South American Silver Corporate Presentation: Q1, 2011

1. A Growth Focused Exploration & Development Company Growing and advancing one of the world’s largest undeveloped silver and indium resources. TSX: SAC, US OTC: SOHAF Corporate Presentation Q1 2011 www.soamsilver.com

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

4. Two large-scale deposits in South America

5. Malku Khota: one of the world’s largest silver-indium resources

6. Escalones: high potential copper-gold deposit

7. Well definedbusiness plan to drive shareholder value

8. Leveraged to silver with over $40 of silver value per $1 invested

9. Attractive investment value relative to peers at low value per oz

10. Exposure to the high-tech indium market

11. Potential value from new copper-gold resource

12. Strong focus on community relations

13. Well financed into feasibilityTSX:SAC US OTC:SOHAF

15. 100% ownership

16. Bulk mineable open-pit, sediment hosted deposit

17. Low capital and operating costs and as a heap leach or heap leach/milling operation

19. Pre-Feasibility process to start in 2011 & Feasibility in 2012

20. Potential to be one of the top producing silver and indium mines

21. Funded into Feasibility

22. Escalones, Chile, copper-gold project

23. 100% controlled, large scale target in world-class mining district near El Teniente

24. Exploration program and geophysics to start Q1-2011

25. Potential significant copper, gold, silver deposit Malku Khota Escalones TSX:SAC US OTC:SOHAF

27. Private Swiss investors--19%

29. Front Street

30. K2 funds

31. Kudu Partners

32. U.S. Global Investors

33. ~$200 million Market Capitalization

34. Average trading volume 500,000 shares/day

35. Well financed with +$30 million estimated in cash at year end1

36. Potential NYSE-AMEX listing to increase visibility and liquidityAs of November 8, 2010 with proposed $28 million financing (1)On a fully diluted basis (2) As of December 16, 2010

38. Strategic 19.7% investment positions SAC in strong financial and operational position to advance projects to feasibility

39. Track record of successfully facilitating South American project development through relationships with national and state governments in the region

40. Portfolio of South American projects with strong government support in permitting, rail and port infrastructure

41. Bamin Project-Brazil

42. Valintine Project-Uruguay

43. Acquiring assets in Bolivia over past yearTSX:SAC US OTC:SOHAF

44. Comparative Resources in the Americas Second largest development stage silver resource Millions of Silver Ounces Mexico El. Salvador Mexico Mexico Mexico Peru Mexico Yukon Argentina Nunavut Peru Guatemala Bolivia Chile Source: CanaccordReport as of January 11, 2011 Note: All companies have projects in South and/or North America

45. Enterprise Value in the Americas Undervalued relative to peers Average EV/oz of companies with >200Moz silver resource: >$2.65/oz Average EV/oz for development stage silver companies: >$1.70/oz * Source: Canaccord Report January 17, 2011 Share prices as of January 14, 2011, Note: All companies have projects in South and/or North America *EV/oz truncated to $10 . Alexco excluded from early stage average EV/oz AgEq $18/oz

46. Development Stage Value Curve Potential value growth with project advancement Enterprise Value per Oz of Silver by Stage Increased value with project advancement $ /oz Increased value through resource expansion Construct Permits FS PFS $ PEA Resource Definition $ Discovery Production Early Stage Exploration & Development Advanced Development Stage (Reserves) 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.

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

49. Bullish supply/demand outlook

50. Silver equities generally show a 3-5x leverage to silver price moves due to profit margins

51. Continued increase in investment and industrial demand for silver

52. Annual mine production vs total demand remains in short-fall

53. Few new major deposit discoveries

54. Projected new production by analysts have failed to have been realized TSX:SAC US OTC:SOHAF

56. High-efficiency thin film solar panels (CIGS Photo-Voltaics), and LED lighting

58. One of the most scarce strategic metals due to low recycling and few primary producersTSX:SAC US OTC:SOHAF

60. China is largest producer and consumer of indium and has imposed export quotas and tariffs like other key high-technology specialty metals

61. Zinc market growing at 1-3% annually with indium market estimated at 15-20% growth

63. Potential to represent 10% or more of global mine supplyTSX:SAC US OTC:SOHAF

64. Indium Demand Growing demand in high-tech markets 2010 total indium production End-use Market Demand (tonnes) 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

65. Indium Fundamentals Zinc Production vs. Indium Demand (U.S.) U.S. Indium Demand (tonnes) Zinc Production (thousand tonnes) Source: U.S Department of Energy: Critical Materials Strategy, December 2010; Zinc Production USGS Materials Flow of Zinc in the US. 1850-1990, USGS Minerals Yearbook 1994-2008

66. Key Metal Consumption vs Reserves Remaining Years of Supply Years of Supply INDIUM

68. Member of Mercosur Regional trade organization with Brazil as largest trading partner

69. One of the world’s premier silver districts with billions of ouncesof historical production

70. Planned $32 billion 5-7 year infrastructure build-out by Bolivian government for new rail and road corridors and hydropower generation

