ON THE ROAD TO PRODUCTION. Minco Silver Corporation

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1 ON THE ROAD TO PRODUCTION Minco Silver Corporation SPRING 2011

2 Disclaimer Forward Looking Statements Except for the statements of historical fact, the information contained herein is of a forward-looking nature. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of the Company to be materially different from any future results, performance or achievements expressed or implied by statements containing forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that statements containing forward looking information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on statements containing forward looking information. Readers should review the risk factors set out in the Company s prospectus and the documents incorporated by reference. Cautionary Note to U.S. Investors Concerning Estimates of Inferred Resources This presentation uses the term Inferred Resources. U.S. investors are advised that while this term is recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize it. Inferred Resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

3 Minco Silver Corporation Shares & Capitalization Mar Shares outstanding 58,427,586 Warrants 418,000 Options 5,244,369 Analytical Coverage Mar. 3, 2011 Raymond James Brad Humphrey BMO Andrew Kaip Fully Diluted 64,089, week Hi/Lo C$ C$7.14 Haywood Union Securities Chris Thompson Brian Mok CAPITALIZATION Mar. 31, 2011 Market Capitalization Working Capital Debt C$310M C$71M Nil SHAREHOLDERS Minco Gold 22.25% International Institutions 23.25% CDN. Institutions 12.50% U.S.A Institutions 11.25% All numbers are approximate and provided at time of printing 1

4 Senior Management Team Dr. Ken Z. Cai Chairman & C.E.O. Ph.D. in Mineral Economics - Queen s University, Canada 26 years experience in mineral exploration, project evaluation, finance, and company management High level contacts with the Chinese government and within the mining community Dr. Dianmin Chen V.P. Operations Ph.D. in Mining Geomechanics - University of Wollongong, Australia Senior mining engineer with 28 years of experience in mine construction, operations, management, project development, strategic planning and corporate management Worked for Rio Tinto, Barrick, & Sino Gold, CITIC Pacific Mining Based at Fuwan site Fully comprehensive in the Chinese language/culture 2

5 Senior Management Team Dwayne Melrose, P.Geo. V.P. Exploration Over 25 years experience in mineral exploration and mine production Former Exploration Manager of the Kumtor Gold Mine with significance success, responsible for discovery of new high grade SB Zone Worked within Canada, USA, Kazakhstan, Kyrgyz Republic and China Paul Zhang, C.A., C.P.A.(IL) V.P. Finance & C.F.O. Chartered Accountant (Canada), Certified Public Accountant (Illinois, USA); Extensive experience with TSX listed entities in CFO capacity Over 10 years of senior financial/accounting management experience, particularly with TSX and US listed entities with operations in China Fully comprehensive in the Chinese language/culture. 3

6 HIGHLIGHTS PROJECT Delivered positive Bankable Feasibility on the Fuwan Project Obtained majority of permits for the Fuwan Project Engaged experienced VP Operations to build & operate the Fuwan mine FINANCING Closed C$45.22 million bought deal (March 3, 2011) - 7,600,000 common shares at C$5.95/share & 418,000 broker warrants (18 mo.) - Led by BMO Capital Markets in syndication with Haywood Securities, Raymond James, and Union Securities GENERAL Initiating coverage by BMO, Haywood, & Union, with several increased target prices Retained low share structure 4

7 Fuwan Silver Project Located in Guangdong Province, 45 km southwest of Guangzhou, China s 4 th largest city. Foshan Minco is the operating company for the Fuwan Silver Project and holds 100% of the exploration permits. Ownership of Foshan Minco Fuwan Silver 90% Minco Silver 10% carrying interest by Guangdong Geological Exploration & Development Corporation, a government entity Large land package: Over 200 km 2 with only a small portion explored to date 5

8 Exploration Permits 3 permits covering 205 km 2 Only company working this area 3 additional showings in immediate area Only worked one showing or 3% of property to date Excellent potential to upgrade current indicated and inferred resources 10km strike could host 400 mill oz (approx) 6

9 Fuwan Silver Deposit Longitudinal section Silver zones are shallow ( m deep), high grade, flat-lying, and strata bound Hosted within Carboniferous limestone unconformity overlain by Triassic sandstone Eight silver zones controlled by a NE trending syncline Total strike length is 2,800 metres, deposit remains open along strike to the southwest and down dip to the southeast 7

10 Reserves and Resources Layout CHANGKENG DEPOSIT NORTH SHAFT FUWAN DEPOSIT VENT West Vent Shaft WASTE ROCK PROCESSING PLANT ADMIN SERVICES TAILINGS EXPLOSIVE MAGAZINE Red = Probable reserves Silver = Indicated & Inferred 8

11 Project Infrastructure Excellent infrastructure Accessible by paved highway & nearby waterway Power, water, fuel & supplies easily are obtainable Paved highway near Fuwan Fuwan Silver Deposit Power Plant Fuwan Township Pop. 30,000 Property accommodates tailings, waste disposal, & processing plant sites General labour readily accessible Eastern view from Fuwan Deposit Supporting industries in close proximity 9

12 Fuwan Feasibility Study Highlights Study Completed by Wardrop, NERIN & ERM to International Standards Only Reserves of 55 million oz are used in the Study Reserve/Resources 55 million oz AG classified as probable reserve 103 million oz AG classified as indicated & inferred resources Mining Decline access Underground mechanized mining Combination of cut & fill, drift & fill, room & pillar Processing Economics 3,000 tpd, conventional floatation, 5.5 million oz p.a. End products: two concentrates: silver/lead; zinc/silver Metallurgical silver recovery of 91% Capex: $73.1 M Opex: $34.42/tonne of ore processed NPV: $111.5 M Pre-tax IRR: 33.20% Payback: 2.3 years - Silver Price used: $13.57/ounce - Discount rate: 6% 10

