Shallow Silver Zone
Corporate Presentation | June 2011
Disclaimer CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements regarding future events and Silver Bull’s future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). These statements are based on current expectations, estimates, forecasts, and projections about the industry in which Silver Bull operates and the beliefs and assumptions of Silver Bull’s management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “may,” variations of such words, and similar expressions, are intended to identify such forward-looking statements. In addition, any statements that refer to projections of Silver Bull’s future financial performance, Silver Bull’s anticipated growth and potential in its business and other characterizations of future events or circumstances are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, including such factors as the volatility and level of commodity prices, currency exchange rate fluctuations, uncertainties in cash flow, expected acquisition benefits, exploration mining and operating risks, competition, litigation, environmental matters, the potential impact of government regulations, and other matters discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2010 and subsequent periodic reports, many of which are beyond our control. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements. CAUTIONARY NOTE to US Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. The information contained herein uses the terms “Measured”, “Indicated” and “Inferred” Mineral Resources which may not be consistent with the reserve definitions established by the SEC. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them and expressly prohibits U.S. registered companies from including such terms in their filings with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. U.S. investors are urged to consider closely the disclosure in our Form 10-K and other periodic reports. You can review and obtain copies of these filings from the SEC’s website at http://www.sec.gov.
2
Projects in Mexico and Africa Sierra Mojada, Coahuila, Mexico Shallow Silver Zone Resource Shallow and at surface silver
Open pit potential 2 km of strike
Major Zinc Oxide Resource Multi-billion pound resource
Road to Sierra Mojada Project
Strong Exploration Upside Potential Testing 4 targets of historical mineralization 19,580 hectares (48,362 acres)
Gabon, Africa Prospective for Gold, Manganese, Iron ore Joint Venture with AngloGold Ashanti 3
Sierra Mojada - Historical Mining District Prolific past producer of direct shipping ore 1880’s to 1990’s shipped grades in excess of +500 g/t Silver and +30% Zinc
Metalline commenced exploration in 1996 Over $20 million in exploration expenditures
Merged with Dome Ventures April 2010 Gabon Prospects and joint venture Focused development plan Listing on to the TSX, and NYSE Amex
Name changed to Silver Bull May 2011 Right: Useable mine shaft at Sierra Mojada Left: Miners carrying ore on their backs at Sierra Mojada
4
Sierra Mojada – Location in Mexico
5
Sierra Mojada – Infrastructure and Location Mexico
The largest silver producer in the world
Rail, Road & Power
Industrial power line to the project railroad to mine site Paved road access to mine site
Water
Resources identified and utilized
Labor
Mining history has provided a labor pool of miners Strong community support
Favorable Climate
Work is possible on site year-round
6
Sierra Mojada Concession Map
‘Shallow Silver Zone’
Silver Bull has acquired or has options to acquire mineral concessions totaling 19,580 hectares (48,362 acres) in the Sierra Mojada Mining District. Currently, 3% of the concession is not under our control.
7
NI 43-101 Compliant Resource Shallow Silver Zone
Class
Indicated
Inferred
Cutoff Grade Ag gpt
Tonnes 000's
Average Grade Ag gpt
Silver Ounces Equivalent (Moz)
10
10,717
50.8
17,506
15
10,080
53.2
17,243
20
9,235
56.4
16,748
25
8,311
60.2
16,088
30
7,242
65
15,136
10
16,397
47.6
25,096
15
16,118
48.2
24,980
20
15,258
49.9
24,481
25
14,050
52.2
23,582
30
12,267
55.8
22,010 8
Sierra Mojada “Shallow Silver Zone” Main Deposit
Silver Bull Resources, Inc. Sierra Mojada - Main Deposit 9
Shallow Silver Zone – West End
10
Shallow Silver Zone – East End
11
3D Model of Shallow Silver Zone Grade distribution of silver
12
3D Model of Shallow Silver Zone
Indicated vs. Inferred
13
Shape and Plunge of the Ore Body
surface
14
“Shallow Silver Zone” in Relation to PAH Jan 2010 43-101 Model
15
Shallow Silver Zone in Relation to Previous work at Sierra Mojada
16
Can we add more Silver Ounces?
