Silver Wheaton Revenues and Operating Cash Flows Double in the Third Quarter

By Silver Wheaton Corp., PRNE
Tuesday, November 8, 2011

VANCOUVER, British Columbia, November 9, 2011 -

TSX: SLW
NYSE: SLW

Silver Wheaton Corp. (”Silver Wheaton” or the “Company”) (TSX:SLW)(NYSE:SLW) is pleased to announce its unaudited results for the third quarter ended September 30, 2011.

THIRD QUARTER HIGHLIGHTS

  • Attributable silver equivalent production increased slightly compared with Q3 2010, to 6.1 million ounces (5.9 million ounces of silver and 5,100 ounces of gold).
  • Revenue doubled compared with Q3 2010, to US$185.2 million, on silver equivalent sales of 5.1 million ounces (4.8 million ounces of silver and 6,300 ounces of gold).
  • Net earnings increased 96% compared with Q3 2010 (on an adjusted basis[1]), to US$135.0 million (US$0.38 per share).
  • Operating cash flows more than doubled compared with Q3 2010, to US$167.2 million (US$0.47 per share[1]).
  • Cash operating margin[1] more than doubled compared with Q3 2010, to US$32.11 per silver equivalent ounce, demonstrating Silver Wheaton’s leverage to increasing silver prices.
  • Average cash costs of US$4.12[1] per silver equivalent ounce.
  • Quarter-end cash balance of US$715.6 million, with a net cash position of US$629.9 million.
  • Third quarterly dividend for 2011 of US$0.03 per common share was paid.

“Another quarter of increased silver equivalent sales, along with strong silver prices, produced solid financial results,” said Randy Smallwood, Silver Wheaton’s President and Chief Executive Officer. “During the quarter, several of our partners’ mines continued their focus on ramping up silver production, including Goldcorp’s Peñasquito mine, which had record throughput levels in the month of September. As a result, we remain confident of achieving our 2011 production guidance of between 25 and 26 million silver equivalent ounces.”

“The Company’s operating cash flows more than doubled, despite sales continuing to lag production, which was primarily the result of concentrate inventory build-up at Glencore’s Yauliyacu mine in Peru. However, in 2012, Glencore anticipates a more consistent schedule of concentrate deliveries, which should result in more regular silver deliveries to Silver Wheaton.”

“Our Company’s ability to consistently deliver amongst the highest cash operating margins in the precious metals industry, a direct result of our model of essentially fixed operating cash costs, continues to result in significant cash flow generation, particularly in the current environment of strong silver prices. Cash flows will be used to continue making accretive silver stream acquisitions and to return capital to our shareholders in the form of sustainable dividend growth. To this end, we are pleased to have recently amended our dividend policy, which now links to operating cash flows, and has resulted in a tripling of our current dividend.”

“In recent months, the resurgence in global economic turmoil has resulted in tighter debt and equity markets, negatively impacting advanced exploration and development stage mining companies’ access to project financing. Silver Wheaton is in a unique position to assist these companies with their growth goals by providing a value-enhancing source of capital through silver stream transactions. As such, our Corporate Development team continues to aggressively pursue high-quality and low-risk silver stream opportunities from around the globe, in order to further expand our sector leading production growth profile.”

Financial Review

Revenues
Revenue was US$185.2 million in the third quarter of 2011, on silver
equivalent sales of 5.1 million ounces (4.8 million ounces of silver and
6,300 ounces of gold). This represents a 100% increase from the US$92.8
million in revenue generated in the third quarter of 2010, due primarily
to increases in the average realized selling price of silver and gold of
87% and 26%, respectively.

Costs and Expenses
Average cash costs in the third quarter of 2011 were US$4.12[1] per
silver equivalent ounce, compared with US$4.09[1] during the comparable
period of 2010. This resulted in cash operating margins[1] of US$32.11
per silver equivalent ounce, a 104% increase compared with the third
quarter of 2010, demonstrating Silver Wheaton’s leverage to increasing
silver prices.
During the third quarter, the Company recorded a non-cash deferred income
tax expense of US$8.4 million, attributable primarily to the reversal of
previously recognized deferred income tax assets relating to the decline
in fair value of long-term investments in common shares, and to a lesser
extent, income from Canadian operations.

