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Growing and advancing one of the world’s largest undeveloped silver and indium resources.

A Growth Focused Exploration & Development Company. Growing and advancing one of the world’s largest undeveloped silver and indium resources. Corporate Presentation. TSX: SAC, US OTC: SOHAF. Q2 2011. www.soamsilver.com.

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Growing and advancing one of the world’s largest undeveloped silver and indium resources.

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  1. A Growth Focused Exploration & Development Company Growing and advancing one of the world’s largest undeveloped silver and indium resources. Corporate Presentation TSX: SAC, US OTC: SOHAF Q2 2011 www.soamsilver.com

  2. 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. 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. Forward Looking Statements TSX:SAC US OTC:SOHAF

  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 resources • Escalones: high potential copper-gold deposit • 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 years • Measured and Indicated resources expanded 60% to 230 M oz silver • Well definedbusiness plan to drive shareholder value • Leveraged to silver nearly 4 oz of silver per share • Attractive investment value relative to peers at low value per oz • Exposure to the high-tech indium and gallium market • Potential value from new copper-gold resource • Strong focus on community relations • Well financed into feasibility Investment Highlights South American Silver Corp. TSX:SAC US OTC:SOHAF 1

  4. Malku Khota, silver-indium project, Bolivia (100%) • Bulk mineable open-pit, sediment hosted deposit • Low capital and operating costs as a heap leach or milling operation • Update resource increases M&I 60% to 230 M oz silver • Pre-Feasibility process to start in 2011 & Feasibility in 2012 • 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 • Funded into Feasibility • Escalones, copper-gold project, Chile (100%) • Large scale target in world-class mining district near El Teniente • Exploration program and geophysics underway • Resource definition program in 2011 • Potential significant copper, gold, silver deposit World-Class Deposits Two large-scale assets in South America Malku Khota Escalones *AgEq=total contained metal 2

  5. Issued & Outstanding Options Warrants Fully Diluted1 98.7M 8.1M 8.0M 114.8M Share Capitalization2 • Major Shareholders • Zamin—19.7% • Private Swiss investors--19% • Management1 --15% • Institutional Ownership • Sprott Asset Management • Front Street • K2 funds • Kudu Partners • ~$300 million Market Capitalization (1) • Average trading volume 500,000 shares/day • Well financed with +$30 million in cash at year end2 • Potential NYSE-AMEX listing to increase visibility and liquidity • As of November 8, 2010 with proposed $28 million financing • (1 • (1) On a fully diluted basis • (2) As of March 31, 2011 TSX:SAC, US OTC:SOHAF 3

  6. Well funded regional player in South American resources industry with major projects in Brazil, Uruguay, Bolivia, and Chile • Strategic 19.7% investment positions SAC in strong financial and operational position to advance projects to feasibility • Track record of successfully facilitating South American project development through relationships with national and state governments in the region • Portfolio of South American projects with strong government support in permitting, rail and port infrastructure • Bamin Project-Brazil • Valintine Project-Uruguay • Acquiring assets in Bolivia over past year Zamin Group - Strategic Investment A Key Regional Player TSX:SAC US OTC:SOHAF 4

  7. $1.71 Millions of Silver Ounces & (Enterprise Value Per Oz) $0.72 Comparative Resources in the Americas $11.30 $3.37 Millions of Silver Ounces $2.17 Second largest development stage silver resource $2.44 $8.08 $5.82 $1.87 $17.89 $9.13 $39.35 Yukon Peru Mexico El. Salvador Peru Mexico Nunavut Mexico Mexico Mexico Argentina Bolivia Chile Guatemala Source: CanaccordReport resource numbers as of January 11, 2011 Based on Arpil 11, 2011 share price Note: All companies have projects in South and/or North America 5

