Credit Suisse Presentation FINAL (Silverwheaton)_v001_q538j7

8/3/2019 Credit Suisse Presentation FINAL (Silverwheaton)_v001_q538j7

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CREDIT SUISSEGLOBAL STEEL & MINING CONFERENCE

SEPTEMBER 2011


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A WIN-WIN MODEL

WHY IT WORKS

Silver streams create shareholder value for both the purchaser and the

Silver produced at base metal or gold mines is given a lower valuationby the market than if it had been produced by a silver company

m Arbitrage opportunity exists

fSilverStre

llustrative)

Silver Wheatons and thePartners Shareholders

Value of FutureSilver Stream

NPV

(I

Value of FutureSilver

Production

3

Base Metal or GoldProducer

Silver Wheaton


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WHO IS SILVER WHEATON?

4


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THE LARGEST MARKET CAPITALIZATION

OF ALL..

Metals Streaming andRo alt Com anies

North American SeniorSilver Producers

9%($2.1B)

10%

($4.4B)

($2.5B)

($2.2B)

58%14%

58%24%($14.1B)($5.7B) ($14.1B)($3.5B)

Silver Wheaton Pan AmericanSilver Wheaton Franco-Nevada Ro al GoldCoeur d'Alene Silver Standard

Hecla

5

* As of Sept 9, 2011, exchange rate of C$1=US$1 in calculating Franco-Nevada


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MORE SILVER RESERVES AND RESOURCES

THAN ANY OTHER SILVER COMPANY IN THE WORLD

ozs) 2,000

Inferred

esources(

1,400

1,600

,M&I

Reserves

erv

esand

800

1,000

1,200

SilverRe

200

400

600

0Silver

WheatonSilver

StandardResources

Fresnillo PanAmerican

Silver

Polymetal Bear CreekMining

Coeurd'AleneMining

PretiumResources

HeclaMining

SouthAmerican

Silver

6

* Source: Company Reports, Metals Economics Group data for Fresnillo and Polymetal

any other silver company in the world


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HIGH QUALITY ASSET BASE

LONG-LIFE MINES*

2011 Forecast ProductionBy Mine Life**

2015 Forecast ProductionBy Mine Life**

4%13%

50%27%

79%

10%

Mine life:

- -


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HIGH QUALITY ASSET BASE

LOW-COST MINES*

2011 Forecast ProductionBy Cost Quartile**

2015 Forecast ProductionBy Cost Quartile**

8.4%10.8%

22.8%

48.2%

68.9%41.1%

- -

First Second Third Fourth

9

* Silver Wheatons core assets which include Pascua-Lama, Peasquito, San Dimas, Yauliyacu, Zinkgruvan, Minto, Cozamin, Pierina, Veladero, Lagunas Norte, and assumes

Rosemont becomes a core asset in 2015; ** Based on Wood Mackenzie estimates of 2010 by-product cost curves for gold, zinc and copper mines


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WORLD-CLASS CORNERSTONE ASSETS

-

Operator

Location Mexico Chile/Argentina

Av. Annual Silver Production* 28Moz 35Moz (first 5 years)**

P&P Silver Reserves * 1,105Moz 671Moz

*

By-product Cash Costs


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PEASQUITO

GROWTH ENGINE UNTIL 2013

Key driver of growth until Pascua-Lama commences production in 2013

Silver Wheaton to receive 25% of silver production for the life-of-mine

Commercial production achieved in 2010

Full production capacity of 130,000tpd anticipated in early 2012

Upside remains

success

mining studies underway could add

11

Average annual production of approximately 7Moz Ag to Silver Wheaton over life-of-mine


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STRONG PRODUCTION GROWTH

WITH EXISTING ASSET BASE

45

z)*

~80% Production Growth

30

35Pascua-Lama

Barrick Other*duction

(M

20

25Peasquito

San Dimas**

Rosemont

Yauliyacuuiv

alentPr

5

10

15 Zinkgruvan

Minto (gold)***

Cozamin

Other

SilverE

0

2008A 2009A 2010A 2011E 2015E2011E 2015E

13

* Comprised of the Veladero, Lagunas Norte and Pierina mines; **Production inlcudes Goldcorps four year commitment to deliver to Silver Wheaton 1.5Moz of Ag per annumresulting from their sale of San Dimas to Primero; ***Silver Eq. production assuming Au:Ag ratio of 50:1


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WHY INVEST IN SILVER WHEATON?

