Mexico: the land of silver

GLOBAL RESOURCES

INVESTMENT CONFERENCE

STATIONERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 27-28 SEP 2011

www.ObjectiveCapitalConferences.com

Mexico: the land of silverGeorge Cavey – Orko Silver

Other sponsors & participating organisations:

GLOBAL RESOURCESINVESTMENT CONFERENCE 2011

Lead sponsor:

Media partners:

@Objectivelive

On the Fast Track to Silver Production at

La Preciosa

September 14, 2011

Gary Cope - President, CEO, and Director – Gary Cope has more than 30 years experience in corporate

finance and corporate strategy, as well as significant experience with the financing of publicly held

companies. Mr. Cope arranged the financing and was instrumental in the negotiations and sale of the

South Kemess Deposit.

Mike Devji - Executive Vice-President and Director – Also President & CEO of Blackcomb Minerals Inc.

An experienced financier of public companies, Mr. Devji led a group of investors who financed a 40%

interest in the South Kemess Gold-Copper Deposit in British Columbia, Canada. That interest was

subsequently sold for over $400 million.

George Cavey, P. Geo. - Vice-President Exploration and Director – 35 years in exploration and

consulting as the president of OreQuest Consultants. Past President of the Canadian Council of

Professional Geoscientists. The 2004 recipient of the APEGBC C.J. Westerman Award. Also the recipient

of the 2010 Canadian Professional Geoscientist Award, Canada’s highest honor for a Professional

Geoscientist.

B.H. (Ben) Whiting, M.Sc., P.Geo. - Chief Geologist - 30 years experience in the international exploration and mining plus past Adjunct Professor at Queen's University. Mr. Whiting was awarded the Aaro Aho Foundation's prize in Economic Geology.

Art Freeze, P.Geo. - Consulting Geologist, Advisory Board Member – 40 years experience in

international exploration and project management. Technical Advisor and Director for several public mining

companies as well as a consulting geologist for Goldcorp.

Key Management & Directors

4

Primary Listing: TSX Venture Exchange

Trading Symbol: OK

US OTC Pink Sheets: OKOFF

Frankfurt Exchange: OG3.F

Share Structure

Issued: 129,446,979

Options: (average $0.55) 12,672,500

Fully diluted: 142,118,979

Working Capital CDN $13,800,00052 Week Low/High CDN $1.40 to $3.25Current Price: CDN $2.57

Share Ownership (Fully diluted)

Institutional ~ 35% - 40%

Management ~ 15%

Goldcorp, Inc. (NYSE: GG) ~ 3%

Pan American (NASDAQ: PAAS) ~ 3%

Capital Structure September 14, 2011

5

• La Preciosa, one of the world’s largest primary silver deposits is located in Durango, Mexico, the world’s largest silver producer – 128.6 million oz in 2010.

• Our 43-101 compliant Resource Estimate is now 175 Million Silver Equivalent Ounces (70% Indicated, 30% Inferred)

• On April 14th 2009 Orko Silver signed a Joint Venture Agreement with Pan American Silver (NASDAQ: PAAS) to bring the La Preciosa deposit into production.

• Orko is fully financed.

•Aug 10th, 2011 Orko and Pan American release a new Resource Estimate (fully diluted resources) and a Preliminary Economic Assessment (PEA)

• Positive PEA demonstrates a long robust mine life.

Company Highlights

6

La Preciosa Mineral Resources

(Fully Diluted)

* Estimated at a 50 :1 Silver/Gold ratio with metallurgical recoveries and refining charges assumed to be the same for Ag & Au

NI 43-101 Reserve & Resource Categories

Reserve Categories Resource Categories

- Proven, Probable - Measured, Indicated, Inferred

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CategoryCutoff

g/t AgTonnes

Grade

g/t AgEq

Ag

Grade

(g/t)

Silver Ounces

Au

Grade

(gt)

Gold

Ounces

AgEq

Ounces

50:1

Category

%

Indicated(Open Pit)

35 10,900,000 139 129 45,000,000 0.19 66,000 49,000,000

Indicated(Underground)

85 13,900,000 170 152 68,000,000 0.35 156,000 76,000,000

Indicated

Totals24,800,000 156 142 113,000,000 0.28 222,000 124,000,000 70%

Inferred(Open Pit)

35 7,600,000 81 74 18,000,000 0.13 31,000 20,000,000

Inferred(Underground)

85 7,600,000 128 117 28,000,000 0.21 52,000 31,000,000

Inferred

Totals15,200,000 96 105 46,000,000 0.17 83,000 51,000,000 30%

Totals 40,000,000 133 128 159,000,000 0.24 305,000 175,000,000 100%

- The 2009 resource estimate of 146.3 million ounces was an undiluted estimate

On Aug 10th, 2011 Orko and Pan American release a Preliminary Economic Assessment (PEA)