  8. Producers Average >$25/oz EV of $1.15 base on 230.3 million M&I oz Ag Enterprise Value per Resource Oz Advanced Development Stage Average >$9/oz Development Stage Average >$4/oz By project development stage Producing Companies Source: Canaccord& Intierra as ofApril 11, 2011, Note: All companies have projects in South and/or North America *EV/oz truncated to $25 6

  9. Production Average Enterprise Value per Oz of Silver by Stage Take-Over offers or Partnerships common at this stage Development Stage Value Curve $25/oz Construct Increased value through resource expansion Increasing Market Value Permits FS $9/oz Potential value growth with project advancement PFS Resource Definition PEA $4/oz Advanced Development Stage (Reserves) Early Stage Exploration & Development Production Discovery Increasing value with project advancement 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. 7

  10. Current Silver Company Valuations by Stage 500 EARLY DEVELOPER STAGE ADVANCED DEVELOPER STAGE PRODUCER STAGE Circle size represents EV/oz $2,000 Source: Canaccord Report January 17, 2011 Intierra, February 8, 2011 Share prices as of March 28 2011, Note: All companies have projects in South and/or North America 8

  11. Total Global SilverSupply Total Global SilverDemand Silver Supply/Demand Surging investment demand plus improving industrial consumption suggests continued demand growth with flat total supply & ETFs Source: GFMS World Silver Survey 2010 9

  12. One of the only precious metals not yet to hit all-time nominal highs of ($50/oz) in 1980’s • Bullish supply/demand outlook • Continued increase in investment and industrial demand for silver • Annual mine production vs total demand remains in short-fall • Silver bullion is now the more scarce precious metal than gold from investment supply perspective • US mint has sold only approximately three times more value in gold than in silver in 2010 coin sales, despite having to sell 131 times more gold for the market to stay in balance • Few new major deposit discoveries • Projected new production by analysts have failed to have • been realized Silver Fundamentals Positive For continued higher prices TSX:SAC US OTC:SOHAF 10

  13. 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 Indium & Gallium—two key strategic metals Rapidly growing market for high-tech uses TSX:SAC US OTC:SOHAF 11

  14. 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 other key high-technology specialty metals • Zinc market growing at 1-3% annually with indium market estimated to be 15-20% annual growth • Current indium price ~$600/kg with five-year prices from $400/kg to over $1000/kg • Malku Khota annual indium and gallium production • Malku Khota projected to be one of the world’s largest indium & gallium producers • Potential to represent 10% or more of global mine supply of both metals Indium & Gallium Fundamentals Compelling supply/demand dynamics 12

  15. Indium & Gallium Demand 5 year projected demand growth End-use Market Demand (tonnes) 2010 total indium production level 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 13

  16. Indium Fundamentals Indium Demand Indium Price/kg ($US) World indium demand vs price (1969-2013*) Source: Indium: Global Industry Markets and Outlook, 9th Edition 2010 (Roskill) *2011-2013 Data are estimates only 14

  17. Bolivian gov’t encouraging private investment • Member of Mercosur Regional trade organization with Brazil as largest trading partner • Gov’t bond rating upgraded by Moody’s & Fitch • Mining second largest economic sector representing 40% of GDP • One of the world’s premier silver districts with billions of ouncesof historical 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$2.3 billion for 50% interest in 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 Opportunity in Bolivia An emerging resource based economy TSX:SAC US OTC:SOHAF 15

  18. 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 Silver Mines in Bolivia One of the world’s premier silver mining districts TSX:SAC US OTC:SOHAF 16

  19. One of the world’s largest silver-indium resources • 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 M oz silver per year and 80 tonnes of indium1 • Project base case annual Cash flows and NPV’s more than doubled • 60% expansion of Measured and Indicated Resources2 • Pit model 80% M&I resources for conversion to reserves with PFS • Excellent resource expansion potential with just 4 km tested of trend • Moving into Pre-Feasibility in 2011 and Feasibility in 2012 Malku Khota Project on average for the first 5 years of production See March 31, 2011 News Release for detailed resource estimate Total contained metal 17

