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Silver Wheaton Reports Record Quarterly Production Results

Payable silver equivalent ounces produced but not yet delivered to Silver Wheaton by its partners increased by 2.0 million ounces to approximately 5.2 million silver equivalent payable ounces at September 30, 2012. The increase was primarily due to the timing of sales at Goldcorp's Peñasquito mine, Hudbay's 777 mine, and Glencore's Yauliyacu mine.

Detailed mine by mine production and sales figures can be found in the Appendix of this press release and in Silver Wheaton's Management's Discussion and Analysis ("MD&A") in the 'Results of Operations and Operational Review' section.

This earnings release should be read in conjunction with Silver Wheaton's MD&A and unaudited Financial Statements, which are available on the Company's website at http://www.silverwheaton.com and have been posted on SEDAR at http://www.sedar.com.

Webcast and Conference Call Details

A conference call will be held Monday, November 5, 2012, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call please 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:     35654938 Live audio webcast:     http://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:     35654938 Archived audio webcast:     http://www.silverwheaton.com 

About Silver Wheaton

Silver Wheaton is the largest silver streaming company in the world. Based upon its current agreements, forecast 2012 attributable production is approximately 28 million silver equivalent ounces, including 42,000 ounces of gold. By 2016, annual attributable production is anticipated to increase significantly to approximately 48 million silver equivalent ounces, including 100,000 ounces of gold. This growth is driven by the Company's portfolio of low-cost and long-life assets, including silver and precious metal streams on Barrick's Pascua-Lama project and Hudbay's flagship 777 mine and Constancia project.

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 http://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.

Consolidated Statement of Earnings

                                            Three Months Ended       Nine Months Ended
                                                September 30            September 30
    (US dollars and shares in thousands,
    except per share amounts - unaudited)     2012       2011        2012        2011
    Sales                                  $ 161,273  $ 185,195   $ 562,319   $ 538,130
    Cost of sales
        Cost of sales, excluding
        depletion                          $  21,406  $  21,036   $  74,541   $  61,983
        Depletion                             14,464     13,647      53,261      40,065
    Total cost of sales                    $  35,870  $  34,683   $ 127,802   $ 102,048
    Earnings from operations               $ 125,403  $ 150,512   $ 434,517   $ 436,082
    Expenses and other income
        General and administrative [1]     $   6,762  $   6,311   $  21,680   $  19,065
        Foreign exchange loss (gain)              77        (11)         86        (518)
        Other expense (income)                (1,646)       621      (2,152)      3,527
                                           $   5,193  $   6,921   $  19,614   $  22,074
    Earnings before income taxes           $ 120,210  $ 143,591   $ 414,903   $ 414,008
    Income tax expense                          (513)    (8,551)     (6,611)     (8,727)
    Net earnings                           $ 119,697  $ 135,040   $ 408,292   $ 405,281
 
    Basic earnings per share               $    0.34  $    0.38   $    1.15   $    1.15
    Diluted earnings per share             $    0.34  $    0.38   $    1.15   $    1.14
    Weighted average number of shares 
    outstanding
        Basic                                353,927    353,327     353,730     353,165
        Diluted                              355,928    356,014     355,811     355,935
    1) Equity settled stock based 
       compensation (a non-cash item)
       included in general and 
       administrative expenses.            $   1,521  $   1,700   $   4,849   $   4,769

Consolidated Balance Sheets

                                                 September 30      December 31
    (US dollars in thousands - unaudited)            2012              2011

