diamond drill holes (12,666 meters) and 43 channel and road cuts (>2,100 meters) with >10,934 assay values collected through 2011 • Limited testing of porphyry system with most holes in replacement /skarn style mineralization CuEq GT AuEq GT Copper (%) x Thickness (m) Gold (g/t) x Thickness (m) Metal Prices 0 – 10 CuEq% GT 0 – 17 AuEq GT Copper - $1/lb 10 – 50 CuEq% GT 17 – 85 AuEq GT Gold - $1000/oz 50 – 100 CuEq% GT 85 – 171 AuEq GT Silver - $15/oz 171 – 342 AuEq GT Moly - $15/lb 100 – 200 CuEq% GT >= 200 CuEq% GT >= 342 AuEq GT TSX:SAC 33 US OTC:SOHAF 32
  • 34. Escalones Geological cross-section • Enriched zones with high grades of replacement style mineralization starting at surface at over >1% copper with significant gold and silver • Large scale porphyry target with intercept of 176 m @ 0.6% copper with additional credits from gold, silver, and molybdenum Alto Bajo TSX:SAC US OTC:SOHAF 34
  • 35. Current Copper Company Market Valuations by Resource Size & Development Stage Size of circle represents market valuation premium in EV/lb Developers Adv. Developers Producers Avg Value 2.5cents/lb 5cents/lb 15cents/lb 100000 Escalones Value at Avg Valuation Total Resource Size (Mlbs Cu) for each development stage Augusta Resource Northern Dynasty Taseko Mines Quadra FNX Minera Andes Candente Copper Lumina Copper Nevada Copper Imperial Metals 10000 Escalones Current Stage Western Copper PFS/FS Production Capstone Mining NGEx Resources Panoro Minerals Hana Mining Mercator Minerals ESC ESC ESC Copper Fox Redhawk Copper Mountain 1000 $50 $100 $300 $500 $1000 $2000 Enterprise Value (US$ Millions) Source: Canaccord Report November, 2011 35
  • 36. Community Relations A key to successful project development • Recent key addition to community relations team: • Jim Mallory, VP Operations and Social Responsibility – 35 years industry experience previously with Silver Standard, NovaGold, & Barrick (Placer Dome) • Objectives to facilitate economic development in communities as part of project exploration, development and construction activities • Project construction will see workforce of over 1,000 with mine workforce of over 400 or more TSX:SAC US OTC:SOHAF 36
  • 37. Project Milestones Value drivers over the next 6-12 months • Malku Khota, silver-indium-gallium project, Bolivia 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* Cash flows, project valuations and rates of return significantly expanded over previous studies • Major camp expansion to support additional drills • Infill and expansion drilling program beginning Q1 2012 • Updated Economic Assessment in Q2 2012 • Feasibility work to begin in H2 2012 • Escalones, copper-gold-silver porphyry project, Chile Phase I exploration and geophysics program complete Initial resource estimate completed Phase II drill program underway • Resource update mid-2012 • Preliminary Economic Assessment in Q4 2012 *Average first five years of production 37
  • 38. Leveraged to Silver Additional value Value of silver per dollar invested of Indium and Gallium Additional value of Copper Silver value per $1 invested 70 SAC has some of the best leverage to silver of any development stage company with over $65 of silver value per $1 invested 60 50 40 30 Average value of silver ~$16 of silver per $1 invested* 20 10 0 Silver ETF Sulliden US Gold Tahoe MAG Silver Silvercrest Sabina Orko Silver Bear Creek Golden South American So.American Resources Standard Minerals Silver Corp. Silver Source: Canaccord as of January 17, 2011, Share prices updated Jan 3 2012 Note: all companies have projects in South and/or North America Calculated using $25/oz Ag. Dollar value of silver per $1 invested = (silver resource/shares outstanding) x $25/oz silver) divided by share price 38 Value only shown for silver with no contribution from other metals. Cu value calculated using $2.25
  • 39. Why South American Silver? Investment highlights • World-class scale projects with excellent expansion potential • Track record of discovery and successful project development • Growing shareholder value through resource expansion and advancing projects up the development value curve toward feasibility • More than $230 worth of metal in the ground per share (>$100 of silver, >$100 of copper, and >$30 of indium and gallium)1 • Attractive investment value relative to peers at low value per oz • Exposure to rapidly growing indium and gallium high-technology market • New copper-gold-silver resource and expansion at Escalones • Continued investor outreach to broaden market awareness of Company 1) $25 /oz silver, $3 /lb copper, $700/kg indium and gallium 39 37
