Silver Wheaton Reports a Strong Start to 2013 With First Quarter Revenues of US$205.8 Million

VANCOUVER, May 10, 2013 /PRNewswire/ --

Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW) (NYSE: SLW) is pleased to announce its unaudited results for the first quarter ended March 31, 2013. All figures are presented in United States dollars unless otherwise noted.

FIRST QUARTER HIGHLIGHTS

  • Attributable silver equivalent production of 8.0 million ounces (6.3 million ounces of silver and 32,200 ounces of gold) compared to 6.7 million ounces in Q1 2012, representing an increase of 20%.
  • Silver equivalent sales of 6.9 million ounces (6.0 million ounces of silver and 16,900 ounces of gold) compared to 6.1 million ounces in Q1 2012, representing an increase of 13%.
  • Revenues of $205.8 million compared to $199.6 million in Q1 2012, representing an increase of 3%.
  • Net earnings of $133.4 million ($0.38 per share) compared to $147.2 million ($0.42 per share) in Q1 2012, representing a decrease of 9%.
  • Operating cash flows of $165.6 million ($0.47 per share[1]) compared to $163.8 million ($0.46 per share[1]) in Q1 2012, representing an increase of 1%.
  • Cash operating margin[1] for the three months ended March 31, 2013 of $25.33 per silver equivalent ounce compared to $28.51 in Q1 2012.
  • Average cash costs[1] rose to $4.39 per silver equivalent ounce compared with $4.08 in Q1 2012.
  • Declared quarterly dividend of $0.12 per common share as the result of an amended dividend policy whereby the quarterly dividend will be equal to 20% of the average of the previous four quarters' operating cash flow, with a gradual implementation.
  • On February 28, 2013, the Company announced that it had entered into definitive agreements to acquire from Vale S.A. ("Vale") an amount of gold equal to 25% of the life of mine gold production from its Brazilian Salobo mine, as well as 70% of the gold production, for a 20 year term, from certain of its Canadian Sudbury mines.

[1] Please refer to non-IFRS measures at the end of this press release.

"Strong first quarter production of 8.0 million ounces represents a solid start to the year. We remain on track to meet our 2013 forecast of 33.5 million silver equivalent ounces, an increase of 13% over the previous year," said Randy Smallwood, President and Chief Executive Officer of Silver Wheaton. "This growth is largely due to our February acquisition of gold streams from Vale's Salobo mine in Brazil and its Sudbury mines in Canada, along with a full year's production from our precious metals stream on Hudbay's 777 mine, also located in Canada. The Vale acquisition adds another world-class partner to our portfolio, further endorses the competitiveness of our streaming model, and significantly increases Silver Wheaton's organic production growth profile."

"In March, we announced the milestone of reaching silver equivalent reserves of well over one billion ounces. Given the strength and depth of our current opportunity pipeline, we continue to focus on adding additional high-quality ounces to our portfolio in 2013. We believe that the foundation of any strong mining company is the quality of its mineral reserves and resources, and Silver Wheaton has one of the strongest and most active portfolios in the entire precious metals space."

"While the past few weeks have been characterized by volatility in the commodity markets, we continue to provide shareholders with the stability of low, predictable costs. With an average quarterly cash cost of just under $4.40 per silver equivalent ounce, Silver Wheaton once again generated significant cash flow and earnings. Today, we have amended our dividend policy in order to reduce the volatility associated with our quarterly distribution. While we will still pay out a sustainable 20% of operating cash flow, we are now using the average of the trailing four quarters' operating cash flow, with our first reference quarter being the fourth quarter of 2012. This measure should dampen the volatility we have seen as a result of variable timing of concentrate shipments, along with commodity prices, resulting in a more stable dividend."

Financial Review


                                     Revenues
        Revenue was $205.8 million in the first quarter of 2013, on silver
     equivalent sales of 6.9 million ounces (6.0 million ounces of silver and
       16,900 ounces of gold). This represents a 3% increase from the $199.6
     million of revenue generated in the first quarter of 2012, due primarily
         to a 13% increase in the number of silver equivalent ounces sold,
                 partially offset by a lower realized sales price.