17
Sierra Mojada – Shallow Silver Zone Large and Growing Silver Deposit
Excellent potential for a open pit operation 16.75Moz Indicated & 24.5Moz Inferred 2 km strike open to the east and west Previous work suggests Ag Mineralization continues
2011 Budget includes 20,000 m of drilling on upgrading and extending the “Shallow Silver Zone” Infill drilling to upgrade resource to Measured and Indicated Drilling eastern and northern extension of “Shallow Silver Zone”
18
Sierra Mojada 2011 Drill Program
19
Sierra Mojada 2011 Exploration and Geophysics Program
N DORMIDOS PALMOS NEGROS
SAN FRANCISO CANYON WEST END
SHALLOW SILVER ZONE
Targeting 4 main areas with historical mine workings and mineralization 1,700 line km ZTEM geophysics survey 4,000 meter drill program planned for late 2011
20
Gabon, Africa Gabon
Former French colony, stable democracy Last peaceful election in 2009 Natural resource based economy Strong mining history
Gabon
Exploration Licenses Three 2,000 km2 exploration licenses Highly prospective for Gold, Iron Ore and Manganese 150 km east of Libreville accessible via paved road 2 licenses under JV with AngloGold Ashanti
Gabon Libreville
21
AngloGold Ashanti Joint Venture Ndjole & Mevang Gold Project JV Anglo earned 20% via US$400,000 cash payment Anglo can earn up to 60% via US$3.7 million exploration expenditures and US$100,000 per year to Silver Bull over 3 years
Ogooue Gold Project JV Prospection Permit Approx. 8,000 km2 80% Anglo, 20% Silver Bull
Anglo will sole fund initial US$3 million after which becomes participating JV Converting from Prospect Permit to
Exploration Permit 22
Board of Directors & Officers Brian Edgar, Executive Chairman - Former securities and corporate lawyer. Established Rand Edgar Capital Corp. in 1992, to pursue venture capital investing and other activities. Currently sits on the boards of 6 public companies. Tim Barry, MAusIMM, CEO, President and Director - Professional Geologist, 10 years early-stage exploration experience and generator of Gabon gold exploration prospects. Sean Fallis, CA, CFO - Chartered Accountant and previously the corporate controller of gold producer Rusoro Mining Ltd., completed articling at PricewaterhouseCoopers. Dr. Nicole Adshead-Bell, Director - President of Cupel Advisory Corp., previously Managing Director Haywood investment banking and prior to that she was sell side analyst at Dundee and buy side analyst at Sun Valley gold LLC. Ph.D. in Geology. Dan Kunz, Director - CEO of US Geothermal. Previously served as President at Ivanhoe Mines, President and CEO at MK Gold Company and at Morrison Knudsen Corporation as VP & Controller, and as CFO to the Mining Group.
Dr. Murray Hitzman, Director - Professor at Colorado School of Mines and serves as director of several mining companies. Served as a senior analyst in the White House Office of Science and Technology Policy. Duncan Hsia, Director - Investor & analyst focused on public and private companies in the mining and commodities sectors.
23
Capital Structure Market Facts Shares Outstanding
as of June 6, 2011 (All figures in US$)
114,881,161
Warrants (a)
2,082,233
Options (b)
5,950,573
Fully Diluted Share Price 52 Week Lo/Hi 3 Month Avg. Vol.
