United Silver Corp. Signs Term Sheet with Hale Capital, LP to Enter in JV Agreement on Crescent Mine Project

United Silver Corp. (“United Silver Corp.”,the “Company”, or “USC”;TSX: USC; OTC: USCZF; Frankfurt: UM8) is pleased to announce that it has signed a term sheet to enter into an agreement with Hale Capital Partners, LP. Under the terms of the agreement Hale will receive a 20% joint venture interest in the Crescent Silver Mine, located in the Coeur D’Alene Silver Belt, Idaho. USC had recently acquired this same interest in the Crescent Silver Mine project from Gold Finder Explorations Ltd. The sale to Hale Capital will require an initial contribution on closing of $2,400,000 to USC after transaction expenses, which funding USC will use to bring the Crescent Mine into commercial production. USC will remain the manager of the Crescent Silver Mine Joint Venture and remain its 80% owner and under this new agreement will have the right to repurchase half of Hale’s 20% interest once certain conditions are met.

The parties have agreed to use commercially reasonable efforts to sign the joint venture agreement by June 10, 2012. Other specific terms of the joint venture will be disclosed in the joint venture agreement which will be publicly filed on SEDAR upon its execution. There are conditions precedent to the joint venture agreement’s completion.

Graham Clark, CEO of USC said, “We are very pleased with Hale Capital Partners, LP continued support as they become our joint venture partner in the Crescent Mine project. This transaction, on closing, provides us with adequate funding according to our budget to carry out our development plans until commercial production makes the Crescent Mine project self sustaining.”

ABOUT UNITED SILVER CORP.

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

www.unitedsilvercorp.com

ON BEHALF OF UNITED SILVER CORP.

"Graham Clark"

Chairman and 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 we expect to enter into a joint venture by June 10, 2012, that we will get into commercial production in 2013 and that we will have sufficient funding until our project becomes self sustaining.. 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: our inability to agree on definitive joint venture documents, our budget forecasts may be inaccurate, results of development activities may be more difficult or more expensive than anticipated, mis-estimation of mineral reserves and resources, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the inability to obtain sufficient financing, labor shortages, the inability to keep key employees, currency fluctuations, general market and industry conditions 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 inaccurate 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 Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.