                                Costs and Expenses
     Average cash costs in the first quarter of 2013 were $4.39[1] per silver
      equivalent ounce, compared with US$4.08[1] during the comparable period
         of 2012. Cash costs rose slightly year over year primarily due to
      increased gold sales associated with Hudbay Minerals Inc.'s ("Hudbay")
     777 mine. This resulted in cash operating margins[1] of $25.33 per silver
     equivalent ounce, a reduction of 11% as compared to the first quarter of
      2012. The decrease in the cash operating margin was largely due to a 9%
        decrease in the realized silver price in the first quarter of 2013
     compared to the first quarter of 2012 as well as increased cash costs as
                                   noted above.

                         Earnings and Operating Cash Flows
     Net earnings in the first quarter of 2013 were $133.4 million ($0.38 per
        share), compared with $147.2 million ($0.42 per share) for the same
     period in 2012, a decrease of 9%. Cash flow from operations in the first
      quarter of 2013 was $165.6 million ($0.47 per share[1]), compared with
        $163.8 million ($0.46 per share[1]) for the same period in 2012, an
                                  increase of 1%.


[1] Please refer to non-IFRS measures at the end of this press release.

Balance Sheet

At March 31, 2013, the Company had approximately $75.5 million of cash on hand. On February 28, 2013, the Company entered into two new credit facilities, comprised of (i) a $1 billion revolving credit facility ("Revolving Facility") having a 5 year term; and (ii) a $1.5 billion bridge financing facility ("Bridge Facility") having a 1 year term, as more fully described in Note 10 to the financial statements. At March 31, 2013, the Company owed approximately $1.09 billion under its Bridge Facility in connection with the acquisition of the Salobo and Sudbury gold streams.

Subsequent to March 31, 2013, the Company reduced the available capacity under the Bridge Facility by $410 million and repaid $500 million of the Bridge Facility with proceeds obtained from drawing on the Revolving Facility. Following this repayment, the Company had $590 million drawn on the Bridge Facility and $500 million outstanding on the Revolving Facility. The combination of cash, combined with the credit available under the Revolving Facility, and ongoing operating cash flows, positions the Company well to fund all outstanding commitments as well as provide flexibility to acquire additional accretive precious metal stream interests.

Amended Dividend Policy

Silver Wheaton's Board of Directors has amended the existing dividend policy in order to decrease the volatility in the dividend that is caused by the timing of silver and gold sales. Commencing immediately, the quarterly dividend per common share will be equal to 20% of the average cash generated by operating activities in the previous four quarters, divided by the Company's outstanding common shares at the time the dividend is approved, all rounded to the nearest cent.

This new policy will be implemented gradually. As a transitionary measure, the second quarterly dividend being announced today has been calculated using the average cash generated by operating activities for the trailing two quarters (fourth quarter of 2012 and first quarter of 2013). The third quarterly dividend in 2013 will be calculated using the average cash generated by operating activities for the trailing three quarters (fourth quarter 2012, first quarter 2013 and second quarter 2013), after which future quarterly dividends will be calculated using the average cash generated by operating activities for the trailing four quarters.

As a result of the amended dividend policy, a $0.12 per common share quarterly dividend will be paid to holders of record of Silver Wheaton's common shares on May 23, 2013, and distributed on or around May 31, 2013. Under the previous dividend policy, the payout would have been equal to 20% of the cash generated by operating activities in the first quarter of 2013, or $0.09 per common share.

The declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. This dividend qualifies as an 'eligible dividend' for Canadian income tax purposes.

Operational Highlights

Attributable silver equivalent production was 8.0 million ounces (6.3 million ounces of silver and 32,200 ounces of gold) in the first quarter of 2013, representing an increase of 20% compared to the first quarter of 2012.

