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A New Company Built For Growth
SEPTEMBER 2012
TSX:USA
OTCQX:USGIF
Forward Looking Statement – Safe Harbour
Certain information in this presentation may contain forward-looking statements. This information is based on current
expectations that are subject to significant risks, assumptions and uncertainties that are difficult to predict and the risk that
regulatory approvals may not be obtained or that conditions of closing will not be satisfied or waved within the timeframe
contemplated. Additional potential risks include: that U.S. Silver & Gold may not achieve anticipated synergies; loss of key
personnel; reduction in the anticipated cash levels; and, not achieving production goals stated. Actual results might differ
materially from results suggested in any forward-looking statements. All statements, other than statements of historical fact,
included in the presentation, including, without limitation, statements regarding potential mineralization and reserves,
exploration results, and future plans and objectives of U.S. Silver & Gold, are forward-looking statements. Words such as
“expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “intend”, “believe” and other similar expressions are forward-looking
statements. Forward-looking statements are not guarantees of future results and conditions but rather reflect our current views
with respect to future events and are subject to risks, uncertainties, assumptions and other factors, and actual results and
future events could differ materially from those anticipated in such statements. There can be no assurance that such forward-
looking statements will prove to be accurate. U.S. Silver & Gold assume 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 U.S. Silver & Gold. Additional information identifying risks and
uncertainties is contained in filings by U.S. Silver & Gold with the Canadian securities regulators, which filings are available at
www.sedar.com.
An additional Cautionary Note to Investors – In the event that we use certain terms in this presentation, such as “resource”,
“measured resource”, “indicated resource” and “inferred resource”. U.S .investors are cautioned that, while such terms are
recognized and required by Canadian Securities Laws, the United States Securities and Exchange Commission does not
recognize them. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been
made that the mineralization could be economically and legally produced or extracted at the time the reserve determination
has been made. U.S. investors should not assume that all or any part of measured or indicated resources will ever be
converted into reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence and as to
whether they can be mined legally or economically. Accordingly, information concerning descriptions of mineralization in this
presentation may not be comparable to information made public by companies that are subject to the SEC’s Industry Guide 7.
Mr. Jim Atkinson, Vice President, Exploration and a Qualified Person under Canadian Securities Administrators guidelines has
approved the applicable contents of this presentation.
2
USA – Today
5 M oz Ag by 2014
2.6 - 2.8M oz Silver (Ag)
Established, Long-life Operating Assets
Strong Operating Cash Flow
Significant Ongoing Brownfield Expansion
Dominant Land Position in the Silver Valley
Favourable Environment for Accretive Acquisitions
Proven Management & Board
20,000- 25,000 oz Gold (Au)
3
Darren Blasutti
President and CEO, Director
• Former SVP Corporate Development and Investor Relations for Barrick Gold, reported to President and CEO
• Led Barrick's strategic development for over 13 years executing over 25 gold mining transactions including Sutton Resources,
Homestake Mining, Placer Dome, consolidation of the Cortez property from Rio Tinto. Responsible for creation of Barrick Energy
to hedge Barrick’s exposure to energy prices
Robert Taylor
COO
• Over 35 years of experience in operations, management, engineering, and exploration for underground and open-pit mines
• Most recently VP and President North American Operations for Kinross Gold where he was responsible for all operations
and exploration
• Former VP, Mine Operations at Stillwater Mining in Montana
Warren Varga
CFO
• Over 15 years of progressive financial leadership experience and brings extensive senior management expertise
• Most recently Senior Director, Corporate Development at Barrick Gold Corporation
• Member of the Canadian Institute of Chartered Accountants and a member of the Chartered Financial Analyst Institute
Steve Long
SVP, Operations
• Over 33 years experience in mine engineering and management
• Senior manager for underground mining operations for Newmont Mining Corporation, Barrick Gold, Echo Bay and
Homestake Mining
Jim Atkinson
VP, Exploration
• Licensed Professional Geologist, over 40 years of experience in exploration geology
• Completed more than a dozen exploration programs across North America
Peter McRae
VP, General Counsel
• Most recently at Weil, Gotshal & Manges LLP, a major international law firm based in NY
• Focused on private equity funds, public and private companies acquisitions and divestitures
Management Team Overview
4
Board of Directors Overview
Gordon Pridham
Chairman
• Over 30 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 and Titanium Corporation, where he is Chairman of the Board
Hugh Agro
Director
• Former EVP Strategic Development at Kinross Gold, where he oversaw corporate development and exploration until his
retirement in 2009
• Held senior positions with Placer Dome Canada and Deustche Bank
John 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
• Currently CEO of Pacific Ridge Exploration and an advisor to the Manex Resources Group
Alex Davidson
Director
• Retired in 2009 as EVP Exploration and Corporate Development at Barrick Gold
• 2005 AO Dufresue Award to recognize exceptional achievement and distinguished contribution to mining exploration in Canada
• In 2003 was named Prospector of the Year by PDAC for discovery of Alto Chicama in Peru
Louis Dionne
Director
• Former Senior Vice President Underground Operations at Barrick Gold
• Currently a director of Detour Gold Corporation and Aurizon Mining Ltd.