122,913,967 $0.72 $0.52 to $1.45 566,566
Market Cap
$83 million
Cash
$9.3 million
(a) avg. exercise price = $1.25 / avg. remaining life 1.06 years (b) avg. exercise price = $1.34/ avg. remaining life 4.97 years
Directors and Officers: 9.6% Sprott Asset Management: 9.5% Lazarus Investment Partners: 8.9% Institutional Ownership: 24.5%
24
Why Silver Bull? 1. Undervalued Assets 2. Management with a proven track record 3. Focused on Shallow Silver Zone 4. Secondary focus on Zinc – Big resource in the ground with supply tightening in the future 5. Very big land position 200 km2 with exploration focused up to recently on a small area - lots of upside potential 6. Trading in two great markets - TSX and NYSE Amex 25
Thank You | [email protected] | 604-687-5800
26
Disclaimer CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements regarding future events and Silver Bull’s future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). These statements are based on current expectations, estimates, forecasts, and projections about the industry in which Silver Bull operates and the beliefs and assumptions of Silver Bull’s management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “may,” variations of such words, and similar expressions, are intended to identify such forward-looking statements. In addition, any statements that refer to projections of Silver Bull’s future financial performance, Silver Bull’s anticipated growth and potential in its business and other characterizations of future events or circumstances are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, including such factors as the volatility and level of commodity prices, currency exchange rate fluctuations, uncertainties in cash flow, expected acquisition benefits, exploration mining and operating risks, competition, litigation, environmental matters, the potential impact of government regulations, and other matters discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2010 and subsequent periodic reports, many of which are beyond our control. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements. CAUTIONARY NOTE to US Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. The information contained herein uses the terms “Measured”, “Indicated” and “Inferred” Mineral Resources which may not be consistent with the reserve definitions established by the SEC. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them and expressly prohibits U.S. registered companies from including such terms in their filings with the SEC. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. U.S. investors are urged to consider closely the disclosure in our Form 10-K and other periodic reports. You can review and obtain copies of these filings from the SEC’s website at http://www.sec.gov.
2
Projects in Mexico and Africa Sierra Mojada, Coahuila, Mexico Shallow Silver Zone Resource Shallow and at surface silver
Open pit potential 2 km of strike
Major Zinc Oxide Resource Multi-billion pound resource
Road to Sierra Mojada Project
Strong Exploration Upside Potential Testing 4 targets of historical mineralization 19,580 hectares (48,362 acres)
Gabon, Africa Prospective for Gold, Manganese, Iron ore Joint Venture with AngloGold Ashanti 3
Sierra Mojada - Historical Mining District Prolific past producer of direct shipping ore 1880’s to 1990’s shipped grades in excess of +500 g/t Silver and +30% Zinc
Metalline commenced exploration in 1996 Over $20 million in exploration expenditures
Merged with Dome Ventures April 2010 Gabon Prospects and joint venture Focused development plan Listing on to the TSX, and NYSE Amex
Name changed to Silver Bull May 2011 Right: Useable mine shaft at Sierra Mojada Left: Miners carrying ore on their backs at Sierra Mojada
4
Sierra Mojada – Location in Mexico
5
Sierra Mojada – Infrastructure and Location Mexico
The largest silver producer in the world
Rail, Road & Power
Industrial power line to the project railroad to mine site Paved road access to mine site
Water
Resources identified and utilized
Labor
Mining history has provided a labor pool of miners Strong community support
Favorable Climate
Work is possible on site year-round
6
Sierra Mojada Concession Map
‘Shallow Silver Zone’
Silver Bull has acquired or has options to acquire mineral concessions totaling 19,580 hectares (48,362 acres) in the Sierra Mojada Mining District. Currently, 3% of the concession is not under our control.
7
NI 43-101 Compliant Resource Shallow Silver Zone
Class
Indicated
Inferred
Cutoff Grade Ag gpt
Tonnes 000's
Average Grade Ag gpt
Silver Ounces Equivalent (Moz)
10
10,717
50.8
17,506
15
10,080
53.2
17,243
20
9,235
56.4
16,748
25
8,311
60.2
16,088
30
7,242
65
15,136
10
16,397
47.6
25,096
15
16,118
48.2
24,980
20
15,258
49.9
24,481
25
14,050
52.2
23,582
30
12,267
55.8
22,010 8
Sierra Mojada “Shallow Silver Zone” Main Deposit
Silver Bull Resources, Inc. Sierra Mojada - Main Deposit 9
Shallow Silver Zone – West End
10
Shallow Silver Zone – East End
11
3D Model of Shallow Silver Zone Grade distribution of silver
12
3D Model of Shallow Silver Zone
Indicated vs. Inferred
13
Shape and Plunge of the Ore Body
surface
14
“Shallow Silver Zone” in Relation to PAH Jan 2010 43-101 Model
15
Shallow Silver Zone in Relation to Previous work at Sierra Mojada
16
Can we add more Silver Ounces?