Earnings and Operating Cash Flow
Net earnings in the third quarter of 2011 were US$135.0 million (US$0.38
per share), compared with adjusted net earnings[1] of US$68.9 million
(US$0.20 per share) for the same period in 2010, an increase of 96% (an
increase of 90% on a per share basis). Cash flow from operations in the
third quarter of 2011 was US$167.2 million (US$0.47 per share[1]),
compared with US$70.5 million (US$0.20 per share[1]) for the same period
in 2010, an increase of 137%. The increase in net earnings and operating
cash flow is primarily attributable to increased selling prices of silver
and gold.

Balance Sheet
At the end of the third quarter, the Company had approximately US$716
million of cash on hand, after making a scheduled upfront payment to
Barrick of US$137.5 million, relating to the Barrick silver stream
agreement. In addition, it had US$400 million of available credit under
its revolving bank debt facility. The cash and available credit, together
with strong operating cash flows, position the Company well to execute on
its growth strategy of acquiring additional accretive silver stream
interests.

Operational Highlights

Attributable silver equivalent production was 6.1 million ounces (5.9 million ounces of silver and 5,100 ounces of gold) in the third quarter of 2011, a slight increase compared to the third quarter of 2010. Operational highlights in the quarter are as follows:

Peñasquito - As per their October 26, 2011 disclosure, Goldcorp Inc.
continues to focus on ramping up metal production at its world-class
Peñasquito mine, with ore grades and metalurgical recoveries as
anticipated. The mine remains on track to achieve its revised schedule of
full production capacity of 130,000 tonnes per day by the end of the
first quarter of 2012. Lower production was experienced during July and
August as sulphide plant modifications and tests were completed. However,
normal operating conditions in September led to record weekly and monthly
plant throughput in excess of 100,000 tonnes per day.
Progress continued on the supplemental ore feed system in order to ensure
a sufficient quantity of pebble feed to the high pressure grinding roll
circuit. An additional project underway to increase the height of the
tailings dam proceeded as planned. In conjunction with this project,
additional water supplies, required for the grinding and process plant,
were added to eliminate current and potential future water shortfalls.
Completion of these projects is the final step in bringing the Peñasquito
plant’s throughput to its full design capacity.

Pascua-Lama - As per Barrick Gold Corporation’s October 27, 2011
disclosure, its world-class gold-silver Pascua-Lama project remains on
track to commence production in mid-2013, with over 50% of the
pre-production capital budget of $4.7 to $5.0 billion committed. At the
end of the third quarter, earthworks in Chile and Argentina were
approximately 80% and 60% complete, respectively. Once in production,
Pascua-Lama is forecast to be one of the largest and lowest cost gold
mines in the world with an expected mine life in excess of 25 years. In
its first full five years of operation, Silver Wheaton’s attributable
silver production is expected to average 9 million ounces annually.
Zinkgruvan - As per Lundin Mining Corporation’s October 26, 2011
disclosure, metal production, including silver, at its Zinkgruvan mine
was lower than expected due to technical problems in the grinding mills
at its zinc/lead plant. Elevated vibrations experienced during the
quarter were controlled by reducing the zinc mill throughput, which in
turn led to lower than expected silver produced in concentrate. Normal
mill throughput rates are expected to resume after the reâ€setting of
the girth gear in October 2011.

Mineral Park - As per Mercator Minerals Ltd.’s October 4, 2011
disclosure, construction of the Phase II expansion to 50,000 tons per day
was completed at its Mineral Park mine during the third quarter of 2011.
During the quarter, the plant achieved peak throughput in excess of
60,000 tons per day, averaging over 45,000 tons per day in the first 45
days of commissioning.

