TORONTO, Aug. 13, 2013 /PRNewswire/ - U.S. Silver & Gold Inc. (TSX: USA, OTCQX:
USGIF) ("U.S. Silver & Gold" or the "Company") today reported financial
and operational results for the second quarter ending June 30, 2013.

This earnings release should be read in conjunction with the Company's
MD&A, Financial Statements and Notes to Financial Statements for the
corresponding period, which have been posted on SEDAR at www.sedar.com and are also available on the Company's website at www.us-silver.com.

All figures are in U.S. dollars unless otherwise noted.

Highlights

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  Implemented previously announced Small Mine Plan ("SMP") in July to
  lower cash and overall costs at the Galena Complex and increase the
  grade mined in order to be profitable at current silver prices.
  
  
  
  
  
  
  
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  Replaced extension on existing $7.9 million debt with new, three-year
  CDN $8.5 million facility provided at a comparable rate with Royal
  Capital Management as security agent, and without the requirement to
  pay net smelter return royalty.
  
  
  
  
  
  
  
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  Strong consolidated silver production of 651,125 ounces for the quarter
  (a 23% increase over Q2, 2012) at a cash cost of $16.67 per ounce (a 6%
  decrease over Q2, 2012).  Gold production of 1,795 ounces (reflects
  only April and May as Drumlummon mine operations were suspended on May
  31, 2013).  Consolidated year-to-date production of 1.25 million silver
  ounces (a 16% increase over 2012) and 3,956 ounces of gold.
  
  
  
  
  
  
  
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  Galena Mine Complex production of 629,227 silver ounces (a 19% increase
  over Q2, 2012) at a cash cost of $16.41 per ounce, which represents a 20% reduction over the previous quarter
  and an 8% reduction over Q2, 2012.
  
  
  
  
  
  
  
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  Underground drilling in the silver/copper areas adjacent to the Caladay
  Zone has the potential to expand resources on the 4900 Level where
  exploration drifting on the 348 Vein returned a strike length over 102
  feet at average widths of 11 feet and average grading of 19.3 ounces
  per ton silver equivalent (662 grams per tonne).
  
  
  
  
  
  
  
  
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  Consolidated revenues of $16.9 million and net loss of ($8.3) million or
  ($0.14) per share for the quarter, and revenues of $39.8 million and
  net loss of ($11.7) million or ($0.20) per share year-to-date.  The net
  loss is primarily attributable to lower realized metal prices, negative
  provisional pricing adjustments, and cost and impairments associated
  with the shutdown at the Drumlummon Mine.
  
  
  
  
  
  
  
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  Galena Complex revenues of $13.5 million and net loss of ($2.3) million
  for the quarter, and revenues of $31.1 million and net loss of ($0.2)
  million year-to-date.
  
  
  
  
  
  
  
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  As of July 2, 2013, the Company's cash and cash equivalents totaled $7.4
  million.
  
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"We set out to deliver strong production, increased grade and reduced
costs during the second quarter of 2013," said Darren Blasutti,
President and CEO of U.S. Silver and Gold.  "While we were successful
on all fronts, the current silver price environment also required us to
keep a close eye on our balance sheet and be ready to take quick and
decisive action should the price of silver continue to decline.  As a
result we were prepared and able to rapidly introduce a Small Mine Plan
when market conditions worsened. The plan will allow us to mine
profitably at current silver prices, and positions the Galena Complex
well for an increase in the price of silver."

Consolidated Production and Operating Costs

As reported on July 16, 2013, the Company delivered second quarter
consolidated silver production totalling 651,125 ounces (a 9% increase
over the previous quarter and a 23% increase over Q2, 2012), along with
gold production of 1,795 ounces. Consolidated silver cash costs
decreased to $16.67 per ounce from $22.20 during Q1, 2013 primarily due
to increases in tonnage, production and average grade at the Galena
Complex. Realized silver prices have declined 23% to $23.26 per ounce
since Q2, 2012.

A net loss of ($8.3) million was recorded for the quarter, compared with a net loss of ($2.3) million in the second quarter of 2012.  The increased loss was
primarily due to lower realized metal prices and higher cost of sales
(due to underperformance at the Drumlummon Mine and negative
provisional pricing adjustments), higher depreciation, depletion,
amortization and finance costs in addition to care and maintenance
costs and impairment charges incurred at the Drumlummon Mine. These
increases were partially offset by higher year-over-year production and
lower general and administration expenses, exploration costs and income
tax expense.

