U.S. Silver Announces Exercise of Warrants from September 2010 Private Placement

U.S. Silver Corporation (TSX-V: USA, US OTCQX: USSIF, Frankfurt: QE2)
('US Silver? or 'the Company?) announces today that all options and
warrants issued in connection with the September 29, 2010 private
placement have been exercised for total proceeds to the Company of $5.0
million, of which $4.1 million was received after the acceleration
notice was issued. As a result, the Company has issued 14,876,400 common
shares including 12,449,900 after June 30, 2011 in connection with the
conversion of these warrants and options. Issued and outstanding common
shares now total 306,650,717 as of August 31, 2011. On July 28, 2011,
the Company provided notice to all warrant and broker option holders
that the warrants and broker options would expire at 5:00 pm (Toronto
time) on August 29, 2011, being no less than 30 days following the date
of the acceleration notice. The Company originally issued 13,282,500
warrants exercisable at a price of $0.35 and 1,593,900 broker options
exercisable at $0.26 as part of the bought deal private placement.

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 totaling
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.

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.

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

U.S. Silver Corporation

Heather Foster, 208-752-1116 x221

Manager
IR