Silver Wheaton Corp.
TSX : SLW
AMEX : SLW

Silver Wheaton Corp.

March 27, 2006 07:57 ET

Silver Wheaton Announces C$175 Million 'Bought Deal' Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 27, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Silver Wheaton Corp. (TSX:SLW)(AMEX:SLW) is pleased to announce that it has entered into an agreement with GMP Securities L.P. and a syndicate of underwriters including Canaccord Capital Corporation, Scotia Capital Inc., BMO Nesbitt Burns, Haywood Securities Inc., Salman Partners Inc., Blackmont Capital Inc., RBC Capital Markets, Sprott Securities Inc., and, which have agreed to purchase, on a bought deal basis, 14.6 million common shares of Silver Wheaton at a purchase price of C$12.00 per share, for aggregate gross proceeds of approximately C$175 million. The underwriters will also have the option to purchase up to an additional 14% shares at the issue price prior to the closing of the offering. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the offering will be approximately C$200 million.

Silver Wheaton plans to use the net proceeds of this financing to pay US$40 million due to Glencore International AG ("Glencore") under a promissory note, and to repay bank debt associated with its recent silver acquisition from Glencore.

"This financing allows us to substantially eliminate our debt position in Silver Wheaton, enhancing our future cash flows and setting us up to take advantage of further growth opportunities", said Peter Barnes, Chief Financial Officer of Silver Wheaton.

The common shares to be issued under this offering will be offered by way of a short form prospectus in all of the provinces in Canada and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The offering is scheduled to close on or about April 18, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

Silver Wheaton is the only public mining company with 100% of its revenue from silver production. The Company expects to have annual silver sales of 15 million ounces in 2006, increasing to 20 million ounces by 2009 and thereafter. Silver Wheaton is unhedged and well positioned for further growth.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements.

CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of silver, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Silver Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions, the absence of control over mining operations from which Silver Wheaton purchases silver and risks related to these mining operations, including risks related to international operations, actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in Silver Wheaton's annual information form for the year ended December 31, 2005 incorporated by reference into Silver Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Although Silver Wheaton has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Silver Wheaton does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

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