Growing and advancing one of the world’s largest

undeveloped silver and indium resources.

VALUE.GROWTH.VISION

Corporate Presentation

December 2011

TSX: SAC, US OTC: SOHAF

www.soamsilver.com

Cautionary Notes

2

Forward-looking statements

Certain statements contained herein constitute “forward-looking statements.” Forward-looking statements look into the future and

provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words

such as “plans,” “intends,” anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests,” “potential,”

and similar expressions. These forward-looking statements are based on current expectations and entail various risks and

uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our

business, or if our estimates or assumptions prove inaccurate. Investors are advised to review the Company’s Annual Information

Form filed at www.sedar.com for a detailed discussion of investment risks. The Company assumes no obligation to update or

revise any forward-looking statement, whether as a result of new information, future events or any other reason.

Cautionary note regarding reserve and resource estimates

The material in this presentation has been prepared in accordance with the requirements of the securities laws in effect in

Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve

estimates included in this presentation have been prepared in accordance with National Instrument 43-101 Standards of

Disclosure for Mineral Projects (―NI 43-101‖) and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101

is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer

makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ

significantly from the requirements of the United States Securities and Exchange Commission (―SEC‖), and resource and reserve

information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without

limiting the generality of the foregoing, the term ―resource‖ does not equate to the term ―reserves‖. Investors should also

understand that ―inferred mineral resources‖ have a great amount of uncertainty as to their existence and great uncertainty as to

their economic and legal feasibility. It cannot be assumed that all or any part of an ―inferred mineral resource‖ will ever be

upgraded to a higher category. The estimation of quantities of resources and reserves is complex, based on significant subjective

assumptions and forward-looking information, including assumptions that arise from the evaluation of geological, geophysical,

engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including

new information gained from development activities, evolving production history and a reassessment of the viability of production

under different economic conditions.

Changes in data and/or assumptions could cause reserve estimates to substantially change from period to period. No assurance

can be given that the indicated level of mineral will be produced. Actual production could differ from expected production and an

adverse change in mineral prices could make a reserve uneconomic to mine. Variations could also occur in actual ore grades and

recovery rates from estimates.

Investment Highlights

3

• Experienced management team with track record of successful project development and value creation

• Two large-scale deposits in South America

Malku Khota: one of the world‘s largest silver-indium-gallium resources

o Updated 2011 PEA study doubles estimated production to 13.2 M oz silver, 80 tonnes of indium and 15 tonnes of gallium per year, for first 5 yrs

o NI 43-101-qualified Indicated resource of 230.3 million ozs silver, 1,481 tonnes of indium and 1,082 tonnes of gallium and an Inferred resource of 140 million ozs silver, 935 tonnes indium and 1,001 tonnes gallium.

Escalones: high potential copper-gold-silver deposit with an Inferrred resource of 3.8 billion lbs of copper and 610,000 oz of gold

• Well defined business plan to drive shareholder value

• Leveraged to silver over 4 oz of silver and 45 lbs of copper per share (8 oz silver equivalent)

• Attractive investment value relative to peers at low value per oz

• Anticipated low cost silver production at approximately $2.94/oz

• Strong focus on community relations to proactively facilitate mutually beneficial relationships

South American Silver Corp.

World-Class Deposits

4

Two large-scale assets in South America

Malku Khota, silver-indium project, Bolivia (100%)

• Pre-Feasibility process in H1 2012 & Feasibility start in H2 2012

• Bulk mineable open-pit, sediment hosted deposit

• Low capital and operating costs as a heap leach or milling operation

• Resource expansion potential with only 4 km of 50 sq km

property drill tested

• Potential to be one of the top producing silver and indium mines

1) Ag Eq calculated using total contained metal for silver ($22/oz) and gold

($1200/oz)

2) Cu Eq calculated using total contained metal for copper ($3/lb), lead

($0.90/lb), zinc ($0.90/lb), and molybdenum ($16/lb)

Silver

(Moz)

Indium

(tonnes)

Gallium

(tonnes)

Ag Eq

(Moz)

M&I 230 1,481 1,082 354

Inferred 140 935 1,001 240

World-Class Deposits

5

Two large-scale assets in South America

1) Ag Eq calculated using total contained metal for silver ($22/oz) and gold

($1200/oz)

2) Cu Eq calculated using total contained metal for copper ($3/lb), lead

($0.90/lb), zinc ($0.90/lb), and molybdenum ($16/lb)

Escalones, copper-gold-silver project, Chile (100%)

• Inferred Resource of 3.8 billion lbs of Cu, 56.9 million lbs of Mo, 610,000 ozs of Au and 16.8 million ozs of Ag

• Phase II exploration program underway to include up to 7,000 meters of follow-up drilling, with step-out testing of the known mineralized zones and testing of new targets based on geochemistry and geophysics

• Located within a world-renowned copper district near the world‘s largest underground copper mine, El Teniente

