South American Silver Corp June 3, 2011 Corporate Presentation.

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 Q2 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. Investors are advised to review the Company’s Annual Information Form filed at www.sedar.com for a detailed discussion of investment risks. 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-silver-gold deposit

7. 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 yrs

8. Measured and Indicated resources expanded 60% to 230 M oz silver

9. Well definedbusiness plan to drive shareholder value

10. Leveraged to silver nearly 4 oz of silver per share (6 oz silver equivalent)

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

12. Exposure to the high-tech indium and gallium market

13. Potential value from new copper-silver-gold resource

14. Strong focus on community relations

15. Well financed into feasibilityTSX:SAC US OTC:SOHAF 1

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

18. Update resource increases M&I 60% to 230 M oz silver

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

22. Exploration program and geophysics underway

23. Resource definition program in 2011

24. Potential significant copper, gold, silver deposit *AgEq=total contained metal 2

26. Private Swiss investors--19%

28. Front Street

29. K2 funds

30. Kudu Partners

31. ~$250 million Market Capitalization (1)

32. Average trading volume 500,000 shares/day

33. Well financed with +$30 million in cash(2)

34. Potential NYSE-AMEX listing to increase visibility and liquidityAs of November 8, 2010 with proposed $28 million financing (1 (1) On a fully diluted basis (1) As of May 24, 2011 (2) As of March 31, 2011 3

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

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

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

39. Bamin Project-Brazil

40. Valintine Project-Uruguay

41. Acquiring assets in Bolivia over past yearTSX:SAC US OTC:SOHAF 4

42. Comparative Resources in the Americas Second largest development stage silver resource $1.71 Millions of Silver Ounces & (Enterprise Value Per Oz) $0.72 $11.30 $3.37 Millions of Silver Ounces $2.17 $2.44 $8.08 $1.87 $5.82 $17.89 $9.13 $39.35 Mexico El. Salvador Peru Yukon Peru Mexico Nunavut Mexico Mexico Mexico Argentina Bolivia Chile Guatemala Source: Canaccord Report resource numbers as of January 11, 2011 Based Msy 24, 2011 share price Note: All companies have projects in South and/or North America 5

43. Enterprise Value per Resource Oz By project development stage Producer Average >$20/oz EV of >$0.85 base on 230.3 million M&I oz Ag Advanced Development Stage Average >$6/oz Development Stage Average >$3.50/oz Source: Canaccord & Intierra as of May 24, 2011, Note: All companies have projects in South and/or North America *EV/oz truncated to $25 6

44. Development Stage Value Curve Potential value growth with project advancement Production Average Enterprise Value per Oz of Silver by Stage Take-Over offers or Partnerships common at this stage $20/oz Construct Increased value through resource expansion Increasing Market Value Permits FS $6/oz PFS Resource Definition PEA $3/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

45. Current Silver Company Valuations by Resource Sizeand Development Stage Size of circle represents market valuation premium in EV/oz 500 EARLY DEVELOPER STAGE SAC SAC SAC ADVANCED DEVELOPER STAGE PRODUCER STAGE US Gold Esperanza $2,000 8

47. Silver is a “hybrid” precious and industrial metal due to its scarcity and unique properties including superior electrical and thermal conductivity, malleability, reflectance, and catalytic/biologic reactivity

48. Price increases driven by 40% increase in investment demand and 21% increase in industrial demand for a total increase of 17% in 2010

49. Total annual mine production growth only 2.5% last year with reduced contribution of by-product silver from copper and gold production

50. Projected new mine supply anticipated to be consumed by new industrial demand through at least 2015

51. Chinese imports up 4x since 2009 with change from net sellers of more than 100 M oz of silver in 2005 to net buyers of more than 120 M oz in 2010

52. Few major new deposit discoveries and growing time lag from time of discovery to metal production Source: 1) GFMS World Silver Survey 2011 2) BMO Capital Markets Global Mining Research April 2011 10

54. Demand growth expected to outstrip production growth(2)+17% total demand growth +40% investment demand +2.5% mine production +21% industrial demand Source: 1) GFMS World Silver Survey 2011 2) BMO Capital Markets Global Mining Research April 2011 9

56. By-product silver production is largely silver price inelastic

57. Reduced by-product silver production expected from base metal sector(2)Source: 1) GFMS World Silver Survey 2011 2) BMO Capital Markets Global Mining Research April 2011 11

59. High-efficiency CIGS (copper, indium, gallium, selenide) photo-voltaic thin-film solar panels, and LED lighting

61. One of the most scarce strategic metals due to low recycling and few primary producersTSX:SAC US OTC:SOHAF 11

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

64. Indium market estimated to see 15-20% annual growth with most indium produced as by product of zinc refining growing at 1-3% annually

65. Current indium and gallium price ~$900-1000/kg up from global economic lows during 2008-2009 of $400-500/kg

67. Potential to represent 10% or more of global mine supply of indium and over 5% of global supply for gallium12

68. Indium Demand Growth Growing demand in high-tech markets 5 year projected demand growth End-use Market Demand (tonnes) 2010 total indium production level 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

