2. Forward Looking Statements
Certain statements contained in or incorporated by reference into this
presentation constitute forward-looking statements. The words "may",
"would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate",
"expect" and similar expressions as they relate to U.S. Silver or its
management, are intended to identify forward-looking statements,
however, other information may also constitute forward-looking
statements. Such statements reflect the current views of U.S. Silver with
respect to future events and are subject to certain risks, uncertainties
and assumptions. Many factors could cause the actual results,
performance or achievements of U.S. Silver that may be expressed or
implied by such forward-looking statements to vary from those described
herein should one or more of these risks or uncertainties materialize.
U.S. Silver does not intend, and does not assume any obligation, to
update these forward-looking statements.
Page 2
3. Strong Silver Market Trends
In 1980, when Nelson Bunker Hunt was asked as to why he had
developed a passion for silver, he said; "Silver looked safer than
overseas oil concessions, the way things were going. And precious
metals were a good hedge against paper money".
Silver Demand – Industrial and Investment
Page 3
4. Strong Silver Market Trends
60.00 100.00
90.00
Silver Gold Ratio
50.00
80.00
70.00
40.00
60.00
30.00 50.00
40.00
20.00 Silver up 110% since January 1, 2010
30.00
20.00
10.00
10.00
- -
Page 4
5. Company Overview
Established producer
2.4
in prolific Silver Valley
in Northern Idaho
Low cost incremental
growth potential
(excess capacity)
Revenue projections in
Million oz Ag excess of $90 million at
current prices
Annual production
85% of revenue from silver
Page 5
6. Located in Historic Silver Valley
Over 1 billion British Columbia Alberta
ounces produced
Modern and ample Spokane
infrastructure Washington Missoula
in place
Montana
Safe and friendly
jurisdiction Oregon
Boise
Idaho
Page 6
7. Company Overview
• 100% interest in the producing Galena silver-copper-lead mine
– High grade narrow vein mining operation, opened in 1953
• 100% interest in the Coeur Silver mine
– Redevelopment plans underway
• 2 mills (Galena and Coeur)
– Both in use, excess capacity available
• Dominant land position in the Silver Valley
– Large under explored property
• No historic environmental liability with EPA
– Settled in 2001
• Hedged 20% of production in 2011 to protect CapEx program
• 80% unhedged, 100% unhedged in 2012 and after
Page 7
8. Proved & Probable Reserves
21.9
Million oz Ag
Provides a 7 year
mine life
Exploration consistently
replaces annual
production
86 Million lbs. lead Has produced for almost
11 Million Lbs. copper 60 years and still keep
finding ore
Page 8
9. Recent Results
Q2 2011
YTD Q2 2011 Q1 2011 2010 2009
Revenue 49.9 30.8 19.1 62.4 45.9
Gross profit 20.5 12.3 8.2 10.4 3.0
Pre tax income 15.6 9.4 6.2 4.9 2.0
Cash from Ops 19.5 12.3 7.2 15.0 8.3
Silver production 1,142,685 648,322 494,363 2,275,817 2,427,156
Lead production 2,994,419 1,717,218 1,277,201 5,613,689 6,446,656
Copper production 581,125 321,724 259,401 1,000,319 1,075,307
Cash cost / ounce Ag 16.50 15.39 17.97 13.50 11.67
Page 9
10. Market Data
52 week hi-lo $0.83 -
$0.15
$205
Million
307 million
shares outstanding
335 fully diluted
TSX.V and OTCQX
average daily volume
1 Million
Current Market Cap
(September 2011) Undervalued vs.