In Situ Grade

Tonnes Copper Gold Silver Moly Cu Eq

Millions % g/t g/t ppm %

420.6 0.41 0.05 1.24 61.39 0.49

Total Contained Metal

Copper Gold Silver Moly Cu Eq

Mlbs Ozs Moz Mlbs Mlbs

Inferred 3,835 610,000 16.8 56.9 4,503

Share Capitalization1

6

TSX:SAC, US OTC:SOHAF

Issued &

Outstanding Fully Diluted1 Warrants3 Options2

101.9M 118.4M 5.5M 11.0M

• ~$160 million Market Capitalization (4)

• Average 3 mo. trading volume 150,000 shares/day

• $28 million in cash(1)

Major Shareholders

•Zamin --19%

•Private investors--18%

•Management5 -- 8%

Institutional Ownership

•Sprott Asset Management

•Front Street

•US Global

(1) As of Nov 17, 2011, (2) Weighted avg .exercise

price $0.99 CAD (3) Weighted avg. exercise price

$0.97 (4) As of Dec 5, 2011 (5) direct ownership only

0

1000

2000

3000

4000

5000

6000

0

50

100

150

200

250

300

350

400

450

Mil

lio

n P

ou

nd

s o

f C

op

per

Eq

uiv

ale

nt

Mil

lio

n O

un

ce

s o

f S

ilve

r E

qu

iva

len

t/

To

nn

es

of

Ind

ium

an

d G

all

ium

(co

mb

ine

d)

In & Ga Inferred Resource

In & Ga M&I Resource

Ag Eq Inferred Resource

Ag Eq M&I Resource

Cu Eq M&I Resource

Cu Eq Inferred Resource

Adding Value Through Resource Growth

7

1) Ag Eq calculated using total contained metal for silver ($22/oz) and gold

($1200/oz)

2) Cu Eq calculated using total contained metal for copper ($3/lb), lead

($0.90/lb), zinc ($0.90/lb), and molybdenum ($16/lb)

Ag Moz In+Ga tonnes

13500

12000

10500

9000

7500

6000

4500

3000

1500

Cu Mlbs

IPO

0

50

100

150

200

250

300

350

400

450

500

Alexco Silvercrest US Gold Sulliden MAG Silver Orko Golden Minerals

Sabina Tahoe Resources

So.American Silver

Bear Creek

Comparative Silver Resources in the Americas

8

Source: Canaccord Report resource numbers as of January 11, 2011

Note: All companies have projects in South and/or North America

Second largest development stage silver resource

Millio

ns o

f S

ilver

Ou

nces

Yukon

(Canada)

Mexico

El Salvador

Mexico Mexico

Peru

Peru Mexico Mexico Nunavut

(Canada)

Guatemala Bolivia

Chile

Peru

Additional value

of Indium and Gallium Inferred Resources

M&I Resources

South

American

Silver

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

Enterprise Value per Silver Resource Oz

9

By project development stage

Source: Canaccord & Intierra as of June 9, 2011,

Note: All companies have projects in South and/or North America

Development Stage

Average ~$3/oz

Advanced Development

Stage Average ~$6/oz

EV of >$0.80 base on 230.3 million M&I oz Ag

Producer

Average

~$20/oz

Development Stage Value Curve

10

Potential value growth with project advancement

Increased value

through resource

expansion

Early Stage

Exploration &

Development

Advanced

Development

Stage (Reserves)

Production

Average Enterprise Value per Oz of Silver by Stage

Resource

Definition PEA

PFS

FS Permits

Construct

Discovery

$3/oz

$6/oz

$20/oz

Source: Recent average enterprise value per ounce of silver at

various development stages for North and South American based

projects. Canaccord, Wellington West and Company reports.

Incre

asin

g M

ark

et

Valu

e

Take-Over offers or

Partnerships

common at this

stage

Production

Increasing value with project advancement

Escalones

Project

Malku Khota

Project

Total Resource Ag Equivalent using (Ag +Au only at $25/oz and $1000/oz values)

Source: Canaccord Report July, 2011 and Intierra, July, 2011

Share prices as of Sept 7 2011,

Note: All companies have projects in South and/or North America

US Silver

Alexco

Aurcana

Bear Creek

Esperanza Int'l Minerals

Silvermex Sulliden

Troy

MAG

Coeur d'Alene

Endeavour

First Majestic

Great Panther

Hecla

Hochschild

Pan American Silver

Silver Standard

Arian

Castle

Extorre

Golden Predator

Silver Bull

Silver Quest

South American Silver Malku Khota

Current Value

Tahoe

10

100

1000

$50 $500 $5,000

Tota

l R

esourc

e S

ize (

Moz's

)

Enterprise Value (US$ Millions)

Current Silver Company Market Valuations by Resource Size & Development Stage

11

Size of circle represents market valuation premium in EV/oz

500

$2,000

MK MK MK

Total Resource Ag Equivalent using (Ag +Au only at $25/oz and $1000/oz values)

Source: Canaccord Report July, 2011 and Intierra, July, 2011

Share prices as of Sept 7 2011,

Note: All companies have projects in South and/or North America

Developers Adv. Developers Producers

$1,000

US Gold

$100 $200 $300

2011

PEA

2012

PFS/FS Production

MK Value at Avg Valuation

for each development stage

Positive Silver Fundamentals

12

A paradigm shift for silver?

