Industry Watch: South American Silver moves forward with work in Bolivia

January 24th, 2011: Greg Johnson, President of South American Silver, sits down with Al Korelin at the Cambridge House
Investment conference in Vancouver, BC and discusses the recent work done on their Silver-Indium project in Bolivia.

Interview Transcript:

Al: Hey I'm Al Korelin, thanks so much for joining me. We are in Vancouver, British Columbia, at the Cambridge House
Investment Conference. Chatting with an old friend of mine, Greg Johnson. Greg is the president of South American Silver.
As you are aware, South American Silver is one of our sponsor companies. What does that mean? Well that means
you can click on their banner and get all the information you want on the company. Greg, how you doing buddy?

Greg: Doing Good. Good to be back.

Al: We haven't chatted for a couple of month. Your stock has done very well, it's escalated in price. Came back a little bit
in terms of a correction but you're still significantly higher than you were six months ago. What's happening down
in South America?

Greg: Well, you know the sector had a big move in the fall, we moved up with it. As well as, you know, we've had a correction
since early December, in the silver stocks in particular. So we're at a pretty attractive point here. We've got a lot of
activity down on the ground. We've just wrapped up a major drill program on our Silver-Indium project in Bolivia. So that
is going to leading to an update on the engineering study at the end of Q1 and an updated resource as well so I think the
market is anticipating both of those. That'll then allow us to move into the pre-feasibility process later this year, which
is advancing that project pretty rapidly. And then we have a second asset which is in Chile which is copper-gold and we're
just getting preparations going for that to start an exploration program this quarter. So again, I think that's an exciting one
because that's going to rapidly move to a resource definition stage and has the opportunity to add all new metals to the
companies reserve base and resource base.

Al: Greg, you have a different asset though, one that you haven't talked about right now. I know silver is your main; it's in
the name and in your mind it's the main asset in that particular area but you've got another asset that's very important in
terms of a rare element. Let's talk about that a little bit.

Greg: Yeah. Actually on both projects they are a mixed metal. So the silver project contains Indium, which is a high technology
metal. It's what goes into your flat panel screens. Goes into touch screen technology like the ipod and itouch. It also has a lot
of growth potential in the l.e.d. lighting market and in the thin film solar panel industry. It was recently highlighted by
the department of energy as one of the critical metals along with some of the rare earths for the green energy economy,
and there are very few primary producers of indium.

Al: We were talking off the air last week, and you were telling me about you have already been approached by various
organizations saying, 'we'll take all that you can supply to us.'

Greg: Yes. Basically, indium right now is primarily produced as a by-product of zinc production. So there's very little
marginal primary indium production to be able to be brought to market. And the flat panel manufacturers, people who are
making solar panels, are looking to secure supplies of this metal…

Al: And they're saying, 'We'll take all you can give us.'

Greg: Basically. Our indications are that it's a very tight market, and that a new, large, stable, long term supply like this
would be very attractive. And there may be parties that are interested to effectively participate in some kind of financing
on the back of the indium that could basically allow us to move the project forward and have the silver completely
unhedged which would be a very attractive proposition for the share holders.

Al: Oh yeah. Okay, plans for the remainder of 2011; basically, let's take it quarter by quarter. What are you guys gonna be
doing down there?

Greg: So 2011, on the silver-indium project we're wrapping up this preliminary economic assessment study. There's
going to be a major new engineering study. Updated resource. And then kicking off drilling and engineering for pre-feasibility
for the remainder of the year. So there will be a good, steady flow of news on that project. Down in Chile, kicking off a
major exploration program that's probably going to include geophysics. Probably some deep I.P. testing for this type
of porphyry target. Some drilling, surface sampling. And then look to probably have a resource out later in 2011 on that.
So again, good steady flow of news over the next 6-12 months on two projects. Metals of both silver, indium, copper and gold.

Al: So you're gonna be a busy guy?

Greg: It's gonna be a very busy year for the company but an exciting year and we still remain very bullish for the precious
metals even though this correction that started in December has kicked in. We think this has just presented a great buying
opportunity for investors.

Al: Oh, I don't think there's any question what so ever about that. Couple of comments. Number one; in the interest
of full disclosure, I'm not a registered investment advisor and neither is Greg so don't take this as investment advise, it's not.
I'm simply telling you, and Greg is telling you about, a company we are both, obviously Greg is very close to it.
I'm also very close to it. We like the situation. Learn more about it. I think that would be very, very important. It's going to
be an exciting year for South American Silver. Greg will be on our show probably every other week, updating with news
so stay tuned and learn more about what's going on in South America with South American Silver. Thanks for watching.

Greg: Thanks, Al.


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