Operational highlights for the quarter ended March 31, 2013, are as follows:

                                   Pascua-Lama -
        Subsequent to March 31, 2013, Barrick Gold Corporation ("Barrick")
     suspended construction activities in Chile, including work on the primary
     crusher and the Chilean side of the tunnel that conveys ore from Chile to
      Argentina, due to the issuing of a temporary injunction by the Copiapó
        Court of Appeals, Chile. In September 2012, a constitutional rights
         protection action was filed in the Court of Appeals of Copiapó by
      representatives of indigenous communities and certain other individuals
       against Barrick's Chilean subsidiary and the Environmental Evaluation
     Commission of the III Region of Atacama, Chile, the regulatory body with
       oversight authority over the Pascua-Lama project. The action alleges
        noncompliance with the environmental requirements of the project's
      Chilean environmental approval. On April 9, 2013, the Copiapó Court of
         Appeals granted a request for a preliminary injunction to suspend
       construction activities on the Chilean side of the project pending a
      hearing. Barrick stated that activities determined to be necessary for
        environmental protection are expected to continue. Construction in
     Argentina, where the majority of Pascua-Lama's critical infrastructure is
      located, including the process plant and tailings storage facility, has
                                not been affected.
       Barrick has stated that until they have clarity on the regulatory and
     legal aspects, they are unable to fully assess the impact on the capital
     budget, operating costs and schedule of the project. Barrick also stated
     that they are at an early stage of evaluating an alternative development
     plan that involves accelerating the development of another smaller pit in
     Argentina in order to provide a source of ore for initial production, and
      that this alternative could provide ore for approximately six months of
     production during commissioning and ramp up. Therefore, if resumption of
     construction activities in Chile is delayed beyond late 2013, or if such
     development alternative is determined not to be feasible, there could be
      a significant change to the mine plan and an impact on the capital cost
     and production schedule of the project. Barrick has stated that they will
        continue to evaluate all alternatives in light of the uncertainties
         associated with the legal and regulatory actions and the current
                                   environment.
      Until the earlier of Barrick satisfying its Pascua-Lama completion test
     or December 31, 2015, Silver Wheaton will be entitled to all or a portion
       of the silver production from Barrick's Veladero, Pierina and Lagunas
      Norte mines. Silver Wheaton's forecast production is 1.7 million ounces
     from these mines combined in 2013; however, just in the first quarter of
      2013, these three mines produced a combined 0.74 million ounces for the
       Company. Once in production, Pascua-Lama is forecast to be one of the
      largest and lowest cost gold mines in the world, with an expected mine
      life in excess of 25 years. In its first full five years of operation,
         Silver Wheaton's silver production attributable to Pascua-Lama is
                  expected to average 9 million ounces annually.

                                   Peñasquito -
     As stated in Goldcorp Inc.'s ("Goldcorp") May 2, 2013 disclosure, ongoing
     studies to develop a long-term water strategy for the Peñasquito district
      are expected to be completed in the second quarter of 2013. The studies
        are evaluating both the development of new water sources as well as
     opportunities to reduce water consumption in the tailings facility. When
      complete, the studies are also expected to enable a decision on whether
          to proceed with a detailed feasibility study investigating the
        possibility of expanding and/or reconfiguring the existing tailings
     facility in order to enhance water usage efficiency over the life of the
      mine. A new water source has been identified, within Goldcorp's current
      permitted basin, with the potential to supply sufficient fresh water to
       continue the plant ramp up to full design plant throughput. The well
       field is expected to be in production by end of the second quarter of
                                       2014.
       As at March 31, 2013, approximately 0.8 million ounces of cumulative
        payable silver ounces have been produced at Peñasquito but not yet
     delivered to the Company, representing a decrease of 0.5 million payable
                         silver ounces during the quarter.

