U.S. Silver Reports Achieving Production Increases of 86% Over Last 5 Months: Financial News

U.S. Silver Reports Achieving Production Increases of 86% Over Last 5 Months
Tuesday February 19, 8:00 am ET

TORONTO, ONTARIO--(MARKET WIRE)--Feb 19, 2008 -- U.S. Silver Corporation (CDNX:USA.V - News) ("U.S. Silver" or the "Company") announces that production throughput in both the Galena and the Coeur mills increased significantly in January 2008 compared to 2007 3rd and 4th quarter levels. A 39% increase in tonnage was achieved treating 615 tons of ore per day versus a 4th quarter average of 444 tons per day (tpd). The January levels were also up 86% compared to 3rd quarter levels which averaged 330 tpd. This increase was largely a result of the company's new focus on lead-silver development and production. January production for lead-silver ore averaged 283 tpd through the Coeur mill, the highest levels since this mill was commissioned by U.S. Silver in September, 2007. Milled tonnage of approximately 400 tpd of lead-silver ore is expected by the 2nd quarter 2008.

Ore grades in both the Galena and Coeur mills will continue to improve as development of new ore zones and exploration successes provide access to higher-grade ores. Low grade development ore currently included in the mill feed will be replaced by higher grade production ore as the year progresses. Ore grades are expected to continue to improve in both mills throughout the year with grades returning to historical averages later this year.

Throughputs of silver-copper ore at the Galena Mill have been reduced over the past 18 months because management focused on infrastructure repair, development activities, and the start up of silver-lead production. Plans are for silver-copper production to be ramped up from current levels of approximately 350 tpd to approximately 600 tpd by the 3rd quarter. Total combined throughput of both mills is anticipated to exceed 1000 tpd by the 3rd quarter.

Galena Shaft Repair

In mid 2007, the Company initiated repairs to the Galena shaft between the 2400 and 3200 levels, where a timber failure occurred approximately 10 years ago. After nearly 5 months of preparatory work, the Company started pouring a new concrete lining in the shaft at the 2400 level in early November. When repairs are completed, the shaft will be concrete lined from the 2400 level to the 3200 level. It is expected to be operational by the 4th quarter of 2008 and will add several hundred tons per day of hoisting capacity. As well, this will add considerably to the operational flexibility of the Galena mine since the Galena shaft provides access to all production levels.

While the repair of this shaft is important to the long-term optimum operation of the Galena Mine, the Company is confident that the target of 1000 tpd can be achieved without the Galena shaft repair being completed. The addition of the Galena shaft adds significantly to the hoisting capacity of the mine but, more importantly, it provides considerably more flexibility and access to many more levels of the mine with high-grade ore reserves. The total capital budget for this shaft repair is approximately US $ 3.5 million.

Operational Update

In light of recent and sustained high lead prices, management decided in early 2007 to temporarily redeploy a portion of the Company's work force from mining silver-copper ore to preparations for the start-up of lead-silver production. Production of lead-silver ore started late in the summer and the Coeur mill was activated in September. Concentrate shipments to TeckCominco's Trail smelter began in October, 2007 under a smelter contract (see News Release dated April 4, 2007).

As a result of these initiatives, the Company was able to capitalize on historically high lead prices and sold forward approximately 6 million pounds of lead at prices above US $1.55/lb for 2008. These forward sales cover approximately 40% of the expected lead production in 2008.

Mark Hartmann, President of U.S. Silver stated, "The Company is well on its way to making 2008 the production turnaround year at the Galena mine. With continued strong metal prices, we should show a profit in the 1st quarter of 2008. The Company continues to develop extensive new reserves and expects to issue a new reserve and resource summary in the next few weeks."

"The milestones achieved during the past 4-5 months demonstrate that the Galena Mine Complex is turning the corner operationally, as well as financially. Management remains confident that all of the work and capital investment that has taken place since mid 2006 is now starting to payoff", said Bruce Reid, CEO of U.S. Silver. "We expect further improvements in costs and revenues to continue through 2008 as production levels at the mine increase."

ABOUT U.S. SILVER CORPORATION

U. S. Silver owns and operates the Galena, Coeur, and Caladay silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver producer in US history. Total silver production from U.S. Silver's mining complex has exceeded 210 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 its production from existing operations as well as exploring and developing 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 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.

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