    Assets
    Current assets
                      Cash and cash
                      equivalents                 $   555,056      $   840,201
                      Accounts receivable               9,287            3,890
                      Other                             1,229            1,221
    Total current assets                          $   565,572      $   845,312
    Non-current assets
                      Silver and gold
                      interests                   $ 2,328,808      $ 1,871,726
                      Long-term investments           150,892          151,621
                      Deferred income taxes                 -            2,301
                      Other                             1,292            1,375
    Total non-current assets                      $ 2,480,992      $ 2,027,023
    Total assets                                  $ 3,046,564      $ 2,872,335
    Liabilities
    Current liabilities
                      Accounts payable and
                      accrued liabilities         $    10,963      $     8,709
                      Current portion of
                      bank debt                        28,560           28,560
                      Current portion of
                      silver interest
                      payments                              -          130,789
    Total current liabilities                     $    39,523      $   168,058
    Non-current liabilities
                      Long-term portion of
                      bank debt                   $    28,640      $    50,060
                      Deferred income taxes             2,913                -
    Total non-current liabilities                 $    31,553      $    50,060
    Total liabilities                             $    71,076      $   218,118
    Shareholders' equity
    Issued capital                                $ 1,807,422      $ 1,793,772
    Reserves                                           23,797           25,422
    Retained earnings                               1,144,269          835,023
    Total shareholders' equity                    $ 2,975,488      $ 2,654,217
    Total liabilities and shareholders'
    equity                                        $ 3,046,564      $ 2,872,335
 

Consolidated Statement of Cash Flows

                                                Three Months Ended    Nine Months Ended
                                                   September 30          September 30
    (US dollars in thousands - unaudited)         2012       2011       2012       2011
    Operating activities
    Net earnings                              $ 119,697  $ 135,040  $ 408,292  $ 405,281
    Adjustments for
        Depreciation and depletion               14,523     13,709     53,440     40,266
        Equity settled stock based
        compensation                              1,521      1,700      4,849      4,769
        Deferred income tax expense                 361      8,385      5,927      8,115
        (Gain) loss on fair value
        adjustment of share purchase
        warrants held                            (1,539)       597     (1,937)     3,380
        Investment income recognized
        in net earnings                            (421)      (253)    (1,090)      (667)
        Other                                       (24)       703        (41)       392
    Change in non-cash operating working 
    capital                                      (5,865)     7,113     (5,095)       543
    Operating cash flows before 
    interest income                           $ 128,253  $ 166,994  $ 464,345  $ 462,079
    Interest received                               398        242      1,033        634
    Cash generated by operating activities    $ 128,651  $ 167,236  $ 465,378  $ 462,713
    Financing activities
    Bank debt repaid                          $  (7,140) $  (7,140) $ (21,420) $ (21,420)
    Share purchase warrants exercised                 -          -         10         61
    Share purchase options exercised              5,425      2,756      9,513      7,818
    Dividends paid                              (35,388)   (10,603)   (99,046)   (31,797)
    Cash applied to financing activities     $  (37,103)$  (14,987) $ (110,943)$ (45,338)
    Investing activities
    Silver and gold interests                $ (638,430) $(137,506) $ (638,610)$(140,063)
    Silver and gold interests - interest 
    paid                                           (168)      (249)       (577)     (950)
    Acquisition of long-term investments              -          -        (395)  (13,674)
    Proceeds on disposal of long-term investments     -          -           -    24,270
    Dividend income received                         23         11          57        33
    Other                                           (43)       (15)       (105)      (48)
    Cash applied to investing activities      $(638,618) $(137,759)  $(639,630)$(130,432)
    Effect of exchange rate changes on cash 
    and cash equivalents                           $ 10     $ (218)       $ 50      $ 43
    (Decrease) increase in cash and cash 
    equivalents                              $ (547,060)  $ 14,272  $ (285,145) $286,986
    Cash and cash equivalents, beginning 
    of period                                 1,102,116    701,350     840,201   428,636
    Cash and cash equivalents, end of period  $ 555,056  $ 715,622  $  555,056  $715,622

