south american silver corporate presentation
DESCRIPTION
South American Silver Corporate PresentationTRANSCRIPT
Value. Growth. Vision
Growing and advancing one of the world’s largest
undeveloped silver and indium resources.
TSX: SAC, US OTC: SOHAFCorporate Presentation
A Growth Focused Exploration & Development Company
Q2 2011
www.soamsilver.com
Value. Growth. Vision
Forward Looking StatementsCertain 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.
TSX:SACUS OTC:SOHAF
Value. Growth. Vision
Investment HighlightsSouth American Silver Corp.
TSX:SACUS OTC:SOHAF
• 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 resources• Escalones: high potential copper-silver-gold deposit
• 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
• Measured and Indicated resources expanded 60% to 230 M oz silver• Well defined business plan to drive shareholder value• Leveraged to silver nearly 4 oz of silver per share (6 oz silver equivalent)• Attractive investment value relative to peers at low value per oz• Exposure to the high-tech indium and gallium market• Potential value from new copper-silver-gold resource• Strong focus on community relations• Well financed into feasibility
1
Value. Growth. Vision
World-Class DepositsTwo large-scale assets in South America Malku Khota, silver-indium project, Bolivia (100%)
• Bulk mineable open-pit, sediment hosted deposit• Low capital and operating costs as a heap leach or milling
operation• Update resource increases M&I 60% to 230 M oz silver
• Pre-Feasibility process to start in 2011 & Feasibility in 2012• Resource expansion potential with only 4 km of 50 sq km property drill tested• Potential to be one of the top producing silver and indium mines• Funded into Feasibility
Escalones, copper-gold project, Chile (100%)• Large scale target in world-class mining district near El Teniente• Exploration program and geophysics underway• Resource definition program in 2011• Potential significant copper, gold, silver deposit
2
Silver(Moz)
Indium(tonnes)
Gallium (tonnes)
AgEq(Moz)
M&I 230 1,481 1,082 354
Inferred 140 935 1,001 240
*AgEq=total contained metal
Value. Growth. Vision
Share Capitalization2
TSX:SAC, US OTC:SOHAFIssued &
OutstandingFully
Diluted1
WarrantsOptions
99.9M 117.3M7.2M10.0M
• ~$300 million Market Capitalization (1)
•Average trading volume 500,000 shares/day•Well financed with +$30 million in cash(2)
•Potential NYSE-AMEX listing to increase visibility and liquidity
(1) As of November 8, 2010 with proposed $28 million financing(1
(1) On a fully diluted basis(2) As of March 31, 2011
Major Shareholders •Zamin—19.7%•Private Swiss investors--19%•Management1 --15%Institutional Ownership•Sprott Asset Management•Front Street•K2 funds•Kudu Partners
3
Value. Growth. Vision
Zamin Group - Strategic InvestmentA Key Regional Player
• Well funded regional player in South American resources industry with major projects in Brazil, Uruguay, Bolivia, and Chile
• Strategic 19.7% investment positions SAC in strong financial and
operational position to advance projects to feasibility• Track record of successfully facilitating South American project
development through relationships with national and state governments in the region
• Portfolio of South American projects with strong government support in permitting, rail and port infrastructure
• Bamin Project-Brazil• Valintine Project-Uruguay• Acquiring assets in Bolivia over past year
TSX:SACUS OTC:SOHAF 4
Value. Growth. Vision
Alexco
Sullid
en
US Gold
Golden M
inerals
Silve
rcrest
MAG Silve
rOrko EC
USa
bina
Tahoe R
esource
s
So.Ameri
can Si
lver
Bear C
reek
0
50
100
150
200
250
300
350
400
450
500
Comparative Resources in the AmericasSecond largest development stage silver resource