Produced But Not Yet Delivered - Payable silver equivalent ounces
produced but not yet delivered to Silver Wheaton by its partners
increased by over 300,000 ounces in the third quarter, resulting in a
total of approximately 3.8 million payable ounces at September 30, 2011.
This was primarily due to an increase in concentrate inventory at the
Yauliyacu mine, offset in part by reduced concentrate inventory levels at
the Peñasquito mine.
Since mid-2009, concentrate shipments from Glencore International’s
(”Glencore”) Yauliyacu mine have been affected by the shut-down of the
Doe Run La Oroya smelter in Peru, previously the largest buyer of the
bulk concentrate produced at the mine. Since that time, Glencore has had
to make alternative smelting arrangements for its stockpiled bulk
concentrates at Yauliyacu. This has led to an inconsistent delivery
schedule, delaying the eventual complete reduction of this bulk concentrate.
In the second quarter of 2011, Glencore began replacing the bulk
concentrate by producing separate, and more marketable, copper and lead
concentrates. The consistency and quantity of these new concentrates has
now stabilized, with more regular silver deliveries to Silver Wheaton
from the copper concentrates expected in future quarters. Discussions
between Glencore and prospective offtakers for the new lead concentrates
are ongoing, however Glencore expects these discussions to be finalized
in early 2012.
As at September 30, 2011, approximately 1.8 million ounces of cumulative
payable silver equivalent ounces have been produced at Yauliyacu but not
yet delivered to Silver Wheaton. Approximately 900,000 ounces are
attributable to the bulk concentrate, while 900,000 ounces are
attributable to the new copper and lead concentrates.

Detailed mine by mine production and sales figures can be found in the Appendix of this press release and in Silver Wheaton’s MD&A in the ‘Results of Operations and Operational Review’ section.

Operational highlights do not include material updates for mines with which Silver Wheaton has a silver purchase agreement but where our partners have yet to report their quarterly results.

Webcast and Conference Call Details

A conference call will be held Wednesday, November 9, 2011, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call use one of the following methods:


    Dial toll free from Canada or the US:  1-888-231-8191
    Dial from outside Canada or the US:    1-647-427-7450
    Pass code:                             11993265
    Live audio webcast:                    www.silverwheaton.com

Participants should dial in five to ten minutes before the call.

The conference call will be recorded and you can listen to an archive of the call by one of the following methods:


    Dial toll free from Canada or the US:  1-855-859-2056
    Dial from outside Canada or the US:    1-416-849-0833
    Pass code:                             11993265
    Archived audio webcast:                www.silverwheaton.com

About Silver Wheaton

Silver Wheaton is the largest silver streaming company in the world. Based upon its current agreements, forecast 2011 attributable production is 25 to 26 million silver equivalent ounces, including 15,000 ounces of gold. By 2015, annual attributable production is anticipated to increase significantly to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold. This growth is driven by the Company’s portfolio of world-class assets, including silver streams on Goldcorp’s Peñasquito mine and Barrick’s Pascua-Lama project.


    1.  Silver Wheaton has included, throughout this document, certain
        non-IFRS performance measures, including (i) average cash costs of
        silver and gold on a per ounce basis; (ii) operating cash flows per
        share (basic and diluted); (iii) cash operating margin and; (iv)
        adjusted net earnings and adjusted net earnings per share.
        i.      Average cash cost of silver and gold on a per ounce basis is
                calculated by dividing the cost of sales by the ounces sold.
                In the precious metals mining industry, this is a common
                performance measure but does not have any standardized
                meaning. The Company believes that, in addition to
                conventional measures prepared in accordance with IFRS,
                certain investors use this information to evaluate the
                Company's performance and ability to generate cash flow.
        ii.     Cash operating margin is calculated by subtracting the
                average cash cost of silver and gold on a per ounce basis
                from the average realized selling price of silver and gold
                on a per ounce basis. The Company presents cash operating
                margin as it believes that certain investors use this
                information to evaluate the Company's performance in
                comparison to other companies in the precious metals mining
                industry who present results on a similar basis.
        iii.    Operating cash flow per share (basic and diluted) is
                calculated by dividing cash generated by operating
                activities by the weighted average number of shares
                outstanding (basic and diluted). The Company presents
                operating cash flow per share as it believes that certain
                investors use this information to evaluate the Company's
                performance in comparison to other companies in the precious
                metals mining industry who present results on a similar
                basis.
        iv.     Adjusted net earnings and adjusted net earnings per share
                are calculated by removing the effects of the non-cash, fair
                value adjustment on the Company's previously issued and
                outstanding share purchase warrants which had an exercise
                price denominated in Canadian dollars from net earnings of
                the Company. As more fully described in the financial
                statements, these warrants are classified as a financial
                liability with any fair value adjustments being reflected as
                a component of net earnings. The Company believes that, in
                addition to conventional measures prepared in accordance
                with IFRS, the Company and certain investors use this
                information to evaluate the Company's performance. For the
                three months ended September 30, 2010, the net effect of
                these adjustments was to increase net earnings by US$45.3
                million. As there were no share purchase warrants with an
                exercise price denominated in Canadian dollars outstanding
                during 2011, there were no fair value adjustments recorded
                as a component of net earnings during the three months
                ending September 30, 2011. As a result, adjusted net
                earnings is equivalent to net earnings for this period.

