Conference Call Presentation - November 10, 2014

A Leading Junior Silver Producer in the Americas

Proposed Business Combination of

Scorpio Mining and U.S. Silver & Gold

November 2014

Creating a Leading Junior Silver Producer in the Americas 2

Cautionary Statement

This presentation contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, expectations, intentions, plans,

assumptions and beliefs with respect to, among other things, the proposed transaction, the combined company following completion of the transaction and its operations, and the assumption for the

reduction of total resources at El Cajón utilized by U.S. Silver & Gold for purposes of modelling the transaction. Often, but not always, forward-looking information can be identified by forward-

looking words such as "anticipate", "believe", "expect", "goal", "plan", "intend", "estimate", "may", "assume" and "will" or similar words suggesting future outcomes, or other expectations, beliefs,

plans, objectives, assumptions, intentions, or statements about future events or performance. Forward-looking information is based on the opinions and estimates of the applicable company as of

the date such information is provided and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of

the applicable company to be materially different from those expressed or implied by such forward looking information. This includes the ability to develop and operate the properties of the

combined company, risks associated with the mining industry such as economic factors (including future commodity prices, currency fluctuations and energy prices), failure of plant, equipment,

processes and transportation services to operate as anticipated, environmental risks, government regulation, actual results of current exploration activities, possible variations in ore grade or

recovery rates, permitting timelines, capital expenditures, reclamation activities, social and political developments and other risks of the mining industry. Although each of Scorpio Mining and U.S.

Silver & Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause

results not to be as anticipated, estimated, or intended. Readers are cautioned not to place undue reliance on such information. By its nature, forward-looking information involves numerous

assumptions, inherent risks and uncertainties, both general and specific those contribute to the possibility that the predictions, forecasts, and projections of various future events will not occur. Each

of Scorpio Mining and U.S. Silver & Gold undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or

other such factors which affect this information, except as required by law.

U.S. Silver & Gold management has intensively reviewed Scorpio Mining’s El Cajón asset as part of its due diligence process, including the potential boundary movement and related impact to

mineral resources. While the final location of the concession boundary remains subject to confirmation, based on its review of the current facts, U.S. Silver & Gold has assumed a potential

reduction of total resources at El Cajón of 40% to 50% for purposes of evaluating the transaction and this assumption is reflected in this presentation. Readers are cautioned that such assumption

for the reduction in total resources at El Cajón utilized by U.S. Silver & Gold for purposes of evaluating the transaction is an assumption of U.S. Silver & Gold only, and is not a statement of, or

otherwise endorsed by, Scorpio Mining, and the actual reduction in total resources at El Cajón may differ materially from the assumption of U.S. Silver & Gold, including because the concession

boundaries underlying the El Cajón deposit have not yet been confirmed by the Dirección General de Regulación Minera and the technical work to determine resources based on such confirmed

boundaries has not yet been conducted. Scorpio Mining intends to prepare an updated mineral resource estimate for its El Cajón deposit and a revised technical report, prepared in accordance

with National Instrument 43-101 - Standards of Disclosure for Mineral Projects, following the Dirección General de Regulación Minera's final confirmation of the concession boundaries underlying

the El Cajón deposit.

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.

Some of the potential quantities and grades disclosed are conceptual in nature, there has been insufficient exploration to define a mineral resource on all of the mineralization at the Galena

Complex and it is uncertain if further exploration will result in certain targets being delineated as a mineral resource.

Mr. Daren Dell, Vice President, Technical Services of U.S. Silver & Gold and a Qualified Person under National Instrument 43-101, has approved the applicable contents of this presentation.

Scorpio Mining's President and CEO, Mr. Pierre Lacombe, Eng., is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the applicable contents of this

presentation.


Compelling Investment Thesis

Diversified production base with annual production of approximately 5 Mozs of silver equivalent

Further declining cash costs as operations are optimized and G&A synergies are realized

Strong financial position, increased market profile and enhanced trading liquidity

Proven management team and Board – combining the best of both companies

Robust reserve and resource base to sustain long-life operations

Sustainable production at current prices with growth from internal projects

Greater access to capital to take advantage of current market opportunities

Compelling value proposition – leading leverage and attractive relative valuation

Source: Internal estimates. Note: Silver equivalent calculated using US$20.00/oz Ag, US$3.00/lb Cu, US$0.90/lb Pb, and US$1.00/lb Zn

Creating a Leading Junior Silver Producer in the Americas Led by Top Tier Management