Source: Canaccord Report resource numbers as of January 11, 2011Based Msy 24, 2011 share priceNote: All companies have projects in South and/or North America
MexicoMexicoEl. Salvador
MexicoMexicoArgentina
Peru MexicoYukon NunavutGuatemala Bolivia
Chile
Peru
$39.35
$1.71
$0.72
$11.30$3.37
$2.17$2.44
$8.08$1.87$5.82$17.89
$9.13
Mill
ion
s o
f S
ilve
r O
un
ces
Millions of Silver Ounces & (Enterprise Value Per Oz)
5
Value. Growth. Vision
So.Americ
an Silve
rECU
Orko
Sabina
Golden Minera
ls
MAG Si
lver
Tahoe Resource
s
Bear Cre
ek
Silve
rcrest
Espera
nza
Sullid
en
US Gold
Produce
rs $0.00
$5.00
$10.00
$15.00
$20.00
$25.00
Enterprise Value per Resource Oz By project development stage
Source: Canaccord & Intierra as of May 24, 2011,Note: All companies have projects in South and/or North America*EV/oz truncated to $25
Development Stage Average >$3.50/oz
Advanced Development Stage Average >$6/oz
6
EV of >$0.85 base on 230.3 million M&I oz Ag
Producer Average >$20/oz
Value. Growth. Vision
Development Stage Value CurvePotential value growth with project advancement
Increased value through resource
expansion
Early StageExploration & Development
AdvancedDevelopment
Stage (Reserves)
Production
Average Enterprise Value per Oz of Silver by Stage
ResourceDefinition
PEA
PFS
FSPermits
Construct
Discovery
3/oz
$6/oz
$20/oz
Source: Recent average enterprise value per ounce of silver at various development stages for North and South American based projects. Canaccord, Wellington West and Company reports.
Incr
easi
ng
Mar
ket
Val
ue
Take-Over offers or Partnerships
common at this stage
Production
Increasing value with project advancement
7
Value. Growth. Vision
EARLY DEVELOPER STAGE
ADVANCED DEVELOPER STAGE
PRODUCE
R STAGE
Source: Canaccord Report January 17, 2011Intierra, May 24, 2011Note: All companies have projects in South and/or North America
Circle size represents EV/oz
8
Current Silver Company Valuations by Stage
500
$2,000$50 $500 $5,00010
100
1000
Aurcana
Sulliden
Silvercrest
Bear Creek
EndeavourArian
ECU
Golden Minerals
Kimber
MAGOrko
Sabina
South American Silver
Tahoe
Developers Adv Development Producers
Enterprise Value (US$ Millions)
To
tal
Re
so
urc
e S
ize
(M
oz'
s)
Coeur D'Alene
Alexco
Esperanza
US Gold
Value. Growth. Vision
Positive Silver FundamentalsA Paradigm Shift for Silver?• Silver remains well below inflation adjusted highs of $130/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 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
10Source: 1) GFMS World Silver Survey 20112) BMO Capital Markets Global Mining Research April 2011
Value. Growth. Vision
Silver Supply/Demand Fundamentals• Dramatically increased demand growth driven by strong investment demand plus
increased industrial consumption(1)
• Demand expected to outstrip production growth(2)
Source: 1) GFMS World Silver Survey 20112) BMO Capital Markets Global Mining Research April 2011 9
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0
200
400
600
800
1000
1200 World Silver Supply
Mine productionScrapGovernment SalesDisinvestment
Mill
ion
Ou
nc
es
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0
200
400
600
800
1000
1200 World Silver Demand
Industrial Applications
Photography
Jewelry
Silverware
Investment and CoinsM
illio
n O
un
ces
Value. Growth. Vision
Silver Primary and By-Product Production(1)
• 70% of silver is by-product production from base metals and gold• Reduced by-product silver production expected from base metal sector(2)
11
2006 2007 2008 2009 20100
50
100
150
200
250
300
10
12
14
16
18
20
22Lead/Zinc
Primary
Copper
Gold
Silver Price
Mill
ion
s o
f O
un
ce
s o
f S
ilve
r
Silv
er
Pri
ce
Source: 1) GFMS World Silver Survey 20112) BMO Capital Markets Global Mining Research April 2011
Value. Growth. Vision