    These non-IFRS measures do not have any standardized meaning
    prescribed by IFRS, and other companies may calculate these measures
    differently. The presentation of these non-IFRS measures is intended
    to provide additional information and should not be considered in
    isolation or as a substitute for measures of performance prepared in
    accordance with IFRS.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation.  Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of silver and gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination, reserve conversion rates and statements as to any future dividends.  Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.  Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Silver Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: fluctuations in the price of silver and gold; the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to these mining operations including risks related to fluctuations in the price of the primary commodities mined at such operations, actual results of mining and exploration activities, economic and political risks of the jurisdictions in which the mining operations are located and changes in project parameters as plans continue to be refined; and differences in the interpretation or application of tax laws and regulations; as well as those factors discussed in the section entitled “Description of the Business - Risk Factors” in Silver Wheaton’s Annual Information Form available on SEDAR at www.sedar.com and in Silver Wheaton’s Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the mining operations from which Silver Wheaton purchases silver or gold, no material adverse change in the market price of commodities, that the mining operations will operate and the mining projects will be completed in accordance with their public statements and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although Silver Wheaton has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.  There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Silver Wheaton does not undertake to update any forward-looking statements that are included or incorporated by reference herein, except in accordance with applicable securities laws.

Condensed Interim Consolidated Statement of Operations (unaudited)


                                  Three Months Ended     Nine Months Ended
                                      September 30          September 30
    (US dollars and shares in
    thousands, except per
    share amounts - unaudited)      2011       2010       2011       2010
    Sales                        $ 185,195  $  92,834  $ 538,130  $ 273,776
    Cost of sales                $  21,036  $  19,154  $  61,983  $  60,022
    Depletion                       13,647     12,505     40,065     41,416
                                 $  34,683  $  31,659  $ 102,048  $ 101,438
    Earnings from operations     $ 150,512  $  61,175  $ 436,082  $ 172,338
    Expenses and other income
      General and administrative
      [1]                        $   6,311  $   4,947  $  19,065  $  18,260
      Loss on fair value
      adjustment of Canadian
      dollar share purchase
      warrants issued                    -     45,276          -     76,378
      Foreign exchange gain            (11)      (505)      (518)      (687)
      Other expense (income)           787     (7,717)     4,139     (7,421)
                                 $   7,087  $  42,001  $  22,686  $  86,530
    Earnings before tax          $ 143,425  $  19,174  $ 413,396  $  85,808
    Deferred income tax (expense)
    recovery                        (8,385)     4,497     (8,115)     3,674
    Net earnings                 $ 135,040  $  23,671  $ 405,281  $  89,482

    Basic earnings per share     $    0.38  $    0.07  $    1.15  $    0.26
    Diluted earnings per share   $    0.38  $    0.07  $    1.14  $    0.26
    Weighted average number of
    shares outstanding
      Basic                        353,327    344,253    353,165    343,168
      Diluted                      356,014    346,242    355,935    344,779
    1) Equity settled stock based
       compensation (a non-cash
       item) included in general
       and administrative
       expenses.                 $   1,700  $   1,306  $   4,769  $   6,431

Condensed Interim Consolidated Balance Sheets (unaudited)