Alan Edwards
Director
• Board of directors for AuRico Gold Inc., Entrée Gold Inc., Copper One Inc., Oracle Mining Corp. and AQM Copper Inc. (Chairman)
• Senior management positions with Frontera Copper, Apex Silver Mines, Kinross, Cyprus Amax and Phelps Dodge
Tom Ryley
Director
• Board of directors for Newalta Corporation, Tribute Resources and Benefuel Inc., where he is Chairman of the Board
• Former Executive Vice President of Suncor Energy, where he worked for 25 years in a variety of roles
Lorie Waisberg
Director
• Former Senior Partner at Goodmans LLP, and EVP of Finance and Administration of Co-Steel Inc.
• Accredited with Institute of Corporate Directors and sits on Boards of Tembec and Chemtrade Logistics Inc
Darren Blasutti
Director
• President and CEO
5
Asset Overview
Asset Overview
7 Geographic Concentration Of Assets
Galena Mine Complex – 100%
• High grade Cu-Ag and Pb-Ag
• Produced over 240 M oz Ag historically
• Over 38.0 M oz Ag in Reserves & Resources
• Galena area operating
• Coeur area re-starting in Q4 2012
• In-fill exploration and development phase at
Caladay Lead Zone
• Excess hoisting and milling capacity
Drumlummon Mine – 100%
• High grade Au and Ag
• Produced over 1 M oz Au and 12 M oz Ag
• Extensive infrastructure
• Recently acquired adjacent Belmont mine
• Focus on resource expansion
7
Galena Mine Complex
8
Galena Area
• First half 2012 production - 1.08 M oz Ag @ $20.20/ounce from
25 production stopes, includes almost a month of lost time due
to shaft and mill re-habilitation
• Two separate mills with total 1,500 tons/day capacity, currently
operating at 60%
• Consistent mill recovery rates of 96% for silver-copper and
92% for silver-lead ores
• Expect to increase reserves in 2012 and extend mine life
• Continued exploration success and mine life extension on
2400, 4300 and 5200 levels
- 1,434 oz/t silver over 1.6’ and 112.1 oz/t silver over 2.8’
extending silver vein down dip
- 110 oz/t silver extension of 350 vein
Large Reserve and Resource Base
2nd largest
Primary silver
producer in
the U.S.
8
Galena Mine Complex
9 Reducing Cash Costs in 2013 and Beyond
Coeur Area
• 3.3 million oz of M&I Ag resources at average grades of
16.6 oz/t Ag and 0.72% Cu
• Targeting 6.0 M oz Ag Resource from 2012 and 2013 drill program
• Re-development started February 2012 at a cost of $5 million
• First production expected in Q4 2012 with full production estimate of
500,000 oz Ag per year by end of 2013
Caladay Lead Zone
• Re-habilitation completed and drilling commenced in the 3rd quarter
• Contains a mineable resource between the 3900 and 5500 levels,
readily accessible from existing workings
• Mineralization comprises broad areas of Ag and Pb mineralization often
associated with high grade veins
• Zones appear much wider (up to 25 to 30 feet) with grades in the range
of 7 to 9 oz Ag and 7% to 10% Pb
• Area supports lower cost bulk mining methods
• Update expected by year-end on economic potential of mineralized area
9
Additional
Production
Galena Mine Complex Exploration Upside
Exploration budget of 93,700 feet has been approved for 2012 10
Drumlummon Mine
11 Process synergies available given excess Galena milling capacity
First half 2012 production of 12,100 oz Au and 216,200 oz Ag
First half 2012 mill recoveries averaged 91% for Au and 84% for Ag
2012 Plan estimates 110,000 tons of ore at 0.25/t Au and 4 oz/t Ag
Labour and cost reductions under way in Q3 2012.
