U.S. SILVER CORPORATION OTC QX: USSIF • TSX: USA Contact: Heather Bailey-Foster, Manager I.R. P.O. Box 440, Wallace, ID 83873 Phone: 208-556-1535 Ext. 2 Fax: 208-556-1587 Corporate Office: Christopher Hopkins, CFO 401 Bay Street, Ste 2702 Toronto, ON M5H 2V4 Phone: 416-907-5501 Fax: 647-722-9652 E-Mail: info@us-silver.com Web Site: www.us-silver.com Shares Outstanding: 308.8 million 52 Week Trading Range (as of Jan. 9, 2012): Canada: Hi: C$0.63 • Low: C$0.39

        U.S. Silver’s 2011 exploration program yielded such encouraging results, the company is significantly expanding both surface and underground drilling in 2012 to provide even greater potential for reserve expansion. From August through December U.S. Silver drilled 21,433 feet underground at both its flagship Galena Silver Mine and at its advanced-stage, former producing Coeur Mine.
        Underground exploration drilling at Galena in 2011 confirmed additional resources that will be developed for mining in 2012 and beyond. U.S. Silver increased its planned 2011 drilling program at the Galena mine by 50%, adding a third rig to the two drills that previously operated at the 4000 and 5200 levels. The multi-target program was designed to delineate the eastern extension of the 133 vein, follow up intercepts from historic drilling and further delineate a new resource to the south. Development work is now underway on these confirmed targets.
        Drill results in 2011 at the Galena ranged to 176.2 opt silver and 10.10% copper at the 4000 level and 444.6 opt silver and 14.10% copper at the 5200 level. The current drill program on the 5200 level is a multi-target program to test and delineate a western extension of the 291 vein and test and define resources immediately below the Caladay zone. The exploration program also includes two holes south on the Caladay mine ground where previous drilling of the western extension of the 290 vein proved successful. Drilling on the other targets is now underway.
        Drilling results at the adjacent Coeur Mine successfully confirmed previously defined resources, with results ranging up to 125.4 opt silver and 4.59% copper. The current multi-level drill program is designed to confirm and verify existing resources on the 356 vein with planned drilling from the 3700, 3400 and 3100 levels. Drilling, completed on the 3700 and 3400 levels, is currently being carried out on the 3100 level.
        U.S. Silver continues to operate two drills on four drill sites on the surface to test near-surface potential for two previously mined resources. The first target is testing the extension of historic mining on the Argentine vein. The second surface target is testing un-mined ground between the historic Mineral Point and Columbia workings on the Ruby silver vein. Evaluation and logging of the surface drill holes is ongoing. Assay results are pending. The 2011 surface drilling program has been completed.
        In total for 2011, US Silver drilled 77,479 feet. Underground drilling included 56, 131 feet at the Galena and 9,339 feet at the Coeur. Surface drillling totaled 12,009 feet.

        “Operational consistency and favorable commodity prices continue to provide U.S. Silver with improved financial strength and the ability to pursue our ongoing goal of production growth,” says Gordon Pridham, U.S. Silver’s Executive Chairman.
        The company has a solid revenue stream, substantial receivables in the form of concentrates on the way to the smelters, no long-term debt and no royalties. As a result, U.S. Silver can comfortably self-fund expanding its silver resource at the Galena and development of its Coeur and Caladay Mines.
        U.S. Silver recently reported $28.3 million in Q3 revenues, compared to $12.0 million for the same period in 2010. The company will report its 2011 end-of-year performance results in March. U.S. Silver reported net income of $5.2 million in the quarter, compared to $0.5 million for the same period in 2010. Cash flow from operating activities totaled $5.4 million in the quarter, compared to $1.8 million for the same period in 2010, while cash on hand totalled $27.5 million.
        For all of 2011, U.S. Silver’s goal was to produce approximately 2.4 million ounces of silver, 5.8 million pounds of lead and nearly 1 million pounds of copper. In Q3 the company produced 645,543 ounces of silver for a total of 1,788,228 ounces year-to-date. Since 1953, U.S. Silver’s mining complex has produced more than 217 million ounces of silver and continues to produce silver at near-record rates.
        “We are pleased with the continued financial performance for U.S. Silver,” says President and CEO Tom Parker. “The third quarter results provided the company with strong revenue and cash flow and a further strengthened balance sheet giving U.S. Silver the resources to invest in and expand our asset base.”

        “2012 will be a year of continued, enhanced exploration at the Galena Mine,” says Parker. “Our focus is to create more places to mine. By spending money on infrastructure and development at the Galena, we are ensuring the mine will provide a stable platform of growth for U.S. Silver Corporation.”
        U.S. Silver has mined 120 different veins at its flagship Galena Silver Mine, which has been operating for almost 60 years and where exploration shows no evidence the quality of mineralization is diminishing. Rehabilitation of 140 miles of existing tunnels, many nearly 40 years old, continues. In 2011 the company spent over $3.3 million on level repairs.
        U.S. Silver is well on track for a decision to re-start mining operations at its Coeur Mine, a milestone that will enable U.S. Silver to maintain and expand its current production levels for years to come.
        The Coeur Mine contains an estimated 5.9 million ounces of silver equivalent. No additional permitting or acquisition costs are required to reopen the mine. Once in operation, the operating Galena and the Coeur mills can process up to 1,400 tons of ore per day at recovery rates of 96% for silver-copper and 92% for silver-lead ores.
        “We intend to begin development work and will continue to drill to confirm and expand resources at the Coeur before presenting a final mine plan to the board for approval in January,” says Parker.
        The former producing Coeur mine has been idle for about 15 years and has aging tunnels and vertical passageways that must be rehabilitated to provide miners with at least two safe exit points from all operational levels. Currently, there is only the main shaft and a tunnel at one level connecting to the adjacent Galena mine.

        U.S. Silver’s Galena, Coeur, Caladay and Dayrock silver-lead-copper mines are part of a 14,000 acre land package in an area recognized as one of the world’s most prolific silver belts. The company is a solid silver producer with more than 280 people on its payroll who help to produce 800-1000 tons of ore per day, five days a week. U.S. Silver’s diversified management team has over 100 years of mining and business experience. President and CEO Tom Parker, is a professional mining engineer. Executive Chairman Gordon Pridham is experienced in investment banking, capital markets, and corporate banking. COO Steve Long has a strong background in mine engineering and management. CFO Chris J. Hopkins is skilled in financial management, strategic planning, mergers and acquisitions, corporate finance and management reporting within the mining sector.
        A significant 2011 milestone for U.S. Silver was its promotion to the Toronto Stock Exchange (TSX), the senior Canadian exchange for mining companies, giving the company greater accessibility to investors, as well as greater liquidity, increased market recognition and access to capital.
        “Listing on the TSX represents a significant accomplishment for U.S. Silver, representing the significant growth and strength the company has delivered to its investors,” says Parker. “The TSX is a premier stock exchange for mining companies and a main board listing will increase our visibility with investors throughout the world.”
        U.S. Silver remains focused on expanding silver and copper production from existing operations as well as exploring and developing its extensive Silver Valley holdings.
        “Each year U.S. Silver has more than replaced its mined resources,” says Parker. “We are confident we will continue to provide additional reserves for years to come as we explore more aggressively to prove those reserves on our large land position in the prolific Silver Valley.”