14


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SIGNIFICANT MARKET SHARE

INVESTMENT IN THE SILVER INDUSTRY

100%

Percentage Allocation of Investment Dollars*

70%

80%

90% 16%

40%

50%

60%62%

10%

20%

30%

23%

0%2004 2005 2006 2007 2008 2009 2010

= Silver Wheaton = Silver ETFs** = Senior Silver Producers***

Twelve MonthsEnding Aug 23,

2011

15

* Measured by average daily trading volume in US dollars, source is Bloomberg market data as of Aug 23, 2011, Data from US and Cdn exchanges except for Fresnillo andHochschild which trade on LSE, ** Includes iShares Silver Trust, ETF Securities Silver ETFs, ZKB Silver ETF and Sprott Silver Trust; *** Includes Coeur dAlene, Hecla,

Pan American Silver, Silver Standard, Silvercorp, Fresnillo and Hochschild


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SILVER WHEATON VERSUS SILVER PRODUCERS

Pure upside to increases in the silver price

Operating costs are essentially fixed*

No ongoing capital expenditures or exploration costs

o env ronmenta or c osure respons t es

Greater diversity of assets

No exchange rate risk

16

* Ongoing delivery payments are fixed at approximately US$4/oz with an inflationary adjustment of approximately 1% per annum after the third year of production


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FOCUSED ON SILVER

Silver revenue as a percentage of total revenue*

96% 95%

80%

90%

100% Width of bars based on relative 2011 forecast silver production**

69% 68%63%

57%

48%50%

60%

70%

20%

30%

40%

0%10%

SilverWheaton

SilverStandard

Pan AmericanSilver

Hochschild Coeur D'Alene Fresnillo Hecla

25-26Moz 8.5Moz 23-24Moz 16.5Moz 19.5-20.5Moz 44Moz 40.5Moz

17

* Source: Company Reports, six months ending Jun 30, 2011, Hochschild is year ending Dec 31, 2010; ** Source: Company guidance to market


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EXPANDING CASH OPERATING MARGINS

FIXED OPERATING COSTS

Realized Silver Equivalent Price/oz$40

.

$25

$30

$35

e(US$/

oz)

$11.10

$16.63

$31.25

$11.72

$13.42$14.97 $15.13

$20.67

$15

$20

ilve

rEq.Pri

$3.40 $3.41$7.82 .

.$7.30 $7.31

$3.90 $3.90 $3.90 $3.91 $3.94 $4.03 $4.04 $4.10$0

$5

Cash Operating Margins*Total Cash Cost/oz*

Fixed cash costs** provide shareholders with significant leverage to

18

* Refer to non-IRFS measures at the end of this presentation; **Operating costs are fixed at approximately US$4/oz with an inflationary adjustment of approximately 1% per

annum after the third year of production


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SILVER WHEATON VERSUS SILVER ETF

Silver Wheaton Silver ETF

Primarily Silver Exposure

Leverage to Silver Price

Exploration and Expansion Upside

Acquisition Growth Potential

Dividend Yield

19


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Dividend Yield

20


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LEVERAGE TO SILVER PRICES

(06/30/2008 06/30/2011)

Three year growth

125%

120%

80%

100%

$35.02/oz

$33.00/share$1.40/share

40%

60%

$0.59/share

0%

20% $17.65/oz

.

ver r ce ver eaton are r ce as ow are

21

* Source: LBMA Silver Fixings;** Refer to non-IRFS measures at the end of this presentation


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Primarily Silver Exposure everage o ver r ce



22


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GROWING RESERVES AND RESOURCES

FOR A SIXTH CONSECUTIVE YEARIncrease in total attributable reserves and resources since inception*

1,4001,600

,

oz)

