Low Risk, Low Capital, High GrowthJUNE 2013
TSX:USAOTCQX:USGIF
Forward Looking Statement – Safe HarbourCertain 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. 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 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 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.
For further information on the Galena Complex, please refer to the technical report entitled “Technical Report, Galena Complex, Shoshone Idaho” dated March 22, 2013 and available on the U.S. Silver & Gold Inc. SEDAR profile at www.sedar.com.
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.
2
U.S. Silver & Gold Highlights
2012 Production: 2.6M oz Ag and 20,432 oz Au
Established, Long-life Operating Asset
Strong Operating Cash Flow
Significant Ongoing Brownfield Expansion
Dominant Land Position in the Prolific Silver Valley
Favourable Environment for Accretive Acquisitions
Proven Management & Board
3
2013 Forecast
2.6 - 3.0Moz Ag
$16 - $18Ag Cash Costs/oz
Darren BlasuttiPresident 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
Bob TaylorCOO
• Over 40 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 VargaCFO
• Over 17 years of progressive financial leadership experience and brings extensive senior management expertise • Most recently CFO of RX Gold & Silver Inc. and former Senior Director, Corporate Development at Barrick Gold Corporation • Member of the Canadian Institute of Chartered Accountants and the Chartered Financial Analyst Institute
Steve LongSVP, Operations
• Over 35 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 AtkinsonVP, Exploration
• Licensed Professional Geologist, over 40 years of experience in exploration geology• Completed more than a dozen exploration programs across North America
Daren DellVP, Technical Services
• Over 20 years experience and brings extensive knowledge gained from evaluating mining assets around the globe• Formerly Director, Corporate Development and Director, Technical Evaluations at Barrick Gold. Prior to joining Barrick Gold,
Mr. Dell was at Placer Dome for 15 years
Peter McRae VP, General Counsel
• Most recently VP Corporate Counsel of RX Gold & Silver Inc. and in private practice at Weil, Gotshal & Manges LLP, a major international law firm based in NY with extensive experience on general corporate, securities law, and governance matters
Management Team: Experienced + Proven
4
Board of Directors
Gordon PridhamChairman
• Over 30 years of experience as a global finance executive• Serves on the public company boards of Newalta Corporation and Titanium Corporation, where he is Chairman of the Board
Hugh AgroDirector
• Retired in 2009 as EVP Strategic Development at Kinross Gold, where he oversaw corporate development and exploration • Held senior positions with Placer Dome Canada and Deutsche Bank
Darren BlasuttiDirector • President and CEO
Alex DavidsonDirector
• 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 DionneDirector
• Former Senior Vice President Underground Operations at Barrick Gold • Currently a director of Detour Gold Corporation and Aurizon Mining Ltd.
Alan EdwardsDirector
• 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 RyleyDirector
• 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 WaisbergDirector
• Former Senior Partner at Goodmans LLP and EVP, Finance and Administration of Co-Steel Inc.• Accredited with Institute of Corporate Directors and sits on Boards of Tembec and Chemtrade Logistics Inc 5
Asset Overview
6
Galena Complex – 100% owned• High grade Ag-Cu and Ag-Pb• Produced over 240 M oz Ag historically• Over 23 M oz Ag in “Proven and
Probable” Reserves, 13 M oz Ag in “Measured and Indicated” and 18 M ozAg in “Inferred” Resources*
• Caladay Zone being assessed for high grade conventional mining and bulk mining potential
• Excess hoisting and milling capacity
Galena Complex located in mining friendly Idaho• Ranked 6th in the US by The Fraser
Institute in 2012/2013**• Supportive local communities• Established mining state• Experienced knowledgeable workforce
6
Drumlummon Mine – 100%• Transitioning to care & maintenance • High grade Au and Ag• Produced over 1 M oz Au and 12 M oz Ag• Extensive mining infrastructure
* Descriptions of our mineral deposits are not comparable to similar information reported by U.S. companies which are subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. See www.us-silver.com for NI 43-101 Technical Report.