• Major shift in supply/demand dynamic over past several years

• Silver still well below inflation adjusted highs of $140/oz ($50 in 1980)

• Silver is a ―hybrid‖ precious and industrial metal due to its scarcity and unique properties including superior electrical and thermal conductivity, malleability, reflectance, and catalytic/biologic reactivity

• Price increases driven by 40% increase in investment demand and 21% increase in industrial demand for a total increase of 17% in 2010

• Total annual mine production growth only 2.5% last year with reduced contribution of by-product silver from copper and gold production

• Projected new mine supply anticipated to be consumed by new industrial demand through at least 2015

• Chinese imports up 4x since 2009 with change from net sellers of more than 100 M oz of silver in 2005 to net buyers of more than 120 M oz in 2010

• Few major new deposit discoveries and growing time lag from time of discovery to metal production

Source: 1) GFMS World Silver Survey 2011

2) BMO Capital Markets Global Mining Research April 2011

0

200

400

600

800

1000

1200

Mil

lio

n O

un

ces

World Silver Demand

Industrial Applications

Photography

Jewelry and Silverware

Investment and Coins

Silver Supply/Demand Fundamentals

13

• Dramatically increased demand growth driven by strong investment demand plus

increased industrial consumption(1)

• Demand growth expected to continue to outstrip production growth(2)

Source: 1) GFMS World Silver Survey 2011

2) BMO Capital Markets Global Mining Research April 2011

+17% total

demand

growth

+40%

investment

demand

+21%

industrial

demand

+2.5%

mine

production

+8% total

supply

growth

0

200

400

600

800

1000

1200

Mil

lio

n O

un

ce

s

World Silver Supply

Mine production

Secondary Supply and Scrap

Government Sales

Growing Demand for Silver in Technology

14

Breakdown of key technology/industrial uses for silver

Source: CPM Silver Yearbook 2010

Not for reproduction without written CPM Group consent

Mill

ion

s o

f Si

lver

Oz

0

100

200

300

400

500

77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11p

Photovoltaic

Catalysts, alloys, solders and biocides

Electronics

Silver Primary & By-Product Production(1)

15

• 70% of silver is by-product production from base metals and gold

• By-product silver production is largely silver price inelastic

• Reduced by-product silver production anticipated going forward from base metals(2)

Source: 1) GFMS World Silver Survey 2005-2011

2) BMO Capital Markets Global Mining Research April 2011

0

5

10

15

20

25

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008 2009 2010

Sil

ve

r P

ric

e (

US

$)

Mil

lio

ns

of

Ou

nc

es

of

Sil

ve

r

Lead/Zinc

Primary

Copper

Gold

Silver Price

Indium & Gallium – Two Key Strategic Metals

16

Rapidly growing market for high-tech uses

Uses

• Indium-tin oxide (ITO) a key component of flat panel displays (FPDs) and touch screens

• High-efficiency CIGS (copper, indium, gallium, selenide) photo-voltaic thin-film solar panels, and LED lighting

• Fiber optics, specialized and transparent semiconductors

Supply

• Global indium use growing rapidly and could surpass available supply from by-product zinc refining at current price range

• One of the most scarce strategic metals due to low recycling and few primary producers

*

* Image from http://gotpowered.com

Indium & Gallium Fundamentals

17

Compelling supply/demand dynamics

Indium and Gallium Supply/Demand dynamics

• Indium and gallium highlighted in UN and US DOE studies as a critical technology metals in potential shortage, along with several key rare earth metals, due to rapidly increasing growth, low recycling rates and low primary production

• China is largest producer and consumer of indium and has imposed export quotas and tariffs like on other key high-technology specialty metals

• Indium market estimated to see 15-20% annual growth with most indium produced as by product of zinc refining growing at 1-3% annually

• Current indium and gallium price ~$900-1000/kg up from global economic lows during 2008-2009 of $400-500/kg

• Gallium market estimated to be a conservative 15% annual growth rate which could increase significantly with more rapid growth in LED lighting and photovoltaics

Malku Khota annual indium and gallium production

• Malku Khota projected to be one of the world‘s largest indium & gallium producers (80 tonnes and 15 tonnes per year)

• Potential to represent 10% or more of global mine supply of indium and over 5% of global supply for gallium

• Opportunities for project financing from off-take agreements for indium & gallium

Sources: (1) US Dept. of Energy Critical Materials Strategy, Dec.

2010. (2)United Nations Environment Programme (UNEP) Special

Report on Strategic Metals ,May 2011 .