800

1,000

,

ilv

erR&R(

200

400

2004 2005 2006 2007 2008 2009 2010

Inferred Measured & Indicated ReservesReserves Measured & Indicated Inferred

50% annualized rowth in roven and robable reserves since ince tion

23* Reserves and resources are as of Dec. 31

st

for each year and does not include gold reserves and resources, see appendix for reserve and resource tables

35% annualized growth in reserves and resources since inception


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GROWING RESERVES AND RESOURCES

THROUGH ACQUISITIONS AND EXPLORATION

Silver Reserves and Resources (in Moz)*

432 494(Inf)

365(M&I)

142

1,262942

(P&P)

4(M&I)173 (Inf)

2004 R+R Total Mined Total Acquired Total Exploration 2010 R+R

24% of Silver Wheatons total reserves and resources is the result of

69 (P&P)

24

* Reserves and resources are as of Dec. 31st for each year and does not include gold reserves and resources, see appendix for reserve and resource tables

exp ora on success a our par ners m nes


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Primarily Silver Exposure everage o ver r ce

Exploration and Expansion Upside Acquisition Growth Potential

25


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CREATING SHAREHOLDER VALUE

RESERVES AND RESOURCES PER SHAREIncrease in total attributable reserves and resources per share since inception*

6.0

4.0

5.0

are

2.0

3.0

Silveroz/s

0.0

1.0

Inferred Measured & Indicated ReservesReserves Measured & Indicated Inferred

33% annualized growth in proven and probable reserves per share since inception

26

* Reserves and resources are as of Dec. 31st for each year and does not include gold reserves and resources, see appendix for reserve and resource tables


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LARGE TARGET MARKET

900

Silver Wheaton vs. Global Silver Productionz)

l)*

700

800

oduction(M

Source

Met Traditional

SilverCompanies

400

500Primary Silver Mines

Gold Mines

Base Metal MinesbalSilverP

utbyMines

PotentialTarget Silver

100

200

ForecastGl

(SilverOutp Market

3% 4%

ea on ver ea on sForecast Production(% of potential targetmarket)

02010A 2011A 2012E 2013E 2014E 2015E SLW

2011SLW2015

>70% of mined silver is produced as a by-product from base metal or gold mines

27

* Source: CPM Group silver production forecasts, based on 2010 estimates of silver production by source metal

= Significant growth potential in the silver stream space


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STRONG BALANCE SHEET

TO FUND FUTURE GROWTH$701M

$400M

$275M

Cash and cash Undrawn credit Forecast Q3-Q4*

Silver in terest**

Total debt Forecast Q3-Q4

$137.5M

$14.3M

$22M

Payments***

Strong balance sheet leaves us exceptionally well-positioned to pursueadditional accretive silver stream o ortunities

($137.5M duein 2011)

.

Q3-Q4 2011)(as of 06/30/11)

28

* Assumes analyst consensus 2011 silver and gold prices of US$33.59/oz and US$1,458/oz, respectively, for Q3-Q4 2011; ** Includes remaining upfront cash payments ofUS$275M for Barrick transaction, additional payments of US$230M for the Rosemont transaction and US$32.4M for Navidad transaction are contingent upon receipt of key

operating permits; *** Assumes current quarterly dividend rate of US$0.03/share


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Dividend Yield

29


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DIVIDEND YIELD

SIGNIFICANT GROWTH POTENTIAL

Commenced inaugural quarterly cash dividend of US$0.03/share in Q1 2011

Industry Leading Cash Operating Margins (> 80%)*

2011 Forecast Free Cash Flows of approx. US$635M**

Industry Leading Long-term Production Growth

Significant Dividend Growth Potential

30

* Based on 2010 and H1 2011 cash operating margins. Cash operating margins defined as average realized selling price less cash cost per silver equivalent ounce; ** Assumesactual results for H1 2011 and analyst consensus 2011 silver and gold prices of US$33.59/oz and US$1,458/oz, respectively, for the balance of 2011


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Dividend Yield

31


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THE PROOFIS IN THE PRICE PERFORMANCE