Galena Complex

The Galena Mine Complex produced 629,227 ounces of silver during the
second quarter and 1.2 million ounces year-to-date, representing
year-over-year increases of 19% and 12% respectively.  Overall tonnage
was up 10% for the quarter and 6% year-to-date, while average grade
rose 8% to 11.14 ounces per ton silver for the quarter and 5% to 10.32
ounces per ton year-to-date.

Quarter over quarter, cash costs decreased 20%, to $16.41 due to
increases in tonnage, production and average grade. In April 2013, as a
result of the Company's cost control focus and portfolio review, $12-14
million in exploration, capital projects and capital development costs
were cut from the 2013 Galena Complex budget. Please see Table 1 below
for Galena Complex production and cost details.

¹The Company reports the cash cost per ounce of silver produced, a
non-IFRS measure, in accordance with measures widely reported in the
silver mining industry as a benchmark for performance measurement.
Management uses these measures internally to better assess performance
trends and understands that a number of investors, and others who
follow the Company\'s performance, also assess performance in this
manner.

These measures should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS. These
measures do not have any standardized meaning and may differ from
methods used by other companies with similar descriptions. The method
does not include depletion, depreciation, exploration or corporate
administrative costs and is therefore not directly reconcilable to
costs as reported under International Financial Reporting Standards.

Small Mine Plan Update

In December 2012, the Board approved an operating budget for the Galena
Complex based on a silver price of $30 per ounce. In the months that
followed the price of silver fell to a low of $18.61 before recovering
to current levels. Early in the year management began work on a
downside pricing case—a Small Mine Plan ("SMP") based on a silver price
of $20 per ounce, which the Company was able to quickly implement in
response to the continued decrease in the price of silver.

The plan focuses on increasing grade while reducing fixed and variable
costs.  Implemented in July, it triggered the following actions: 1) the
number of operating stopes was cut to approximately 15; 2) staffing at
the Galena Mine will be reduced from 351 to 225 after a two month
notice period per the Worker Adjustment and Retraining Notification
"WARN" Act; and 3) the Coeur Shaft and Coeur Mill will be put on care
and maintenance along with Levels 2800, 3000, 3200, 4300 and 5500. 
Further capital development and exploration reductions are also being
made. In addition, effective August 1, 2013, the CEO and Board of
Directors will take a voluntary 20% reduction in cash remuneration and
all members of the executive management team have agreed to a 10%
reduction.

The SMP will allow the Galena Complex to operate profitably in the
current silver price environment and position it to benefit from an
increase in the price of silver.  July silver production exceeded our
SMP estimates and cash costs were lower than expected due to the
increased production.  The August monthly budget is currently on track.

Drumlummon Mine

The Drumlummon Mine produced 1,795 ounces of gold and 21,898 ounces of
silver during the second quarter of the year at a by-product cash cost
of $1,660.80 per ounce gold.

As previously announced, given current gold prices and recent mine
performance, the mine was put on care and maintenance effective May 31,
2013.  All ongoing costs until the end of the year are expected to be
less than $500,000.  The Company recorded a further impairment charge
of $1.4 million during the period ended June 30, 2013 as a result of
declining comparable market valuation.

Exploration Update

Underground drilling at the Galena Complex continued during the second
quarter, and has the potential to further expand the resources on the
4900 Level and defining areas in known and new veins.  Exploration
drifting on the 348 silver/copper vein returned a strike length of 102
feet at average widths of 11 feet and average grading of 19.3 ounces
per ton (662 grams per tonne) silver equivalent including 0.38% copper.
The potential of adding this high grade area to the SMP is being
evaluated.  As well, hole 49-332 intersected 20.9 feet of 14.7 ounces
per ton (503 grams per tonne) silver equivalent.  Please refer to www.us-silver.com for all drilling results.

