GALENA MINE (SILVER VALLEY)

U.S. Silver announced that the Galena Mine produced 1,218,244 ounces of silver in the first half of 2009 (“1H 2009”) at a cash cost of $10.95 per ounce produced. The Company produced 72% more silver ounces in 1H 2009 than in the first half of 2008 (“1H 2008”) (1,218,244 vs. 708,175). When comparing 6-month periods, the cash cost per ounce produced decreased 23% from $14.29 in 2008 to $10.95 in 2009. Lead and copper production also improved from 1H 2008 to 1H 2009. The Galena mine produced 55% more pounds of lead (2,891,285 vs. 1,859,679) and 41% more pounds of copper (551,571 vs. 390,447).

U.S. Silver Corporation increased Proven and Probable reserves at its 100% owned Galena Mine Complex near Wallace, Idaho, USA by approximately 20%. The NI 43-101 reserve estimate, effective December 31, 2008, is a 17 percent increase in tons and a 20 percent increase in silver ounces over the January 1, 2008 estimate of 981,100 tons of proven and probable ore at an average grade of 17.79 oz/t, containing 17,449,400 ounces of silver, after replacing reserves depleted by mining during 2008.

A strategic examination of operations was undertaken as a result of the change in commodity demand and prices as well as the resulting challenging outlook for equity markets. Consequently, there has been a cessation of all capital projects with the exception of the rehabilitation of the Galena Shaft, where work is now being done at approximately 25% of the previous monthly cost. Nearly 700 feet of shaft have been repaired and only 150 feet remain to be rehabilitated. The completion is now expected during the second quarter of 2009, which should lead to greater operating efficiencies and lower mining costs. Milling will also be consolidated at the continuously operated Galena Mill. The rehabilitated Coeur Mill will remain in production until the number 3 circuit of the Galena Mill begins production this week. At that time, all milling will occur at the Galena Mill, resulting in more efficient operations, a cessation of the trucking of newly mined ore and lower operating costs. To further increase milling efficiency and improve gross margins, the Galena Mill will be operated at full capacity by also milling supplementary, already stockpiled, lowgrade ore.