u.s. silver corporate presentation
TRANSCRIPT
U.S. Silver CorporationApril 2012
TSX : USAUS OTC Markets : USSIFDB Frankfurt : QE2
US Silver - Summary
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• Annual silver production of 2.3 million ounces• in production for 60 years• excess hoisting and milling capacity
• 85% of revenue from silver – pure play• Located in Silver Valley, Northern Idaho
• most prolific in the US, safe, mining friendly• 14,000 acre, dominant under explored land position in the Silver Valley
• significant increase in exploration program• Cash of approximately $27 million• Market Cap $110 million• TSX – USA and US OTC - USSIF
• trades actively
US Silver Management TeamGordon E. Pridham
Executive Chairman & Interim CEO
• Over thirty years of experience as a Global Finance Executive
• Extensive special committee and public board experience with a track record of creating value for shareholders
• Serves on the public company boards of Newalta Corporation, NorRock Realty Finance Corporation and Titanium Corporation, where he is Chairman of the Board
• Formerly with Chemical Bank and National Bank in the energy and minerals sector in New York, Calgary, Toronto and Hong Kong
• Following Merrill Lynch Canada, he managed the Canadian Investment Banking groups at Deutsche Bank, Research Capital and Raymond James
Steven LongChief Operating Officer
• Over 33 years experience in mine engineering and management• Direct senior management of underground mining operations for Newmont Mining Corporation in Elko, Nevada and Barrick
Gold, Echo Bay and Homestake Mining
Chris J. HopkinsChief Financial Officer
• Chartered Accountant with over 25 years experience in financial management, strategic planning, mergers and acquisitions, 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
Tom RyleyDirector
• Over 35 years experience in the natural resources sector• He sits on the boards of several public, private and charitable organizations• Mr. Ryley graduated from York University with a Bachelor of Arts and from Carleton University with a Master of Arts in Public
Administration.
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US Silver BoardJohn S. Brock
Director
• Geologist with over 40 years experience as an executive for 20 public, junior exploration companies
• 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. Macintosh
Director
• Geologist and mining analyst with over 15 years experience
• Served as an executive and a director of numerous public and private companies in Canada and the United States
• President and Chief Executive Officer, Continental Mining & Smelting Limited
Kevin D. Stulp
Director
• Served on the board of Aurora Oil & Gas since 1997
• 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
Director
• 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.
Tom H. Parker
Director
• Mining engineer with over 40 years experience in the mining industry
• Retired as CEO of US Silver in January 2012
• Former President and CEO of Gold Crest Mines and High Plains Uranium
• Worked for 10 years as an Executive VP of Anderson and Schwab, a New York based management consulting firm
• ARCO for 10 years where he was President of regional operations and VP for Engineering, Exploration and Business Development
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Million oz AgAnnual production85% of revenue from silver
Company Overview
2.3Established producer in prolific Silver Valley in Northern Idaho
Low cost incremental growth potential (excess mill capacity)
2011 revenue $93.4 million
2011 Cash from Ops $29.5 million
Cash of approx. $27 million (2011/12/31)
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Located in Historic Silver Valley
Montana
Oregon
Washington
British Columbia
Spokane
Alberta
Wallace, Idaho
Missoula
Boise
Idaho
Over 1 billion ounces produced
Modern and ample infrastructure in place
Safe and friendly jurisdiction
Region of increasing interest
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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
• Fully un-hedged on silver and base metals
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Million oz. Ag
Proven & Probable Reserves
23.291 Million lbs. lead
12 Million lbs. copper
Reserves provides a 7 year mine life
Exploration consistently exceeds annual production
The Galena Mine has produced for almost 60 years & ore continues to be found
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Recent Results
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2011 2010 2009
Revenue 93.4 62.4 45.9 Gross profit 34.8 10.4 3.0 Pre tax income 21.3 4.9 2.0 Cash from Ops 29.5 15.0 8.3
Silver production 2,318,194 2,275,817 2,427,156 Lead production 6,280,028 5,613,689 6,446,656 Copper production 1,103,507 1,000,319 1,075,307 Cash cost / ounce Ag 17.75 13.50 11.67
Million
Market Data
$110Current Market Cap (April 2012)
52 week high $4.15 – Low $1.84
Graduated to TSX on Oct 3, 2011
62 million shares outstanding
69 million fully diluted
TSX and OTCQX combined average daily volume 125 Thousand (post-consolidation)
Undervalued vs. peers on key metrics
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Galena Mine – an impressive history
High grade, narrow vein, copper-silver & lead-silver mine
Short term variability in operating results, long term proven producer
No historic environmental liability
2ndlargestPrimary silver producer in the U.S.
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Galena – Past & Present
Focusing on higher grade zones to increase head grade
Examining production expansion options with high prices
Continued exploration success and mine life extension
200millionOunces produced
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Mining Operations
No
. 3
Sh
aft
Gal
ena
Sh
aft
Cal
ad
ay S
haf
t
Co
eur
Sh
aft
2400
Sea Level
3700
5500
Ca
lla
ha
n S
ha
ft
4900
483356400
Coeur 3700
28003000
3400
1200
Silver Vein117-215
72
Ag - Pb Veins
Ag - Cu Veins
5200
460043004000
LEGEND
175
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Galena Performance
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Milling OperationsCapacityGalena Mill 900 tons/dayCoeur Mill 500 tons/dayCurrently operating at 65% capacity
Ores2 ore types (silver-copper and silver-lead) have separate crushing, milling and flotation circuits
RecoveriesConsistent 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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Reserves Detail
• 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 more than doubled since 2006
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Restarting The Coeur Mine• No permitting or acquisition
costs
• Existing excess mill capacity
• Re-development started February 2012
• First production expected by end of 2012
• Full production rates of 500,000 oz. per year by end of 2013
• 2012 Capital cost of approximately $5 million
6.0millionresource ounces targeted
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Exploration Potential
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Significant Reserve Growth
2005 2006 2007 2008 2009 2010 2011 -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Proved and Probable Silver Reserves
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Reserve additions consistently replace production
• Dominant land position• Under-explored & accessible• Internally funded• Identified 6 surface &
underground targets that are ready for drilling14
Thousandacres of land
Exploration Potential
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Exploration Drilling• 2012 – 100,000 feet (budgeted)• 2011 – 70,000 feet• 2010 – 49,000 feet• 2009 – 13,000 feet
Surface and Underground Drill Targets
CDA “GAP”
Western Coeur Mine
ArgentineVein
DeepCoeur Mine
DeepSilverVein
Calady MineLead-Silver
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Drilling TargetsSurface• Commenced 12,000 foot surface drilling program targeting
CDA Gap and Argentine VeinDrill 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
UndergroundTargets:
• Western Coeur Mine• Deep Coeur Mine• Deep Silver Vein• Caladay Lead-Silver
Targets are extensions of known vein systems
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Exploration Drilling• 2011 – 70,000 feet • 2010 – 49,000 feet• 2009 – 13,000 feet
The Right People in Place
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Experienced and Stable Workforce
33 with over 20 years of experience320
employees
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Summary
Opportunity to Capitalize on a proven and established asset
• Production growth• Reserve Growth• Exploration Expansion• Opportunities outside of
core asset base
Increased Strength
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Summary
• Highly leveraged silver producer, 85% revenue from silver, no hedges
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
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Contact Us:
us-silver.comCorporate OfficeTel: 416.907.5501
401 Bay St. Suite 2702
Toronto, ON M5H 2Y4
Investor RelationsHeather Bailey-Foster, Manager
208-556-1535 Ex.2