OPPORTUNITY

South American Silver Corp is a company poised for a period of rapid growth and value creation. With a promising portfolio of 100% owned large-scale mining projects in the well-established mining districts of the South American Andes Mountains, the Company has one of the largest silver and indium resources of any exploration or development stage company in the world.

The Assets

The Company has a current indicated resource of 230 million ounces of silver and 1,481 tonnes of indium and an additional inferred resource of 140 million ounces of silver and 935 tonnes of indium at its Malku Khota project giving shareholders exposure to nearly 5 ounces or $100 of silver per share. This bulk mineable, sediment hosted silver and indium deposit has exceptional regional expansion potential and many positive, low cost, mining characteristics. As currently envisioned the project has the potential to become one of the world’s largest silver and indium producers.

In addition, South American Silver wholly owns a second large-scale property. The high-potential, road accessible Escalones, Copper-Gold project is located in Chile within one of the world’s premier copper mining districts very near to the El Teniente mine, the largest underground copper mine in the world.

Similar assets in the mining sector of the scale of Malku Khota or Escalones at this early stage of the development cycle have seen increases of 5 to 10 times or more in value with successful project advancement.

Metals Market

The rapidly growing demand for both silver and indium suggests that the potential for higher prices of these metals has rarely been more promising. This growing demand is being driven from both investment demand for the metals, as well as for high technology uses ranging from touch screens and solar panels to long life LED lighting and bio-medical uses. Indium in particular is a market showing very rapid growth in demand but with very limited current supply. With one of the largest resources in the world for indium South American Silver offers investors exposure to an exciting niche strategic metal with new and growing industrial applications and a compelling supply/demand picture. In addition, the potential to rapidly develop a significant copper-gold resource gives investors exposure to the promising copper-gold market as well.

Management Team and Business Strategy

South American Silver’s Management team brings over 100 combined years of experience in the mining industry and has a track record of successful market value creation, key operational and process expertise and large project discovery and advancement. Management’s well-defined business strategy is to leverage the high per share levels of metal resources and rising metal price market, while driving shareholder value by successfully advancing its projects toward feasibility and a production decision. Studies completed to date indicate that the Malku Khota silver-indium project has the potential to be one of the largest new producers of silver with operating costs in the lowest 25^th percentile of the industry. In addition, the project has the potential to produce an estimated 10% or more of the world’s indium supply.

Community Relations Strategy

Responsible mining and community collaboration are key components of the Company’s business strategy. We believe that upholding high environmental and social standards makes good business sense and effectively reduces overall development risk, thus increasing the probability of delivering the financial growth that shareholders expect.

Development Stage Value Curve:

South American Silver currently trades at a very attractive value level relative to the average project valuation at this early stage of exploration and resource definition. At this stage, the resource still has excellent potential to grow significantly larger. As the project advances from the initial resource definition and preliminary economic assessment stage (PEA) to pre-feasibility (PFS) through to feasibility (FS), the value of the resource has the potential to increase from 3-5 times or more based on greater refinement and understanding of the project economics and "de-risking” of the project toward production.

As the project advances even further toward mine development and production, an additional 2-3 times growth in value is common. As metal prices rise, so too will the resource‘s market value. It is during these stages of advancement that technical risk lessens even further and large-scale resources become most attractive to take-over producers for reserve replacement and growth.

With an indicated resource base of 145 million ounces of silver and 845 tonnes of indium, and with an additional inferred resource of 178 million ounces of silver and 968 tonnes of indium, South American Silver already has one of the world’s largest silver and indium resources. Excellent potential still remains to continue to grow the resource base even larger through exploration. This positions South American Silver to see exceptional value growth as it advances through the development stages toward feasibility and production.