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

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

72. Government bond rating upgraded by Moody’s & Fitch

73. Mining second largest economic sector representing 40% of GDP

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

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

76. Three Major silver mines built within last four years by Pan American Silver, Coeur D’Alene, and Sumitomo

77. Substantial resource industry investments in Bolivia

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

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

80. Repsol of Spain investing $1.6 billion to increase gas production in Bolivia

81. Petrobras and Repsol have announced new exploration initiatives in Bolivia in early 2011TSX:SAC US OTC:SOHAF 15

83. Highly prospective & under-explored

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

85. Pan American Silver – San Vicente

86. Coeur D’Alene - San Bartolome

87. Sumitomo - San CristobalTSX:SAC US OTC:SOHAF 16

89. Low capital and operating costs on a per ounce basis

90. 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

91. Project base case annual Cash flows and NPV’s more than doubled

92. 60% expansion of Measured and Indicated Resources2

93. Pit model 80% M&I resources for conversion to reserves with PFS

94. Excellent resource expansion potential with just 4 km tested of trend

95. Moving into Pre-Feasibility in 2011 and Feasibility in 2012MalkuKhota Project – 2011 Resource Estimate Update Average for the first 5 years of production See March 31, 2011 News Release for detailed resource estimate Total contained metal 17

97. Accessible by road

98. Commercial power within 15km

99. Access to waterTSX:SAC US OTC:SOHAF 18

101. Indium: 7.55 g/t

102. Economic cut-off grade <15 g/t(at $18/oz Ag) 2AgEq comprised of all contained metals Economic cut-off grade comprised only of silver and indium 19

103. 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 20

105. 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

106. 2011 program to target conversion from resources to reserves & expansion drilling

107. Mineralization begins at surface

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

109. New discovery of higher grade zones and down dip expansion of surface mineralization21

110. 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 OPEN OPEN TSX:SAC US OTC:SOHAF 22

112. Ore crushed in preparation for leaching

113. Acid-chloride leaching in captures silver, indium, copper, lead, zinc, gallium and gold

114. Metal recovery in several steps:

115. Acid recovery

116. Silver-gold-copper cementation

117. Indium-gallium precipitation

118. Lead and zinc sulfides

119. Downstream processing to metal productsCrushing Leaching Metal Recovery & Processing Silver, Gold, Copper Indium & Gallium ingots Lead and Zinc concentrates TSX:SAC US OTC:SOHAF 24

120. 2011 Economic Assessment 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 LOM Annual First 5 years 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

121. Near Term Mine Development Projects MalkuKhota one of largest emerging producers at over 13 Moz/yr Estimated potential annual silver production of new development projects anticipated within the next 2-4 years Barrick Gold South American Silver Pan American Silver Bear Creek Mining Gold Resource Corp Silver Standard Polymetal MNPO Bear Creek Mining Fortuna Silver Mines Hochschild Mining Minco Silver Corp Andean Resources Wildcat Silver Corp. Continental Minerals Corp Aurcana Corp Yamana Gold CobarConsilidated Alexco Resource Augusta Resource Malachite Resources Kimberley Metals CS T Mining Group Silvercorp Metals Ltd Silver Standard Hellas Gold SA CBH Resources Argent Minerals Silvercorp Metals Conquest Mining Troy Resources Antofagasta Source: CPM Silver Yearbook 2011 *Based on mine production of 13.2 Moz /year for first five years 26

122. Global Silver Industry Cash Cost Curve Anticipated low-cost silver production Cumulative Percentile of Silver Mine Production Cost Malku Khota 13.2 Mozs/yr (1) ~ $2.94/oz (2) Total Cash Cost Per Ounce of Silver Industry AverageCash Cost $5.27/oz Source: GFMS World Silver Survey 2011 Average first 5 years of production Silver cash costs after credits ($US)/oz 27

123. Advancing to Production Development Timeline for MalkuKhota 2011 Pre-Feasibility Studies 2012 Feasibility Study 2013-14 Projected Mine Development TSX:SAC US OTC:SOHAF 28

125. Located near one of the worlds largest underground copper mines at El Teniente

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

127. Additional significant gold, silver and molybdenum credits

128. Exploration program underway

129. Resource estimate targeted for 2nd half of 2011TSX:SAC US OTC:SOHAF 29

130. Escalones Project Logistics Excellent existing infrastructure Ownership: 100% through lease Location: 35km E of El Teniente Elevation: 3800m 70 square kilometer property Road accessible located 100 km southeast of Santiago Gas pipeline across property 30 Drill holes completed to date SAC property Gas pipeline Access Road TSX:SAC US OTC:SOHAF 30

132. Strong historic drill results

133. Limited testing of porphyry system with most holes in replacement /skarn style mineralizationTSX:SAC US OTC:SOHAF 31