Demonstrates the potential for a 12 year mine Annual production of 6.8 million oz Ag and 12,000oz Au (LOM) Cash cost of $ $11.84/oz Ag Capital costs of $270 million (PAA burden)

Preliminary Economic Assessment (PEA)

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Base Case Current Pricing

Silver Price (US$/oz) $25 $38

Gold Price (US$/oz) $1250 $1600

Undiscounted present value $497 million $1,309 billion

Net Present Value (5% discount) $315 million $922 million

Internal Rate of Return (IRR) 24.3% 52.7%

Payback 3.3 years 1.9 years

Sensitivity Analysis of La Preciosa

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-10%

+10%+20%

-10%

+10%+20%

$12/oz

$18/oz

$25/oz

$30/oz

$40/oz

30%

20% 15%

Ind. only

-400

-200

-

200

400

600

800

1,000

Pro

ject

NPV

@ 5

% (

$M)

Capex Opex Ag price UG pillars Indicated only

10

Internal Rate of Return (IRR%)

IRR

%

0

10

20

30

40

50

60

Internal Rate of Return (IRR) vs Metal prices

Inte

rnal R

ate

of

Retu

rn

11

Silver $/oz,

Gold $/oz

0%

10%

20%

30%

40%

50%

60%

70%

$25, $1250 $30, $1400 $35, $1550 $38, $1600 $40, $1700 $45, $1850

Net Present Value (NPV @ 5%) vs Metal Prices

Net

Pre

sen

t V

alu

e

($ m

illi

on

)

12

Silver $/oz,

Gold $/oz

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$25, $1250$30, $1400$35, $1550$38, $1600$40, $1700$45, $1850

Cost of Production 2010 (actual)- 2011(estimate)

•Assumes the completion of

positive feasibility study

• Assumes 91% Ag recovery and

65% Au recovery

• Assumes Ag 250 g/t, Au 0.30 g/t

• Assumes 10% dilution

• Ag Eq = Ag/Au 60:1

6.67.2

8.8

7.8 – Potential La Preciosa

Production (million ounces)

*- Assumes the completion of a

positive feasibility study

13Source: BMO Capital Markets

OK

Regional Map - Durango State, Mexico

• 45 minutes from the city of

Durango

• 45 minutes from International

Airport

• Access by paved highway

• 8 km to national power grid

• 8 km to rail lines

• 2 hours by road/rail to smelter

Located in the heart of Mexico’s prolific Sierra Madre Mining Belt,

which hosts large silver deposits such as Fresnillo & Pitarrilla14

La Preciosa

The Joint Venture consists of a large land package of 32,400 hectares (~ 80,000 acres)

15

Vertical Cross Section 2701980N

La Preciosa Deposit – Mine Plan

16

Vertical Cross Section 2701980N

La Preciosa Exploration and Development

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Completed• Orko & Pan Am diamond drilling -245,000 metres (796,000 feet or 151 miles) of

core in 717 holes.

• Geotechnical pit-slope and mine support design (Golder Associates )

• Metallurgical & petrographical studies (SGS Mineral Services)

• Processing plant design studies (M3 Engineering)

• Environmental Impact Assessment (Clifton Associates )

• Resource Estimate (Snowden Mining Consultants Inc.)

• Preliminary Economic Assessment (Snowden Mining Consultants Inc.)

Ongoing• Project engineering consulting for Orko (AMEC)

• Community relations and surface rights purchase (Pan American)

• Feasibility Study by April 13, 2012 (Pan American/Snowden?)

Projected La Preciosa Timeline

2007 2008 2009 2010 2011 2012 2013 2014

Martha Vein Discovery

Orko Drilling

Detailed PAA Drilling

Geotechnical Drilling

PEA

Feasibility Study *

Construction

Production

P

A

N

A

M

E

R

I

C

A

N

D

E

A

L

S

I

G

N

E

D

* The terms of the JV agreement require PAAS to complete a feasibility study by April 13, 2012.

