TORONTO, July 26, 2012 /CNW/ – U.S. Silver Corporation (TSX: USA) (“U.S.
Silver” or the “Company”) today responds to a press release issued on
July 25, 2012 by Hecla Mining Company (“Hecla”), which announced
Hecla’s intention to make an all cash offer to acquire all of the
outstanding common shares of U.S. Silver for C$1.80 per share and all
of the outstanding common share purchase warrants of U.S. Silver for
C$0.205 per warrant (the “Hecla Offer”).

The Company’s board of directors is in the process of reviewing and
evaluating the announcement with its outside financial and legal
advisors and will notify shareholders of any recommendation in respect
of the Hecla Offer by the board of directors through a news release and
circular in accordance with applicable securities laws.

The board of directors will update shareholders from time to time on
developments relating to the Hecla Offer and the Company’s proposed
combination transaction with RX Gold & Silver Inc. (“RX Gold”)
announced on June 7, 2012. The combination agreement between U.S.
Silver and RX Gold will remain in effect unless terminated by either
party in accordance with its terms.

The Company has retained Cormark Securities Inc. as its financial
advisors and Stikeman Elliott LLP as its legal advisors.

About U.S. Silver
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 U.S. 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
totalling 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.

SOURCE U.S. Silver Corporation