71. Three Major silver mines built within last four years

72. Substantial resource industry investments in Bolivia

73. Jindal Steel of India investing US$2.3 billion for 50% interest in El Mutun iron ore deposit

74. Petrobras of Brazil—Latin America’s largest publicly traded oil company – investing US$1 billion of new capital into the Bolivian gas fields

75. Repsol of Spain investing $1.6 billion to increase gas production in BoliviaTSX:SAC US OTC:SOHAF

77. Highly prospective & under-explored

78. Increase from 9th largest global silver producer to 5th largest with completion of three major silver mines in past four years:

79. Pan American Silver – San Vincente

80. Coeur D’Alene - San Bartolome

81. Sumitomo - San CristobalTSX:SAC US OTC:SOHAF

83. low capital and operating costs and high internal rate of return

84. Ongoing drill campaign with recent higher grade discoveries

85. Potential to be one of the top primary silver and indium producing minesTSX:SAC US OTC:SOHAF

87. Accessible by road

88. Commercial power within 15km

89. Access to waterTSX:SAC US OTC:SOHAF

91. Indium: 8.1 g/t

92. Economic cut-off grade <10 g/t(at $15/oz Ag)TSX:SAC US OTC:SOHAF

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

95. 2010 program focused on in-fill & confirmatory drilling

96. 2011 program to target conversion from resources to reserves & expansion drilling

97. Mineralization begins at surface

98. Deposit open along trend and down dip with excellent potential for expansion

99. New discovery of higher grade zones and down dip expansion of surface mineralizationTSX:SAC US OTC:SOHAF

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

102. Excellent potential to expand resourcesTSX:SAC US OTC:SOHAF

104. Similar recoveries for silver/gold as for cyanide leach

105. Production of high purity silver bars and indium ingots on site

106. Additional production of by-product metals including lead, zinc, copper and galliumHeap Leach or Milling with Acid Solution Silver, Gold and Copper Recovery Indium and Gallium Recovery Lead Recovery Zinc Recovery Further refining with solvent extraction (SX-EW ) process to metal doreor high purity concentration * solvent extraction and electo-winning TSX:SAC US OTC:SOHAF

107. Summary of PEA 2009 Updated PEA with expanded throughput for Q1 2011 Pincock, Allan and Holt Heap Leach Operation – 20,000 Tonnes per Day Base Case Silver Price: US$13.30/oz Base Case Indium Price: US$530/kg In US dollars, March 2009, PEA by Pincock Allan and Holt. Updated study utilizing higher production levels and new cost estimates anticipated Q1-2011 First ten years of production

109. Global Silver Industry Cash Cost Curve Anticipated low-cost silver production Cumulative Percentile of Silver Mine Production Cost Malku Khota 6.4 Mozs/yr ~ $3.75/oz Total Cash Cost Per Ounce of Silver Industry AverageCash Cost $5.25/oz Source: GFMS World Silver Survey 2010

111. Located in world-class copper mining district near El Teniente

112. Historic drilling shows >1% copper grades at surface and untested porphyry system grading 0.6% copper

113. Additional significant gold, silver and molybdenum credits

114. Exploration drill program targeted for Q1 2011

115. Resource estimate targeted for 2nd half of 2011TSX:SAC US OTC:SOHAF

117. Strong historic resultsTSX:SAC US OTC:SOHAF

119. Large scale porphyry target intercept of 176 m @ 0.6% copper with additional gold, silver and molybdenumTSX:SAC US OTC:SOHAF

121. Two full-time indigenous community relations officers working in region

122. Objectives to facilitate economic development in communities*Business for Social Responsibility, San Francisco, CA

124. Drill campaign underway with additional drills being mobilized

125. Updated resource estimate targeted Q1 2011

126. Updated Preliminary Economic Assessment at higher throughput Q1-2011

127. Pre-feasibility targeted for 2011 and feasibility for 2012

128. Escalones Copper and Gold porphyry project, Chile

129. Target for initial resource estimate in 2nd half of 2011

130. Potential for significant deposit of copper, gold and silverTSX:SAC US OTC:SOHAF

131. Leveraged to Silver Value of silver per dollar invested Silver value per $1 invested SAC has some of the best leverage to silver of any development stage company with over $40 of silver value per $1 invested Average value of silver <$8 of silver per $1 invested* Source: Canaccord as of January 17, 2011, Share prices updated January 14, 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

133. Track record of discovery and successful project development

134. Growing shareholder value through resource expansion and advancing projects up the development value curve toward feasibility

135. Leveraged to silver with over$40 of silver value per $1 invested

136. Attractive investment value relative to peers at low value per oz

137. Exposure to rapidly growing Indium high-technology market

138. Potential new value from copper resource definition and expansion

139. Continued investor outreach to broaden market awareness of Company

140. Potential near-term NYSE-AMEX listing in the U.S.TSX:SAC US OTC:SOHAF

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

143. SAC undervalued relative to peers at $0.50/oz vs average of more than $1.70/oz for early stage resources and $2.65/oz for >200Moz resourcesTSX:SAC US OTC:SOHAF

149. Board of Directors Strong industry and financial experience 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. TSX:SAC US OTC:SOHAF