U.S. Silver Reports Third Quarter Results & Operational Update

TORONTO--(BUSINESS WIRE)--U.S. Silver Corporation (TSX-V: USA, US OTC: USSIF, Frankfurt: QE2) (“US Silver” or “the Company”) is pleased to announce its third quarter 2009 results.

Q309 Highlights

• Production of 558,071 ounces of silver in Q309, 8% higher than Q308 (518,058 ounces)
• Production of 1,092,864 pounds of lead in Q309, 27% higher than Q308 (858,282 pounds)
• Production of 268,781 pounds of copper in Q309, 15% higher than Q308 (234,545 pounds)
• Cash cost per silver ounce produced of $13.37 in Q309, 6% higher than Q308 ($12.67)
• Cash used in operating activities of $0.4 million in Q309, $2.6 million less favourable than cash provided by operating activities in Q308 ($2.2 million)
• Net loss of $0.3 million ($0.00 per share) in Q309, $0.2 million greater than the $0.1 million net loss in Q308 ($0.00 per share)
• Comprehensive loss of $0.3 million in Q309, $4.4 million more favourable than the $4.7 Comprehensive loss in Q308
• In July 2009, the Company raised gross proceeds of CA$4.6 million via the issuance of 35,385,500 units at a price of CA$0.13 per unit, with each unit comprising one common share and one-half of a common share purchase warrant which can be exercised at $0.155/share for five years

Q309 was a disappointing quarter due to lower silver production than expected. Production for the quarter was 558,071 ounces or 42,000 ounces below target. The majority of the deficit occurred in July as seismic events (rock bursts) in a primary mining stope caused a loss of 10 days of production in that stope. This risk has since been mitigated by installing additional ground support.

An additional contributing factor was a reduction in head-grade compared to target. The reduced head- grade reflects the mix of the stopes mined and is, to a large extent, a timing issue. The resulting cash cost per silver ounce was $13.37 versus $11.34 in Q2.

Operating highlights from the third quarter of 2009 included the following:

• Production in the third quarter included ore from a new stope on the 2400 level and two recently redeveloped stopes on the 3000 level. Production from the 3700 level was negatively impacted by seismic activity in the higher grade 230 stope. On the 4600 level, the seismic activity also impacted the alternate stopes while the 146 stope was in the sand fill mode. On a positive note, a new ore grade vein was developed in the footwall of the 146 east stope. Sand backfill issues which hindered production in Q209 were significantly reduced by adding a third backfill shift and utilizing a sand reclamation system to increase the backfill capacity. Design work continues on a system to recover mill tailings from the Coeur mill for use as mine backfill
• Development on the 2400 level included 569 feet of decline that is being driven to the next mining horizon of the 170 vein complex. New raises were started on the 3700 and 4000 levels. Total raise advance for the quarter was 296 feet. On the 4300 level, preparations for an Alimak raise were nearly completed and crews are expected to begin driving the raise in the fourth quarter of 2009. Development on the 4900 level included 330 feet of track drift to the next mining area on the high-grade 220 vein. Raise development is expected to begin there in the fourth quarter of 2009. On the 5200 level, the first of two raises on the 174 vein was driven 30 feet and the second raise is expected to begin in the fourth quarter of 2009.
• Rehabilitation on the 3400 level was completed to the prolific Silver Vein area in the third quarter and exploration began on 9 high-grade intercepts. Rail and drift repair on the 4600 level continued during the third quarter 2009. On the 5200 level, crews completed 1,100 of the 1,800 feet of rehabilitation to the east end of the mine.

	9 Months of 2009	9 Months of 2008
Mined and milled – total tons	157,063	130,122
Mined and milled – tons per day	796	666
Silver produced – ounces	1,776,315	1,226,233
Lead produced – pounds	3,984,149	2,717,961
Copper produced – pounds	820,352	624,992
Cash cost per silver ounce produced *	$11.71	$13.61
Full cost per silver ounce produced	$13.85	$15.37
Capitalized mine development	$4,227,747	$11,951,065
Purchases of fixed assets	$1,127,096	$3,604,254
Exploration	$354,365	$1,525,186

* The Company reports the cash cost per ounce of silver produced in accordance with guidance provided by the Gold Institute utilizing the by-product method. This method is widely reported in the silver mining industry as a benchmark for performance measurement. However, the method does not include depletion, depreciation, exploration or corporate administrative costs and is, therefore, not directly reconcilable to costs as reported under generally accepted accounting principles in Canada or the U.S.A.

As reported in the Company’s press releases of October 8 and 22, 2009, the Galena Shaft rehabilitation resumed on July 27, 2009 and continues as planned. Repairs and installation of the concrete lining advanced 52 feet during the third quarter of this year. As of November 24, 2009 there is now approximately 28 feet to be excavated and lined with concrete in order to complete rehabilitation, expected by February 1, 2010.

The Company's full unaudited financial statements and management discussion and analysis have been filed with SEDAR, and are available on the company's web site (www.us-silver.com) or at www.sedar.com.

ABOUT U.S. SILVER CORPORATION

U.S. Silver, through its wholly owned subsidiaries, owns and 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 totaling approximately 18,000 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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 Company 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 Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.