                                      Other -
         According to Hudbay's May 1, 2013 disclosure, construction at the
     Constancia project in Peru continued to progress in the first quarter and
      initial production remains on track for late 2014 with full production
       still on schedule for the second quarter of 2015. Development of the
          project is approximately 25% complete. Progress on the tailings
      management facility has been negatively impacted by the unusually high
     rainfall in the first quarter. However, the dry season commenced in April
     and Hudbay believes the impact on project schedule is recoverable. Hudbay
          had incurred $480 million in costs of its $1.5 billion capital
        construction budget as of March 31, 2013. As per the agreement with
     Hudbay, Silver Wheaton will pay Hudbay total cash consideration of $294.9
     million for the Constancia silver stream, of which $44.9 million was paid
      on the closing date of September 28, 2012, with two further payments of
     $125 million to be made once capital expenditures of $500 million and $1
                            billion have been incurred.
      The Campo Morado mines had lower than expected production in the first
     quarter. According to Nyrstar SA's ("Nyrstar") April 24, 2013 disclosure,
       lower throughput at Campo Morado was due to a temporary suspension of
       mining operations during February and March, which was a result of an
        administrative issue resulting in the temporary cancellation of the
       site's explosives permit. Nyrstar has stated that operations at Campo
       Morado restarted in early April, and that there is a recovery plan in
                   place to catch up on production during 2013.

                         Produced But Not Yet Delivered -
     Payable silver equivalent ounces produced but not yet delivered to Silver
     Wheaton by its partners increased by 0.3 million ounces to approximately
        4.1 million silver equivalent payable ounces at March 31, 2013. An
       increase in produced but not yet delivered ounces at Yauliyacu, 777,
       Salobo, and Sudbury was largely offset by decreases at Peñasquito and
                                   Campo Morado.



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, May 13, 2013, 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:                         34709047
             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:                         34709047
           Archived audio webcast:        http://www.silverwheaton.com


About Silver Wheaton

Silver Wheaton is the largest precious metals streaming company in the world. Based upon its current agreements, forecast 2013 attributable production is approximately 33.5 million silver equivalent ounces[1], including 145 thousand ounces of gold. By 2017, annual attributable production is anticipated to increase significantly to approximately 53 million silver equivalent ounces[1], including 180 thousand 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, Hudbay's Constancia project, and Vale's Salobo and Sudbury mines.

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
                                                           March 31
    (US dollars and shares in thousands,
    except per share amounts - unaudited)              2013           2012
    Sales                                     $     205,761      $     199,638
    Cost of sales
    Cost of sales, excluding
    depletion                                 $      30,410      $      25,019
    Depletion                                        24,341             17,206
    Total cost of sales                       $      54,751      $      42,225
    Earnings from operations                  $     151,010      $     157,413
    Expenses and other income
    General and
    administrative [1]                        $       9,893      $       7,564
    Foreign exchange gain                             (111)               (30)
    Interest expense                                    680                  -
    Other expense (income)                            2,845              (650)
                                              $      13,307      $       6,884
    Earnings before income taxes              $     137,703      $     150,529
    Income tax expense                              (4,282)            (3,348)
    Net earnings                              $     133,421      $     147,181

    Basic earnings per share                  $        0.38      $        0.42
    Diluted earnings per share                $        0.37      $        0.41
    Weighted average number of shares
    outstanding
    Basic                                           354,423            353,529
    Diluted                                         356,382            355,943
    1) Equity settled stock based
    compensation (a non-cash item) included
    in general
    and administrative expenses.              $       1,470      $       1,659