135. Jim Mallory, VP Operations and Social Responsibility – 35 years industry experience previously with Silver Standard, NovaGold, & Barrick (Placer Dome)

136. Miguel Reynaga, Director of Community Relations - 16 years experience with Newmont at their Inti-Raymi (KoriKollo) Mine in Bolivia

137. Objectives to facilitate economic development in communities as part of project exploration, development and construction activities

138. Project construction will see workforce of over 1,000 with mine workforce of over 400 or more*Business for Social Responsibility, San Francisco, CA 33

140. Large scale porphyry target with intercept of 176 m @ 0.6% copper with additional credits from silver, gold, and molybdenumAlto Bajo TSX:SAC US OTC:SOHAF 32

142. 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*

143. 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 tonnes inferred

144. Cash flows, project valuations and rates of return significantly expanded over previous studies

145. Pre-Feasibility work has started for the second half of 2011

146. Feasibility work to begin in 2012

147. Escalones, copper and gold porphyry project, Chile

148. Exploration and Geophysics program underway

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

150. Potential for significant deposit of copper, gold and silver*Average first five years of production 34

151. 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 nearly $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 May 24, 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

153. Track record of discovery and successful project development

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

155. Leveraged to silver with nearly 4 oz of silver per share

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

157. Exposure to rapidly growing indium and gallium high-technology market

158. Potential value from new copper-silver-gold resource definition and expansion at Escalones

159. Continued investor outreach to broaden market awareness of Company

160. Potential near-term NYSE-AMEX listing in the U.S.TSX:SAC US OTC:SOHAF 36

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

163. SAC undervalued relative to peers at >$0.80 Enterprise Value/oz vs average of more than $4/oz for early stage resourcesTSX:SAC US OTC:SOHAF

164. Management & Directors Ralph Fitch (Executive Chairman)is an explorationist with over 40 years of global experience, a co-founder of South American Silver and former Chief Geologist for Chevron Minerals credited with several major discoveries in South America. Antonio Canton (Director) is consultant and director to a number of international companies in marketing, finance and real estate. Tony Cau (Director) is COO at Zamin Ferrous. With over 30 years of experience in the mining, construction and heavy manufacturing industries, he has been involved in mine development and expansion projects around the world for groups like BHP, SNC-Lavalin, and Bateman Engineering. Jeffrey Couch (Director) is the Head of Business Development at ENRC and has held various financial advisory positions including for private equity groups such as Campbell Lutyens, was Director of Metals & Mining Investment Banking for Credit Suisse, and a key member of the capital markets team for Citigroup European Investment Bank. Paul Haber (Director) is a Chartered Accountant and a Certified Public Accountant, and previously CFO of a TSX-V company and Chairman of the Audit Committee for South American Silver. Peter Harris (Director) is a mining engineer with over 40 years of industry experience including construction and operation of over 20 different mines around the world with groups such as Barrick (Placer Dome) and NovaGold. William Murray (Director) is an engineer in the mining industry with over 35 years of experience in construction management and project evaluation with groups including Fluor Daniel, Denison Mines, Optimum Project Services and Anglo American Corp. John Watson (Director) is President of a TSX -V listed company and Manager of a limited liability corporation in commercial real-estate. Tina Woodside (Director) is the head of Gowlings’ corporate finance department and practices corporate and securities law focused on corporate finance, M&A and corporate governance matters. Greg Johnson (President/CEO & Director)has over 25 years mining industry experience in corporate finance, project development and exploration. A s a co-founder of NovaGold, he played a key role in growing that company from $50 million in value to over $2 billion market capitalization advancing 3 major projects through to Feasibility. William Filtness (Chief Financial Officer)is a Chartered Accountant with over 20 years of financial experience in the mining industry. Phillip Brodie-Hall (Vice President of Project Development) has over 35 years experience in engineering construction and project development. He has participated in nearly every aspect of evaluation, feasibility studies and project development in the mining industry. James Mallory (Vice President of Operations & Social Responsibility) hasover 30 years of mining industry experience in large-scale mine management, operations and construction for companies including Barrick (Placer Dome), Silver Standard, and NovaGold. Felipe Malbran (Vice President of Exploration)has over 25 years experience in exploration management in South America including key roles in the discoveryofMalkuKhota, Vizcachitas, and Escalones. David Dreisinger (Vice President of Metallurgy) is Professor and Industrial Research Chair in Hydrometallurgy at the University of British Columbia. He is actively involved in developing and commercializing hydrometallurgical process at a number of mines worldwide. Andrew Clark (Manager of Project Implementation) has over 30 years global industry experience in the development, design, management and construction of industrial mining projects. Richard Doran, (Vice President & Corporate Secretary) has extensive industry experience including with General Minerals and as Marketing Manager for Chevron Minerals. Xavier Gonzales Yutronic(General Manager Compañía Minera Malku Khota S.A.) has experience in management, finance, and community relations in the mining industry including with Glencore, and Comsur S.A. TSX:SAC US OTC:SOHAF