  • 40. TSX: SAC OTC: SOHAF Phone: 604.681.6926 1.855.681.6926 www.soamsilver.com Appendix TSX:SAC 40 US OTC:SOHAF
  • 41. Resource Summary MALKU KHOTA In Situ Grade Total Contained Metal Approx. 10 g/t Ag Cutoff1 Ag In Ga Cu Pb Zn Ag Eq2 Ag In Ga Cu Pb Zn Ag Eq2 Resource Tonnes g/t g/t g/t % % % g/t Moz tonnes tonnes Mlbs Mlbs Mlbs Moz Category Millions Measured 31.0 33.40 6.10 4.50 0.02 0.07 0.02 49.00 33.32 188.00 139.0 13.9 49 16 48.55 Indicated 224.0 27.30 5.80 4.30 0.02 0.07 0.05 43.20 196.96 1,293.00 943.0 106.4 405 231 311.45 Total M&I 255.0 28.10 5.80 4.30 0.02 0.07 0.04 43.77 230.28 1,481.00 1,082.0 120.3 453 247 358.80 Inferred 230.0 18.90 4.1 4.3 0.02 0.07 0.05 33.04 140.03 935 1,001 102 362 246 244.36 Mineral resources in the above table were estimated as of March 30, 2011 for the Preliminary Economic Assessment Update Technical Report for Malku Khota by Allan Armitage, Ph.D., P.Geo, of GeoVector Management Inc. 1) The resource cut-off grade of 10 g/t silver equivalent is based only on the values of silver at $16/oz and indium at $550/kg. 2) The silver equivalent calculation uses base case metal pricing ( Ag at $18/oz, In at $500/kg , Ga at $500/kg, Cu at $3/lb, Pb at $0.90/lb, and Zn at $0.90). ESCALONES In Situ Grade Total Contained Metal Approx. 0.2% Cu Cutoff3 Cu Au Ag Mo Cu Eq4 Cu Au Ag Mo Cu Eq4 Resource Tonnes % g/t g/t ppm % Mlbs Ozs Moz Mlbs Mlbs Category Millions Inferred 420.6 0.41 0.05 1.24 61.39 0.49 3,835 610,160 16.8 56.9 4,503 Mineral resources in the above table are as reported in the Dec 19 2011 Press Release using estimates prepared by Allan Armitage, Ph.D., P.Geo, and J. Campbell, BSc, PGeo of GeoVector Management Inc. 3) An economic cut-off grade of 0.2% copper equivalent represents a metal price of approximately $2.50/lb copper. 4) Copper Equivalent (Cu Eq %) calculations use $3.00/lb Cu, $1200/oz Au, $22/oz Ag, and $16/lb Mo and have not been adjusted for metallurgical recoveries TOTAL RESOURCES Total Contained Metal - Malku Khota and Escalones Combined Ag Au Ag Eq5 In Ga In + Ga Cu Pb Zn Moly Cu Eq6 Resource Moz Kozs Moz tonnes tonnes tonnes Mlbs Mlbs Mlbs Mlbs Mlbs Category M&I 230.28 230.3 1,481.00 1,082.0 2,563.0 120.3 453 247 330 Inferred 156.83 610.16 190.11 935.00 1001.00 1936.00 3937.02 362.16 246.15 56.87 4,423 5) Ag Eq is calculated using total silver and gold contained metals at $1200/oz Au and $22/oz Ag 6) Cu Eq is calculated using total Cu, Pb, Zn, and Mo contained metals at $3/lb (Cu), $0.90/lb (Pb), $0.90/lb (Zn) and $16/lb (Mo). 41
  • 42. Relative Stock Performance SAC vs. key silver & gold indices SAC Producer and Explorer/Developer Equities Peak December 2010 Silver price peak Gold Price Peak Silver Producers peak Correction in Explorer/Developers Accelerates into the end of the year TSX:SAC 42 US OTC:SOHAF
  • 43. Relative performance of Gold/Silver and the Producer/Development stage equity indices Explorer/Developers and Producer Equities undervalued relative to metals Gold Price Peak Silver price peak Producer and Explorer/Developer Equities Peak December 2010 Historically, metals and miners move together Correction in Explorer/Developers Accelerates into the end of the year Potential value gain to equities to catch up with metals prices TSX:SAC 43 US OTC:SOHAF
  • 44. Long Term Silver Ratios with Copper & Gold Traditional benchmarks being challenged Silver showing relative strength Source: 1) Ian McAvity‘s Deliberations On World Markets, May 4 2011 44
  • 45. Criticality Index for Clean Energy/Technology Development Showing Forecast Supply Shortages of Most Important Metals Short Term (0-5 Years) Long Term (5-15 Years) high high 4 Dy 4 Nd Dy to clean energy to clean energy Ce La In Nd Tb In Importance Importance Ga Ga Eu Y Tb 3 Te Eu Y 3 Li Te Ce Co Li Co Pr 2 2 La Pr Sm Sm low low 1 1 1 2 3 4 1 2 3 4 low Supply Risk high low Supply Risk high Important Near Critical Critical Sources: (1) US Dept. of Energy Critical Materials Strategy, Dec. 2010. 45