    Consolidated Balance Sheets

                                                   March 31        December 31
    (US dollars in thousands - unaudited)          2013               2012
    Assets
    Current assets
    Cash and cash
    equivalents                               $      75,535      $     778,216
    Accounts receivable                               5,291              6,197
    Other                                             6,267                966
    Total current assets                      $      87,093      $     785,379
    Non-current assets
    Silver and gold
    interests                                 $   4,211,991      $   2,281,234
    Long-term investments                            94,663            121,377
    Other                                             6,506              1,347
    Total non-current assets                  $   4,313,160      $   2,403,958
    Total assets                              $   4,400,253      $   3,189,337
    Liabilities
    Current liabilities
    Accounts payable and
    accrued liabilities                       $      20,363      $      20,898
    Dividends payable                                49,647                  -
    Current portion of bank
    debt                                          1,090,000             28,560
    Current portion of
    performance share units                           1,023                  -
    Total current liabilities                 $   1,161,033      $      49,458
    Non-current liabilities
    Long-term portion of
    bank debt                                 $           -      $      21,500
    Deferred income taxes                            12,230              9,250
    Performance share units                           1,207              2,055
    Total non-current liabilities             $      13,437      $      32,805
    Total liabilities                         $   1,174,470      $      82,263
    Shareholders' equity
    Issued capital                            $   1,816,975      $   1,811,577
    Reserves                                         27,826            (1,710)
    Retained earnings                             1,380,982          1,297,207
    Total shareholders' equity                $   3,225,783      $   3,107,074
    Total liabilities and shareholders'
    equity                                    $   4,400,253      $   3,189,337

    Consolidated Statement of Cash Flows

                                                    Three Months Ended
                                                         March 31
    (US dollars in thousands - unaudited)         2013             2012

    Operating activities
    Net earnings                              $     133,421      $     147,181
    Adjustments for
    Depreciation and
    depletion                                        24,393             17,267
    Interest expense                                    680                  -
    Amortization of credit
    facility origination
    fees                                              1,005                  -
    Equity settled stock
    based compensation                                1,470              1,659
    Performance share units                             214                176
    Deferred income tax
    expense                                           4,239              3,068
    Loss (gain) on fair
    value adjustment of
    share
    purchase warrants held                            1,330              (675)
    Investment income
    recognized in net
    earnings                                          (231)              (319)
    Other                                               (4)               (92)
    Change in non-cash operating working
    capital                                         (1,110)            (4,756)
    Cash generated from operations            $     165,407      $     163,509
    Interest received                                   205                302
    Cash generated from operating
    activities                               $      165,612      $     163,811

    Financing activities
    Bank debt repaid                          $    (50,060)      $     (7,140)
    Bank debt drawn                               1,090,000                  -
    Credit facility origination fees               (11,518)                  -
    Share purchase warrants exercised                 2,975                 10
    Share purchase options exercised                  1,042                924
    Cash generated from (applied to)
    financing activities                      $   1,032,439      $     (6,206)

    Investing activities
    Silver and gold interests                 $ (1,900,620)      $       (180)
    Interest paid - capitalized to silver
    interests                                         (138)              (215)
    Dividend income received                             57                 17
    Other                                              (19)               (20)
    Cash applied to investing activities      $ (1,900,720)      $       (398)

    Effect of exchange rate changes on cash
    and cash equivalents                      $        (12)      $          81
    (Decrease) increase in cash and cash
    equivalents                               $   (702,681)      $     157,288
    Cash and cash equivalents, beginning of
    period                                          778,216            840,201
    Cash and cash equivalents, end of
    period                                    $      75,535      $     997,489