Indium & Gallium—two key strategic metalsRapidly 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
TSX:SACUS OTC:SOHAF 11
Value. Growth. Vision
Indium & Gallium FundamentalsCompelling 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 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 lows of 2008-2009 of $400-500/kg
• Gallium market estimated to be a conservative 15% annual growth rate which could increase significantly with more rapid growth in photovoltaics or as a rare earth substitute
Malku Khota annual indium and gallium production• Malku Khota projected to be one of the world’s largest indium & gallium
producers (80 tonnes and 15 tonnes per year)• Potential to represent 10% or more of global mine supply of indium and
over 5% of global supply for gallium
12
Value. Growth. Vision
Indium Demand GrowthGrowing demand in high-tech markets
Growth assumptions based on data from Displaybank in LCD TV Association “LCD TV Matters”-Volume 3, Issue 2, February 2010 , Strategies Unlimited, August 2009 , Solarbuzz, Photon International, GFMS , Nanomarkets, and the US Department of Energy Critical Minerals Strategy Report
End-
use
Mar
ket
Dem
and
(ton
nes)
2010 total indium
production level
5 year projected demand growth
2010 2011E 2012E 2013E 2014E 2015E 2016E0
500
1000
1500
2000
2500Solar Energy
LED Lighting
LCD Flat Panels
13
Value. Growth. Vision
Indium FundamentalsWorld indium demand vs price (1969-2013*)
Source: Indium: Global Industry Markets and Outlook, 9th Edition 2010 (Roskill)*2011-2013 Data are estimates only 14
Indi
um D
eman
dIndium
Price/kg ($US)
19701972
19741976
19781980
19821984
19861988
19901992
19941996
19982000
20022004
20062008
20102012
0
200
400
600
800
1000
1200
1400
0
100
200
300
400
500
600
700
800
900
1000
DemandPrice
XCurrent Indium Price
Value. Growth. Vision
Opportunity in BoliviaAn emerging resource based economy• Bolivian government encouraging private investment
• Member of Mercosur Regional trade organization with Brazil as largest trading partner
•Government bond rating upgraded by Moody’s & Fitch
•Mining second largest economic sector representing 40% of GDP
• One of the world’s premier silver districts with billions of ounces of historical 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$2.3 billion for 50% interest in 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
TSX:SACUS OTC:SOHAF 15
Value. Growth. Vision
Silver Mines in BoliviaOne 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:SACUS OTC:SOHAF 16
Value. Growth. Vision
Malku Khota Project
• 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 M oz silver per year and 80 tonnes of indium1
• Project base case annual Cash flows and NPV’s more than doubled • 60% expansion of Measured and Indicated Resources2
• Pit model 80% M&I resources for conversion to reserves with PFS• Excellent resource expansion potential with just 4 km tested of trend • Moving into Pre-Feasibility in 2011 and Feasibility in 2012
One of the world’s largest silver-indium resources
171) on average for the first 5 years of production2) See March 31, 2011 News Release for detailed resource estimate3) Total contained metal
Silver(Moz)
Indium(tonnes)
Gallium (tonnes)
Copper (MLbs)
Lead(MLbs)
Zinc(MLbs)
AgEq3
(Moz)
M&I 230 1,481 1,082 120 453 247 354
Inferred 140 935 1,001 102 362 246 240
Value. Growth. Vision
Established InfrastructureLow projected capital and operating costs
• Open pit, bulk mineable• Accessible by road• Commercial power within 15km• Access to water
TSX:SACUS OTC:SOHAF 18
Value. Growth. Vision
Enrichment starts at surface Host rock sandstone with disseminated silver, indium, gallium, lead, zinc and copper
MineralizationOpen pit, bulk mineable deposit
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