Summary of Ounces Produced and Sold

                                                    2012                    2011  2010
    (in thousands)                        Q3    Q2    Q1    Q4    Q3    Q2    Q1    Q4
    Silver ounces produced [1]
    San Dimas [2]                      1,288 1,227 1,692 1,578 1,251 1,150 1,606 1,586
    Zinkgruvan                           621   673   642   390   379   414   508   428
    Yauliyacu                            640   606   550   583   608   674   683   651
    Peñasquito                         1,940 1,822 1,365 1,633 1,162 1,282 1,207 1,260
    Cozamin                              370   429   405   433   395   414   325   335
    Barrick [3]                          627   468   667   723   794   741   722   458
    Other [4]                          1,276 1,276 1,288 1,389 1,272 1,153 1,088 1,245
                                       6,762 6,501 6,609 6,729 5,861 5,828 6,139 5,963
    Silver equivalent ounces of 
    gold produced [5]
    Minto                                337   189   107   202   257   261    97   205
    777                                  593     -     -     -     -     -     -     -
    Silver equivalent ounces produced  7,692 6,690 6,716 6,931 6,118 6,089 6,236 6,168
    Silver ounces sold
    San Dimas [2]                      1,178 1,295 1,701 1,488 1,232 1,149 1,748 1,438
    Zinkgruvan                           495   580   517   425   319   401   321   421
    Yauliyacu                            184 1,155   497   655    11   471   120   470
    Peñasquito                         1,304 1,845 1,189   851 1,382   961   941 1,169
    Cozamin                              301   395   376   374   335   281   271   411
    Barrick [3]                          528   470   656   755   747   726   680   482
    Other [4]                            796 1,049   992 1,230   770   862   741 1,139
                                       4,786 6,789 5,928 5,778 4,796 4,851 4,822 5,530
    Silver equivalent ounces of 
    gold sold [5]
    Minto                                357   139   198   196   316   227    83   127
    777                                    -     -     -     -     -     -     -     -
    Silver equivalent ounces sold      5,143 6,928 6,126 5,974 5,112 5,078 4,905 5,657
    Gold / silver ratio [5]             51.7  58.7  51.2  51.9  50.4  40.1  33.0  49.7
    Cumulative payable silver 
    equivalent ounces produced but 
    not yet delivered [6]              5,195 3,212 4,166 4,127 3,805 3,537 3,018 2,275
       Ounces produced represent the quantity of silver and gold contained in
       concentrate or doré prior to smelting or refining deductions.
       Production figures are based on information provided by the operators
       of the mining operations to which the silver or gold interests relate
       or management estimates in those situations where other information is
       not available. Certain production figures may be updated in future
       periods as additional information is received. The Company has been
       informed that reported production related to the Yauliyacu mine may
       have been overstated by a total of approximately 200,000 ounces for all
       or some portion of the period between April 1, 2011 and June 30, 2012.
       The required adjustments to production, if any, related to the
       Yauliyacu mine for these periods will be made once management completes
    1) a review of the timing and amount of any production variance.
       The ounces produced and sold include 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
    2) sale of San Dimas to Primero.
    3) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
       Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno
       Hill, Minto, 777, Aljustrel and Campo Morado silver interests in
       addition to the previously owned La Negra and San Martin silver
    4) interests.
       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
    5) gold and silver.
    6) Based on management estimates.

Results of Operations (unaudited)

                                                  Three Months Ended September 30, 2012                                                                    Average     Average
                                                                   Realized      Cash
                                                                     Price       Cost
                                                                    (US$'s      (US$'s
                                    Ounces    Ounces     Sales        Per         Per
                                  Produced[2]  Sold     (US$'s)      Ounce)    Ounce)[3]
    Silver
            San Dimas [4]              1,288  1,178    $  37,565    $ 31.90     $  4.12
            Zinkgruvan                   621    495       15,986      32.30        4.14
            Yauliyacu                    640    184        5,378      29.23        4.08
            Peñasquito                 1,940  1,304       40,431      30.99        3.99
            Cozamin                      370    301        8,902      29.62        4.11
            Barrick [5]                  627    528       15,752      29.85        3.90
            Other [6]                  1,276    796       25,072      31.49        3.97
                                       6,762  4,786    $ 149,086    $ 31.16     $  4.04
    Gold
            Minto                      6,513  6,905    $  12,187    $ 1,765     $   303
            777                       11,464      -            -          -           -
                                      17,977  6,905    $  12,187    $ 1,765     $   303
    Silver equivalent[7]               7,692  5,143    $ 161,273    $ 31.36     $  4.16
    Corporate
            General and administrative
            Other
    Total corporate
                                       7,692  5,143    $ 161,273    $ 31.36     $  4.16

Table continued...