  20. Open pit, bulk mineable • Accessible by road • Commercial power within 15km • Access to water Established Infrastructure Low projected capital and operating costs TSX:SAC US OTC:SOHAF 18

  21. Host rock sandstone with disseminated silver, indium, gallium, lead, zinc and copper Enrichment starts at surface Mineralization Open pit, bulk mineable deposit • 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 AgEq comprised of all contained metals Economic cut-off grade comprised only of silver and indium 19

  22. High Grade Sandstone1160 g/t Silver Mineralization Malku Khota Sandstone Aroifilla Fm WaraWara Sandstone Geological formations looking south from Limosna TSX:SAC US OTC:SOHAF 20

  23. 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 Malku Khota Drilling Grade thickness map 21

  24. LMD048: 286 meters grading 76 g/t Ag Eq Grade thickness values of over 21,500 g-m AgEq New Exploration Results Discovery of broad continuous mineralization horizon OPEN OPEN TSX:SAC US OTC:SOHAF 22

  25. 2010 program focused on in-fill and confirmation drilling for March 2011PEA Update • Excellent potential to expand resources Wara Wara Area Malku Khota Deposit Sucre Area Concession Boundary Limosna Area Continuation of favourable sedimentary host rocks Only 4km of 50 sqkm property drill tested TSX:SAC US OTC:SOHAF 23

  26. Open Pit Mining • Large scale shovel and truck open pit mining operation • Ore crushed in preparation for leaching • Acid-chloride leaching in 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 Crushing Production Processes Leaching Metal Recovery & Processing From ore to metal Silver, Gold, Copper Indium ingots Lead and Zinc concentrates TSX:SAC US OTC:SOHAF 24

  27. Metal Prices ($US) Mid Case Recent Base Case Mining Rate Life of Mine Ore Mined (LOM)3 Average Silver Grade 2 Average Indium Grade2 Ag Eq grade 40,000 tpd 15 years 200M tonnes 42.2 g/t 7.55 g/t 58 g/t • $35/oz • $650/kg • $730/kg • Silver : $18/oz • Indium : $500/kg • Gallium: $500/kg • $25/oz • $570/kg • $570/kg 2011 Economic Assessment First 5 years LOM Annual Total • Recovered Metals • Silver (oz) • Indium (tonnes) • Lead (lbs) • Zinc (lbs) • Copper (lbs) • Gallium (kgs) 158 M 1,184 191M 135 M 88 M 212,962 13.2 M 80.7 12.48M 4.42M 5.64M 15,184 10.5 M 78.9 M 12.7 M 9 M 5.87 M 14,198 Base Case Mid Case Recent • First 5 years cash flow • Net cash flow • NPV (5% discount rate)1 • Internal Rate of Return • Payback period (years) $185M/yr $1,261M $704M 37.7% 27 months $287M/yr $2,528M $1482M 63% 19 months $430M/yr $4,298M $2571M 92.9% 15 months In US dollars, March 2011, PEA First 5 years of production (average) LOM = Life of Mine 25

  28. Annual estimated potential silver production of new development projects anticipated in the next 2-4 years Near Term Mine Development Projects Barrick 25 Bear Creek Millions of Ounces Alexco Resource Corp Fresnillo Plc Pan American SAC one of largest near-term producers at 40,000 tpd Gold Resource Andean Resources Wildcat Silver Corp Bear Creek Minmetals, Jiangxi Copper Fortuna Silver Augusta Resource Silvermex Resources South American Silver* Greystar Resources Yukon Zinc Corp. Antofagasta plc Gabriel Resources CobarConsilidated China Minmetals Norsemont Mining Chariot Resources Jinchuan Group Antofagasta plc Intrepid Mines Oxiana Vale Source: CPM Silver Yearbook 2010 *Data based on life of mine production rate of 10.5M oz/per year Production rate of 13.2 Moz /year for first five years 26