                                      September 30  December 31    January 1
    (US dollars in thousands
     - unaudited)                          2011         2010         2010
    Assets
    Current assets
      Cash and cash equivalents        $   715,622  $   428,636  $   227,566
      Accounts receivable                   11,743        7,088        4,881
      Other                                  1,115          727        1,027
    Total current assets               $   728,480  $   436,451  $   233,474
    Non-current assets
      Silver and gold interests        $ 1,886,235  $ 1,912,877  $ 1,928,476
      Long-term investments                140,667      284,448       73,747
      Deferred income taxes                  3,787            -            -
      Other                                  1,506       1,607         1,852
    Total non-current assets           $ 2,032,195  $ 2,198,932  $ 2,004,075
    Total assets                       $ 2,760,675  $ 2,635,383  $ 2,237,549
    Liabilities
    Current liabilities
      Accounts payable and accrued
      liabilities                      $    15,291  $     9,843  $    10,302
      Current portion of bank debt          28,560       28,560       28,560
      Current portion of silver
      interest payments                    128,625      133,243      130,788
    Total current liabilities          $   172,476  $   171,646  $   169,650
    Non-current liabilities
      Deferred income taxes            $         -  $       822  $         -
      Liability for Canadian dollar
      share purchase warrants                    -            -       51,967
      Long-term portion of bank debt        57,200       78,620      107,180
      Long-term portion of silver
      interest payments                          -      122,346      236,796
    Total non-current liabilities      $    57,200  $   201,788  $   395,943
    Total liabilities                  $   229,676  $   373,434  $   565,593
    Shareholders' Equity
    Issued capital and contributed
    surplus                            $ 1,814,434  $ 1,801,786  $ 1,497,095
    Retained earnings                      722,091      344,075      190,865
    Long-term investment revaluation
    reserve (net of tax)                    (5,526)     116,088      (16,004)
    Total shareholders' equity         $ 2,530,999  $ 2,261,949  $ 1,671,956
    Total liabilities and
    shareholders' equity               $ 2,760,675  $ 2,635,383  $ 2,237,549

Condensed Interim Consolidated Statement of Cash Flows (unaudited)


                                 Three Months Ended      Nine Months Ended
                                    September 30            September 30
    (US dollars in thousands
    - unaudited)                  2011        2010        2011        2010
    Operating Activities
    Net earnings               $ 135,040   $  23,671   $ 405,281   $  89,482
    Items not affecting cash
      Depreciation and depletion  13,709      12,573      40,266      41,615
      Equity settled stock based
      compensation                 1,700       1,306       4,769       6,431
      Deferred income tax expense
      (recovery)                   8,385      (4,497)      8,115      (3,674)
      Loss on fair value
      adjustment of Canadian
      dollar share purchase
      warrants issued                  -      45,276           -      76,378
      Loss on fair value
      adjustment of share
      purchase warrants held         597      (7,861)      3,380      (8,094)
    Other expense (income)           703      (1,252)        392        (729)
    Change in non-cash operating
    working capital                7,113       1,269         543      (6,334)
    Cash generated by operating
    activities                 $ 167,247   $  70,485   $ 462,746   $ 195,075
    Financing Activities
    Bank debt repaid           $  (7,140)  $  (7,140)  $ (21,420)  $ (21,420)
    Share issue costs                  -           -           -         (85)
    Share purchase warrants
    exercised                          -       5,017          61       6,022
    Share purchase options
    exercised                      2,756       8,579       7,818      26,881
    Dividends paid               (10,603)          -     (31,797)          -
    Cash (applied to) generated
    by financing activities    $ (14,987)  $   6,456   $ (45,338)  $  11,398
    Investing Activities
    Silver and gold interests  $(137,755)  $(144,465)  $(141,013)  $(158,176)
    Long-term investments              -        (644)    (13,674)    (21,533)
    Proceeds on disposal of
    long-term investments              -           -      24,270           -
    Other                            (15)        (10)        (48)        195
    Cash applied to investing
    activities                 $(137,770)  $(145,119)  $(130,465)  $(179,514)
    Effect of exchange rate
    changes on cash and cash
    equivalents                $    (218)  $     471   $      43   $     664
    Increase in cash and
    cash equivalents           $  14,272   $ (67,707)  $ 286,986   $  27,623
    Cash and cash equivalents,
    beginning of period          701,350     322,896     428,636     227,566
    Cash and cash equivalents,
    end of period              $ 715,622   $ 255,189   $ 715,622   $ 255,189
    Interest paid              $     249   $     486   $     950   $   1,253
    Interest received          $     242   $     154   $     634   $     290

Results of Operations (unaudited)