18

Indium Supply Mine Production and Refining

Source: 1)Roskill ‗s Indium: Global Industry Markets and

Outlook ,2010

BLEU: Belgium, Luxembourg Economic Union

China, 45%

Peru, 9% Canada, 9%

Australia, 6%

USA, 4%

Mexico, 3%

Other Countries,

23%

Indium Mine Production

China

Peru

Canada

Australia

USA

Mexico

Other Countries

China, 52%

S.Korea, 13%

Canada, 8%

Japan, 8%

BLEU, 6%

Germany, 3%

Russia, 3%

Peru, 1% Others, 6%

Indium Refining

China

S.Korea

Canada

Japan

BLEU

Germany

Russia

Peru

Others

0

500

1000

1500

2000

2500

2010 2011E 2012E 2013E 2014E 2015E 2016E

Solar Energy

LED Lighting

LCD Flat Panels

Indium Demand Growth

19

Growing demand in high-tech markets

Growth assumptions based on data from Displaybank in LCD TV Association ―LCD

TV Matters‖-Volume 3, Issue 2, February 2010 , Strategies Unlimited, August 2009 ,

Solarbuzz, Photon International, GFMS , Nanomarkets, and the US Department of

Energy Critical Minerals Strategy Report December 2010

End

-use

Mar

ket

Dem

and

(to

nn

es)

2010 total

indium

production

level

5 year

projected

demand

growth

0

200

400

600

800

1000

1200

1400

1600

1800

2000

0

500

1000

1500

2000

2500

Demand

Price

Indium Fundamentals World indium demand vs price (1969-2011*)

Source: (1) Indium: Global Industry Markets and Outlook, 9th Edition 2010 (Roskill)

*2011-2013 Data are estimates (2) 2011-2015 Estimates US Dept. Of Energy

Critical Materials Strategy Dec. 2010. 16

Ind

ium

De

man

d

Ind

ium

Price

/kg ($U

S)

X Current Indium Price

Silver Mines in Bolivia

21

One of the world’s premier silver mining districts

• Historical district production of billions of ounces of silver

• Highly prospective & under-explored

• Increase from 9th largest global silver producer to 5th largest with completion of three major silver mines in past four years:

Pan American Silver – San Vicente

Coeur D‘Alene - San Bartolome

Sumitomo - San Cristobal

TSX:SAC

US OTC:SOHAF

Opportunity in Bolivia

22

An emerging resource based economy

• Bolivian government encouraging private investment

• Member of Mercosur Regional trade organization with Brazil as largest trading partner

• Government bond ratings upgraded by Moody‘s & Fitch

• Mining second largest economic sector

• One of the world‘s premier silver districts with billions of ounces of silver production

• Planned $32 billion 5-7 year infrastructure build-out by Bolivian government for new rail and road corridors and hydropower generation

• Three Major silver mines built within last four years by Pan American Silver, Coeur D‘Alene, and Sumitomo

• Substantial resource industry investments in Bolivia

Jindal Steel of India investing US$2.1 billion in giant El Mutun iron ore deposit

Petrobras of Brazil—Latin America‘s largest publicly traded oil company – investing US$1 billion of new capital into the Bolivian gas fields

Repsol of Spain investing $1.6 billion to increase gas production in Bolivia

Petrobras and Repsol have announced new exploration initiatives in Bolivia in early 2011

Kores of South Korea set to invest $210 million to develop the Corocoro copper project

Recently announced investments by Citic of China and LG/Posco of South Korea to develop major lithium resources

TSX:SAC

US OTC:SOHAF

Malku Khota Project

23

One of the world’s largest silver-indium resources

1) Average for the first 5 years of production

2) See March 31, 2011 News Release for detailed resource estimate

3) Total contained metal using base case prices (Ag: $18/oz, In:

$500/kg, Ga: $500/kg, Cu: $3/lb, Pb: $0.90/lb, Zn: $0.90/lb USD

4) Economic cut-off grade comprised only of silver and indium

Silver

(Moz)

Indium

(tonnes)

Gallium

(tonnes)

Copper

(MLbs)

Lead

(MLbs)

Zinc

(MLbs)

AgEq3

(Moz)

M&I 230 1,481 1,082 120 453 247 354

Inferred 140 935 1,001 102 362 246 240

Malku Khota Project – 2011 Resource Estimate2

Enrichment starts at surface Host rock sandstone with disseminated

silver, indium, gallium, lead, zinc and copper

Average grade first five years:

• Silver: 42.2 g/t (58 g/t Ag Eq) 1

• Indium: 7.55 g/t

• Economic cut-off grade <15 g/t (at $18/oz Ag) 2

Malku Khota Project

24

Low projected capital and operating costs with established infrastructure

• 50 square km, 100% owned, road accessible project

• Low capital and operating costs on a per ounce basis

• Potential to be one of the top primary silver and indium producing mines at 13.2 Moz silver per year and 80 tonnes of indium1

• Project base case annual cash flows and NPV‘s more than doubled

• Open pit, bulk mineable and very scalable

• Commercial electricity and natural gas nearby

1) Average for the first 5 years of production

Malku Khota Drilling

25

Grade thickness map

• 115 drill holes in current resource with updated resource Q1-2011

• Updated resource results increase total M&I oz to 230 Moz Ag (a 60% increase in M&I oz) plus an additional 140 M inferred Ag oz