  • 46. Indium Supply Mine Production and Refining Indium Mine Production Indium Refining Peru, 1% Russia, 3% Others, 6% Germany, 3 % China China Peru S.Korea Other Countries, 23 BLEU, 6% Canada % Canada China, 45% Japan, 8% Japan Mexico, 3% Australia China, 52% BLEU USA, 4% USA Canada, 8% Germany Mexico S.Korea, 13 Russia Other % Peru, 9% Countries Peru Australia, 6% Others Canada, 9% Source: 1)Roskill ‗s Indium: Global Industry Markets and Outlook ,2010 46 BLEU: Belgium, Luxembourg Economic Union
  • 47. Management & Directors Ralph Fitch (Executive Chairman) is an explorationist with over 40 years of global experience, a co-founder of South American Silver and Greg Johnson (President/CEO & Director) has over 25 years mining former Chief Geologist for Chevron Minerals credited with several industry experience in corporate finance, project development and major discoveries in South America. exploration. A s a co-founder of NovaGold, he played a key role in Antonio Canton (Director) is consultant and director to a number of growing that company from $50 million in value to over $2 billion market international companies in marketing, finance and real estate. capitalization advancing 3 major projects through to Feasibility. Tony Cau (Director) is COO at Zamin Ferrous. With over 30 years of Phillip Brodie-Hall (Chief Operating Officer) has over 35 years experience experience in the mining, construction and heavy manufacturing in engineering construction and project development. He has participated in industries, he has been involved in mine development and expansion nearly every aspect of evaluation, feasibility studies and project projects around the world for groups like BHP, SNC-Lavalin, and development in the mining industry. Bateman Engineering. William Filtness (Chief Financial Officer) is a Chartered Accountant with Jeffrey Couch (Director) is the Managing Director and Head of over 20 years of financial experience in the mining industry. Investment & Corporate Banking, Europe and London for BMO David Dreisinger (Vice President of Metallurgy) is Professor and Industrial Capital Markets. He has held various financial and business Research Chair in Hydrometallurgy at the University of British Columbia. development positions and has extensive investment banking and He is actively involved in developing and commercializing capital markets experience with groups such as Credit hydrometallurgical process at a number of mines worldwide. Suisse, Citigroup, and Klienwort Benson. Felipe Malbran (Vice President of Exploration) has over 25 years Paul Haber (Director) is a Chartered Accountant and a Certified Public experience in exploration management in South America including key Accountant, and previously CFO of a TSX-V company and Chairman roles in the discovery of Malku Khota, Vizcachitas, and Escalones. of the Audit Committee for South American Silver. James Mallory (Vice President of Operations & Social Responsibility) Peter Harris (Director) is a mining engineer with over 40 years of has over 30 years of mining industry experience in large-scale mine industry experience including construction and operation of over 20 management, operations and construction for companies including Barrick mines around the world with groups such as Barrick (Placer Dome) (Placer Dome), Silver Standard, and NovaGold. and NovaGold. Andrew Clark (Manager of Project Implementation) has over 30 years William Murray (Director) is an engineer in the mining industry with global industry experience in the development, design, management and over 35 years of experience in construction management and project construction of industrial mining projects. evaluation with groups including Fluor Daniel, Denison Richard Doran, (Vice President & Corporate Secretary) has extensive Mines, Optimum Project Services and Anglo American Corp. industry experience including with General Minerals and as Marketing John Watson (Director) is President of a TSX -V listed company and Manager for Chevron Minerals. Manager of a limited liability corporation in commercial real-estate. Xavier Gonzales Yutronic (General Manager Compañía Minera Malku Tina Woodside (Director) is the head of Gowlings’ corporate finance Khota S.A.) has experience in management, finance, and community department and practices corporate and securities law focused on relations in the mining industry including with Glencore, and Comsur S.A. corporate finance, M&A and corporate governance matters. TSX:SAC 47 US OTC:SOHAF