U.S. Silver Announces Hedging Transaction

U.S. Silver Corporation (TSX:USA, OTCQX:USSIF, Frankfurt:QE2) 'U.S.
Silver? or 'the Company? is pleased to announce that it has concluded a
Silver Price Protection Program with Auramet Trading LLC. U.S. Silver
has secured a minimum price of silver at US$27.50 per ounce on 500,000
troy ounces. The 500,000 ounce program covers equal quantities of silver
for each calendar month during 2011. As security, U.S. Silver has
provided an interest earning cash collateral deposit of US$3,000,000 and
has been granted a margin credit facility. This margin requirement will
decrease as silver volumes are delivered throughout the 2011 year.

The hedge guarantees that the Company will achieve meaningful positive
cash flow above the current cost of production at the Galena Mine. The
price of $27.50 is among the highest prices recorded for silver over the
past 30 years. While this program provides the security of positive cash
flow on the 500,000 ounces sold, the Company retains full upside
potential on approximately 80% of its estimated silver production for
2011.

Tom Parker, President and CEO of U.S. Silver stated, 'With the recent
run-up in silver prices and the extreme volatility we have witnessed,
U.S. Silver believed it would be prudent to guarantee a portion of our
future cash flow. With the capital costs associated with the
re-development of the Coeur mine and on-going capital spending and
exploration programs at the Galena mine, protecting a portion of our
silver volumes at these high price levels is considered to be a wise
risk reduction transaction. While U S Silver has historically been an
un-hedged silver play, securing a high selling price for approximately
18% of our 2011 production is a prudent thing to do.?

ABOUT U.S. SILVER CORPORATION

U.S. Silver, through its wholly owned subsidiaries, owns and/or operates
the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in
Shoshone County, Idaho, with the Galena mine being the second most
prolific silver mine in US history. Total silver production from U.S.
Silver's mining complex has exceeded 217 million ounces of silver
production since 1953. U.S. Silver controls a land package now totalling
approximately 14,000 acres in the heart of the Coeur d'Alene Mining
District. U.S. Silver is focused on expanding the production from
existing operations as well as exploring and developing its extensive
Silver Valley holdings in the Coeur D'Alene Mining District.

Certain information in this press release may contain forward looking
statements. This information is based on current expectations that are
subject to significant risks, assumptions 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

U.S. Silver Corporation

Tom Parker, 208-752-0400

President and
CEO

or

Chris Hopkins, 416-907-9539

CFO

info@us-silver.com

www.us-silver.com