• 2011 program to target conversion from

resources to reserves & expansion drilling • Mineralization begins at surface

• Deposit open along trend and down dip

with excellent potential for expansion

• New discovery of higher grade zones and down dip expansion of surface mineralization

TSX:SAC

US OTC:SOHAF

Mineralized Sandstones

OPEN

OPEN

OPEN

Malku Khota Mineralization

26

• Broad zones of continuous sediment hosted mineralization

• Open at depth and along trend

LMD048: 286 meters grading 76 g/t AgEq Grade thickness values of over 21,500 g-m AgEq

TSX:SAC

US OTC:SOHAF

OPEN

OPEN

Production Processes

27

From ore to metal

• Large scale shovel and truck open pit mine

• Oxide ore crushed in preparation for direct

leaching

• Acid-chloride leaching captures silver, indium,

copper, lead, zinc, gallium and gold

• Metal recovery in several steps:

• Acid recovery

• Silver-gold-copper cementation

• Indium-gallium precipitation

• Lead and zinc sulfides

• Downstream processing to metal products

TSX:SAC

US OTC:SOHAF

Crushing

Leaching

Metal Recovery

& Processing

Open Pit Mining

Silver, Gold,

Copper

Indium &

Gallium ingots

Lead & Zinc

concentrates

2011 Economic Assessment1

28

(1) In US dollars, March 2011, PEA

(2) LOM = Life of Mine

(3) First 5 years of production (avg)

Metal Prices ($US)4

Base Case

Silver : $18/oz

Indium : $500/kg

Gallium: $500/kg

$25/oz

$570/kg

$570/kg

Mining Rate

Life of Mine

Ore Mined (LOM)2

Average Silver Grade 3

Average Indium Grade3

Ag Eq grade

158 M

1,184

191 M

135 M

88 M

212,962

10.5 M

78.9

12.7 M

9 M

5.87 M

14,198

Mid Case

Base Case $185 M/yr

$1,261 M

$704 M

37.7%

27 months

$287 M/yr

$2,528 M

$1482 M

63%

19 months

Mid Case

Total LOM

Annual

40,000 tpd

15 years

200 M tonnes

42.4 g/t

7.55 g/t

58 g/t

First

5 years

Recent $430 M/yr

$4,298 M

$2571 M

92.9%

15 months

Recent

$35/oz

$650/kg

$730/kg

13.2 M

80.7

12.48 M

4.42 M

5.64 M

15,184

71%

15%

6% 5% 3%

Share of Gross Revenue (at base case prices)

Silver

Indium & Gallium

Copper

Lead

Zinc

First 5 years cash flow

Net cash flow

NPV (5% discount rate)1

Internal Rate of Return

Payback period (years)

Recovered Metals

Silver (oz)

Indium (tonnes)

Lead (lbs)

Zinc (lbs)

Copper (lbs)

Gallium (kgs)

(4) Base Case = 3 yr avg as of May 2011

Mid Case = 2 yr avg as of May 2011

Recent Case = 1 yr avg as of May 2011

Malku Khota PEA Update Projected Production Levels

29

Source: March 2011 Malku Khota PEA

Values in US$

0

2

4

6

8

10

12

14

16

18

20

22

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Pro

du

cti

on

- S

ilve

r E

qu

iva

len

t O

un

ce

s (

Mil

lio

n)

Production Year

Copper

Zinc

Lead

Indium & Gallium

Silver

Annual Average

13-20 Moz Silver Equivalent Production first 11 years

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Ac

tua

l/A

nti

cip

ate

d A

nn

ua

l A

g P

rod

uc

tio

n (

Mo

z)

Primary Silver Project Annual Production Rates

30 Source: CPM Silver Yearbook 2011

*Based on mine production of 13.2 Moz /year for first five years

Malku Khota one of largest emerging producers at over 13 Moz/yr

Producing Mine

Development Stage Project

BH

P B

illiton

Fre

snill

o

Barr

ick G

old

Corp

.

Sum

itom

o C

orp

.

Pan A

merican S

ilver

Industr

ias P

enole

s

Gold

corp

Inc.

So

uth

Am

eri

can

Silv

er

Co

rp.

Sabin

a G

old

& S

ilver

Poly

meta

l M

NP

O

Hochschild

Bear

Cre

ek M

inin

g

Etibank

Yam

ana G

old

Cia

De M

inas B

uenavert

ura

Hochschild

Hecla

Silv

er

Sta

ndard

Resourc

es

Silv

er

Sta

ndard

Resourc

es

Pan A

merican S

ilver

Coeur

d'A

lene

Tahoe R

esourc

es

Global Silver Industry Cash Cost Curve

31

Anticipated low-cost silver production

Cumulative Percentile of Silver Mine Production Cost

To

tal C

ash

Co

st P

er O

un

ce o

f Silv

er

Industry Average

Cash Cost

$5.27/oz

Malku Khota

13.2 Mozs/yr (1)

~ $2.94/oz (2)