0.0

3.0

6.0

9.0

12.0

7.2 M 8.0 M *

3.2 3.6

4.04.4

PAAS

Orko

Projected Annual Silver (Eq) Production

Silver Eq

Ounces

(millions)

La Preciosa’s potential production of more than 7 million ounces of silver annually represents more than 5% of Mexico’s annual silver production

19

Annual production (million ounces)

* - Assumes an ~10% increase in productivity with final engineering study results

ProducingPrice

( Sept 14) Market

2010

Silver

2010

Gold OtherMcap/

Production Reserves & ResourcesMcap/

Resource

Company Capitalization production production production

AgEq

(Ag:Au 50:1) Ag AuAgEq

(Ag:Au 40:1)

First Majestic $20.48 $1,921,594,757 7,024,055 2,145 Pb, Zn 262 300,000,000 35,000 6.4

Silvercorp $6.83 $1,127,699,545 4,140,000 2,000 Pb, Zn 161 218,000,000 175,146 5.0

Great Panther $3.26 $373,922,000 1,534,956 7,380 Pb, Zn 172 17,100,000 80,000 17.7

Silver Standard $26.48 $2,087,119,864 6,301,140 Pb, Zn 320 1,740,405 4,752,600 8.7

Endeavor $12.48 $870,567,360 3,285,833 17,000 Zn 210 72,000,000 320,000 9.9

Fortuna Silver $6.10 $675,190,700 1,906,422 Pb Zn Cu 354 90,140,000 499,275 5.9

Aurcana $0.74 $256,771,139 771,031 67 51,800,000 5.0

Scorpio Mining $2.22 $426,462,000 910,352 193 61,000,000 7.0

Minera Andes $2.75 $728,039,458 2,608,875 41,306 Cu 156 110,000,000 3,009,000 2.8

Excellon Res $0.77 $187,050,224 1,317,605 Pb, Zn 142 37,000,000 19,000 4.9

Orko @ 45% $2.57 $332,677,451 3,200,000 11,800 n/a 104 159,000,000 305,000 1.9

Potential Annual Silver (Eq) Production

Assumes 100% Orko interest

(Orko 45% interest = 4.2)

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* - does not include base metal credits

AgEq

production

estimate

World's Leading Primary Silver Mines

(2010 production in millions of ounces)

Source: The Silver Institute

Rank Mine/Country Operating Company Production

1. Cannington, Australia BHP Billiton 38.60

2. Fresnillo, Mexico Industrias Peñoles SA de CV 33.76

3. Gümüsköy, Turkey Eti Gümüş A.Ş. 11.46

4. Dukat, Russia JSC Polymetal 11.10

5. Pallancata, Peru Hochschild Mining / International Minerals 10.14

6. Uchucchacua, Peru Compañia de Minas Buenaventura 9.27

7. Arcata, Peru Hochschild Mining 8.10

8. Greens Creek, U.S. Hecla Mining 7.21

9. Imiter, Morocco Société Métallurgique d'Imiter 7.20

La Preciosa, Mexico Pan American/ Orko Silver 7.20

10. San Bartolomé, Bolivia Coeur d'Alene Mines 6.71

11. Alamo Dorado, Mexico Pan American Silver Corp. 6.68

12. Pirquitas, Argentina Silver Standard 6.30

13. Palmarejo, Mexico Coeur d'Alene Mines 5.89

14. San José, Argentina Hochschild Mining / Minera Andes 5.32

15. Ying, China Silvercorp 4.32

La Preciosa, Mexico Pan American interest only 4.00

16. Manantial Espejo, Argentina Pan American Silver Corp 4.00

17. La Colorada, Mexico Pan American Silver Corp 3.70

La Preciosa, Mexico Orko Silver interest only 3.20

18. Huaron, Peru Pan American Silver Corp 3.00 21

Significance of La Preciosa to PAA

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Company

Issued &

Outstanding

Share

price

Market

Capitalization

Silver

Reserves &

Resources*

Silver

production

(2010)

Future Silver

production *

(Ag ounces)

Pan American 107,791,000 $32.84 $3,539,856,440 1,190,793,000 24,285,440 23,500,000

Orko Silver

(La Preciosa)* 129,446,979 $2.57 $332,678,736 159,000,000 n/a 6,800,000

OK - PAA 8% 9% 12% 22%

* - Columns are assuming silver only (not silver equivalent - AgEq) for La Preciosa

Upside for Orko

• Pan American has spent more than US$16 million on exploration and development to complete a feasibility study

• PAAS must contribute 100% of the funds necessary to develop and construct an operating mine, in consideration for a 55% interest in the joint venture

• Orko will be fully carried and will end up owning 45% of a producing mine

• PAAS is fast tracking La Preciosa to production for early 2014

• AMEC and Orko have determined that the PEA is a conservative document, with upside expected in:

• Resource estimate (lower cut-off grades)• Mining methods• Reduced dilution of many of the veins• Grade• Financial analysis-

• 5% management fee included will disappear if 100% PAAS ownership(~$0.80 per oz Ag)

• ~$30 million in sustaining capital to be moved to capital costs (100 % PAAS burden)

• Net result will be lower costs per tonne, longer mine life23

As of September 14, 2011

24ECU, OK, MAG, SVL, XAG, KTN, ORM, SOL UXG, EPZ, ASM, CJO GPR, FR, EDR, SLX, FVI, IPT

What Others are Saying

Byron Capital Markets – Jeff Wu, Mining Analyst – Aug 2011 “The PEA deeply

underestimates La Preciosa’s economic value.”

