United Silver Corp. Announces Refining Agreement

United Silver Corp. ("USC" or the "Company") (TSX: USC)(OTCQX: USCZF) announced today that it has signed a two-year agreement with Formation Metals U.S., effective January 1, 2012, for the sale of silver concentrates from its Crescent Mine Project, once the project begins generating ore. Formation Metals’ refining facility is located less than 3 miles from the mill.

Graham Clark, USC’s Chairman and CEO, commented, “We are very pleased to begin this relationship with Formation Metals. With this agreement in place, and the expected commissioning of our joint venture expansion of the New Jersey Mill in the first quarter of 2012, the Crescent Mine Project will be able to mine, mill, and process all of our ore within a five-mile radius of our property.”

ABOUT UNITED SILVER CORP.

USC is a vertically integrated mining company with operations in Idaho, USA. The Company has earned, through development and operations, an 80% 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. The Company also offers a full suite of mining services including contract mining and mine machine repair and fabrication services to silver miners in the district. The Company's common shares trade on the Toronto Stock Exchange under the symbol "USC". For more information about the Company, please visit: www.unitedsilvercorp.com.

ON BEHALF OF UNITED SILVER CORP.

"Graham Clark"Chairman and Interim CEO

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. Forward looking statements in this press release include: that our project will commence to generate silver ore, the expected commissioning of the New Jersey Mill in the first quarter of 2012, and the company can mine, mill and process ore within a five-mile radius. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: that we may be unable to generate silver ore commercially or profitably; the inability to get labor or equipment as required; market prices and conditions for silver; inaccurate data; the inability to obtain financing because of market conditions or otherwise, the inability to get into production and other risks disclosed in the Company's filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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