** See www.fraserinstitute.org for details.
Galena Complex
7
Galena and Coeur Areas• Galena 2012 production of 2.25M oz Ag @ ~$20/ounce; 2013 production estimates of
2.6-3.0M oz Ag @ $16-$18/ounce
• Production growth being realized with adoption of new shift schedule implemented in mid-Q1 2013
• Production increase of 10% and cash cost reductions of 10-15% targeted for 2013
• Coeur re-development postponed to focus efforts on Caladay potential
• Current M&I resource is 3.3M oz Ag with an additional 1.9M oz in Inferred• Option value of resource is preserved; mine ready for a relatively quick re-start
when circumstances support a production decision
• Two separate mills with combined capacity of 1,500 tons/day, currently operating at less than 60% of capacity
• Mill recovery rates of 96% for silver-copper and 92% for silver-lead ores
• Continued exploration success and mine life extension at Silver Halo and 350-370 vein system
• Discovery of 350-370 vein system, Silver Halo and Caladay Zone expected toallow for ramp-up to 1,500 tons per day of ore production over next 3-4 yearswith modest capital outlays starting in Q3, 2013.
Large Reserve and Resource Base
2ndlargestPrimary silver producer in the U.S.
7
Galena Complex – Long Section
Opportunities for Significant Brownfield Expansion
Galena Complex – Caladay Zone
9Supports Lower Cost Mining Techniques9
New High Grade
Discovery
* Some of the potential quantities and grades disclosed in this presentation areconceptual in nature. At the current stage of exploration, there is insufficientdrilling to determine the extent of continuity of the mineralization required todefine a mineral resource for all mineralization at the Galena Mine Complex andDrumlummon Mine. It is uncertain if further exploration will result in certainexploration targets being delineated as a mineral resource
The Caladay Zone is a semi-continuous mineralized zone extending from Galena into the Caladay Mine at depth
• Currently 2,800-3,000 vertical feet with estimated strike length of 1,200-3,600 feet and apparent widths of 200-400 feet
Global tonnage target of 60-70 million tons and potential silver resource of 150-200 million ounces based on over 1100 historic drill holes and new drilling
Mining will commence in high-grade, silver-copper zones targeting 100 tons per day in Q3 2013
• Development will begin in wider, higher-grade silver lead stopesin late 2013
A preliminary plan will be communicated in 2013• Phase 1 - “Fill the Mill” from high grade areas close to
infrastructure based on current resource• Phase 2 - Major expansion to be considered when supported by
market conditions and resource expansion through exploration success
Caladay Zone (Illustrative View)
AgCu ‐ Silver HaloAgPb ‐ Lead ZoneAgPb ‐ Higher Grade Silver ResourceMineralization
Caladay Zone - 4900 Level Plan
Close Proximity to Existing Mine Infrastructure
Block Model ResultsCaladay Zone
Strategic Objectives
12Grow earnings and cash flow per share
Execute on operational improvements and brownfield expansions• Develop Caladay to fully utilize existing
processing capacity• Continue exploration success to prove out
bulk mining expansion caseSecure re-financing or line of credit to support brownfield initiatives
Assess exploration, processing and capital synergies with geographically focused assets
Assess accretive per share acquisition opportunities in North America
1
2
3
4
12
Roadmap For Success
Exceed 5.0 M oz Ag by end of 2015
Share Price Performance & Capital Structure
13
Symbol: USA-TRecent Price*: $0.85Market Cap (CDN): $51 MCash Balance**: $11 MDebt**: $7.9 M
Shares Basic: 60 MOptions : 5.5 MWarrants: 2.0 MFully Diluted: 67.7 M
* As of June 2013** As of March 31, 2013
Vol
ume
(TS
X &
OTC
QX)
Sha
re P
rice
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
15-08-2012 15-10-2012 15-12-2012 15-02-2013 15-04-2013
Junior Silver Producer Resource Base
14Quality Resources and Growing
Ag
oz (M
)
Reserves/Resources
*As of June 13, 2013 and based on public disclosure documents.Market data and other statistical information used in this presentation may be based on independent industry publications, government publications, reports by market research firms, or other published independent sources. Some data is also based on U.S. Silver & Gold’s good faith estimates that are derived from its review of internal data and information, as well as the sources listed above. Although U.S. Silver & Gold believes these sources are reliable, U.S. Silver & Gold has not independently verified the information and cannot guarantee its accuracy or completeness.