Business Combination Terms

Source: Bloomberg, company disclosure

Proposed

Transaction

• Scorpio Mining Corporation (“Scorpio Mining”) to acquire all of the issued and outstanding

common shares of U.S. Silver & Gold Inc. (“U.S. Silver & Gold”) via Plan of Arrangement

• Pro forma basic market capitalization of C$65 million

• Pro forma basic ownership of 59% Scorpio Mining / 41% U.S. Silver & Gold

Consideration • 1.68 Scorpio Mining shares per U.S. Silver & Gold share, representing C$0.33 per share

Approvals

• U.S. Silver & Gold shareholder vote (66⅔% of shareholder votes cast)

• Scorpio Mining shareholder vote (simple majority of shareholder votes cast)

• Customary regulatory and court approvals

Other Terms

• Customary non-solicitation covenants and rights to match

• Termination fees: 4% of equity value of applicable party

• Transaction unanimously recommended by respective Boards

• Lock-ups in place, representing approximately 17.5% of Scorpio Mining shareholders and

approximately 19.6% of U.S. Silver & Gold shareholders

Timing

• Mailing of meeting materials by mid-November

• Shareholder meetings by mid-December

• Closing expected by year-end


Proven Management and Board of Directors

Combines Strong Leadership Strength and Broad Technical Skills

Chairman President, CEO & Director

Peter Hawley Darren Blasutti

Three Additional Directors from Scorpio Mining

Four Directors from U.S. Silver & Gold in addition

to the President & CEO

Best in Class Management Team

Combining Strengths of Both Companies


Mutual Benefits of the Merger

Mutually Beneficial Transaction Supported by Strong Rationale

Diversifies production with multiple

producing mines in attractive jurisdictions

Expands management capabilities,

adding proven financial and operating expertise

Adds immediate production and cash flows from an

established mine with declining cash costs

Enhances leverage to higher commodity prices

with the addition of low capital brownfield growth

Increases overall balance sheet strength and adds

cash flow from a well-established operation

Adds additional near-term production and cash flow

through development and expansion of low risk assets

Provides a prospective operating platform in

Mexico to drive potential future opportunities

Enhances ability to fund internal brownfield expansion

projects in higher commodity price environments


Optimized Corporate Structure and Asset Base

Source: Internal estimates

Potential to save $2 million to $3 million per annum

by reducing corporate and mine site G&A

Eliminate Duplicate

G&A Costs

Future Benefits to the Combined Company

Potential to save $2 million to $3 million per annum

by implementing strict cost controls

and productivity improvements

Optimize Current

Operations

Allocate existing financial resources appropriately over a

larger universe of internal and external opportunities

Efficient Allocation

of Capital

Creating a More Efficient and Financially Stronger Company


Strict Focus on Cost and Productivity Improvements

Source: Company disclosure

1. Calculated per silver industry standards. 2. Silver industry cash cost plus all development, capital expenditures, exploration spending and mine G&A

Trending in the Right Direction

$10

$15

$20

$25

$30

$35

Cash Cost All-In Sustaining Cost

US

$/o

z A

g

Q3/12

Q4/12

Q1/13

Q2/13

Q3/13

Q4/13

Q1/14

Q2/14

The U.S. Silver & Gold Experience

1 2


Pro Forma Capitalization

1. Based on the share exchange ratio of 1.68 SPM shares per USA share

Source: Bloomberg, company disclosure; Note: Balance sheet items as of September 30, 2014, assuming a USD:CAD exchange rate of 0.88

As at November 7, 2014 Scorpio

Mining

U.S. Silver

& Gold

Pro

Forma1

Basic Shares Outstanding M 198.6 81.2 335.1

Basic Market Capitalization C$M $38.7 $25.6 $65.3

Cash and Cash Equivalents C$M $13.9 $7.6 $21.5

Total Debt C$M $0.0 $8.5 $8.5

Enterprise Value C$M $24.9 $26.5 $52.3

Basic Ownership % 59% 41% 100%

Strong Balance Sheet to Support Near-Term Expansion and Growth


Americas Focused Operating Platform

Source: Company disclosure, internal estimates

Galena Complex (100% USA)

2014E Production:

2014E Cash Costs:

2P Reserves Ag:

M&I Resources Ag:

1.65-1.75Mozs Ag

$14.50-$15.50/oz Ag

23.2Mozs @ 380g/t

36.2Mozs @ 364g/t

Nuestra Senora (100% SPM)

2014E Production:

2014E Cash Costs:

2P Reserves Ag:

M&I Resources Ag:

1.1-1.2Mozs Ag

$12.00-$13.00/oz Ag

1.2Mozs @ 101g/t

6.9Mozs @ 95g/t

El Cajon

San Rafael (100% SPM)

M&I Resources Ag:

Inf. Resources Ag:

37.0Mozs @ 66g/t

5.1Mozs @ 63g/t

Caladay Zone (100% USA)

Inf. Resources Ag: 4.1Mozs @ 169g/t

Legend

Producing Mine

Construction

Development

U.S. Silver

& Gold

Scorpio

Mining

Toronto

Head Office


5%

95%

2P Reserves

Scorpio Mining USA

Silver Equivalent Production Profile Silver Reserves & Resources1

Production Profile and Resources

1. Excludes contribution from El Cajon

Source: Company disclosure, internal estimates. Note: Silver equivalent calculated using US$20.00/oz Ag, US$3.00/lb Cu, US$0.90/lb Pb, and US$1.00/lb Zn

24.4

55.7

29.1

Pro Forma

2P M&I (excl.) Inferred

2.2

2.1

4.3

5.0

2014E 2015E 2016+

Scorpio Mining U.S. Silver & Gold

55%45%

M&I Resources (incl.)

Scorpio Mining USA

Reserve Contribution

M&I Resource Contribution

+ San Rafael

+ Caladay

+ Upper-Country

Lead

+ El Cajon

Current

Operations


The Cosalá District (Mexico)

• Prospective land package of 26,819 hectares in the

Sierra Madre Range in Sinaloa State, Mexico

• Current operations at Nuestra Señora will be

extended with the development of El Cajón and San

Rafael

• Nuestra Señora is a well-established underground

mine with increasing efficiencies and decreasing

cash costs

• Future operations will utilize the existing equipment

and processing infrastructure to integrate the El

Cajón and San Rafael deposits

• El Cajón underground mine is expected to come

online in the near-term and ramp up through Q2-15

• Permits are in place and the portal was collared on

March 29, 2014

• Over 1,000 meters of ramp and lateral development

completed to date to provide access to upper stopes

• Installation of surface infrastructure is ongoing

• San Rafael represents an attractive long-term

development project with large scale potential

• EIS approval received for the underground operation

• Potential underground access via the El Cajón ramp

• Significant exploration upside across all assets


Source: Company disclosure, internal estimates

Key Metrics

Location Sinaloa State, Mexico

Ownership 100%

2014E Silver Production 1.1Mozs – 1.2Mozs

2014E Cash Costs (Net) US$12.00/oz – US$13.00/oz

Silver Reserves 1.2 Mozs at 101 g/t Ag

Silver M&I Resources1 43.9 Mozs at 70 g/t Ag


The Galena Complex (USA)

• High grade underground operation with historical

silver production of over 250 million ounces

• Dominant royalty-free land position in the prolific

Silver Valley in the USA

• Focus on cost containment and production of

profitable ounces

• Current management has reduced operating costs

by 40% and all-in sustaining costs by over 50%1

• Ongoing transition to wider and higher grade silver-

lead stopes expected to reduce costs further

• Significant low cost brownfield expansion

opportunities at higher metal prices

• Fully permitted for a larger scale operation and all

infrastructure is in place to support expansion

• The mills are currently operating at ~40% of rated

capacity and significant excess hoisting and milling

capacity is available

• Over 20 stopes developed and ready for mining at

higher prices

• Significant exploration upside at the Caladay Zone,

which is being assessed for high grade

conventional and bulk mining potential

Source: Company disclosure; 1. From Q3 2012 to Q2 2014

Key Metrics

Location Idaho, USA

Ownership 100%

2014E Silver Production 1.65Mozs – 1.75Mozs

2014E Cash Costs (Net) US$14.50/oz – US$15.50/oz

Silver Reserves 23.2 Mozs at 380 g/t Ag

Silver M&I Resources 36.2 Mozs at 364 g/t Ag


Market Capitalization (C$M)

2015E Consensus Production (Mozs Ag)

Enhanced Market Profile and Leading Scale

Source: FactSet, Bloomberg, company disclosure, available analyst estimates

$567

$339

$236 $235 $182

$113 $65 $49 $39 $37 $35 $26 $22

FortunaSilver

EndeavourSilver

Silvercorp SierraMetals

SilverCrestMines

GreatPanther

Pro Forma Avino Silver& Gold

ScorpioMining

AlexcoResources

Excellon U.S. Silver& Gold

Aurcana

7.0 6.9

4.8 4.2 4.0

2.3 2.3 1.9 1.9 1.9 1.6 1.5

1.1

EndeavourSilver

FortunaSilver

Silvercorp Pro Forma SierraMetals

GreatPanther

U.S. Silver& Gold

Aurcana SilverCrestMines

ScorpioMining

Excellon Avino Silver& Gold

AlexcoResources


2015E Consensus Production Leverage (ozs Ag per C$1,000)