Source: GFMS World Silver Survey 2011

(1) Average first 5 years of production

(2) Silver cash costs after credits ($US)/oz

Lowest 25%

Percentile Cash

Costs

Escalones Copper-Gold-Silver project, Chile

32

High potential, large-scale target

TSX:SAC

US OTC:SOHAF

Inferred Copper

(%)

Gold

(g/t)

Silver

(g/t)

Moly

(ppm)

Cu Eq

(%)

Copper

(Mlbs)

Gold

(Ozs)

Silver

(Mozs)

Moly

(MLbs)

Cu Eq

(MLbs) Tonnes

420 M 0.41 0.05 1.24 61.39 0.49 3,835 610,000 16.8 56.9 4,503

• 70 square km, road accessible, large scale system in well established mining district

• Located near one of the worlds largest underground copper mines at El Teniente

• Inferred Resource of 3.8 billion lbs of copper, 56.9 million lbs of molybdenum, 610,000 ozs of gold and 16.8 million ozs of silver

• Phase II exploration program underway

Escalones Project Logistics

33

Ownership: 100% through lease

Location: 35km E of El Teniente

Elevation: 3800m

• 70 square kilometer property

• Road accessible located 100 km

southeast of Santiago

• Gas pipeline across property

Excellent existing infrastructure

SAC property Gas pipeline Access Road

31 TSX:SAC

US OTC:SOHAF

Drill Results Grade Thickness Map

34

Large-scale copper-gold-silver system

• Open to expansion down dip

and laterally

• 30 diamond drill holes

(12,666 meters) and 43

channel and road cuts

(>2,100 meters) with >10,934

assay values collected

through 2011

• Limited testing of porphyry

system with most holes in

replacement /skarn style

mineralization

TSX:SAC

US OTC:SOHAF 32

CuEq GT AuEq GT

Copper (%) x Thickness (m) Gold (g/t) x Thickness (m)

0 – 10 CuEq% GT

10 – 50 CuEq% GT

50 – 100 CuEq% GT

100 – 200 CuEq% GT

>= 200 CuEq% GT

0 – 17 AuEq GT

17 – 85 AuEq GT

85 – 171 AuEq GT

171 – 342 AuEq GT

>= 342 AuEq GT

Metal Prices

Copper - $1/lb

Gold - $1000/oz

Silver - $15/oz

Moly - $15/lb

Escalones

35

Geological cross-section

• Enriched zones with high grades of replacement style mineralization starting at surface

at over >1% copper with significant gold and silver

• Large scale porphyry target with intercept of 176 m @ 0.6% copper with additional

credits from gold, silver, and molybdenum

TSX:SAC

US OTC:SOHAF

Alto Bajo

Mercator Minerals

Copper Mountain

Imperial Metals

Capstone Mining

Quadra FNX

Augusta Resource

Candente Copper

Copper Fox

Minera Andes

Nevada Copper

Taseko Mines

Hana Mining

Lumina Copper

NGEx Resources

Northern Dynasty

Panoro Minerals

Redhawk

Western Copper

1000

10000

100000

$50 $500

Tota

l R

esourc

e S

ize (

Mlb

s C

u)

Enterprise Value (US$ Millions)

36

Current Copper Company Market Valuations by Resource Size & Development Stage Size of circle represents market valuation premium in EV/lb

Developers Adv. Developers Producers

Escalones

Current Stage

$100

2.5cents/lb Avg Value 5cents/lb 15cents/lb

ESC

PFS/FS

ESC

Production

Escalones Value at Avg Valuation

for each development stage

ESC

$300 $1000 $2000

Community Relations

37

A key to successful project development

• Recent key addition to community relations team:

• Jim Mallory, VP Operations and Social Responsibility – 35 years industry experience

previously with Silver Standard, NovaGold, & Barrick (Placer Dome)

• Objectives to facilitate economic development in communities as part of project

exploration, development and construction activities

• Project construction will see workforce of over 1,000 with mine workforce of over 400 or

more

TSX:SAC

US OTC:SOHAF

Project Milestones

38

Value drivers over the next 6-12 months

• Malku Khota, silver-indium-gallium project, Bolivia

Updated resource estimate & PEA more than doubles annual production to 13.2 M oz of silver, 80.7 tonnes of indium and 15 tonnes of gallium per year*

Updated resource results show 60% increase in M&I ounces to 230 M oz of silver with an additional 140M oz inferred, and indium to 1,481 tonnes M&I and 935 tonnes inferred

Cash flows, project valuations and rates of return significantly expanded over previous studies

Pre-Feasibility work has started H2 2011 for completion in H1 2012

• Major camp expansion to support up to 6+ drills

• Feasibility work to begin in H2 2012

• Escalones, copper-gold-silver porphyry project, Chile

Phase I exploration and geophysics program

Initial resource estimate by end of 2011

Phase II drill program underway

• Resource update Q2 2012

*Average first five years of production

0

10

20

30

40

50

60

70

Silver ETF Sulliden US Gold Tahoe Resources

MAG Silver Silvercrest Sabina Orko Silver Standard

Bear Creek Golden Minerals

So.American Silver

South American

Silver Corp.

