Production Results At Galena Mine Complex

TORONTO – U.S. Silver & Gold Inc. reported fourth quarter and 2013 full year production figures for its Galena Mine Complex and guidance for 2014.

Production of approximately 450,000 silver ounces and 543,000 silver equivalent1 ounces for the fourth quarter of 2013 at a silver cash cost of $16.25 per ounce and an all-in sustaining cost per ounce of $21.002 despite a 10-day shaft shutdown at the Galena Complex in mid-December. Full year Galena Complex production of 2.12 million silver ounces at a silver cash cost of $17.75 and all-in sustaining costs of $24.25. Year-over-year silver production down 6%, cash costs per silver ounce reduced 7% and all-in sustaining costs decreased 20%.

The Small Mine Plan implemented early in the third quarter of 2013 delivered significant cost reductions and increased silver cut-off grade by 33% to over 15 ounces per ton silver equivalent.  Silver head grade for the quarter rose 34% to 14.38 ounces per ton and increased 12% for the year to 11.31 ounces per ton. 2014 Galena Complex silver production forecast to be 2.2  2.4 million ounces with projected silver cash costs of $14.50 – $15.50 per ounce and all-in sustaining cash costs of $18.00 – $19.00 per ounce. This represents an 8% increase in production, a 15% reduction in cash costs and a 24% decrease in all-in sustaining cash costs over full year 2013.  As in the previous year, the Company expects to see continued cost improvement throughout fiscal 2014.

"We made significant progress in 2013, reducing costs, increasing grade and achieving our production guidance for the year," said Darren Blasutti, President and CEO of U.S. Silver & Gold. "Given the current silver price environment, we made a strategic decision mid-year to focus on delivering higher grade silver at lower tonnage levels by introducing the Small Mine Plan which considerably reduced our operating costs, capital expenses and exploration budget. In 2014, we expect to increase silver production slightly while further reducing silver cash costs to approximately $15.00 per ounce and all-in cash costs to between $18.00 and $19.00 per ounce. Management took over the Galena Complex in late August 2012 and is on pace to reduce all-in cash costs by 45 percent since the third quarter of 2012."