peers on key metrics
Page 10
12. Galena Mine – an impressive history
2nd
largest
High grade, narrow
vein, copper-silver &
lead-silver mine
Short term variability in
operating results, long
term proven producer
Primary silver producer No historic environmental
in the U.S. liability
Page 12
13. Galena – Past & Present
179
million
Focusing on higher
grade zones to increase
head grade
Examining production
expansion options with
high prices
Ounces produced
Continued exploration
success and mine life
extension
Page 13
15. Galena Performance
Silver ounces produced
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Forecast
Page 15
16. Milling Operations
Excess Capacity
Galena Mill 900 tons/day and Coeur
Mill 500 tons/ day = total capacity of
1,400 tons/day
Ores
2 ore types (silver-copper and silver-lead)
have separate crushing, milling and
flotation circuits
Recoveries
Consistent mill recovery rates of
96% for silver-copper and 92% for
silver-lead ores
Smelters
Silver-copper concentrates railed to
Quebec and silver-lead cons trucked
to Trail, BC
Page 16
17. Reserves Detail
Contained
Ag Lead Copper
Tons Ag (oz/t) (MM oz) (MM lb) (MM lb)
Proven & Probable Reserves 1,615,700 13.6 21.9 85.6 11.1
Measured & Indicated Resources 560,600 15.6 8.7 14.4 4.8
Inferred Resource 1,026,300 13.4 13.7 103.3 5.4
Total 44.4 203.3 21.3
• Current 43-101 based mine life of approximately 7 years
• U.S. Silver continues to cost effectively add reserves well in
excess of its production, continually extending mine life
• Reserves increased by 115% since 2006
Page 17
21. Exploration Potential
• Dominant land position
14
• Under explored, accessible
• Strong cash flow funding all
plans, 50% increase in
footage in 2011
• Identified 6 surface &
Thousand underground targets that are
ready for drilling
acres of land • Historical success of
increasing reserves well in
excess of production
Page 21
23. Surface and Underground Drill Targets
CDA
“GAP”
Western Argentine
Coeur Mine Vein
Deep
Calady Mine
Coeur Mine
Deep Lead-Silver
Silver
Vein
Page 23
24. Surface Drilling Targets
Commencing 12,000 foot surface drilling program
• CDA Gap
• Argentine Vein
Drill ready targets identified by
• Surface and underground showings
• Geochemical profile matching that of Galena/Coeur
• Strong correlation between surface tetrahedrite
showings and deeper silver vein systems
Page 24
25. Underground Drilling Targets
• Targets:
Western Coeur Mine
Deep Coeur Mine
Deep Silver Vein
Caladay Lead-Silver
• Targets are extensions of known vein systems
Page 25
27. Experienced and Stable Workforce
237
employees
33 with over 20 years of
experience
Additional 30 contract
miners
Page 27
28. The Right Management Team
Gordon E. • Over 25 years experience in investment banking, capital markets, and corporate banking
Pridham • President and CEO of Edgewater Capital and Chairman of Titanium Corporation
Chairman • Serves as a Director for Newalta Income Fund
• Formerly with Chemical Bank and National Bank, in the energy and minerals sector in New York, Calgary, and Toronto
• Formerly with Merrill Lynch Canada and Midland Walwyn and managed the Investment Banking groups at Deutsche Morgan
Grenfell, Research Capital, and Raymond James
Tom H. Parker • Mining engineer with over 40 years experience in the mining industry
President , CEO & • Former President and CEO of Gold Crest Mines and High Plains Uranium
Director • Worked for 10 years as an Executive VP of Anderson and Schwab, a New York based management consulting firm
• Former CEO of Contain Minerals which owned 22 coal mines, the Brewer gold mine, and Montana Talc
• Worked for 10 years for ARCO where he was President of Beaver Creek Coal Mines, General Manager of Nevada Molly,
President of Thunder Basin Coal and VP for Engineering, Exploration and Business Development
• Former General Manager of Jacobs Ranch mine for Kerr McGee Coal and served as Project Manager for Conoco
Steven Long • Over 33 years experience in mine engineering and management
Chief Operating • Direct senior management of underground mining operations for Newmont Mining Corporation in Elko, Nevada and Barrick
Officer Gold, Echo Bay and Homestake Mining
Chris J. Hopkins • Chartered Accountant with over 25 years experience in financial management, strategic planning, mergers and acquisitions,
CFO corporate finance and financing and management reporting
• Formerly with Rio Algoma, Suncor, and several junior mining and oil & gas companies
Mine Management • Many long service management end employees provide knowledge and continuity
• New management bring new thinking and approaches
Page 28
29. The Right Board
John S. Brock • Geologist with over 40 years experience as an executive for 20 public, junior exploration companies
Director • Participated in 12 major mineral deposit discoveries in north and western Canada, Nevada, Mexico, and Ecuador
• Served six years as governor of the Vancouver Stock Exchange (TSX Venture Exchange) and CDNX Exchange and 2
years on the TSX Venture Exchange Advisory Board
• Currently CEO of Pacific Ridge Exploration and Senior Consultant to the Manex Resources Group
James M. • Geologist and mining analyst with over 15 years experience
Macintosh • Served as an executive and a director of numerous public and private companies in Canada and the United States
Director • President and COO of Innovium Capital, a company that invests in innovative opportunities
Kevin D. Stulp • Served on the board of Aurora Oil & Gas since 1997
Director • Worked as a consultant with Forte group,
• Held various positions with Compaq Computer Corporation, including industrial engineer, new products planner,
manufacturing manager, director of manufacturing and director of worldwide manufacturing reengineering
Alan R. Edwards • Board of directors for Gammon Gold Inc., Entrée Gold Inc., and Copper One Inc.
• President and Chief Executive Officer of Copper One Inc.
• Senior management positions with Frontera Copper, Apex Silver Mines, Kinross, Cyprus Amax, Phelps Dodge
• Mr. Edwards holds an MBA from the University of Arizona and a B.S. Mining Engineering also from the University of
Arizona.
Page 29
30. Summary
Increased
Strength Opportunity to Capitalize
on a proven and
established asset
• Production growth
• Reserve Growth
• Exploration Expansion
Page 30
31. Summary
• Highly leveraged silver producer,
85% revenue from silver, strong cash flow
• Stable and consistent production
• Infrastructure in place with excess capacity
• Dominant land position with significant
exploration upside with in a highly prospective region
• No debt, sufficient financial capacity to execute
growth plan
• No historic environmental liability
Page 31