1400%

SLW

800%

1000%

Silver

PAAS

400%

600%

HLCDE

-200%

0%

4 5 5 5 5 6 6 6 6 7 7 7 7 8 8 8 8 9 9 9 9 0 0 0 0 1 1 1

SLW share price has significantly outperformed the price of silver and the share price

Oct-0

Jan

-0

Apr-0

Jul-0

Oct-0

Jan

-0

Apr-0

Jul-0

Oct-0

Jan

-0

Apr-0

Jul-0

Oct-0

Jan

-0

Apr-0

Jul-0

Oct-0

Jan

-0

Apr-0

Jul-0

Oct-0

Jan

-1

Apr-1

Jul-1

Oct-1

Jan

-1

Apr-1

Jul-1

32

Source: Thomson One, As of Aug 23, 2011

of its silver producing peers since the Companys inception in October 2004


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IF YOU LIKE SILVER.

SILVER WHEATON PROVIDES:

os cer a n y

Leverage to increasing silver prices

Industry-leading growth profile

Dividend yield

33

AND REMAINS STRATEGICALLY POSITIONED FOR FURTHER GROWTH.


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Tel: 604-684-9648Toll Free: 1-800-380-8687Email: [email protected]

TRANSFER AGENTCIBC Mellon Trust Company- - -

Email: [email protected]

NYSE: SLW TSX: SLWwww.silverwheaton.com

34


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LIQUID STOCKCAPITAL STRUCTURE AS OF JUNE 30, 2011

Shares Outstandin 353.3 million

Warrants Outstanding (in-the-money) 2.7 millionOptions Outstanding (in-the-money) 2.3 million

Shares Fully Diluted 358.3 million

3 Month Average Daily Trading Volume:

: . m on s aresNYSE: 13.4 million shares

36


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SILVER STREAM AGREEMENTS

San Dimas Peasquito Pascua-Lama Yauliyacu Zinkgruvan Cozamin

ompany

Status Producing Producing Development Producing Producing Producing

Contract

LengthLOM LOM LOM 20 yrs LOM 10 yrs

Ag Prod. 100%* 25% 25% up to 4.75 M 100% 100%oz yr

Mine Life 20+ yrs 22+ yrs 25+ yrs 10+ yrs 10+ yrs 7+ yrs

Cash Costs $4.04/oz $3.90/oz $3.90/oz $3.98/oz $4.08/oz $4.04/oz

Annual Ag

Production5+ M oz 7 M oz 9 M oz**

Up to 4.75 M

oz2 Moz 1.5 Moz

38

* Silver Wheaton will receive 100% of first 3.5Moz Ag produced plus 50% of excess plus 1.5Moz of Ag from Goldcorp until Aug 2014 after which Silver Wheaton will receive100% of first 6Moz Ag produced plus 50% of excess; ** 9Moz for first 5 years and approx. 5.5 M oz over LOM.


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SILVER STREAM AGREEMENTS(CONTINUED)

Minto Stratoni Campo Morado Lagunas

NortePierina Veladero

Company

Status Producing Producing Producing Producing Producing Producing

Contract

LengthLOM LOM LOM to 2014** to 2014** to 2014**

Ag Prod. 100%* 100% 75% 100% 100% 100%***

Mine Life 10+ yrs 6+ yrs 10+ yrs 9+ yrs 4+ yrs 21+ yrs

Cash Costs$3.90/oz Ag

$3.90/oz $3.90/oz $3.90/oz $3.90/oz $3.90/oz

Annual Ag

Production0.2 Moz Ag

20,000 oz Au1+ Moz 1+ Moz 0.5 Moz 1+ Moz 1+ Moz

39

* Includes gold production, If production exceeds 30,000 ounces of gold per year, Silver Wheaton is entitled to 100% of the gold produced up to these thresholds and 50% of theamount in excess of these thresholds; **100% Ag Prod. effective September 2009 until end of 2013; During 2014 and 2015, Silver Wheaton will be entitled to the silverproduction from the Lagunas Norte, Pierina and Veladero mines to the extent of any production shortfall at Pascua-Lama until Barrick satisfies a Completion Guarantee;***SLWs attributable silver production is subject to a maximum of 8% of the silver contained in the ore mined at Veladero during the period


