The Company placed an emphasis on exploration, rehabilitation and development during the first two years of operation. Contractors were employed to speed up the work and to cope with the severe shortage of experienced miners. An excess of $30 million has been invested in exploration, development and capital projects.

In late 2008, a new Board and management realized that declining silver and metal prices required a much greater focus on production. All non-essential capital and development expenditures were curtailed, the second circuit in the Galena mill was activated and production of both tons and ounces increased. The production of 248,223 ounces of silver in December of 2008 exceeded any previous US Silver monthly production by 30%.

For 2009, U.S. Silver announced a record silver production of 2,427,156 ounces and lead production of 6,446,856 pounds. Silver production exceeded 200,000 ounces per month during each month of Q409. Silver and lead production levels in the last quarter were both higher than the corresponding production levels in each of the prior three quarters.

For 2010, the emphasis continued to be on the main level track development as well as driving raises to develop additional mining stopes. For the year ended December 31, 2010, U.S. Silver announced a silver production of 2,27 MM ounces, lead production of 5.61 MM pounds and copper production of 1.0 MM pounds.

The Company has historically delivered long-term production consistency and will continue to do so. However, due to the inherent short-term variability and unpredictability of narrow vein precious metal mining there will be a degree of unevenness to our reported quarterly results.

Due to these factors, the Company will no longer provide updated quarterly guidance, focusing instead on achieving our annual targets, long-term growth objectives and maximizing shareholder value from U.S. Silver's asset base.