(1) AgEq comprised of all contained metals(2) Economic cut-off grade comprised only of silver and
indium 19
Value. Growth. Vision
MineralizationGeological formations looking south from Limosna
High Grade Sandstone
1160 g/t Silver
Wara Wara Sandstone
Malku KhotaSandstone Aroifilla Fm
TSX:SACUS OTC:SOHAF 20
Value. Growth. Vision
Malku Khota DrillingGrade thickness map
• 115 drill holes in current resource with 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 Ag oz
• 2011 program to target conversion from resources to reserves & expansion drilling
• 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
21
Value. Growth. Vision
New Exploration ResultsDiscovery of broad continuous mineralization horizonLMD048: 286 meters grading 76 g/t Ag Eq Grade thickness values of over 21,500 g-m AgEq
TSX:SACUS OTC:SOHAF 22
OPEN
OPEN
Value. Growth. Vision
Malku Khota DepositOnly 4km of 50 sqkm property drill tested
• 2010 program focused on in-fill and confirmation drilling for March 2011PEA Update
• Excellent potential to expand resources
TSX:SACUS OTC:SOHAF
Continuation of favourable sedimentary host rocks
Wara Wara Area
Sucre Area
Limosna Area
23
Concession Boundary
Value. Growth. Vision
Production ProcessesFrom ore to metal
• Large scale shovel and truck open pit mining operation
• Ore crushed in preparation for leaching
• Acid-chloride leaching in captures silver, indium, copper, lead, zinc, gallium and gold
• Metal recovery in several steps:• Acid recovery• Silver-gold-copper cementation• Indium-gallium precipitation• Lead and zinc sulfides
• Downstream processing to metal products
TSX:SACUS OTC:SOHAF
Crushing
Leaching
Metal Recovery & Processing
Open Pit Mining
Silver, Gold, Copper
Indium & Gallium ingots
Lead and Zinc concentrates
24
Value. Growth. Vision
2011 Economic Assessment
(1) In US dollars, March 2011, PEA(2) First 5 years of production (average)(3) LOM = Life of Mine
25
Metal Prices ($US)Base Case
Silver : $18/ozIndium : $500/kgGallium: $500/kg
$25/oz$570/kg$570/kg
Mining RateLife of MineOre Mined (LOM)3
Average Silver Grade 2
Average Indium Grade2
Ag Eq grade
158 M1,184191M135 M88 M212,962
10.5 M78.9 M 12.7 M9 M5.87 M14,198
Mid Case
Base Case$185M/yr$1,261M$704M37.7%27 months
$287M/yr$2,528M$1482M63%19 months
Mid Case
TotalLOM
Annual
40,000 tpd15 years200M tonnes42.2 g/t7.55 g/t58 g/t
First 5 years
Recent$430M/yr$4,298M$2571M92.9%15 months
Recent
$35/oz$650/kg$730/kg
13.2 M80.7 12.48M4.42M5.64M15,184
71%
15%
6%
5% 3%
Share of Gross Revenue(at base case prices)
Silver
Indium & Gallium
Copper
Lead
Zinc
First 5 years cash flow Net cash flow NPV (5% discount rate)1
Internal Rate of ReturnPayback period (years)
Recovered MetalsSilver (oz)Indium (tonnes)Lead (lbs)Zinc (lbs)Copper (lbs)Gallium (kgs)
Value. Growth. Vision
Near Term Mine Development ProjectsMalku Khota one of largest near-term producers at over 13 Moz/yr
Estimated potential annual silver production of new development projects anticipated within the next 2-4 years
Source: CPM Silver Yearbook 2011*Based on mine production of 13.2 Moz /year for first five years
26
So
uth
Am
erican S
ilver
Pascua Lam
a
Navidad
Malku K
hota
Corani
La Pitarilla
Birkachan
El A
guila
Santa A
na
Inmaculada
Agua R
ica
Shafter
Fuw
an
San Jose
Cerro N
egro
Bellekeno
Hardshell
Wonaw
inta
Rosem
ont
Rasp
Olym
pias
Sorby H
ills
San Luis
Esperanza
Casposo
Kem
pfield
Conrad
HP
G, LM
, TLP
Silver H
ill
Xietongm
en
GC
Mina Justa
0
2
4
6
8
10
12
14
16
18
20
Mill
ions
of O
unce
s
Hellas G
old SA
Silvercorp Metals Ltd
Antofagasta
Troy Resources
Argent Minerals
Malachite Resources
Silvercorp Metals
Conquest Mining
Continental Minerals Corp
CS
T M
ining Group
Kimberley M
etals
Barrick Gold
Silver Standard
Alexco Resource
Wildcat Silver Corp.