Leveraged to Silver

39

Value of silver per dollar invested

SAC has some of the best leverage to silver of any development

stage company with nearly $65 of silver value per $1 invested

Source: Canaccord as of January 17, 2011, Share prices updated October 18, 2011

Note: all companies have projects in South and/or North America

Calculated using $25/oz Ag. Dollar value of silver per $1 invested = (silver

resource/shares outstanding) x $25/oz silver) divided by share price

Value only shown for silver with no contribution from other metals

Silver value per $1 invested

Average value of silver ~$15 of silver per $1 invested*

Additional value of Indium and Gallium

Why South American Silver?

40

Investment highlights

• World-class scale projects with excellent expansion potential

• Track record of discovery and successful project development

• Growing shareholder value through resource expansion and advancing projects up

the development value curve toward feasibility

• Leveraged to silver with over 4 oz of silver and 45 lbs of copper per share (8 oz silver equivalent)

• Attractive investment value relative to peers at low value per oz

• Exposure to rapidly growing indium and gallium high-technology market

• New copper-gold-silver resource and expansion at Escalones

• Continued investor outreach to broaden market awareness of Company

TSX:SAC

US OTC:SOHAF 37

41

TSX: SAC

OTC: SOHAF

Phone: 604.681.6926

1.855.681.6926

www.soamsilver.com

Greg Johnson President & CEO

TSX:SAC

US OTC:SOHAF

42

Total Contained Metal - All Projects

Ag

Moz

Au

Ozs

Ag Eq1

Moz

In

tonnes

Ga

tonnes

In + Ga

tonnes

Cu

Mlbs

Pb

Mlbs

Zn

Mlbs

Mo

Mlbs

Cu Eq2

Mlbs

M&I 230.3 230.3 1,481 1,082 2,563 120 453 247 330

Inferred 173.6 610,000 206.9 935 1,001 1,936 3,937 362 246 56.9 4,423

ESCALONES

Approx. 0.02% Cu Cutoff In Situ Grade Total Contained Metal

Resource Tonnes Cu Au Ag Mo Cu Eq Cu Au Ag Mo Cu Eq

Category Millions % g/t g/t ppm % Mlbs Ozs Moz Mlbs Mlbs

Inferred 420.6 0.41 0.05 1.24 61.39 0.49 3,835 610,000 16.8 56.9 4,503

MALKU KHOTA

Approx. 10 g/t

Ag Cutoff In Situ Grade Total Contained Metal

Resource Tonnes Ag In Ga Cu Pb Zn Ag Eq Ag In Ga Cu Pb Zn Ag Eq

Category Millions g/t g/t g/t % % % g/t Moz tonnes tonnes Mlbs Mlbs Mlbs Moz

Measured 31 33.4 6.1 4.5 0.02 0.07 0.02 49.00 33.32 188 139 13.9 49 16 48.55

Indicated 224 27.3 5.8 4.3 0.02 0.07 0.05 43.20 196.96 1,293 943 106.4 405 231 311.45

Total M&I 255 28.1 5.8 4.3 0.02 0.07 0.04 43.77 230.28 1,481 1,082 120.3 453 247 358.80

Inferred 230 18.9 4.1 4.3 0.02 0.07 0.05 33.04 140.03 935 1,001 102.0 362 246 244.36

Resource Summary

1) The resource cut-off grade of 10 g/t silver equivalent is based only on the values of silver at $16/oz and indium at $550/kg. 2) The silver equivalent calculation uses base case metal pricing ( Ag at $18/oz, In at $500/kg , Ga at $500/kg, Cu at $3/lb, Pb at $0.90/lb,and Zn at $0.90 .

4) An economic cut-off grade of 0.2% copper equivalent represents a metal price of approximately $2.50/lb copper. 5) Copper Equivalent (Cu Eq %) calculations use $3.00/lb Cu, $1200/oz Au, $22/oz Ag, and $16/lb Mo and have not been adjusted for metallurgical recoveries

5) Ag Eq is calculated using total silver and gold contained metals at $1200/oz Au and $22/oz Ag 6) Cu Eq is calculated using total Cu, Pb, Zn, and Mo contained metals at $3/lb (Cu), $0.90/lb (Pb), $0.90/lb (Zn) and $16/lb (Mo).

Malku Khota NPV and Cash Flow

43

$0

$100

$200

$300

$400

$500

$600

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$15 $20 $25 $30 $35 $40 $45 $50

Ave

rag

e N

et

Ca

sh

Flo

w

1s

t 5

ye

ars

(U

S$

M)

NP

V @

5%

Dis

co

un

t R

ate

(U

S$

M)

Ag Price ($/oz)

Net Present Value

Average Net Cash Flow

Source: March 2011 Malku Khota PEA

Values in US$

6.5

8.4

10.5 11.1

12.3

15.6 16.2

17

19.3

23.2 23.4 23.5

0

5

10

15

20

25

20

11

E P

/CF

Silver Producer Price to Cash Flow Multiples (P/CF)1

44

Source: BMO Capital Markets Global Mining Research Report, April 3,

2011 (share prices as of March 31 2011)