  29. Cumulative Percentile of Silver Mine Production Cost Malku Khota 13.25 Mozs/yr (1) ~ $2.94/oz (2) Global Silver Industry Cash Cost Curve Total Cash Cost Per Ounce of Silver Industry AverageCash Cost $5.25/oz Anticipated low-cost silver production Source: GFMS World Silver Survey 2010 Average first 5 years of production Silver cash costs after credits ($US)/oz 27

  30. The project is at the PEA stage and may change substantially in terms of size and cost as further exploration, engineering and metallurgical testing are completed Advancing to Production 2013-14 2012 2011 Development Timeline Pre-Feasibility Studies Feasibility Study Projected Mine Development TSX:SAC US OTC:SOHAF 28

  31. 70 square km, road accessible, large scale system • Located in world-class copper mining district near El Teniente • Historic drilling shows >1% copper grades at surface and untested porphyry system grading 0.6% copper • Additional significant gold, silver and molybdenum credits • Exploration program underway • Resource estimate targeted for 2nd half of 2011 Escalones-Copper-Gold project, Chile High potential, large-scale target TSX:SAC US OTC:SOHAF 29

  32. Escalones Exploration Ownership: 100% through Lease Location: 35km E of El Teniente Elevation: 3800m • 6,889 hectares • Escalones porphyry prospect located 97 km southeast of Santiago in central Chile • 12,666m drilled in 30 DDH • 10,159m in the skarn • 500m in the porphyry SAC property Gas pipeline Access Road TSX:SAC US OTC:SOHAF 30

  33. Open in all directions • Strong historic results Drill Results Grade Thickness Map Large-scale porphyry system TSX:SAC US OTC:SOHAF 31

  34. Enriched zones with high grades at surface at over >1% copper with significant gold and molybdenum • Large scale porphyry target intercept of 176 m @ 0.6% copper with additional gold, silver and molybdenum Escalones Alto Bajo Geological cross-section TSX:SAC US OTC:SOHAF 32

  35. Assistance of BSR* to develop proactive community relations strategy • Full-time community relations team working in region • Objectives to facilitate economic development in communities • Project construction will require a peak construction workforce of over 1,000 with operational workforce of around 400, most of whom will be sourced from surrounding communities Community Relations A key to successful project development *Business for Social Responsibility, San Francisco, CA 33

  36. 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 tonnesinferred • Cash flows, project valuations and rates of return significantly expanded over previous studies • Pre-feasibility targeted to begin in Q2, 2011 and feasibility in 2012 • Escalones, copper and gold porphyry project, Chile • Exploration and Geophysics program underway • Target for initial resource estimate in 2nd half of 2011 • Potential for significant deposit of copper, gold and silver Project Milestones Value drivers over the next 6-12 months *Average first five years of production 34

  37. Silver value per $1 invested SAC has some of the best leverage to silver of any development stage company with over $30 of silver value per $1 invested Leveraged to Silver Average value of silver <$8 of silver per $1 invested* Value of silver per dollar invested Source: Canaccord as of January 17, 2011, Share prices updated April 11, 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 35

  38. 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 nearly 4 oz of silver per share • Attractive investment value relative to peers at low value per oz • Exposure to rapidly growing indium and gallium high-technology market • Potential new value from copper resource definition and expansion • Continued investor outreach to broaden market awareness of Company • Potential near-term NYSE-AMEX listing in the U.S. Why South American Silver? Investment highlights TSX:SAC US OTC:SOHAF 36

  39. TSX: SAC OTC: SOHAF Phone: 604.681.6926 1.855.681.6926 www.soamsilver.com Greg Johnson President & CEO TSX:SAC US OTC:SOHAF

  40. Trading liquidity increasing with average volume of 500,000 shares/day • SAC undervalued relative to peers at >$0.80 Enterprise Value/oz vs average of more than $4/oz for early stage resources Relative Stock Performance SAC outperforming key silver & gold indices TSX:SAC US OTC:SOHAF