                                                  Three Months Ended September 30, 2012

                                     Average
                                    Depletion                 Cash Flow
                                     (US$'s         Net          From
                                       Per       Earnings    Operations     Total Assets
                                      Ounce)      (US$'s)       (US$'s)         (US$'s)
    Silver
            San Dimas [4]            $  0.79    $  31,776     $  32,710      $   164,227
            Zinkgruvan                  1.68       13,107        11,649           54,967
            Yauliyacu                   5.02        3,704         2,181          220,799
            Peñasquito                  2.96       31,364        35,226          492,132
            Cozamin                     4.05        6,449         7,730           20,780
            Barrick [5]                 4.34       11,404        13,425          601,187
            Other [6]                   4.06       18,682        20,191          388,934
                                     $  2.78    $ 116,486     $ 123,112      $ 1,943,026
    Gold
            Minto                    $   171    $   8,917     $   8,930      $    31,418
            777                            -            -             -          354,364
                                     $   171    $   8,917     $   8,930      $   385,782
    Silver equivalent[7]             $  2.81    $ 125,403     $ 132,042      $ 2,328,808
    Corporate
            General and 
            administrative                       $ (6,762)
            Other                                   1,056
    Total corporate                              $ (5,706)     $ (3,391)     $   717,756
                                     $  2.81    $ 119,697     $ 128,651      $ 3,046,564
    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.
       Production figures are based on information provided by the operators
       of the mining operations to which the silver or gold interests relate
       or management estimates in those situations where other information is
       not available. Certain production figures may be updated in future
       periods as additional information is received.
    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 operating Lagunas Norte, Pierina and Veladero silver
       interests in addition to the non-operating Pascua-Lama silver interest.
    6) Comprised of the operating Los Filos, Keno Hill, Mineral Park,
       Neves-Corvo, Stratoni, Campo Morado, Minto, 777 and Aljustrel silver
       interests in addition to the non-operating Rosemont silver and gold
       interest and Loma de La Plata and Constancia 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, 2011                                                                 Average      Average
                                                                 Realized      Cash
                                                                  Price        Cost
                                                                 (US$'s       (US$'s
                                  Ounces    Ounces    Sales        Per          Per
                                Produced[2]  Sold    (US$'s)      Ounce)     Ounce)[3]
    Silver
                San Dimas [4]        1,251  1,232    $  42,567    $ 34.56     $  4.07
                Zinkgruvan             379    319       12,168      38.15        4.08
                Yauliyacu              608     11          454      41.31        4.02
                Peñasquito           1,162  1,382       49,401      35.75        3.96
                Cozamin                395    335       12,270      36.58        4.08
                Barrick [5]            794    747       28,681      38.42        3.90
                Other [6]            1,272    770       29,192      37.90        3.94
                                     5,861  4,796    $ 174,733    $ 36.44     $  3.99
    Gold
                Minto                5,110  6,280       10,462      1,666         300
    Silver equivalent [7]            6,118  5,112    $ 185,195    $ 36.23     $  4.12
    Corporate
                General and
                administrative
                Other
    Total corporate
                                     6,118  5,112    $ 185,195    $ 36.23     $  4.12
                                   Average
                                  Depletion                  Cash Flow
                                   (US$'s         Net          From          Total
                                     Per       Earnings     Operations       Assets
                                    Ounce)      (US$'s)       (US$'s)       (US$'s)
    Silver
                San Dimas [4]      $  0.71    $   36,675     $  37,550    $   168,583
                Zinkgruvan            1.69        10,326        12,406         58,359
                Yauliyacu             5.02           355           410        233,299
                Peñasquito            2.41        40,601        43,929        507,023
                Cozamin               4.62         9,350        11,752         26,844
                Barrick [5]           3.60        23,081        25,770        601,410
                Other [6]             4.60        22,609        26,823        256,419
                                   $  2.62    $  142,997     $ 158,640    $ 1,851,937
    Gold
                Minto                  169         7,515         9,114         34,298
    Silver equivalent [7]          $  2.67    $  150,512     $ 167,754    $ 1,886,235
    Corporate
                General and
                administrative                $  (6,311)
                Other                            (9,161)
    Total corporate                           $ (15,472)     $   (518)    $   874,440
                                   $  2.67    $  135,040     $ 167,236    $ 2,760,675
    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.
       Production figures are based on information provided by the operators
       of the mining operations to which the silver or gold interests relate
       or management estimates in those situations where other information is
       not available. Certain production figures may be updated in future
       periods as additional information is received.
    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 operating Lagunas Norte, Pierina and Veladero silver
       interests in addition to the non-operating Pascua-Lama silver interest.
    6) Comprised of the operating Los Filos, Keno Hill, Mineral Park,
       Neves-Corvo, Stratoni, Campo Morado, Minto, 777 and Aljustrel silver
       interests in addition to the non-operating Rosemont silver and gold
       interest and Loma de La Plata and Constancia 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, 2012