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Neves-Corvo Mineral Park Los Filos Keno Hill Aljustrel

Company

Status Producing Producing Producing Producing Producing

Contract

LengthLOM LOM 25 yrs LOM LOM

Ag Prod. 100% 100% 100% 25% 100%Mine Life 10+ yrs 23+ yrs 18+ yrs 4+ yrs 10+ yrs

Cash Costs $3.90/oz $3.90/oz $4.04/oz $3.90/oz $3.90/oz

Annual AgProduction

0.5 Moz 0.5+ Moz 0.2-0.3 Moz 0.5+ Moz 0.1Moz

40


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Rosemont Navidad

Company

Status Development Development

LengthLOM LOM

Ag Prod. 100%* 12.5%***

Mine Life 21+ yrs 15+ yrs

Cash

Costs$3.90/oz Ag$450/oz Au

US$4.00/oz

Annual AgProduction 2.4 Moz Ag15,000 oz Au** 1.0-2.0 Moz

41

* Also includes 100% of the future gold production; ** Based on a Jan 2009 Feasibility Report, Augusta forecasts that up to 15,000 ozs of gold may be produced annually;*** Silver Wheaton has converted a debenture to acquire an amount equal to 12.5% of the Loma de La Plata zone of the Navidad deposit


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PEASQUITO PROJECT GROWTHSINCE APRIL 2007 ACQUISITION

April 2007 Current* Growth

Silver Reserves/Resources**

P&P Reserves (100%) 575 M oz 1,105 M oz +92%

LOM Silver Production

Attributable to SLW (25%) 92 M oz 159 M oz +73%

Average Annual Silver Production

Attributable to SLW (25%) 5.4 M oz 7.0 M oz +30%

Anticipated Mine Life 17 yrs 22 yrs +29%

Underground Potential Not contemplated Yes +%??

42

* Reserves and Resources as of Dec 31, 2010, remaining data based on March 2009 Technical Report, ** Silver Wheatons portion is 25%


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DEVELOPMENT STAGE ASSETS

Entitled to 100% of life of mine silver and goldproduction from Augusta Resources Rosemont Project

Anticipated to be a very long-life, low-cost Cu-Mo-Ag-Au mine

Forecast to increase long-term annual production by approx.2.4Moz of silver and up to 15,000 ozs of gold*

Once permits finalized, SLW to make upfront cash paymentsof US$230 million plus ongoing production payment

Entitled to 12.5% of life of mine silver production from

Rosemont Project in Arizona

e oma e a a a zone o an mer can ver sNavidad project

One of the largest undeveloped silver deposits in the world

-

2Moz per annum** Once permits finalized, SLW to make upfront cash payments

of US$32.4 million plus ongoing production paymentNavidad Project in Argentina

43

* Based on Augusta Resource Corporations Jan 2009 Feasibility Study; ** Based on Pan American Silvers Jan 2011Preliminary Economic Assessment

Two projects provide ~5Moz of long-term silver production

SILVER WHEATONS EQUITY INVESTMENTS


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SILVER WHEATONS EQUITY INVESTMENTS

Property ofInterest

Corani Rock Creek Montanore Hackett River

Ownership 15% 17% 11% 7%

Sta e Feasibilit Pre-FeasibilitAdvanced

Pre-Feasibilitxp orat on

ResourceA M oz

P&P 258

M&I 72 Inf. 229 M&I 166

Inf. 65

Ind. 200

Inf. 64 Inf. 36

Est. Annual Ag

Production+10 M oz/yr* 6 M oz/yr N/A 12 M oz/yr

44

Source: Company Reports, * For first 6yrs, 6.4 M oz/yr LOM

SIGNIFICANT GROWTH POTENTIAL


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SIGNIFICANT GROWTH POTENTIALSILVER WHEATONS RIGHT OF FIRST REFUSAL PORTFOLIO

Company Type Projects Covered by ROFR

-

Producer Yauliyacu*

Producer All Projects



AUX Canada Development La Bodega and Cal Vetas Projects (including 5km area of interest)