  41. Ralph Fitch, Executive Chairman • Co-founder of South American Silver, High Desert Gold, and General Minerals • Key role in discovery of Collahuasi copper porphyry , Malku Khota, Vizcachitas, and Escalones deposits • Greg Johnson, President and CEO • Co-founder of NovaGold, key role in growing company from $50 million to $2 billion market capitalization • Recognized for discovery and advancement of the 40 M oz Donlin Creek gold deposit for NovaGold and Barrick • William Filtness, Chief Financial Officer • Chartered Accountant with twenty plus years of financial experience, including Manager, Corporate Development at Aurizon Mines • Felipe Malbran, Vice President of Exploration • Extensive experience in exploration management in Bolivia, Chile, Peru and Argentina • Key role in discovery of MalkuKhota, Vizcachitas, and Escalones deposits • Phillip Brodie-Hall, Vice President of Project Development • Global industry experience in engineering construction and project development experience covering nearly every aspect of evaluation, feasibility studies and project development in the mining and mineral processing industries • David Dreisinger,Vice President of Metallurgy • Professor and Industrial Research Chair in Hydrometallurgy at the University of British Columbia (UBC) • Actively involved in developing and commercializing hydrometallurgical process at a number of operating mines in Australia and Southeast Asia. • Richard Doran, Vice President and corporate secretary • Former VP Investor Relations for General Minerals and Marketing Manager for Chevron Resources • Andrew Clark,Manager of Project Implementation • Global industry experience in the design and management of industrial, mining, materials handling, chemical and petrochical projects from feasibility studies through to commissioning and handover of completed facilities. • Xavier Gonzales Yutronic,General Manager Compañía Minera Malku Khota S.A. • Mining Industry experience in finance, accounting, logistics, human resources and community relations at Comsur S.A., SinchiWayra (Glencore) from 2005-2007, and CompañíaMinera Malku Khota S.A. from October 2008 to date Management Team A track record of success TSX:SAC US OTC:SOHAF

  42. Ralph Fitch, Executive ChairmanGreg Johnson, President and CEO • Antonio Canton, Director - Mr. Canton is an independent consultant for international companies in marketing, finance and real estate. He is a director of a number of Swiss companies and brings to the board extensive experience in accounting and finance. • Peter Harris, Director - Mr. Harris is an engineer with over 40 years of mining industry experience including as Senior VP and Chief Operating Officer at Nova Gold Resources Inc., and Senior VP of Project Development at Placer Dome Inc. He has been involved in the construction and operation of over 20 different mines in North and South America, Africa, Australia and Papua New Guinea. • William Murray, Director - Mr. Murray is an engineer in the mining industry with over 33 years of experience in construction management and project evaluation in North America and Africa. He currently serves as the executive chairman and director of Polymet Mining Corp. Mr. Murray has been involved in numerous successful projects while working at Fluor Daniel, Denison Mines, Optimum Project Services and Anglo American Corp. in South Africa. • Paul Haber, Director - Mr. Haber is a Chartered Accountant and a Certified Public Accountant with a strong background in US/Canadian accounting and finance. Presently manages Haber & Co. Ltd. Has previously been Chief Financial Officer and Corporate Secretary of a TSX Venture listed company. • John Watson, Director - Mr. Watson has been the President of a TSX Venture Exchange listed company since 2002. He is also the manager/member of a limited liability corporation that owns and manages commercial real-estate. • Tina Woodside, Director - Ms. Woodside is currently the head of the corporate finance department in Gowlings’ Toronto office and a member of the firm’s National Executive Committee. Ms. Woodside practices corporate and securities law with particular emphasis on corporate finance, mergers and acquisitions and corporate governance matters. Board of Directors Strong industry and financial experience TSX:SAC US OTC:SOHAF

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