Americas Silver Corp Reports Cost Saving Measures & Director Resignation by 24hgold

Re: News Release - Friday, January 16, 2009
Title: U.S. Silver Reports Cost Saving Measures & Director Resignation

January 16, 2009 - Toronto, Ontario - U.S. Silver Corporation (USA-TSXV) ("U.S. Silver" or the "Company") announces several new cost saving measures. Effectively immediately, all salaried personnel have taken a 10 % salary reduction and the union representing the hourly employees has also approved a similar reduction in wages for the hourly workforce. Officers of the Corporation and the Board have significantly reduced their cash compensation until cash goals are achieved. Secondly, all repair work on the Galena shaft has been suspended. While the shaft repair is within five months of completion, it was felt that until cash flows improve shaft repair at approximately $175,000 per month is too large an expense to maintain. The Company is negotiating with major suppliers for further cost reductions for goods and services. All of these initiatives are expected to save the company at least $300,000 per month in expenses going forward.

The Company is continuously reviewing all expenditures so as to preserve cash. All expenses are being examined to see where further cost savings can be obtained.

Operations

Operations were temporarily disrupted in November due to the reduction in force and release of contractor groups, as reported in our press release of November 3, 2008. However, the #3 circuit in the Galena Mill was activated on November 6, 2008 and has been operational since that time. This gives the Galena Mill a capacity of 900 tons per day. That, combined with improved mine production, allowed the Company to produce 496,041 ounces of silver in the fourth quarter, including a US Silver record of 248,223 ounces of silver in December, 2008. The Galena Mill has been processing both copper/silver and lead/silver ores. The Coeur Mill has been placed on standby, providing some cost savings.

Board Change

At a Board of Directors meeting yesterday, John Ryan, one of the founders of US Silver Corporation, tendered his resignation. Mr. Ryan earlier this week became the President and CEO of Sterling Mining Corporation, a position that will require his full attention. The Board wishes to express their sincere appreciation and thanks to Mr. Ryan for his two and one-half years of service and wishes him well in his new venture.

Clarification

It has been recently reported in the local North Idaho press that an ownership consolidation of various silver properties in the Silver Valley of northern Idaho may be occurring. It was further reported that the Company's Galena, Coeur and Caladay properties are included in the reported consolidation. These reports are not correct and the Company is not part of any consolidation effort.

ABOUT U.S. SILVER CORPORATION

U.S. Silver, through its wholly owned subsidiaries, owns and operates the Galena, Coeur, and Caladay silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver producer in U.S. history. Total silver production from U.S. Silver's mining complex has exceeded 210 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 18,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding its production from existing operations as well as exploring and developing its extensive Silver Valley holdings.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

U.S. Silver Corporation
Tom Parker
Interim CEO
(208) 752 0400

or visit:

www.us-silver.com

Legends
	Production
	Mine development
	Discovery
	Exploration
	Past producer
On Google Earth, click on the button, to show property information, and access to project page or company page.