Development Hackett River, Del Norte and Red Lake

Development All Projects in Montana

Development Hermosa Silver Project

45

*Also includes a right of first offer on any project owned by Glencore and its affiliates as of Mar 23, 2006 other than the Yauliyacu Mine

2011 FORECAST PRODUCTION


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2011 FORECAST PRODUCTIONSIGNIFICANT OPERATING CASH FLOWS

2011 Forecast Production By Mine1

19%18% Peasquito (5.0Moz)

San Dimas (5.7Moz)2

22%

7%

3%Barrick (3.6Moz)

Yauliyacu (2.6Moz)

Zinkgruvan (1.8Moz)

3

14%

10%

Cozamin (1.7Moz)

Minto (0.8Moz - Au in Ag Eq)

Other (4.6Moz)

4

5

2011 attributable production guidance of 25 to 26 million silver equivalent ouncesyielding operating cash flows of approximately US$635M

6

46

1. Forecast production represents quantity of silver and gold contained in concentrate or dor prior to smelting or refining deductions; 2. Production includes Goldcorp's four yearcommitment to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero; 3. Comprised of the Lagunas Norte, Pierinaand Veladero silver interests; 4. The Minto mine is forecast to produce approximately 15,000 oz of gold in 2011; 5. Includes the Los Filos, Mineral Park, Neves-Corvo, Stratoni,Keno Hill, Minto, Campo Morado and Aljustrel silver interests; 6. Assumes actual results for H1 2011 and analyst consensus silver and gold prices for Q3-Q4 2011

WELL DIVERSIFIED


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WELL DIVERSIFIEDBY GEOGRAPHY

Geographic distribution ofGeographic distribution of 2011

8%4%

Mexico4%

4% 2%

Mexico

43%

8%

8%Portugal

USA

Peru

Argentina

7%

Peru

Argentina

Sweden

9%

Chile

Sweden

Canada

Greece16%

8% Canada

Portugal

Greece

USA

20%

47

Well diversified asset base in 9 low political risk jurisdictions

LARGEST 40 SILVER DEPOSITS IN THE WORLD


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LARGEST 40 SILVER DEPOSITS IN THE WORLDPRODUCING MINES AND DEVELOPMENT PROJECTS

1,600 Silver Wheaton Relationships (9)

1,000

1,200

1,400

ources(Moz)

400

600

800

serves&Res

0

200

uito

oni

ama

idad

rrilla

gowton

dna

ates

wice

ubin

nillo

cho

obal

amkoe

rani

SM

ukat

hota

dou

obal

ores

cito

uMo

jack

ero

mas

long

itas

ama

iver

nore

reek

iejo

ipio

nton

iday

ome

erde

R

Peas

Ron

Pascua-L

Nav

La

Pita

Glo

Cannin R

Met

Polko L

Fres

Tor

om

SanC

rist

Olym

pic

Udo

kan C D

MalkuK

Xiasa

iYi

Esc

Dol

ElSa C

B

ruce

V

ela

Sa

nDi

Qu

Pirq

Cobre

Pan

Hack

ett

Monta

RockC

Pueblo

Ju

ani

SanA

Luck

yFr

SanBartol

CerroV

Copyright Metals Economics Group - MineSearch - 2010

48

Source: Data from Metals Economics Group and includes producing mines and development stage projects with reserve and resource updates subsequent to Jan 1, 2006

Stake in 3 of the top 4 (and 9 of the top 40) silver deposits in the world.

LOW ADMINISTRATIVE COSTS


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LOW ADMINISTRATIVE COSTSCOMPARED TO SILVER ETFS

0.70%Administrative Costs1

0.50% 0.49%

.

0.50%

0.60%

0.19%

0.30%0.30%

0.40%

0.10%

.