While drilling in the silver/copper areas adjacent to the Caladay Zone,
including the Silver Halo will continue, going forward the Company will
focus on implementing the SMP and increasing the grade mined to be
profitable at current silver prices.  The resulting decrease in
personnel has created a backlog of core from the Caladay Zone which
current mine staff are working to record. They have also begun
incorporating information from the drilling program completed since
December 2012 into a new resource calculation for release at year-end.

Financial Position

U.S. Silver & Gold's cash and cash equivalents at June 30, 2013 totaled
$3.6 million compared to $18.9 million at December 31, 2012, while net
working capital totaled $1.9 million and $16.0 million for the same
dates, respectively. Net working capital at June 30, 2013 included the
Hale Capital Partners ("HCP") debt as a short term liability.  The debt
was re-classified to long-term debt on August 8, 2013.  As of July 2,
2013, the Company's cash and cash equivalents totaled $7.4 million. 
The difference was due to a wire transfer error from one of the
Company's smelter contracts totaling $3.8 million which was not
received prior to the end of the second quarter.  The decrease in net
working capital primarily reflects net cash inflows from operations
less drilling, underground development, and exploration costs, purchase
of property, plant and equipment, rehabilitation and access development
activity, and other changes in non-cash working capital.

The Company has replaced the previously announced extension on its
existing US $7.9 million senior secured credit facility with a
three-year credit agreement for CDN $8.5 million with Royal Capital
Management as security agent. Unlike the previously announced term
sheet with HCP, this new credit agreement does not require the Company
to pay a net smelter return royalty. For further details, please see
the Company's press release dated August, 8, 2013 and the Material
Change Report to be filed on SEDAR.

About U.S. Silver & Gold Inc.

U.S. Silver & Gold Inc. is a newly formed silver and gold mining company
focused on growth from its existing asset base and the execution of
targeted accretive acquisitions. It owns and operates the Galena Mine
Complex in the heart of the Silver Valley/Coeur d'Alene Mining
District, Shoshone County, Idaho.  It produces high-grade silver and is
the second most prolific silver mine in U.S. history, delivering over
200 million ounces to date. The Caladay Zone is being evaluated for
bulk mining development.   U.S. Silver & Gold Inc. also owns the
Drumlummon Mine Complex in Lewis and Clark County, Montana.

Mr. Jim Atkinson, Vice President, Exploration and a Qualified Person
under Canadian Securities Administrators guidelines, has approved the
contents of this news release.

For further information please see SEDAR or www.us-silver.com for the NI 43-101 compliant Technical Report on the Galena Project
dated March 22, 2013.

Cautionary Statement Regarding Forward Looking Information:

This news release contains "forward?looking information" within the
meaning of applicable securities laws. Forward?looking information
includes, but is not limited to, the Company's expectations intentions,
plans, and beliefs with respect to, among other things, the Galena
Complex and the Drumlummon Mine. Often, but not always, forward?looking
information can be identified by forward?looking words such as
"anticipate", "believe", "expect", "goal", "plan", "intend",
"estimate", "may", and "will" or similar words suggesting future
outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions, or statements about future events or
performance. Forward?looking information is based on the opinions and
estimates of the Company as of the date at which such information is
provided and is subject to known and unknown risks, uncertainties, and
other factors that may cause the actual results, level of activity,
performance, or achievements of the Company to be materially different
from those expressed or implied by such forward looking information.
This includes the ability to develop and operate the Galena and
Drumlummon properties, risks associated with the mining industry such
as economic factors (including future commodity prices, currency
fluctuations and energy prices), failure of plant, equipment, processes
and transportation services to operate as anticipated, environmental
risks, government regulation, actual results of current exploration
activities, possible variations in ore grade or recovery rates,
permitting timelines, capital expenditures, reclamation activities,
social and political developments and other risks of the mining
industry. Although U.S. Silver and Gold has attempted to identify
important factors that could cause actual results to differ materially
from those contained in forward?looking information, there may be other
factors that cause results not to be as anticipated, estimated, or
intended. Readers are cautioned not to place undue reliance on such
information. By its nature, forward?looking information involves
numerous assumptions, inherent risks and uncertainties, both general
and specific, that contribute to the possibility that the predictions,
forecasts, and projections of various future events will not occur. The
Company undertakes no obligation to update publicly or otherwise revise
any forward?looking information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.

SOURCE U.S. Silver & Gold Inc.