U.S. Silver Reports Year-End Increase in Proven and Probable Reserves

03.05.2011  |  Business Wire

U.S. Silver Corporation (TSX-V: USA, US OTCQX: USSIF, Frankfurt: QE2)
('US Silver? or 'the Company?) announced that year-end reserves have
again increased in excess of production for the fourth consecutive year.
Proven and probable silver reserves are 21.9 million ounces, an increase
of 304,000 ounces after replacing production of 2.3 million ounces as
detailed in the Company′s 43-101 filed on SEDAR.

The exploration program continues to be cost effective at adding
reserves at modest expenditure levels. In addition, the rate of reserve
addition is expected to increase as the drilling program is expanded in
2011. Since 2006, the Company has increased proven and probable reserves
by 115%.

Reserve highlights include:

• 
  Reserves up over last year, after producing 2,275,817 ounces of silver
  in 2010
  
• 
  Copper-Silver ore reserves at 17.8 million ounces of silver, 5,520
  tons of copper
  
• 
  Lead-Silver ore reserves at 4.1 million ounces of silver, 42,790 tons
  of lead
  
• 
  Total proven and probable ore reserves at 21.9 million ounces of silver
  
• 
  Silver reserves up 1% over the December 31, 2009 reserve, up 115% over
  June 2006 reserve
  
• 
  Copper reserves up 7% relative to the December 31, 2009 reserve
  
• 
  Lead reserves down 14% relative to the December 31, 2009 reserve
  

Resource highlights include:

• 
  Copper-Silver measured and indicated resources at 8.0 million ounces
  of silver and 2,380 tons of copper; silver ounces up 5%, copper tons
  down 5%, relative to December 31, 2009
  
• 
  Lead-Silver measured and indicated resources at 0.7 million ounces of
  silver and 7,270 tons of lead; silver ounces down 10%, lead tons down
  13%, relative to December 31, 2009
  

U.S. Silver retained Chlumsky, Armbrust & Meyer, LLC (CAM) to
independently review and audit the reserve methodology, updated
reserves, and updated resources, for the Galena mine complex. The
Qualified Persons who prepared the technical report for CAM are Fred
Barnard PhD., and Steve Milne P.E. CAM′s technical report on reserves
and resources for the Galena mine was prepared in compliance with the
Canadian National Instrument 43-101. The report will be filed on SEDAR.

Reserves and resources were estimated using metal prices of $16.00 per
ounce for silver, $2.90 per pound of copper and $0.90 per pound of lead.
All monetary values are in U.S. dollars. The mineral reserves and
resource for the Galena mine complex are listed below.

Notes:

• 
  Mineral resources are exclusive of reserves
  
• 
  Mineral reserves have demonstrated economic viability whereas mineral
  resources do not
  
• 
  Cutoff grade used for reserves and resources was 9.0 opt Ag_eq
• 
  The cutoff grade is based on a cost of production of $143 per ton
  including mining, milling, administration, and general costs. In
  addition, costs for smelting, refining, and, transportation amount to
  $34 per ton
  
• 
  Silver equivalent value for reserves and resources was 1.1 ounces per
  ton silver per one percent lead, after adjusting for metallurgical
  recoveries
  
• 
  Silver equivalent value for reserves and resources was 3.6 ounces per
  ton silver per one percent copper, after adjusting for process
  recoveries
  
• 
  Process recovery for silver-copper ore is 97.4% for silver and 97.1%
  for copper
  
• 
  Process recovery for silver-lead ore is 95.0% for silver and 91.4% for
  lead
  
• 
  Veins are diluted, at actual grade, to a minimum mining width for
  reserves and resources. The minimum mining width varies from 5 feet to
  9 feet depending on the mining method
  
• 
  20% additional dilution, at zero grade, is added to reserves after
  diluting to the minimum mining width
  
• 
  The reserve and resource estimation is based on data and mining as of
  December 31, 2010
  
• 
  Mine production rate of 200,000 to 201,500 tons per year, and 2.6
  million to 2.8 million ounces of silver per year, was assumed for
  calculations for economic viability
  
• 
  In addition, copper production of 525 to 739 tons per year, and lead
  production of 3,660 to 5,926 tons per year were utilized
  
• 
  The reserves are sufficient for 8 full years of production
  
• 
  Measured and Indicated resources include 2,470,145 ounces at the Coeur
  mine. Inferred resources include 2,121,931 ounces at the Coeur mine.
  

Daniel H. Hussey, M.Sc, CPG, Manager of Exploration for U.S. Silver
Corp, is the Qualified Person who reviewed this news release. He also
supervised the updated reserve and resource estimation prepared by
Galena mine personnel.

ABOUT U.S. SILVER CORPORATION

U.S. Silver, through its wholly owned subsidiaries, owns and/or operates
the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in
Shoshone County, Idaho, with the Galena mine being the second most
prolific silver mine in US history. Total silver production from U.S.
Silver's mining complex has exceeded 217 million ounces of silver
production since 1953. U.S. Silver controls a land package now totaling
approximately 14,000 acres in the heart of the Coeur d'Alene Mining
District. U.S. Silver is focused on expanding the production from
existing operations as well as exploring and developing its extensive
Silver Valley holdings in the Coeur d'Alene Mining District.

Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may contain
forward-looking statements. This information is based on current
expectations that are subject to significant risks and uncertainties
that are difficult to predict. Actual results might differ materially
from results suggested in any forward-looking statements. The Company
assumes no obligation to update the forward-looking statements, or to
update the reasons why actual results could differ from those reflected
in the forward looking-statements unless and until required by
securities laws applicable to the Company. Additional information
identifying risks and uncertainties is contained in filings by the
Company with the Canadian securities regulators, which filings are
available at www.sedar.com.