17
Sierra Mojada – Shallow Silver Zone Large and Growing Silver Deposit
Excellent potential for a open pit operation 16.75Moz Indicated & 24.5Moz Inferred 2 km strike open to the east and west Previous work suggests Ag Mineralization continues
2011 Budget includes 20,000 m of drilling on upgrading and extending the “Shallow Silver Zone” Infill drilling to upgrade resource to Measured and Indicated Drilling eastern and northern extension of “Shallow Silver Zone”
18
Sierra Mojada 2011 Drill Program
19
Sierra Mojada 2011 Exploration and Geophysics Program
N DORMIDOS PALMOS NEGROS
SAN FRANCISO CANYON WEST END
SHALLOW SILVER ZONE
Targeting 4 main areas with historical mine workings and mineralization 1,700 line km ZTEM geophysics survey 4,000 meter drill program planned for late 2011
20
Gabon, Africa Gabon
Former French colony, stable democracy Last peaceful election in 2009 Natural resource based economy Strong mining history
Gabon
Exploration Licenses Three 2,000 km2 exploration licenses Highly prospective for Gold, Iron Ore and Manganese 150 km east of Libreville accessible via paved road 2 licenses under JV with AngloGold Ashanti
Gabon Libreville
21
AngloGold Ashanti Joint Venture Ndjole & Mevang Gold Project JV Anglo earned 20% via US$400,000 cash payment Anglo can earn up to 60% via US$3.7 million exploration expenditures and US$100,000 per year to Silver Bull over 3 years
Ogooue Gold Project JV Prospection Permit Approx. 8,000 km2 80% Anglo, 20% Silver Bull
Anglo will sole fund initial US$3 million after which becomes participating JV Converting from Prospect Permit to
Exploration Permit 22
Board of Directors & Officers Brian Edgar, Executive Chairman - Former securities and corporate lawyer. Established Rand Edgar Capital Corp. in 1992, to pursue venture capital investing and other activities. Currently sits on the boards of 6 public companies. Tim Barry, MAusIMM, CEO, President and Director - Professional Geologist, 10 years early-stage exploration experience and generator of Gabon gold exploration prospects. Sean Fallis, CA, CFO - Chartered Accountant and previously the corporate controller of gold producer Rusoro Mining Ltd., completed articling at PricewaterhouseCoopers. Dr. Nicole Adshead-Bell, Director - President of Cupel Advisory Corp., previously Managing Director Haywood investment banking and prior to that she was sell side analyst at Dundee and buy side analyst at Sun Valley gold LLC. Ph.D. in Geology. Dan Kunz, Director - CEO of US Geothermal. Previously served as President at Ivanhoe Mines, President and CEO at MK Gold Company and at Morrison Knudsen Corporation as VP & Controller, and as CFO to the Mining Group.
Dr. Murray Hitzman, Director - Professor at Colorado School of Mines and serves as director of several mining companies. Served as a senior analyst in the White House Office of Science and Technology Policy. Duncan Hsia, Director - Investor & analyst focused on public and private companies in the mining and commodities sectors.
23
Capital Structure Market Facts Shares Outstanding
as of June 6, 2011 (All figures in US$)
114,881,161
Warrants (a)
2,082,233
Options (b)
5,950,573
Fully Diluted Share Price 52 Week Lo/Hi 3 Month Avg. Vol.
122,913,967 $0.72 $0.52 to $1.45 566,566
Market Cap
$83 million
Cash
$9.3 million
(a) avg. exercise price = $1.25 / avg. remaining life 1.06 years (b) avg. exercise price = $1.34/ avg. remaining life 4.97 years
Directors and Officers: 9.6% Sprott Asset Management: 9.5% Lazarus Investment Partners: 8.9% Institutional Ownership: 24.5%
24
Why Silver Bull? 1. Undervalued Assets 2. Management with a proven track record 3. Focused on Shallow Silver Zone 4. Secondary focus on Zinc – Big resource in the ground with supply tightening in the future 5. Very big land position 200 km2 with exploration focused up to recently on a small area - lots of upside potential 6. Trading in two great markets - TSX and NYSE Amex 25
Thank You | [email protected] | 604-687-5800
26
