U.S. Silver Corporation
TSX VENTURE : USA
OTCQX : USSIF
FRANKFURT : QE2

U.S. Silver Corporation

September 29, 2010 09:02 ET

U.S. Silver Corporation Closes $6.9 Million Bought Deal Private Placement

TORONTO, ONTARIO--(Marketwire - Sept. 29, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

U.S. Silver Corporation (TSX VENTURE:USA)(OTCQX:USSIF)(FRANKFURT:QE2) (the "Company") is pleased to announce that it has closed its previously announced bought deal private placement (the "Offering") with Cormark Securities Inc. (the "Underwriter"). The Company issued an aggregate of 26,565,000 units (the "Units") of the Company at a price of $0.26 per Unit, including 3,465,000 Units issued under the Underwriter's over-allotment option which was exercised in full. Each Unit consists of one common share (each a "Share") of the Company and one-half of one common share purchase warrant (each whole warrant a "Warrant"). Each whole Warrant is exercisable at any time for one Share at a price of $0.35 per Share for a period of two years following closing. 

The Company has the right, commencing nine months after closing, to call the outstanding Warrants for expiry, upon 30 days notice should the Shares close at or above $0.45 for 20 consecutive trading days. Prior to nine months after closing the Warrants will not be callable for exercise by the Company. 

The Company paid the Underwriter a cash commission equal to 6.0% of the gross proceeds of the Offering. In addition, the Underwriter was issued broker warrants ("Broker Warrants") equal to 6% of the number of Units sold under the Offering. Each Broker Warrant entitles the Underwriter to purchase Shares at $0.26 per Share for a period of two years following closing. The Company also has the right, commencing nine months after closing, to call the outstanding Broker Warrants for expiry, upon 30 days notice should the Shares close at or above $0.45 for 20 consecutive trading days. Prior to nine months after closing the Broker Warrants will not be callable for exercise by the Company.

The Company plans to use the net proceeds of the Offering for redevelopment of the Coeur Mine and for general working capital purposes.

The Shares and Warrants underlying the Units are subject to a four-month hold period from the date of closing under applicable Canadian securities laws, which expires on January 30, 2011.

The Shares and Warrants 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 unless registered under the Act or unless an exemption from registration is available. 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 securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About U.S. Silver Corporation

U.S. Silver, through its wholly owned subsidiaries, owns and/or operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver mine in US history. Total silver production from U.S. Silver's mining complex has exceeded 217 million ounces of silver production since 1953. U.S. Silver controls a land package now totalling approximately 14,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding the production from existing operations as well as exploring and developing its extensive Silver Valley holdings in the Coeur d'Alene Mining District.

This document may contain or refer to forward-looking information based on current expectations. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. Additional information identifying risks and uncertainties is contained in filing by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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