                                       Three Months Ended September 30, 2011
                                                                     Average
                                                                    realized
                                    Ounces  Ounces      Sales   price (US$'s
                                produced[2]   sold     (US$'s)     per ounce)
    Silver
      San Dimas [4]                  1,245   1,232   $  42,567      $  34.56
      Zinkgruvan                       379     319      12,168         38.15
      Yauliyacu                        608      11         454         41.31
      Peñasquito                     1,162   1,382      49,401         35.75
      Cozamin                          395     335      12,270         36.58
      Barrick [5]                      794     747      28,681         38.42
      Other [6]                      1,272     770      29,192         37.90
                                     5,855   4,796   $ 174,733      $  36.44
    Gold
      Minto                          5,110   6,280      10,462         1,666
    Silver Equivalent [7]            6,112   5,112   $ 185,195      $  36.23
    Corporate
      General and administrative
      Other
    Total corporate
                                     6,112   5,112   $ 185,195      $  36.23

Table continued…


                                       Three Months Ended September 30, 2011

                                                                    Cash flow
                                Average     Average        Net          from
                              cash cost   depletion    earnings     (used in)
                             (US$'s per  (US$'s per      (loss)    operations
                              ounce)[3]      ounce)     (US$'s)       (US$'s)
    Silver
      San Dimas [4]            $  4.07     $  0.71    $   36,675   $  37,550
      Zinkgruvan                  4.08        1.69        10,326      12,406
      Yauliyacu                   4.02        5.02           355         410
      Peñasquito                  3.96        2.41        40,601      43,929
      Cozamin                     4.08        4.62         9,350      11,752
      Barrick [5]                 3.90        3.60        23,081      25,770
      Other [6]                   3.94        4.60        22,609      26,823
                               $  3.99     $  2.62    $  142,997   $ 158,640
    Gold
      Minto                        300         169         7,515       9,114
    Silver Equivalent [7]      $  4.12     $  2.67    $  150,512   $ 167,754
    Corporate
      General and administrative                      $   (6,311)
      Other                                               (9,161)
    Total corporate                                   $  (15,472)  $    (507)
                               $  4.12     $  2.67    $  135,040   $ 167,247

    1) All figures in thousands except gold ounces produced and sold and per
       ounce amounts.
    2) Ounces produced represent the quantity of silver and gold contained in
       concentrate or doré prior to smelting or refining deductions and
       certain production figures are based on management estimates.
    3) Refer to discussion on non-IFRS measures at the end of this press
       release.
    4) Results for San Dimas include 375,000 ounces received from Goldcorp in
       connection with Goldcorp's four year commitment to deliver to Silver
       Wheaton 1.5 million ounces of silver per annum resulting from their
       sale of San Dimas to Primero.
    5) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
    6) Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno
       Hill, Minto, Campo Morado and Aljustrel silver interests.
    7) Gold ounces produced and sold are converted to a silver equivalent
       basis on the ratio of the average silver price received to the average
       gold price received during the period from the assets that produce both
       gold and silver.

                                       Three Months Ended September 30, 2010
                                                                     Average
                                                                    realized
                                      Ounces  Ounces     Sales   price (US$'s
                                  produced[2]   sold    (US$'s)    per ounce)
    Silver
      San Dimas [4]                    1,255   1,274    $ 25,613    $  20.11
      Zinkgruvan                         508     635      12,680       19.95
      Yauliyacu                          633      87       1,548       17.79
      Peñasquito                       1,109     692      12,980       18.76
      Cozamin                            381     306       5,825       19.06
      Barrick [5]                        682     533      10,202       19.16
      Other [6]                        1,069     750      14,561       19.42
                                       5,637   4,277    $ 83,409    $  19.51
    Gold
      Minto                            6,961   7,127       9,425       1,323
    Silver Equivalent [7]              6,039   4,688    $ 92,834    $  19.81
    Corporate
      General and administrative
      Loss on fair value
      adjustment of Canadian
      dollar share purchase
      warrants issued
      Other
    Total corporate
                                       6,039   4,688    $ 92,834    $  19.81