Total M&I Resources (Mozs Ag)

Leading Silver Leverage



63.8

47.9 46.9

30.6 30.3

20.7 20.5 20.4 17.2 12.2 10.3

U.S. Silver& Gold

Aurcana Pro Forma ScorpioMining

Excellon Avino Silver& Gold

AlexcoResources

EndeavourSilver

GreatPanther

Silvercorp SierraMetals

FortunaSilver

SilverCrestMines

Average: 29.5

90.4 86.3

115 112

80 72

52 50 44 40 36

30

14 12 9

Aurcana Silvercorp Pro Forma EndeavourSilver

FortunaSilver

AlexcoResources

ScorpioMining

SierraMetals

U.S. Silver& Gold

SilverCrestMines

Avino Silver& Gold

Excellon GreatPanther

1 1


P / Consensus NAV (ratio)

P / 2015E Consensus CFPS (ratio)

Attractive Relative Valuation


1.04x 1.03x 0.95x

0.70x

0.56x 0.53x 0.45x

0.40x 0.32x 0.29x 0.26x 0.26x 0.25x

EndeavourSilver

FortunaSilver

GreatPanther

SilverCrestMines

SierraMetals

Silvercorp Avino Silver& Gold

Excellon AlexcoResources

Aurcana Pro Forma U.S. Silver& Gold

ScorpioMining

Average: 0.63x

8.2x

5.6x 5.5x

4.5x 4.3x 3.7x

2.4x 2.2x 1.9x

FortunaSilver

EndeavourSilver

SilverCrestMines

Silvercorp U.S. Silver& Gold

SierraMetals

Pro Forma Excellon ScorpioMining

Average: 5.0x


The Path Forward

Strategic

Objective

To operate profitably at

current silver prices

through the optimization

of brownfield projects

and potential acquisition

of complementary

projects at attractive

valuation levels

Our

Mission

Focus on near-term free cash flow generation

Deliver on cost reduction, capital preservation

and near-term profitability

Growth through expansion of existing assets

and consolidation in the precious metals space

Expand operating platforms in mining-friendly

jurisdictions in the Americas

Maintain stakeholder involvement

Long-Term Vision to Become the Leading Growth Oriented Precious Metals Producer


Contact Us

Investor Relations Tel: 416-585-2200 x102

Email: [email protected]

Nicole Richard, Investor Relations Tel: 416-848-9503 x310

Email: [email protected]


Proposed Board of Directors

Peter J. Hawley

Chairman BSc, BEng, PGeo

• Peter Hawley has over 30 years' experience in the exploration and mining industry. He has worked as a consulting geologist to a

large number of intermediate and senior mining companies including Teck Corp, Noranda Inc, Placer Dome Inc and Barrick Gold

Corp. Mr. Hawley is the founder of Scorpio Mining Corporation and current CEO of Scorpio Gold Corporation.

Darren Blasutti

• Mr. Blasutti is currently the President and Chief Executive Officer of the Company. He was formerly the President and Chief

Executive Officer of RX Gold & Silver Inc. and prior to that Senior Vice President of Corporate Development for Barrick Gold

Corporation (“Barrick”) until January 2011. He reported to the Chief Executive Officer and played a lead role in the strategic

development of Barrick for over 13 years, during which time he executed over 25 gold mining transactions including the acquisition

of Homestake Mining Company and Placer Dome Inc. and the consolidation of the world class Cortez property from Rio Tinto. Mr.

Blasutti also led the creation of Barrick Energy Inc. to hedge Barrick’s exposure to energy prices and was integral to the initial public

offering of African Barrick Gold. During his tenure at Barrick, he also led the Investor Relations function. Mr. Blasutti was previously

at PricewaterhouseCoopers LLP where he planned, supervised and managed audits for a variety of clients. Mr. Blasutti is a member

of the Canadian Institute of Chartered Accountants and is a director of Noront Resources Ltd.