Cobar Consilidated
Augusta Resource
CBH Resources
Hochschild M
ining
Yamana G
old
Aurcana Corp
Minco Silver Corp
Fortuna Silver Mines
Andean Resources
Bear Creek Mining
Silver Standard
Polymetal M
NPO
Gold Resource Corp
Bear Creek Mining
Pan American Silver
Value. Growth. Vision
Global Silver Industry Cash Cost CurveAnticipated low-cost silver production
Cumulative Percentile of Silver Mine Production Cost
Tota
l Cas
h C
ost
Per
Ou
nce
of
Silv
er
Industry AverageCash Cost$5.27/oz
Malku Khota13.25 Mozs/yr
(1)
~ $2.94/oz (2)
Source: GFMS World Silver Survey 2011
(1) Average first 5 years of production
(2) Silver cash costs after credits ($US)/oz 27
Value. Growth. Vision
Advancing to ProductionDevelopment Timeline for Malku Khota
TSX:SACUS OTC:SOHAF
2011Pre-
Feasibility Studies
2012Feasibility
Study
2013-14Projected
Mine Development
28
Value. Growth. Vision
Escalones-Copper-Gold project, ChileHigh potential, large-scale target• 70 square km, road
accessible, large scale system
• Located in world-class copper mining district near El Teniente
• Historic drilling shows >1% copper grades at surface and untested porphyry system grading 0.6% copper
• Additional significant gold, silver and molybdenum credits
• Exploration program underway
• Resource estimate targeted for 2nd half of 2011
TSX:SACUS OTC:SOHAF 29
Value. Growth. Vision
Escalones
Ownership: 100% through LeaseLocation: 35km E of El TenienteElevation: 3800m
• 6,889 hectares
• Escalones porphyry prospect located 97 km southeast of Santiago in central Chile
• 12,666m drilled in 30 DDH 10,159m in the skarn
500m in the porphyry
Exploration
SAC propertyGas pipelineAccess Road
30TSX:SACUS OTC:SOHAF
Value. Growth. Vision
Drill Results Grade Thickness MapLarge-scale porphyry system
• Open in all directions
• Strong historic results
TSX:SACUS OTC:SOHAF 31
Value. Growth. Vision
EscalonesGeological cross-section
• Enriched zones with high grades at surface at over >1% copper with significant gold and molybdenum
• Large scale porphyry target intercept of 176 m @ 0.6% copper with additional gold, silver and molybdenum
TSX:SACUS OTC:SOHAF
AltoBajo
32
Value. Growth. Vision
Community RelationsA key to successful project development• Recent key additions to community relations team:
• Jim Mallory, VP Operations and Corporate Social Responsibility• Miguel Angel, Director of Community Relations
• 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 400 or more
*Business for Social Responsibility, San Francisco, CA 33
Value. Growth. Vision
Project MilestonesValue drivers over the next 6-12 months
• Malku Khota, silver-indium-gallium project, BoliviaUpdated 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*
Updated resource results show 60% increase in M&I ounces to 230 M oz of silver with an additional 140M oz inferred, and indium to 1,481 tonnes M&I and 935 tonnes inferred
Cash flows, project valuations and rates of return significantly expanded over previous studies
Pre-Feasibility work beginning in second half of 2011 Feasibility work to begin in 2012
•Escalones, copper and gold porphyry project, ChileExploration and Geophysics program underway Target for initial resource estimate in 2nd half of 2011 Potential for significant deposit of copper, gold and silver
34*Average first five years of production
Value. Growth. Vision
Alexco
Silve
r ETF
US Gold
Sullid
en
Tahoe Resource
s
MAG Si
lver
Golden Minera
ls
Sabina
Orko ECU
Silve
rcrest
Silve
r Standard
Bear Cre
ek
So.Americ
an Silve
r0
5
10
15
20
25
30
35
40
Leveraged to SilverValue of silver per dollar invested
SAC has some of the best leverage to silver of any development stage company with nearly $40 of silver value per $1 invested
Source: Canaccord as of January 17, 2011, Share prices updated May 24, 2011Note: all companies have projects in South and/or North AmericaCalculated using $25/oz Ag. Dollar value of silver per $1 invested = (silver resource/shares outstanding) x $25/oz silver) divided by share priceValue only shown for silver with no contribution from other metals
Silver value per $1 invested
Average value of silver <$8 of silver per $1 invested*
35
Value. Growth. Vision
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
• Leveraged to silver with nearly 4 oz of silver per share
• Attractive investment value relative to peers at low value per oz
• Exposure to rapidly growing indium and gallium high-technology market
• Potential new value from copper resource definition and expansion
• Continued investor outreach to broaden market awareness of Company
• Potential near-term NYSE-AMEX listing in the U.S.
