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
6 0.00
100.00
Silver
90.00
Gold/Silver
Ratio
5 0.00
80.00
70.00
4 0.00
Silver Price $/oz.
Gold/Silver Ratio
60.00
3 0.00
50.00
40.00
2 0.00
Silver up 110% since January 1, 2010
30.00
20.00
1 0.00
10.00
-‐
-‐
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4
5. Company Overview
2.4
Established producer
in prolific Silver Valley
in Northern Idaho
Low cost incremental
growth potential
(excess mill capacity)
Million oz Ag
Expected full year
revenue of $100 million
at current metal 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
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6
7. Company Overview
• 100% interest in the producing Galena silver-copper-lead mine
– High grade narrow vein mining operation, opened in 1953
• 100% interest in the Coeur Silver mine
– Redevelopment plans underway
• 2 mills (Galena and Coeur)
– Both operating, excess capacity available
• Dominant land position in the Silver Valley
– Large under-explored property
• No historic environmental liability with EPA
– Settled in 2001
• Hedged 20% of production in 2011 to protect CapEx program
• 100% unhedged in 2012 – Hedge now closed
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7
8. Proven & Probable Reserves
21.9
Million oz Ag
Reserves provide a
7 year mine life
Exploration consistently
exceeds annual
production
86 Million lbs. lead The Galena Mine has
11 Million Lbs. copper produced for almost 60
years & ore continues to
be found
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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 high $0.83 –
$150
low $0.41
308.9 million
shares outstanding
342.2 million fully
diluted
TSX and OTCQX
Million combined average
daily volume 1 Million
Current Market Cap
(October 2011) Undervalued vs.
peers on key metrics
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10
12. Galena Mine – an impressive history
2nd
largest
Primary silver producer
High grade, narrow
vein, copper-silver &
lead-silver mine
Short term variability in
operating results, long
term proven producer
No historic environmental
in the U.S. liability
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12
13. Galena – Past & Present
179
million
Ounces produced
Focusing on higher
grade zones to increase
head grade
Examining production
expansion options with
high prices
Continued exploration
success and mine life
extension
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13
15. Galena Performance
Silver Production
(Actual and Forecast)
3,000,000
2,500,000
2.4 to 2.6 million forecast
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
Capacity
Galena Mill 900 tons/day
Coeur Mill 500 tons/day
Currently operating at 65% capacity
Ores
2 ore types (silver-copper and silver-lead)
have separate crushing, milling and
flotation circuits
Recoveries
Consistent mill recovery rates of
96% for silver-copper and 92% for
silver-lead ores
Smelters
Silver-copper concentrates railed to
Quebec and silver-lead cons trucked
to Trail, BC
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16
17. Reserves Detail
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
• 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
14
• Dominant land position
• Under-explored & accessible
• Strong cash flow funding all
plans, 50% increase in
drilling footage in 2011
Thousand
• Identified 6 surface &
underground targets that are
ready for drilling
acres of land
• Reserve replacement
exceeds 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
260
employees
33 with over 20 years of
experience
Additional 30 contract
miners
Page
27
28. The Right Management Team
Gordon E. • Thirty years of experience in international capital markets in New York, Calgary, Toronto, Hong Kong in the energy and
Pridham minerals sector with Chemical Bank, National Bank, Merrill Lynch, Deutsche Bank, Research Capital and Raymond James
Executive • Serves on the public company boards of Newalta Corporation, Norrock Realty Finance Corporation and Titanium Corporation,
Chairman where he is Chairman of the Board
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.
Director • President and Chief Executive Officer of Copper One Inc.
• Senior management positions with Frontera Copper, Apex Silver Mines, Kinross, Cyprus Amax, Phelps Dodge
• Mr. Edwards holds an MBA from the University of Arizona and a B.S. Mining Engineering also from the University of
Arizona.
Page
29
30. Summary
Increased
Strength Opportunity
to
Capitalize
on
a
proven
and
established
asset
• Produc5on
growth
• Reserve
Growth
• Explora5on
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
32. Contact Us:
us-silver.com
Corporate Office
Tel: 416.907.5501
info@us-silver.com
401 Bay St. Suite 2702
Toronto, ON M5H 2Y4
Investor Relations
Heather Bailey-Foster, Manager
208-556-1535 Ex.2
hfoster@ussil.com