13 International Bankable Feasibility Study (IFS) completed in September 2009 Key Indicators Results (in US dollars) Probable Reserve of Silver (9.118 Mt averaging 189 g/t of Silver) 55 million ozs Mine Life 9.2 years Metallurgical Silver Recovery 91% Average Annual Silver Recovery 5.5 million ozs Operating Costs (per tonne ore processed) (Mining = $18.01; Processing = $9.90; Tailings = $1.13; G&A = $4.78; Surface = $0.60) $34.42 Cash Cost per Payable ounce of Silver $5.65 (per oz) Pre-Production Capital Costs (CAPEX) $73.1 million Total Revenue $648.2 million Total Operating Cost $313.8 million Total Royalty Payment $ 24.3 million Total Operating Cash Flow $310.0 million 8% Discount Rate $ 95.3 million 6% Discount Rate $111.5 million Pre-Tax IRR 33.20% Payback Period of Pre-Production Capital Costs Construction Period 2.3 years months ~~Silver Price used in above study $13.57 per oz (Base Case)~~ (3 year rolling average as at April 29, 2009) Study done on only 1/3 of material available on site 11

14 Reserve / Resource Statement* (NI ) Classification tonnes Ag Ag Au Pb Zn (g/t) (oz) (g/t) (%) (%) Probable Reserve (diluted - In Situ) 9,118, ,300, ~~~ all of the economics contained in the IFS are derived from the Probable Reserves only ~~~ Indicated Resources** Fuwan Permits *** 4,830, ,968, Changkeng Permits - **** 2,027, ,235, Total Indicated Resources 6,857, ,203, Inferred Resources** Fuwan Permits 10,241, ,147, Changkeng Permits **** 1,049, ,136, Total Inferred Resources 11,290, ,283, ***NI compliant, P&E Engineering ( May 2008) 40 g/t cut off *** Probable reserves were subtracted from the Indicated resources at the Fuwan Permit **** Resources reported on the Changkeng permit represents 51% of the actual resource s and reflects Minco s actual ownership. 12

15 Surface Layout MINE AREA PROCESSING PLANT WASTE ROCK TAILINGS ADMIN SERVICES EXPLOSIVES MAGAZINE 13

16 Permitting Process Approved Chinese exploration report approved by MOLAR (Ministry of Land and Resources) Chinese Feasibility Study Project Approved by the Gaoming County government Soil and Water Conservation Plan Mining Area Permit approved by MOLAR Land use permit Geological Hazard Assessment Technical Panel Review of the Regulatory Environmental Impact Assessment (EIA) Approval Pending Administrative Approval of Regulatory EIA Mine Development Plan Preliminary Safety Assessment In Progress Project Application 14

17 Silver Price (US$/oz) Trade Weighted US Dollar Silver Price (US$/oz) Silver vs US Dollar Precious Metal Characteristics Historical expectation to trade in line with gold, with norm of 55:1 for gold-to-silver price ratio Gold-to-silver price ratio declined from over 80, but still significant room for improvement Used as an inflation hedge (similar to gold) $120 $110 $100 Trade Weighted US$ Silver Price $24 $20 $16 In gold bull markets, silver has historically outperformed $90 $12 Increasing Demand Fundamentals from Industrial Uses Uncertain Supply Fundamentals Silver stands to benefit from global economic recovery due to industrial uses Economic stimulus measures should fuel demand significant amount of stimulus money remaining to be spent in U.S. should support short-term demand Strong growth in emerging market economies to support demand in the short and longer term overall demand for industrial silver expected to rebound 7-8% in 2010 Diminishing mine supply limited large scale development projects in pipeline Significant amount of supply sourced as by-product of mining for other metals persistent uncertainty around silver supply Relatively high currency levels in producing countries further discouraging expansion of supply $ $25 $20 $18 $15 $10 $80 $70 Source: Bloomberg Silver Price Outlook (Research Analysts vs. Forward Curve) $5 $23 $23 $22 $22 $19 $18 $16 $22 Full Analyst Range Analyst Range Excluding Top and Bottom 15% Street Median Consensus Prices Forward Curve $22 $22 $15 $15 $ Source: Equity research, Bloomberg and Thomson Financial Note: Forward curve converted to real prices based on 2% assumed annual inflation $8 $4 - Silver market fundamentals support further strength in the silver price 13

18 IN SUMMARY Who We sell to: Direct to Smelter At world market prices Where We Rank #1 in China # 7 for Primary production (Brooks Hunt 2007 stats) OBJECTIVE To become a mid tier silver producer Annual silver production of 5 to 10 million oz 2011 The Road Ahead Completion of: Administrative approval of EIA Receipt of Mining License Commence mine construction in Q

19 Relative Performance Remember SILVERCORP? (excerpt from Ray Jay Analytical Report by Brad Humphrey) Ying Mine Aug Silver (AG) (All Categories) 72 mill. Oz* (* SLV technical report) FUWAN DEPOSIT Sept Minco Today Silver (AG) (All Categories) 158 mill oz. Strong Growth Potential for Minco Silver 15

20 West Georgia St. PO Box Vancouver, B.C. V6E 3R T F info@mincosilver.ca TSX: MSV