Table continued…


                                       Three Months Ended September 30, 2010
                                                                   Cash flow
                                   Average     Average       Net        from
                                 cash cost   depletion   earnings   (used in)
                                (US$'s per  (US$'s per     (loss)  operations
                                 ounce)[3]      ounce)    (US$'s)     (US$'s)
    Silver
      San Dimas [4]                $  4.04    $  0.78   $  19,471   $ 20,468
      Zinkgruvan                      4.04       1.72       9,021      9,522
      Yauliyacu                       3.98       3.47         900      1,202
      Peñasquito                      3.90       2.54       8,521     10,281
      Cozamin                         4.04       4.62       3,177      4,868
      Barrick [5]                     3.90       3.58       6,218      8,281
      Other [6]                       3.93       4.46       8,268     11,085
                                   $  3.98    $  2.53   $  55,576   $ 65,707
    Gold
      Minto                            300        237       5,599      5,972
    Silver Equivalent [7]          $  4.09    $  2.67   $  61,175   $ 71,679
    Corporate
      General and administrative                        $  (4,947)
      Loss on fair value
      adjustment of Canadian
      dollar share purchase
      warrants issued                                   $ (45,276)
      Other                                                12,719
    Total corporate                                     $ (37,504)  $ (1,194)
                                   $  4.09    $  2.67   $  23,671   $ 70,485

    1) All figures in thousands except gold ounces produced and sold and per
       ounce amounts.
    2) Ounces produced represent the quantity of silver and gold contained in
       concentrate or doré prior to smelting or refining deductions and
       certain production figures are based on management estimates.
    3) Refer to discussion on non-IFRS measures at the end of this press
       release.
    4) Results for San Dimas include 250,000 ounces received from Goldcorp in
       connection with Goldcorp's four year commitment to deliver to Silver
       Wheaton 1.5 million ounces of silver per annum resulting from their
       sale of San Dimas to Primero.
    5) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
    6) Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Minto
       and Campo Morado silver interests in addition to the previously owned
       La Negra and San Martin silver interests.
    7) Gold ounces produced and sold are converted to a silver equivalent
       basis on the ratio of the average silver price received to the average
       gold price received during the period from the assets that produce both
       gold and silver.

                                        Nine Months Ended September 30, 2011
                                                                     Average
                                                                    realized
                                    Ounces   Ounces     Sales    price (US$'s
                                produced[2]    sold    (US$'s)     per ounce)
    Silver
      San Dimas [4]                  4,001    4,129  $ 143,736      $  34.81
      Zinkgruvan                     1,301    1,041     39,437         37.88
      Yauliyacu                      1,965      602     21,641         35.95
      Peñasquito                     3,651    3,284    115,695         35.24
      Cozamin                        1,134      887     31,204         35.14
      Barrick [5]                    2,257    2,153     77,781         36.12
      Other [6]                      3,513    2,373     85,734         36.13
                                    17,822   14,469  $ 515,228      $  35.61
    Gold
      Minto                         14,545   14,478     22,902         1,582
    Silver Equivalent [7]           18,437   15,095  $ 538,130      $  35.65
    Corporate
      General and administrative
      Other
    Total corporate
                                    18,437   15,095  $ 538,130      $  35.65

Table continued…


                                        Nine Months Ended September 30, 2011
                                                                   Cash flow
                                   Average     Average       Net        from
                                 cash cost   depletion   earnings   (used in)
                                (US$'s per  (US$'s per     (loss)  operations
                                 ounce)[3]      ounce)    (US$'s)     (US$'s)
    Silver
      San Dimas [4]               $  4.05     $  0.71   $ 124,059  $ 125,902
      Zinkgruvan                     4.08        1.69      33,427     35,316
      Yauliyacu                      4.01        5.02      16,205     19,226
      Peñasquito                     3.93        2.41      94,901    102,808
      Cozamin                        4.07        4.62      23,487     30,325
      Barrick [5]                    3.90        3.58      61,685     67,826
      Other [6]                      3.94        4.29      66,209     76,113
                                  $  3.98     $  2.60   $ 419,973  $ 457,516
    Gold
      Minto                           300         169      16,109     17,926
    Silver Equivalent [7]         $  4.11     $  2.65   $ 436,082  $ 475,442
    Corporate
      General and administrative                        $ (19,065)
      Other                                               (11,736)
    Total corporate                                     $ (30,801) $ (12,696)
                                  $  4.11     $  2.65   $ 405,281  $ 462,746