Alex Davidson

• Mr. Davidson is currently a corporate director and was formerly Executive Vice President, Exploration and Corporate Development

at Barrick, with responsibility for Barrick’s international exploration programs and corporate development activities. Mr. Davidson

joined Barrick in 1993 as Vice President Exploration with responsibility for Barrick’s expanding exploration program. He initiated

Barrick’s expansion out of North America and into Latin America and beyond. Prior to joining Barrick, Mr. Davidson was Vice

President, Exploration for Metall Mining Corporation. Mr. Davidson has over 25 years’ experience in designing, implementing and

managing gold and base metal exploration and acquisition programs throughout the world. In 2005, Mr. Davidson was presented the

A.O. Dufresne Award by the Canadian Institute of Mining, Metallurgy and Petroleum to recognize exceptional achievement and

distinguished contributions to mining exploration in Canada. In 2003, Mr. Davidson was named the Prospector of the Year by the

Prospectors and Developers Association of Canada in recognition of his team’s discovery of the Lagunas Norte Project in the A lto

Chicama District in Peru. Mr. Davidson is also a director of MBAC Fertilizer Corp., Capital Drilling Limited, Amara Mining plc, Orca

Gold Inc. and Yamana Gold Inc.

Alan Edwards

• Mr. Edwards serves on the board of directors and is President of AE Consulting Corp. He also serves on the board of directors for

Entrée Gold Inc., AuRico Gold Inc. (Chairman), Oracle Mining Corp. (Chairman), and AQM Copper Inc. (Chairman). From

September 2012 to July 2013, he was Chief Executive Officer of Oracle Mining Corp., from 2009 to May 2011, he was President and

Chief Executive Officer of Copper One Inc., from 2007 to 2009, he was President and Chief Executive Officer of Frontera Copper

Corporation. Mr. Edwards holds an MBA from the University of Arizona and a B.S. Mining Engineering also from the University of

Arizona.


Proposed Board of Directors (continued)

Bradley R. Kipp HBA, CFA, CPA, CA

• Mr. Kipp has over 18 years' experience in the mining sector specializing in operations, corporate finance and public company

reporting. In 1997 he joined a mining development company as Vice-President, Finance and has been involved in the financing and

development of emerging and start-up mineral projects focused primarily in southern Africa, Mexico and Myanmar. As part of these

activities he is, or has been, Chief Financial Officer and/or Director of several public companies listed on both the Toronto and

London AIM stock exchanges.

Ewan Mason HBSc, MBA

• Mr. Mason began his career as a contract geologist working for a number of mining companies. Following receipt of his MBA in

1992, he embarked on a corporate banking career with the Bank of Nova Scotia, focusing on project financing. Recruited by

Richardson Greenshields in 1995 (acquired by RBC in 1996), Mr. Mason rose to the role of Managing Director. In 2005, he was

recruited by TD Securities to start up and head their mining investment banking team, which he led until May 2009.

Thomas McGrail

• Mr. McGrail has over 35 years of experience in the mining industry, most recently as Chief Operating Officer for Scorpo Mining. Prior

to joining Scorpio, he was General Manager of the Mulatos Mine for Alamos Gold. His previous positions also include Vice-President

of Operations for Aura Minerals with responsibility for their San Andres open-pit mine in Honduras and the Aranzazu underground

mine in Mexico, consultant to Cia Minera de Caldas, S.A., General Manager for Desarrollo Minera de Nicaragua, S.A., and

President and General Manager of HEMCO de Nicaragua, S.A.

Gordon Pridham

• Mr. Pridham is Principal of Edgewater Capital and sits on the public company boards of Newalta Corporation (Chairman

Compensation), Titanium Corporation Inc. (Chairman), Orvana Minerals Corp., and Roxgold Inc. He is on the advisory board for

Enertech Capital a Clean Tech Venture Fund. Recent activities include merger of US Silver with RX Gold as Chairman, sale of

Norock Realty to Partners REIT as Chairman of the Special Committee, and sale of Western Prospector to CNNC as Chairman of

the Special Committee. Mr. Pridham has over 25 years of experience in investment banking, capital markets and corporate

banking. He has worked in New York, Calgary, Toronto and Hong Kong for global financial institutions and has financed and advised

companies in public and private markets across a broad range of industry sectors. Mr. Pridham is a graduate of the University of

Toronto and the Institute of Corporate Directors program.

Lorie Waisberg

• Mr. Waisberg is a corporate director currently serving as a director of, Chantrell Ventures Corp., Chemtrade Logistics Income Fund,

Metalex Ventures Ltd., Primary Energy Recycling Corporation and Tembec Inc. Prior to retirement, Mr. Waisberg served as

Executive Vice President, Finance and Administration of Co-Steel Inc., a steel manufacturer. Prior thereto, Mr. Waisberg practiced

law with a major Canadian law firm. Mr. Waisberg is accredited as ICD.D by the Institute of Corporate Directors.