                                                            Average      Average
                                                            Realized      Cash
                                                             Price        Cost
                                                             (US$'s      (US$'s
                             Ounces    Ounces    Sales        Per          Per
                           Produced[2]  Sold    (US$'s)      Ounce)     Ounce)[3]
    Silver
          San Dimas [4]        4,207   4,174    $ 129,825  $   31.11     $  4.10
          Zinkgruvan           1,936   1,592      49,430       31.04        4.14
          Yauliyacu            1,796   1,836      55,432       30.19        4.06
          Peñasquito           5,127   4,338      132,387      30.52        3.99
          Cozamin              1,204   1,072      33,493       31.27        4.10
          Barrick [5]          1,762   1,654      51,439       31.11        3.90
          Other [6]            3,840   2,837      87,936       30.99        3.96
                              19,872  17,503    $ 539,942  $   30.85     $  4.03
    Gold
          Minto               11,815  13,134    $ 22,377   $   1,704     $   303
          777                 11,464       -         -             -           -
                              23,279  13,134    $ 22,377   $   1,704     $   303
    Silver equivalent [7]     21,098  18,197    $ 562,319  $   30.90     $  4.10
    Corporate
          General and
          administrative
          Other
    Total corporate
                              21,098  18,197    $ 562,319  $   30.90     $  4.10

Table continued...