    1) All figures in thousands except gold ounces produced and sold and per
       ounce amounts.
    2) Ounces produced represent the quantity of silver and gold contained in
       concentrate or doré prior to smelting or refining deductions and
       certain production figures are based on management estimates.
    3) Refer to discussion on non-IFRS measures at the end of this press
       release.
    4) Results for San Dimas include 250,000 ounces received from Goldcorp in
       connection with Goldcorp's four year commitment to deliver to Silver
       Wheaton 1.5 million ounces of silver per annum resulting from their
       sale of San Dimas to Primero.
    5) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
    6) Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Minto
       and Campo Morado silver interests in addition to the previously owned
       La Negra and San Martin silver interests.
    7) Gold ounces produced and sold are converted to a silver equivalent
       basis on the ratio of the average silver price received to the average
       gold price received during the period from the assets that produce both
       gold and silver.

                                        Nine Months Ended September 30, 2010
                                                                     Average
                                                                    realized
                                     Ounces  Ounces     Sales    price (US$'s
                                 produced[2]   sold    (US$'s)     per ounce)
    Silver
      San Dimas [4]                   3,571   3,556  $  66,463      $  18.69
      Zinkgruvan                      1,373   1,446     26,964         18.64
      Yauliyacu                       2,062   1,185     21,372         18.04
      Peñasquito                      2,532   1,772     32,466         18.32
      Cozamin                         1,068     999     18,226         18.26
      Barrick [5]                     2,159   2,043     36,942         18.08
      Other [6]                       3,256   2,347     43,197         18.40
                                     16,021  13,348  $ 245,630      $  18.40
    Gold
      Minto                          24,665  23,321     28,146         1,207
    Silver Equivalent [7]            17,590  14,826  $ 273,776      $  18.47
    Corporate
      General and administrative
      Loss on fair value
      adjustment of Canadian
      dollar share purchase
      warrants issued
      Other
    Total corporate
                                     17,590  14,826  $ 273,776      $  18.47

Table continued…


                                       Nine Months Ended September 30, 2010
                                                                  Cash flow
                                 Average     Average        Net        from
                                cash cost   depletion   earnings   (used in)
                               (US$'s per  (US$'s per     (loss)  operations
                                ounce)[3]      ounce)    (US$'s)     (US$'s)
    Silver
      San Dimas [4]              $  4.04     $  0.78   $  49,308   $  52,099
      Zinkgruvan                    4.04        1.72      18,635      19,578
      Yauliyacu                     3.98        3.47      12,545      16,662
      Peñasquito                    3.90        2.54      21,050      25,556
      Cozamin                       4.03        4.62       9,590      14,524
      Barrick [5]                   3.90        3.54      21,749      25,896
      Other [6]                     3.92        4.34      23,803      33,730
                                 $  3.97     $  2.69   $ 156,680   $ 188,045
    Gold
      Minto                          300         235      15,658      19,357
    Silver Equivalent [7]        $  4.05     $  2.79   $ 172,338   $ 207,402
    Corporate
      General and administrative                       $ (18,260)
      Loss on fair value
      adjustment of Canadian
      dollar share purchase
      warrants issued                                    (76,378)
      Other                                               11,782
    Total corporate                                    $ (82,856)  $ (12,327)
                                 $  4.05     $  2.79   $  89,482   $ 195,075

    1) All figures in thousands except gold ounces produced and sold and per
       ounce amounts.
    2) Ounces produced represent the quantity of silver and gold contained in
       concentrate or doré prior to smelting or refining deductions and
       certain production figures are based on management estimates.
    3) Refer to discussion on non-IFRS measures at the end of this press
       release.
    4) Results for San Dimas include 250,000 ounces received from Goldcorp in
       connection with Goldcorp's four year commitment to deliver to Silver
       Wheaton 1.5 million ounces of silver per annum resulting from their
       sale of San Dimas to Primero.
    5) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
    6) Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Minto
       and Campo Morado silver interests in addition to the previously owned
       La Negra and San Martin silver interests.
    7) Gold ounces produced and sold are converted to a silver equivalent
       basis on the ratio of the average silver price received to the average
       gold price received during the period from the assets that produce both
       gold and silver.

For further information:
Brad Kopp
Senior Vice President, Investor Relations
Silver Wheaton Corp.
Tel: 1-800-380-8687
Email: info@silverwheaton.com
Website: www.silverwheaton.com

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