P&P
M&I
0
10
20
30
40
50
60
70
GPR AXR AUMN SPM USA AUN
Junior Silver Producer Multiples
15Undervalued Relative to Peers
EV
/ R
esou
rces
($/o
z A
g)
EV / Resources
*As of June 13, 2013 and based on public disclosure documents.Market data and other statistical information used in this presentation may be based on independent industry publications, government publications, reports by market research firms, or other published independent sources. Some data is also based on U.S. Silver & Gold’s good faith estimates that are derived from its review of internal data and information, as well as the sources listed above. Although U.S. Silver & Gold believes these sources are reliable, U.S. Silver & Gold has not independently verified the information and cannot guarantee its accuracy or completeness.
0
2
4
6
8
10
GPR EXN AUN AXR USA SPM AUMN
2013 Estimated Silver Production per $1,000 Invested
Highest Leverage to Silver Prices
16Buy Assets Leveraged to the Silver Price
Pro
duct
ion
per $
1k In
vest
ed (o
z)
*As of June 13, 2013 and based on public disclosure documents.Market data and other statistical information used in this presentation may be based on independent industry publications, government publications, reports by market research firms, or other published independent sources. Some data is also based on U.S. Silver & Gold’s good faith estimates that are derived from its review of internal data and information, as well as the sources listed above. Although U.S. Silver & Gold believes these sources are reliable, U.S. Silver & Gold has not independently verified the information and cannot guarantee its accuracy or completeness.
13.016.5
20.322.7
27.6
36.3
56.6
0.0
10.0
20.0
30.0
40.0
50.0
60.0
AUMN EXN GPR AXR SPM AUN USA
Re-Rating Potential
17Attractively Positioned Among Peers
Ent
erpr
ise
Val
ue ($
M)
*As of June 13, 2013 and based on public disclosure documents.Market data and other statistical information used in this presentation may be based on independent industry publications, government publications, reports by market research firms, or other published independent sources. Some data is also based on U.S. Silver & Gold’s good faith estimates that are derived from its review of internal data and information, as well as the sources listed above. Although U.S. Silver & Gold believes these sources are reliable, U.S. Silver & Gold has not independently verified the information and cannot guarantee its accuracy or completeness.
2013 Production Guidance (M oz Ag Eq.)
Junior Silver Producers
USA
AUN
GPR
EXNAXR
SPM
AUMN
Companies included: AUMN – Golden Minerals Company; AUN – Aurcana Corporation; AXR – Alexco Resource Corp.; EXN – Excellon Resources Inc.; GPR – Great Panther Silver Limited; SPM – Scorpio Mining Corporation
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
0.0 1.0 2.0 3.0 4.0 5.0 6.0
2013 Milestones
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Completed -Reserve & ResourceUpdate Including First Resource Estimate for Caladay Silver-Lead Zone
Preliminary Economic Assessment on “Fill The Mill” and Caladay Silver-Lead Zone
First productionfrom high-grade Ag-Cu zone (Silver Halo)
Initial development of wider, high-grade stopes for 2014 production
Near-term Catalysts
Delivering on Caladay’s Potential
Invest in U.S. Silver & Gold
Executing on
operational
improvements and
low risk brownfield
expansion
100% owned, royalty free
Fully permitted
Near existing infrastructure
Available mill capacity
Increasing production and reducing costs
Experienced management team
Catalysts in place for improved valuation
High leverage to silver prices
Focused on Unlocking Value19
Appendix
Galena Complex Long Section
Galena Shaft
Caladay Shaft
Coeur Shaft
2400
Sea Level
3700
5500
Callahan Shaft
4900
28003000
3400
1200
SilverVein
5200
460043004000
Ag - Pb Veins Ag - Cu Veins Major Production Areas0 2500
feet
No. 3 Shaft
Galena Caladay Silver-Lead Zone (Illustrative View)
3000 Level
4000 Level
5500 Level
No. 3Shaft
GalenaShaft
0 1000
feetSilverVein
Caladay Silver-Lead Zone
CaladayShaft
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