(1) At $30/oz of silver (2) Using PEA base, mid and recent case prices

(3) First 5 year average (4) Using avg. P/CF of 15.6x at $30/oz Ag

Malku Khota PEA Projected Cash Flows

Price Ag/oz2 $18/oz $25/oz $35/oz

CF/yr3 $185 M $287 M $430 M

Valuation at

Avg. P/CF4 $2,886 M $4,477.2 M $6,708 M

45

TSX:SAC

US OTC:SOHAF

Relative Stock Performance SAC vs key silver & gold indices 18 month chart

46

TSX:SAC

US OTC:SOHAF

Relative performance of Gold/Silver and the

Producer/Development stage equity indices

Long Term Silver Ratios with Copper & Gold

47

Traditional benchmarks being challenged

Source: 1) Ian McAvity‘s Deliberations On World

Markets, May 4 2011

Silver showing relative strength

Criticality Index for Clean Energy/Technology Development

48

Showing Forecast Supply Shortages of Most Important Metals

Sources: (1) US Dept. of Energy Critical Materials Strategy,

Dec. 2010.

Dy

Ga Ce La

Te In

Eu

Nd Tb

Y

Li Co Pr

Sm

Nd Dy

Ga In

Li Te Eu Y Tb

Ce Co

La Pr

Sm

Short Term (0-5 Years) Long Term (5-15 Years)

4

3

2

1

4

3

2

1

1 2 3 4

Import

ance

to c

lean e

nerg

y

Import

ance

to c

lean e

nerg

y

1 2 3 4

low

low

hig

h

hig

h

Supply Risk Supply Risk low low high high

Important Near Critical Critical

Management & Directors

49

Greg Johnson (President/CEO & Director) has over 25 years mining

industry experience in corporate finance, project development and

exploration. A s a co-founder of NovaGold, he played a key role in

growing that company from $50 million in value to over $2 billion market

capitalization advancing 3 major projects through to Feasibility.

Phillip Brodie-Hall (Chief Operating Officer) has over 35 years experience

in engineering construction and project development. He has participated in

nearly every aspect of evaluation, feasibility studies and project

development in the mining industry.

William Filtness (Chief Financial Officer) is a Chartered Accountant with

over 20 years of financial experience in the mining industry.

James Mallory (Vice President of Operations & Social Responsibility)

has over 30 years of mining industry experience in large-scale mine

management, operations and construction for companies including Barrick

(Placer Dome), Silver Standard, and NovaGold.

Felipe Malbran (Vice President of Exploration) has over 25 years

experience in exploration management in South America including key

roles in the discovery of Malku Khota, Vizcachitas, and Escalones.

David Dreisinger (Vice President of Metallurgy) is Professor and Industrial

Research Chair in Hydrometallurgy at the University of British Columbia.

He is actively involved in developing and commercializing

hydrometallurgical process at a number of mines worldwide.

Andrew Clark (Manager of Project Implementation) has over 30 years

global industry experience in the development, design, management and

construction of industrial mining projects.

Richard Doran, (Vice President & Corporate Secretary) has extensive

industry experience including with General Minerals and as Marketing

Manager for Chevron Minerals.

Xavier Gonzales Yutronic (General Manager Compañía Minera Malku

Khota S.A.) has experience in management, finance, and community

relations in the mining industry including with Glencore, and Comsur S.A.

TSX:SAC

US OTC:SOHAF

Ralph Fitch (Executive Chairman) is an explorationist with over 40

years of global experience, a co-founder of South American Silver and

former Chief Geologist for Chevron Minerals credited with several

major discoveries in South America.

Antonio Canton (Director) is consultant and director to a number of

international companies in marketing, finance and real estate.

Tony Cau (Director) is COO at Zamin Ferrous. With over 30 years of

experience in the mining, construction and heavy manufacturing

industries, he has been involved in mine development and expansion

projects around the world for groups like BHP, SNC-Lavalin, and

Bateman Engineering.

Jeffrey Couch (Director) is the Managing Director and Head of

Investment & Corporate Banking, Europe and London for BMO

Capital Markets. He has held various financial and business

development positions and has extensive investment banking and

capital markets experience with groups such as Credit Suisse,

Citigroup, and Klienwort Benson.

Paul Haber (Director) is a Chartered Accountant and a Certified Public

Accountant, and previously CFO of a TSX-V company and Chairman

of the Audit Committee for South American Silver.

Peter Harris (Director) is a mining engineer with over 40 years of

industry experience including construction and operation of over 20

mines around the world with groups such as Barrick (Placer Dome)

and NovaGold.

William Murray (Director) is an engineer in the mining industry with

over 35 years of experience in construction management and project

evaluation with groups including Fluor Daniel, Denison Mines,

Optimum Project Services and Anglo American Corp.

John Watson (Director) is President of a TSX -V listed company and

Manager of a limited liability corporation in commercial real-estate.

Tina Woodside (Director) is the head of Gowlings’ corporate finance

department and practices corporate and securities law focused on

corporate finance, M&A and corporate governance matters.