U.S. Silver announced that year-end reserves have again increased in excess of production for the fourth consecutive year. Proven and probable silver reserves are 21.9 million ounces, an increase of 304,000 ounces after replacing production of 2.3 million ounces as detailed in the Company's 43-101 filed on SEDAR.

The exploration program continues to be cost effective at adding reserves at modest expenditure levels. In addition, the rate of reserve addition is expected to increase as the drilling program is expanded in 2011. Since 2006, the Company has increased proven and probable reserves by 115%.

Reserve highlights include:

• Reserves up over last year, after producing 2,275,817 ounces of silver in 2010
• Copper-Silver ore reserves at 17.8 million ounces of silver, 5,520 tons of copper
• Lead-Silver ore reserves at 4.1 million ounces of silver, 42,790 tons of lead
• Total proven and probable ore reserves at 21.9 million ounces of silver
• Silver reserves up 1% over the December 31, 2009 reserve, up 115% over June 2006 reserve
• Copper reserves up 7% relative to the December 31, 2009 reserve
• Lead reserves down 14% relative to the December 31, 2009 reserve

Resource highlights include:

• Copper-Silver measured and indicated resources at 8.0 million ounces of silver and 2,380 tons of copper; silver ounces up 5%, copper tons down 5%, relative to December 31, 2009
• Lead-Silver measured and indicated resources at 0.7 million ounces of silver and 7,270 tons of lead; silver ounces down 10%, lead tons down 13%, relative to December 31, 2009

U.S. Silver retained Chlumsky, Armbrust & Meyer, LLC (CAM) to independently review and audit the reserve methodology, updated reserves, and updated resources, for the Galena mine complex. The Qualified Persons who prepared the technical report for CAM are Fred Barnard PhD., and Steve Milne P.E. CAM's technical report on reserves and resources for the Galena mine was prepared in compliance with the Canadian National Instrument 43-101. The report will be filed on SEDAR.

Reserves and resources were estimated using metal prices of $16.00 per ounce for silver, $2.90 per pound of copper and $0.90 per pound of lead. All monetary values are in U.S. dollars. The mineral reserves and resource for the Galena mine complex are listed below.

December 31, 2010 U.S. Silver Ore Reserves and Resources:

Notes:

• Mineral resources are exclusive of reserves
• Mineral reserves have demonstrated economic viability whereas mineral resources do not
• Cutoff grade used for reserves and resources was 9.0 opt Ageq
• The cutoff grade is based on a cost of production of $143 per ton including mining, milling, administration, and general costs. In addition, costs for smelting, refining, and, transportation amount to $34 per ton
• Silver equivalent value for reserves and resources was 1.1 ounces per ton silver per one percent lead, after adjusting for metallurgical recoveries
• Silver equivalent value for reserves and resources was 3.6 ounces per ton silver per one percent copper, after adjusting for process recoveries
• Process recovery for silver-copper ore is 97.4% for silver and 97.1% for copper
• Process recovery for silver-lead ore is 95.0% for silver and 91.4% for lead
• Veins are diluted, at actual grade, to a minimum mining width for reserves and resources. The minimum mining width varies from 5 feet to 9 feet depending on the mining method
• 20% additional dilution, at zero grade, is added to reserves after diluting to the minimum mining width
• The reserve and resource estimation is based on data and mining as of December 31, 2010
• Mine production rate of 200,000 to 201,500 tons per year, and 2.6 million to 2.8 million ounces of silver per year, was assumed for calculations for economic viability
• In addition, copper production of 525 to 739 tons per year, and lead production of 3,660 to 5,926 tons per year were utilized
• The reserves are sufficient for 8 full years of production
• Measured and Indicated resources include 2,470,145 ounces at the Coeur mine. Inferred resources include 2,121,931 ounces at the Coeur mine.

Daniel H. Hussey, M.Sc, CPG, Manager of Exploration for U.S. Silver Corp, is the Qualified Person who reviewed this news release. He also supervised the updated reserve and resource estimation prepared by Galena mine personnel.