      
                                            Nine Months Ended September 30, 2012
                             Average
                            Depletion                  Cash Flow
                             (US$'s         Net           From
                               Per       Earnings      Operations     Total Assets
                              Ounce)       (US$'s)       (US$'s)         (US$'s)
    Silver
          San Dimas [4]      $  0.79    $  109,409     $  112,709      $   164,227
          Zinkgruvan            1.68        40,165         39,187           54,967
          Yauliyacu             5.02        38,758         47,971          220,799
          Peñasquito            2.96       102,237        115,078          492,132
          Cozamin               4.05        24,763         28,270           20,780
          Barrick [5]           4.34        37,814         45,943          601,187
          Other [6]             4.05        65,214         74,910          388,934
                             $  2.92    $  418,360     $  464,068      $ 1,943,026
    Gold
          Minto              $   171    $   16,157     $   17,007      $    31,418
          777                      -             -              -          354,364
                             $   171    $   16,157     $   17,007      $   385,782
    Silver equivalent
    [7]                      $  2.93    $  434,517     $  481,075      $ 2,328,808
    Corporate
          General and
          administrative                $ (21,680)
          Other                            (4,545)
    Total corporate                     $ (26,225)     $ (15,697)      $   717,756
                             $  2.93    $  408,292     $  465,378      $ 3,046,564
    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.
       Production figures are based on information provided by the operators
       of the mining operations to which the silver or gold interests relate
       or management estimates in those situations where other information is
       not available. Certain production figures may be updated in future
       periods as additional information is received.
    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 operating Lagunas Norte, Pierina and Veladero silver
       interests in addition to the non-operating Pascua-Lama silver interest.
    6) Comprised of the operating Los Filos, Keno Hill, Mineral Park,
       Neves-Corvo, Stratoni, Campo Morado, Minto, 777 and Aljustrel silver
       interests in addition to the non-operating Rosemont silver and gold
       interest and Loma de La Plata and Constancia 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     Average
                                                                   Realized     Cash
                                                                    Price       Cost
                                                                   (US$'s      (US$'s
                                   Ounces     Ounces     Sales       Per         Per
                                 Produced[2]   Sold     (US$'s)     Ounce)    Ounce)[3]
    Silver
                San Dimas [4]        4,007    4,129    $ 143,736   $ 34.81     $  4.05
                Zinkgruvan           1,301    1,041       39,437     37.88        4.08
                Yauliyacu            1,965      602       21,641     35.95        4.01
                Peñasquito           3,651    3,284      115,695     35.24        3.93
                Cozamin              1,134      887       31,204     35.14        4.07
                Barrick [5]          2,257    2,153       77,781     36.12        3.90
                Other [6]            3,513    2,373       85,734     36.13        3.94
                                    17,828   14,469    $ 515,228   $ 35.61     $  3.98
    Gold
                Minto               14,545   14,478       22,902     1,582         300
    Silver equivalent [7]           18,443   15,095    $ 538,130   $ 35.65     $  4.11
    Corporate
                General and
                administrative
                Other
    Total corporate
                                    18,443   15,095    $ 538,130   $ 35.65     $  4.11

Table continued...

                                                    Nine Months Ended September 30, 2011
                                   Average
                                  Depletion                  Cash Flow
                                   (US$'s         Net           From
                                     Per       Earnings      Operations     Total Assets
                                    Ounce)      (US$'s)        (US$'s)         (US$'s)
    Silver
                San Dimas [4]      $  0.71    $  124,059     $  125,902      $   168,583
                Zinkgruvan            1.69        33,427         35,316           58,359
                Yauliyacu             5.02        16,205         19,226          233,299
                Peñasquito            2.41        94,901        102,808          507,023
                Cozamin               4.62        23,487         30,325           26,844
                Barrick [5]           3.58        61,685         67,826          601,410
                Other [6]             4.29        66,209         76,113          256,419
                                   $  2.60    $  419,973     $  457,516      $ 1,851,937
    Gold
                Minto                  169        16,109         17,926           34,298
    Silver equivalent [7]          $  2.65    $  436,082     $  475,442      $ 1,886,235
    Corporate
                General and
                administrative                 $ (19,065)
                Other                            (11,736)
    Total corporate                            $ (30,801)     $ (12,729)     $   874,440
                                   $  2.65    $  405,281     $  462,713      $ 2,760,675
    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.
       Production figures are based on information provided by the operators
       of the mining operations to which the silver or gold interests relate
       or management estimates in those situations where other information is
       not available. Certain production figures may be updated in future
       periods as additional information is received.
    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 operating Lagunas Norte, Pierina and Veladero silver
       interests in addition to the non-operating Pascua-Lama silver interest.
    6) Comprised of the operating Los Filos, Keno Hill, Mineral Park,
       Neves-Corvo, Stratoni, Campo Morado, Minto, 777 and Aljustrel silver
       interests in addition to the non-operating Rosemont silver and gold
       interest and Loma de La Plata and Constancia 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.
    Non-IFRS Measures
    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 flow per share (basic and
    diluted); and (iii) cash operating margin.

      i)   Average cash cost of silver and gold on a per ounce basis is calculated by 
           dividing the total cost of sales, less depletion, 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)  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.
      iii) 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.

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.  For more detailed information, please refer to pages 18 to 20 of Silver Wheaton's Management Discussion and Analysis available on the Company's website at http://www.silverwheaton.com and posted on SEDAR at http://www.sedar.com.

For further information:

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