GMP – Kevin Reid, Director -“We highlight Orko Silver as a unique investment

opportunity in the silver sector, offering good metal price exposure to silver and

exploration upside through its La Preciosa project in Durango, Mexico, but with a

lower risk profile than typical for a preproduction silver play as its JV agreement

with senior producer Pan American Silver offloads construction financing risk (OK

is fully carried through to production) and reduces overall development risk (Pan

American is an experienced mine builder). While we see good upside to our

fundamental target, we also believe that the structure of the JV with Pan American

makes Orko Silver a potential M&A target. ”

Pan American Silver – Geoff Burns, President – Aug 2011 - “It is a very

interesting project for Pan American …it has a solid silver production profile, has a

relatively long mine life, and is located in a good mining jurisdiction…At current

silver prices, the project economics become extremely robust. We will be moving

forward aggressively to complete a Feasibility Study and to position ourselves for

a construction decision…”25

Orko Silver Corp. Share Price Chart – September 14, 2011

PAA JV announced

6th Resource Estimate

Soft TSX market

Private Placement

Announced

February 2011

Why Orko Silver?

• La Preciosa is one of the world’s largest primary silver deposits

• La Preciosa’s superb location offers an infrastructure advantage

• Pan American is advancing La Preciosa to production, early 2014

• Excellent potential to expand the silver resources

• Orko has a fully carried interest into production

• Better leverage in Orko shares than Pan American shares; the current share

price doesn't factor in any potential takeover premium

• Significant upside in lower costs and higher productivity when engineering

studies are concluded and incorporated into the Feasibility Study

• Orko is fully financed

• Share price doesn't factor in an increase in the price of silver, PAAS could

forward sell at today’s Ag price

• Orko’s economic share of production is closer to 57% to reflect $0 capital cost

(GMP)

• Share price doesn't factor in increased confidence generated from a full

Feasibility Study (Q2 - 2012)27

1180 - 999 West Hastings Street

Vancouver, B.C. Canada V6C 2W2

Phone: +1.604.687.6310

Fax: +1.604.687.6365

Email: [email protected]

Web: www.orkosilver.com

TSX Venture Exchange: OK

US OTC Pink Sheets: OKOFF

Frankfurt Exchange: OG3.F

Contact Information

28

This presentation of Orko Silver Corp. (the “Company”) contains “forward-looking information” within the meaning of the United

States “Private Securities Litigation Reform Act of 1995” and applicable Canadian securities legislation. Statements containing

forward-looking information express, as at the date of this presentation, the Company’s

plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and the Company does not

intend, and does not assume any obligation to, update such statements containing the forward-looking information.

Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans,” “projects” or

“projected,” “expects” or “does not expect,” “is expected,” “estimates,” “forecasts,” “scheduled,” “intends,” “anticipates” or “does

not anticipate,” or “believes,” or variations of such words and phrases, or statements that certain actions, events or results

“may,” “can,” “could,” “would,” “might” or “will be taken,” “occur” or “be achieved.” Statements containing forward-looking

information include, but are not limited to, statements with respect to the anticipated economic returns of any of the Company’s

projects, the expected results from exploration activities, the economic viability of the development of newly discovered ore

bodies, the accuracy of mineral resource estimates, future production levels, the requirements for additional capital, the results

of drilling, and Orko Silver’s commitment to, and plans for developing, newly discovered and existing mineralized structures.

Statements containing forward-looking information involve known and unknown risks, uncertainties, and other factors that may

cause the actual results, level of activity, performance, or achievements of Orko Silver and its operations to be materially

different from those expressed or implied by such statements. Such factors include, among others, the actual results of current

exploration activities, future prices of silver and gold, unpredictable risks and hazards relating to the development of La

Preciosa, and the speculative nature of exploration and development. Although the Company has attempted to identify

important factors that could cause actual results to differ materially from those contained in forward-looking statements, there

may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed, or

intended. There can be no assurance that any statements containing forward-looking information will prove to be accurate as

actual results and future events could differ materially from those anticipated in such statements. Accordingly, undue reliance

should not be placed on statements containing forward-looking information.

This presentation has been prepared by the Company and has not been reviewed or approved by Pan American Silver. George

Cavey, P.Geo., is the Qualified Person responsible for the preparation of the scientific and technical information related to the

Company’s operations that is included in this presentation.

Forward-Looking Statements

29

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Mexico: the land of silver

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