.Silver Wheaton iShares Silver Trust

(SLV)ETFS Physical Silver -

New York (SIVR)ETFS Physical Silver -

London (PHAG)Sprott Physical Silver

Trust (PSLV)

SLW administrative costs are lower than Silver ETFs

2

3 3 4 5

49

1. Presented as a % of Enterprise Value for SLW ; as a % of NAV for SLV, SIVR and PSLV; as a % of Bullion held in custody for PHAG; 2. LTM Jun-30-11 G&A of $24.1M /Enterprise Value of $12.9B per Bloomberg as of Aug-12-11; 3. As reported in Jun-30-11 10Q; 4. As reported in Dec-3-10 Prospectus; 5. As reported in Jun-30-11 6K.Management fee of 0.45% + operating expense of 0.16% of NAV. Annualized operating expense of $1.65 million (based on $0.8M for the 6 months ended Jun-30-11) / NAV of$1.1B as of Aug-12-11.


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WHY SILVER?


55/65

WHY SILVER?

Silver is a unique precious metal

Produced primarily as a by-product

Significant industrial applications

Silver is a store of value

Physical silver demand has risen significantly in the past several yearsre ec ng s rong nves or n eres

ETF demand continues at record levels

Silver is a versatile industrial metal

New uses are being developed at a staggering pace

Relied upon for growth in developed and emerging economies

Global economy beginning to show signs of improvement

54

SILVER DEMAND


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SILVER DEMANDWHAT IS SILVER USED FOR?

2009 Actual 2010 Actual

17%14%

3%

46%10%

41%9%

7%

20%

9%

24%

Industry Photography Jewelry & Silverware Coins and Medals Investment De-hedging

Investment demand increased 40% in 2010 to 279Moz resulting in a net flow into

55

Source: GFMS; Investment demand is comprised of silver ETFs, physical bullion bars, coins and medals

s ver o . on, a mos ou ng

INVESTMENT DEMAND


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INVESTMENT DEMANDA MAJOR CATALYST OF SILVER PRICE

ETF Demand - continued to trend

Silver ETF Investment (in Mozs)

higher in 2010 setting new record

highs

in ETF holdings in 2010

Coins and Medals Demand (in Mozs)

100

120USA Canada Other

Coins and Medals Demand - roseby 28% in 2010 posting a newrecord of 101Moz

20

40

60

80

56

Source: GFMS, Mitsui

02001 2002 2003 2004 2005 2006 2007 2008 2009 2010


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DEMAND FROM INDUSTRIAL APPLICATIONS


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The largest component ofindustrial demand is:

Electrical and Electronics

Brazing alloys and solders

characteristics of being thebest conductor of all metals,

because it possessesnatural antimicrobial

,

industrial uses are forecastto increase future demand

58

SILVER SUPPLY


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7% 2%6%4%

31%

8%

8% Latin America

North America

Asia

Oceana

20%

Mine Production

Scrap

25%

19%

CIS

Europe

Africa70%

Government Sales

59

Source: GFMS


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SILVER SUPPLY SCRAP


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220

200ozs)

e

rScrap

(

Sil

160

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Silver scrap supply has remained relatively constant for the past ten years at

61

Source: GFMS

approximately 200Moz per annum

SILVER BULLION INVENTORIES*


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Other silver inventories**

Government silver inventories3,000

nsofou

nces) Silver inventories held in ETFs

2,000

2,500

Silver(millio

1,000

1,500

0

500

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10

Total silver bullion inventories declined from 1988-2005

The introduction of silver ETFs in 2006 reversed this trend

Government inventories have been declining since 1980 and are estimated at

62

*Source: CPM Group; **Other inventories include all reported inventories at exchanges, some industry-reported inventories, CPM Groups estimates of bullion in bar form. Itexcludes coins and silver held as a form of savings in silverware and jewelry as well.

less than 60Moz of silver

GOLD/SILVER RATIOS


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1833 - PRESENT

90

60

70

40

50

ld

/silverrati

Ave. Ratio = 37:1

10

20

G

0

1833 1858 1883 1908 1933 1958 1983 2008

63

Source: Average yearly gold and silver price sourced from www.kitco.com

e ra o o s ver o go n e ear s crus s approx ma e y :


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Credit Suisse Presentation FINAL (Silverwheaton)_v001_q538j7

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