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

VALUE.GROWTH.VISION

Corporate PresentationQ2 2011

TSX: SAC, US OTC: SOHAF www.soamsilver.com

2

Cautionary Notes

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.

3

Investment Highlights

• 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• 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

South American Silver Corp.

4

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-silver-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

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

5

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

6

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 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

TSX:SACUS OTC:SOHAF

7

Indium SupplyMine Production and Refining

China; 45%

Peru; 9%Canada; 9%

Australia; 6%

USA; 4%

Mexico; 3%

Other Countries; 23%

Indium Mine Production

ChinaPeruCanadaAustraliaUSAMexicoOther Countries

China; 52%

S.Korea; 13%

Canada; 8%

Japan; 8%

BLEU; 6%

Germany; 3%Russia; 3% Peru; 1%

Others; 6%

Indium Refining

ChinaS.KoreaCanadaJapanBLEUGermanyRussiaPeruOthers

Source: 1)Roskill ‘s Indium:Global Industry Markets and Outlook ,2010

8

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

Indium FundamentalsWorld indium demand vs price (1969-2013*)

Source: Indium: Global Industry Markets and Outlook, 9th Edition 2010 (Roskill) *2011-2013 Data are estimates

16

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

10

Positive Silver FundamentalsA 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 20112) BMO Capital Markets Global Mining Research April 2011

Silver Supply/Demand Fundamentals

11

• Dramatically increased demand growth driven by strong investment demand plus increased industrial consumption(1)

• Demand growth expected to continue to outstrip production growth(2)

Source: 1) GFMS World Silver Survey 20112) BMO Capital Markets Global Mining Research April 2011

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0

200

400

600

800

1000

1200

World Silver Supply

Mine production

Secondary Supply and Scrap

Government Sales

Mill

ion

Ou

nc

es

+8% total supply growth

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 and Silverware

Investment and Coins

Mill

ion

Ou

nce

s

+17% total demand growth

+40% investment demand

+21% industrial demand

+2.5% mine production

12

Fabrication Demand for Silver by SectorGrowing technology uses for silver

Source: CPM Silver Yearbook 2010Not for reproduction without written CPM Group consent

7778798081828384858687888990919293949596979899000102030405060708091011p

0

100

200

300

400

500

Photovoltaic Other Uses Biocides

Electronics

Mill

ions

of S

ilver

Oz

13

Thin Film/Thick Film Demand GrowthGrowing demand in solar technology

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

2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

5

10

15

20

0

10

20

30

40

50

Thin film cell productionThick film cell productionSilver Fabrication (million ounces)

Ph

oto

vo

lta

ic c

ell

pro

du

cti

on

(G

iga

wa

tts

)

Silv

er

fab

ric

ati

on

(m

illio

n o

un

ce

s)

14

Comparative Resources in the Americas

0

50

100

150

200

250

300

350

400

450

500

Source: Canaccord Report resource numbers as of January 11, 2011Note: All companies have projects in South and/or North America

Second largest development stage silver resource

Mill

ion

s o

f S

ilve

r O

un

ces

15

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 June 9, 2011,Note: All companies have projects in South and/or North America

Development Stage Average ~$4/oz

Advanced Development Stage Average ~$7/oz

EV of >$0.80 base on 230.3 million M&I oz Ag

Producer Average >$24/oz

16

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

$4/oz

$7/oz

$24/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

17

Current Silver Company Valuations by Resource Size & Development Stage

$50 $500 $5,00010

100

1000

Aurcana

SullidenArian

ECU

Golden Minerals

Kimber

Orco

Sabina

South American Silver

First Majestic

Coeur d'Alene

Hecla

Great Panther

Fortuna

Pan American Silver

Endeavour

Tahoe

Alexco

MAG

US Gold

Developers Adv Development Producers

Enterprise Value (US$ Millions)

To

tal R

eso

urc

e S

ize

(M

oz'

s)

EARLY DEVELOPER STAGE

ADVANCED DEVELOPER STAGE

PRODUCE

R STAGE

Size of circle represents market valuation premium in EV/oz

500

$2,000

Esperanza

SAC SAC SAC

Source: Canaccord Report July, 2011Intierra, July, 2011Share prices as of July 2011,Note: All companies have projects in South and/or North America

18

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

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Mineralization

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

Open pit, bulk mineable silver-indium 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

20

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

TSX:SACUS OTC:SOHAF

Mineralized

Sandstones

OPEN

OPEN

OPEN

21

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

TSX:SACUS OTC:SOHAF

OPEN

OPEN

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2011 Economic Assessment

(1) In US dollars, March 2011, PEA(2) First 5 years of production (average)(3) LOM = Life of Mine

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)

23

Near Term Mine Development ProjectsMalku Khota one of largest emerging 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

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 Consolidated

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

24

Global Silver Industry Cash Cost CurveAnticipated low-cost silver production

Cumulative Percentile of Silver Mine Production Cost

Total C

ash C

ost P

er Ou

nce o

f Silver

Industry AverageCash Cost$5.27/oz

Malku Khota13.2 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

Lowest 25% Percentile Cash

Costs

25

Escalones Copper-Silver-Gold project, ChileHigh potential, large-scale target

• 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

• 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 30

26

Escalones Project Logistics

Ownership: 100% through leaseLocation: 35km E of El TenienteElevation: 3800m

• 70 square kilometer property

• Road accessible located 100 km southeast of Santiago

• Gas pipeline across property

• 30 Drill holes completed to date

Excellent existing infrastructure

SAC propertyGas pipelineAccess Road

31TSX:SACUS OTC:SOHAF

27

Drill Results Grade Thickness MapLarge-scale copper-silver-gold system

• Open to expansion down dip and laterally

• Strong historic drill results

• Limited testing of porphyry system with most holes in replacement /skarn style mineralization

