U.S. Silver Corporation
TSX VENTURE : USA

U.S. Silver Corporation

April 30, 2007 21:04 ET

U.S. Silver Corporation Announces Year-End Financial Results for 2006

TORONTO, ONTARIO--(CCNMatthews - April 30, 2007) - U.S. Silver Corporation ("U.S. Silver" or the "Corporation") (TSX VENTURE:USA) announced its audited consolidated financial results for the year ended December 31, 2006. The audited consolidated financial statements and Management's Discussion and Analysis ("MD&A") have been filed on SEDAR and can be viewed at www.sedar.com.

For the period from April 7, 2006 (date of incorporation) to December 31, 2006, U.S. Silver generated consolidated revenue of US$6.1 million, and recorded an operating loss of US$3.7 million. Net loss for the period was $6.3 million equaling a loss per share of US$0.07. As the Corporation was formed in 2006, there are no comparables to the prior years.

"These financial results are in line with our expectations, given all of the work and effort that has taken place to bring the mine back to profitability," said Bruce Reid, CEO. "We anticipate returning to profitability by the end of the first quarter of 2007. We expect further improvements of this trend to continue in 2007 as production levels at the mine are increased."

U.S. Silver's Balance Sheet at December 31, 2006 showed over US$8 million of working capital and approximately US$30M in total assets. At December 31, 2006 the Corporation had no long-term debt, (other than approximately US$1 million in post retirement obligations) and over US$20M in Shareholders' Equity. The strength of the balance sheet is a result in part of the Corporation having raised approximately US$29 million in new equity capital during the reporting period.

"2006 was an exciting year for U.S. Silver," stated Mark Hartmann, President of U.S. Silver. "We acquired the Coeur Silver Valley ("CSV") properties on June 1 and have been aggressively working to bring the Galena Mine back to its historical production rates of around 3.5 to 4.0 million ounces of silver annually. I would like to congratulate our staff on implementing a turnaround at the mine which involved extensive redevelopment of new reserves, a redesign of the mining method in some areas, numerous challenging repairs of facilities and equipment, new configurations at the mill facilities, as well as an exploration program which discovered a new lead-silver ore body and many extensions of existing ore systems. We are now poised to make 2007 the production turnaround year at the Galena Mine, and with continued strong metal prices, we should be profitable."

Subsequent to year-end, U.S. Silver announced an Early Exercise Warrant Incentive Program (see press release dated March 27, 2007), which, assuming full participation, would bring in gross proceeds of approximately US$14.4 million. As of today, over US$9.1 million has been subscribed for under the program, which runs until May 11, 2007.

Additionally, the Corporation announced a significant increase in silver reserves and resources in U.S. Silver's underground mining complex centered around the Galena Mine (see press release dated April 18, 2007) bringing total reserves and resources to over 48 million ounces of silver.

ABOUT U.S. SILVER CORPORATION

U.S. Silver Corporation owns and operates the producing Galena Silver Mine, in Shoshone County, Idaho which is the second most prolific silver mine in U.S. history with over 200 million ounces of silver produced since 1953. The Mine is currently anticipated to produce 3.2 million ounces of silver in 2007 with associated by-product lead and copper production. U.S. Silver acquired the Galena Mine as well as the Coeur Mine and the Caladay Property and over 11,000 acres of ground in the heart of the Coeur D'Alene Silver Mining District in June 2006. The Company is focused on the production and exploration of its extensive Silver Valley holdings.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation 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 Corporation. Additional information identifying risks and uncertainties is contained in filings by the Corporation with the Canadian securities regulators, which filings are available at www.sedar.com.

The common shares of U.S. Silver to be issued as described in this press release have not been registered under the U.S. 1933 Act and may not be offered or sold in the United States (or to a U.S. person) absent registration under the U.S. 1933 Act or an applicable exemption from the registration requirements of the U.S. 1933 Act.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • U.S. Silver Corporation
    Bruce Reid
    Chief Executive Officer
    (647) 500-4495
    or
    U.S. Silver Corporation
    Vance Loeber
    Investor Relations
    (604) 805-3530