All required permits in place under small miners exemption
Continued resource expansion and mine life extension success at Drumlummon and the
recently acquired Belmont mine
2012 exploration success at the Frankie Vein, Sampson area of the Drumlummon Vein, the
New Years Vein and high grade silver veins in the Neenan area near Bald Butte moly project
11
Drumlummon Mine – Claims and Property Boundaries
12
Near Term Operating Goals
13 Unlocking value of existing operating assets
5.0M oz Ag by 2014
Ensure an effective and efficient integration while
maximizing operating synergies of ~$6-7 million
Deliver Coeur area re-development on time and on
budget in Q4 2012
Prepare preliminary analysis of the Caladay lead/silver
zone for future bulk mining development
Assess the Belmont property for mid to late
2013 development
Build and communicate to the investment community
the 1-year, 3-year and Life of Mine operating plan
USA -Tomorrow
13
Symbol/Exchange USA-T
Market Cap (CDN$ M) – close Sep 6, 2012 142.0
Shares Basic (M) 59.4
ITM Options & Warrants (M) 2.6
OTM Options & Warrants (M) 3.5
Shares FD ITM (M) 62.0
Cash (US$ M)* $ 21.1
Working Capital (US$ M)* $ 32.2
Debt (US$ M)* $ 8.2
First half Production oz (Ag) 1,295,300
First half cash costs per oz (Ag) $ 20.36
First half Production oz (Au) 12,100
Recoveries (Ag) 90.0%
Recoveries (Au) 91.0%
Capital Structure and Key Operating Metrics
14 * As at June 30, 2012, M = Million
Strategic Objectives
Strategic Objectives
16 Grow earnings and cash flow per share
Execute on brownfield expansions
Assess exploration, processing and capital
synergies with geographically focused assets
Access accretive per share acquisition opportunities in North America
Secure line of credit to support future growth initiatives
1
2
3
4
16
Roadmap For
Success
Exceed 5.0 M oz Ag by end of 2014:
$5.51 $5.28 $5.26
$3.32
$2.63 $2.27
$0.82
$0.51
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
FVI EDR FR SVM USA HL SPM RVM
Average: $2.95
EV / M&I Resources
EV
/ M
&I R
eso
urc
es (
US
$/o
z A
gE
q)
EV / 2013E EBITDA
Average: 3.37x
EV
/ 2
013E
EB
ITD
A
Junior Silver Producer Multiples
17 Increase visibility within investment community
Re-Rating Potential
$0
$300
$600
$900
$1,200
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0
Ente
rpri
se V
alu
e(U
S$ M
M)
2012 Production Guidance (MM oz Ag Eq.)
Mid-Tier Silver Producers
EDR
SVM
FVI
U.S. Silver & Gold
Companies Included: FVI – Fortuna Silver Mines Inc.; SVM – Silvercorp Metals Corp.; EDR – Endeavour Silver Corp. 1Enterprise Value is calculated on a fully-diluted ITM basis 2Silver equivalent based on Cormark research 2012 metal prices of US$1,800/oz Au, US$32.50/oz Ag, US$0.90/lb Pb, US$0.89/lb Zn and US$3.71/lb Cu 3U.S. Silver & Gold production guidance is sum of RX Gold Q1 results annualized and latest U.S. Silver production guidance
Attractively Positioned Among Peers
U.S. Silver & Gold will be attractively positioned amongst its mid-tier silver
producer peers and could potentially experience a significant re-rating
Why USA?
We’re built for growth
2nd largest primary silver producer in the U.S.
Strong operating and market fundamentals
Executing on brownfield expansion opportunities
Large land package with significant organic upside
Experienced management team
Disciplined strategy for targeted acquisitions
Catalysts in place for improved valuation
19
Appendix
GALENA LONG SECTION
No
. 3
Sh
aft
Ga
len
a S
haft
Cala
day S
haft
Co
eu
r S
haft
2400
Sea Level
3700
5500
Call
ah
an
Sh
aft
4900
2800 3000
3400
1200
Silver
Vein
5200
4600
4300
4000
LEGEND
Ag - Pb Veins
Ag - Cu Veins
Major Production Areas
0 2500
feet
South
Drumlummon
Zone
1600 Level
1400
1200
1000 Level
800
400 Level
1.5+
1.00 - 1.49
0.50 - 0.99
0.20 - 0.49
No significant intersection
Grade x Thickness (oz.ft)
Decline
0 1000
feet
Nine-Hour
Workings
#1 Shaft #2 Shaft
A/B Block
A
B
C
D
Jubilee
Sampson
Pixley 1
Pixley 4
Ore Shoots
A
B
C
D
DRUMLUMMON VEIN LONG SECTION (Looking Northwest) SW NE
Existing workings
Ore shoots
Drilling station
Mined stopes
D Block
OPEN
OPEN
OPEN
Drilled (assays pending)
CALADAY LEAD ZONE
Projected on Galena East - West Section
Galena
Shaft
No. 3
Shaft
Caladay
Shaft
Levels
2400
3000
3700
4300
4900
5500
Defined
Indicated
Inferred
Caladay Lead Zone *
* Insufficient work executed for 43-101 reporting
0 1000
feet