TSX:SACUS OTC:SOHAF 32

28

Community RelationsA key to successful project development• Recent key additions to community relations team:

• Jim Mallory, VP Operations and Social Responsibility – 35 years industry experience previously with Silver Standard, NovaGold, & Barrick (Placer Dome)

• Miguel Reynaga, Director of Community Relations - 16 years experience with Newmont at their Inti-Raymi (Kori Kollo) Mine in Bolivia

• 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

*Business for Social Responsibility, San Francisco, CA

29

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 has started for the second half of 2011 Feasibility work to begin in 2012

•Escalones, copper-silver-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

*Average first five years of production

30

Alexco

Silve

r ETF

US Gold

Sullid

en

Tahoe Resource

s

MAG Si

lver

Golden Minera

ls

Sabina

Orko

Silve

rcrest

ECU

Silve

r Standard

Bear Cre

ek

So.Americ

an Si...

0

5

10

15

20

25

30

35

40

45

Leveraged to SilverValue of silver per dollar invested

SAC has some of the best leverage to silver of any development stage company with nearly $45 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*

31

Share Capitalization2

TSX:SAC, US OTC:SOHAF

Issued & Outstanding Fully Diluted1WarrantsOptions

99.9M 117.3M7.2M10.0M

• ~$220 million Market Capitalization (1)

•Average 3 mo. trading volume +500,000 shares/day• Well financed with +$30 million in cash(2)

• Potential US listing to increase visibility and liquidity

Major Shareholders •Zamin—19.7%•Private Swiss investors--19%•Management1 --15%

Institutional Ownership•Sprott Asset Management•Front Street•K2 funds•Kudu Partners

(1) As of May 24, 2011 (2) As of July 18, 2011

32

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 (6 ozs Ag equivalent)

• Attractive investment value relative to peers at low value per oz

• Exposure to rapidly growing indium and gallium high-technology market

• Potential value from new copper-silver-gold resource definition and expansion at Escalones

• Continued investor outreach to broaden market awareness of Company

• Potential for NYSE-AMEX listing in the U.S.

TSX:SACUS OTC:SOHAF 37

33

TSX: SACOTC: SOHAF

Phone: 604.681.69261.855.681.6926

www.soamsilver.com

Greg JohnsonPresident & CEO

TSX:SACUS OTC:SOHAF

34

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

35

Management & DirectorsGreg Johnson (President/CEO & Director) has over 25 years mining

industry experience in corporate finance, project development and exploration. A s a co-founder of NovaGold, he played a key role in growing that company from $50 million in value to over $2 billion market capitalization advancing 3 major projects through to Feasibility.

William Filtness (Chief Financial Officer) is a Chartered Accountant with over 20 years of financial experience in the mining industry.

Phillip Brodie-Hall (Vice President of Project Development) has over 35 years experience in engineering construction and project development. He has participated in nearly every aspect of evaluation, feasibility studies and project development in the mining industry.

James Mallory (Vice President of Operations & Social Responsibility) has over 30 years of mining industry experience in large-scale mine management, operations and construction for companies including Barrick (Placer Dome), Silver Standard, and NovaGold.

Felipe Malbran (Vice President of Exploration) has over 25 years experience in exploration management in South America including key roles in the discovery of Malku Khota, Vizcachitas, and Escalones.

David Dreisinger (Vice President of Metallurgy) is Professor and Industrial Research Chair in Hydrometallurgy at the University of British Columbia. He is actively involved in developing and commercializing hydrometallurgical process at a number of mines worldwide.

Andrew Clark (Manager of Project Implementation) has over 30 years global industry experience in the development, design, management and construction of industrial mining projects.

Richard Doran, (Vice President & Corporate Secretary) has extensive industry experience including with General Minerals and as Marketing Manager for Chevron Minerals.

Xavier Gonzales Yutronic (General Manager Compañía Minera Malku Khota S.A.) has experience in management, finance, and community relations in the mining industry including with Glencore, and Comsur S.A.

TSX:SACUS OTC:SOHAF

Ralph Fitch (Executive Chairman) is an explorationist with over 40 years of global experience, a co-founder of South American Silver and former Chief Geologist for Chevron Minerals credited with several major discoveries in South America.

Antonio Canton (Director) is consultant and director to a number of international companies in marketing, finance and real estate.

Tony Cau (Director) is COO at Zamin Ferrous. With over 30 years of experience in the mining, construction and heavy manufacturing industries, he has been involved in mine development and expansion projects around the world for groups like BHP, SNC-Lavalin, and Bateman Engineering.

Jeffrey Couch (Director) is the Head of Business Development at ENRC and has held various financial advisory positions including for private equity groups such as Campbell Lutyens, was Director of Metals & Mining Investment Banking for Credit Suisse, and a key member of the capital markets team for Citigroup European Investment Bank.

Paul Haber (Director) is a Chartered Accountant and a Certified Public Accountant, and previously CFO of a TSX-V company and Chairman of the Audit Committee for South American Silver.

Peter Harris (Director) is a mining engineer with over 40 years of industry experience including construction and operation of over 20 mines around the world with groups such as Barrick (Placer Dome) and NovaGold.

William Murray (Director) is an engineer in the mining industry with over 35 years of experience in construction management and project evaluation with groups including Fluor Daniel, Denison Mines, Optimum Project Services and Anglo American Corp.

John Watson (Director) is President of a TSX -V listed company and Manager of a limited liability corporation in commercial real-estate.

Tina Woodside (Director) is the head of Gowlings’ corporate finance department and practices corporate and securities law focused on corporate finance, M&A and corporate governance matters.