United Silver Corporation Announces Extraordinary General Meeting

United Silver Corporation Announces Extraordinary General Meeting

VANCOUVER, British Columbia--(BUSINESS WIRE)-- United Silver Corp. ("United Silver Corp.", the "Company", or "USC": TSX; USC: OTC; USCZF: Frankfurt: UM8) announces that in furtherance of its reformulation and re-evaluation of its mine plan announced on August 24, 2012, it has called an extraordinary shareholder meeting scheduled for October 31, 2012 in Vancouver, BC. The purpose of the meeting is to approve the Company's ability to preserve cash by issuing convertible notes to Hale Capital Partners ("Hale") in place of paying cash for our quarterly interest payments due.

On February 1, 2012, we announced that we had borrowed $6,300,000 US from Hale under a convertible note (the "Note") . The Note is convertible into shares at a conversion price of $0.50 US per share. Under the Note, interest is payable quarterly in cash or, at our election, by issuance of additional convertible notes convertible at a price based on the market price at the time the interest payment was due. We have already issued two notes in place of paying cash for interest payments that were due May 1 and August 1, 2012. The next interest payment is due November 1, 2012.

Under policies of the TSX Stock Exchange, any party who has the right to convert securities, including convertible notes, into 20% or more of the Company's outstanding common stock is considered a "control person". Shareholder approval is required to issue securities to any person where such issuance would create a new control person. By the Company issuing new interest payment convertible notes to Hale in the future, Hale would be deemed a control person because if it converted all its notes into shares, it would hold 20% or more of the Company's shares.

The Company is pleased with the current progress on the reformulation and re-evaluation of its mine plan and expects to be in a position to make announcements in the near future. A part of our plan will be the continued judicious and prudent use and preservation of cash, including our ability to issue convertible notes to Hale for interest payments instead of using limited cash reserves.

A notice of meeting and information circular has been mailed to all shareholders and should be received by now. Our board unanimously urges our shareholders to vote in favour of the items listed for approval at the meeting by marking your proxies and sending them to our transfer agent as per the proxy form instructions, or attending the meeting in person in Vancouver.

We look forward to voting participation of our shareholders with this important decision.


USC is a vertically integrated mining company with operations in Idaho, USA. It has a majority interest in the Crescent Silver Mine project in Idaho's prolific Silver Belt - directly between two of the world's historically largest silver producing properties, the Sunshine and Bunker Hill mines. USC also offers a full suite of mining services including contract mining and mine machine repair and fabrication services to silver miners in the district. USC's common shares trade on the Toronto Stock Exchange under the symbol "USC". For more information about USC, please visit: www.unitedsilvercorp.com.


"Graham Clark"
Chairman and CEO

Investor Relations
Tel. (855) 238-0202

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

United Silver Corp.
Investor Relations
Graham Clark, 855-238-0202

KEYWORDS:   North America  Canada


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