TSX:SACUS OTC:SOHAF 36
Value. Growth. Vision
TSX: SACOTC: SOHAF
Phone: 604.681.69261.855.681.6926
www.soamsilver.com
Greg JohnsonPresident & CEO
TSX:SACUS OTC:SOHAF
Value. Growth. Vision
Relative Stock PerformanceSAC outperforming key silver & gold indices
•Trading liquidity increasing with average volume of 500,000 shares/day• SAC undervalued relative to peers at >$0.80 Enterprise Value/oz vs
average of more than $4/oz for early stage resources
TSX:SACUS OTC:SOHAF
Value. Growth. Vision
Management TeamA track record of success
Ralph Fitch, Executive Chairman Co-founder of South American Silver, High Desert Gold, and General Minerals Key role in discovery of Collahuasi copper porphyry , Malku Khota, Vizcachitas, and Escalones deposits
Greg Johnson, President and CEO Co-founder of NovaGold, key role in growing company from $50 million to $2 billion market capitalization Recognized for discovery and advancement of the 40 M oz Donlin Creek gold deposit for NovaGold and Barrick
William Filtness, Chief Financial Officer Chartered Accountant with twenty plus years of financial experience, including Manager, Corporate Development at Aurizon
MinesFelipe Malbran, Vice President of Exploration
Extensive experience in exploration management in Bolivia, Chile, Peru and Argentina Key role in discovery of Malku Khota, Vizcachitas, and Escalones deposits
Phillip Brodie-Hall, Vice President of Project Development Global industry experience in engineering construction and project development experience covering nearly every aspect of
evaluation, feasibility studies and project development in the mining and mineral processing industriesDavid Dreisinger, Vice President of Metallurgy
Professor and Industrial Research Chair in Hydrometallurgy at the University of British Columbia (UBC) Actively involved in developing and commercializing hydrometallurgical process at a number of operating mines in Australia and
Southeast Asia.Richard Doran, Vice President and corporate secretary
Former VP Investor Relations for General Minerals and Marketing Manager for Chevron ResourcesAndrew Clark, Manager of Project Implementation
Global industry experience in the design and management of industrial, mining, materials handling, chemical and petrochical projects from feasibility studies through to commissioning and handover of completed facilities.
Xavier Gonzales Yutronic, General Manager Compañía Minera Malku Khota S.A. Mining Industry experience in finance, accounting, logistics, human resources and community relations at Comsur S.A., Sinchi
Wayra (Glencore) from 2005-2007, and Compañía Minera Malku Khota S.A. from October 2008 to date
TSX:SACUS OTC:SOHAF
Value. Growth. Vision
Board of DirectorsStrong industry and financial experience
Ralph Fitch, Executive Chairman Greg Johnson, President and CEOAntonio Canton, Director - Mr. Canton is an independent consultant for international companies in marketing, finance and real estate. He is a director of a number of Swiss companies and brings to the board extensive experience in accounting and finance.
Peter Harris, Director - Mr. Harris is an engineer with over 40 years of mining industry experience including as Senior VP and Chief Operating Officer at Nova Gold Resources Inc., and Senior VP of Project Development at Placer Dome Inc. He has been involved in the construction and operation of over 20 different mines in North and South America, Africa, Australia and Papua New Guinea.
William Murray, Director - Mr. Murray is an engineer in the mining industry with over 33 years of experience in construction management and project evaluation in North America and Africa. He currently serves as the executive chairman and director of Polymet Mining Corp. Mr. Murray has been involved in numerous successful projects while working at Fluor Daniel, Denison Mines, Optimum Project Services and Anglo American Corp. in South Africa.
Paul Haber, Director - Mr. Haber is a Chartered Accountant and a Certified Public Accountant with a strong background in US/Canadian accounting and finance. Presently manages Haber & Co. Ltd. Has previously been Chief Financial Officer and Corporate Secretary of a TSX Venture listed company.
John Watson, Director - Mr. Watson has been the President of a TSX Venture Exchange listed company since 2002. He is also the manager/member of a limited liability corporation that owns and manages commercial real-estate.
Tina Woodside, Director - Ms. Woodside is currently the head of the corporate finance department in Gowlings’ Toronto office and a member of the firm’s National Executive Committee. Ms. Woodside practices corporate and securities law with particular emphasis on corporate finance, mergers and acquisitions and corporate governance matters.
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