                       Summary of Ounces Produced and Sold

                              2013            2012                 2011
    (in thousands)             Q1    Q4     Q3    Q2    Q1    Q4    Q3    Q2
    Silver ounces produced
    (1)
    San Dimas squared         1,743 1,694  1,288 1,231 1,692 1,578 1,251 1,150
    Yauliyacu                   624   616    640   606   550   583   608   674
    Peñasquito                1,093 1,445  1,940 1,822 1,365 1,633 1,162 1,282
    Barrick cubed               741   771    627   468   667   723   794   741
    Other (4)                 2,054 2,345  2,251 2,378 2,335 2,212 2,046 1,981
                              6,255 6,871  6,746 6,505 6,609 6,729 5,861 5,828
    Silver equivalent ounces
    of
    gold produced (5)
    Minto                       217   373    337   189   107   202   257   261
    777                         919 1,059  612(6)    -     -     -     -     -
    Sudbury                     393     -      -     -     -     -     -     -
    Salobo                      262     -      -     -     -     -     -     -
    Silver equivalent ounces
    produced (5)              8,046 8,303  7,695 6,694 6,716 6,931 6,118 6,089
    Silver ounces sold
    San Dimas squared         1,850 1,629  1,178 1,295 1,701 1,488 1,232 1,149
    Yauliyacu                   149 1,097    184 1,155   497   655    11   471
    Peñasquito                1,459 1,642  1,304 1,845 1,189   851 1,382   961
    Barrick cubed               753   826    528   470   656   755   747   726
    Other (4)                 1,741 2,153  1,592 2,024 1,885 2,029 1,424 1,544
                              5,952 7,347  4,786 6,789 5,928 5,778 4,796 4,851
    Silver equivalent ounces
    of
    gold sold (5)
    Minto                       414   268    357   139   198   196   316   227
    777                         511 1,516      -     -     -     -     -     -
    Sudbury                       6     -      -     -     -     -     -     -
    Salobo                       40     -      -     -     -     -     -     -
    Silver equivalent ounces
    sold (5)                  6,923 9,131  5,143 6,928 6,126 5,974 5,112 5,078
    Gold / silver ratio (5)    57.3  54.1   51.7  58.7  51.2  51.9  50.4  40.1
    Cumulative payable silver
    equivalent ounces
    produced
    but not yet delivered (7) 4,051 3,824  5,195 3,212 4,166 4,127 3,805 3,537


       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 by Glencore International AG 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 a review of the timing and
    1)                   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, Zinkgruvan, Mineral Park, Cozamin,
          Neves-Corvo, Stratoni, Keno Hill, Minto, 777, Aljustrel and Campo
    4)                        Morado silver interests.
         Gold ounces produced and sold are converted to a silver equivalent
           basis based on either (i) 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; or (ii) the ratio of the
         price of silver to the price of gold on the date of sale as per the
    5)  London Bullion Metal Exchange for the assets which produce only gold.
        Represents production for the period August 8, 2012 to September 30,
    6)                                  2012.
    7)                     Based on management estimates.


Results of Operations (unaudited)

                                                       Three Months Ended March 31, 2013
                                                                 Average       Average
                                                                 Realized       Cash
                                                                  Price         Cost
                           Ounces        Ounces                  ($'s Per     ($'s Per
                       Producedsquared    Sold       Sales        Ounce)      Ounce)  [3]
    Silver
        San Dimas [4]            1,743    1,850     $  53,903      $ 29.13       $  4.13
        Yauliyacu                  624      149         4,759        31.94          4.08
        Peñasquito               1,093    1,459        43,574        29.87          4.02
        Barrick [5]                741      753        23,625        31.37          3.90
        Other [6]                2,054    1,741        52,037        29.90          4.15
                                 6,255    5,952     $ 177,898      $ 29.89       $  4.08
    Gold
        Minto                    3,502    6,698     $  11,159      $ 1,666       $   304
        777                     16,951    9,414        15,372        1,633           400
        Sudbury                  7,097      111           179        1,609           400
        Salobo                   4,677      720         1,153        1,602           400
                                32,227   16,943     $  27,863      $ 1,645       $   362
    Silver equivalent [7]        8,046    6,923     $ 205,761      $ 29.72       $  4.39
    Corporate
        General and
        administrative
        Other
    Total corporate
                                 8,046    6,923     $ 205,761      $ 29.72       $  4.39     

    (table continued)

                             Average
                            Depletion                      Cash Flow
                            ($'s Per          Net             From
                              Ounce)        Earnings        Operations       Total Assets
    Silver
        San Dimas [4]         $  0.82      $   44,753       $   46,262        $   161,427
        Yauliyacu                5.75           3,295            4,151            214,439
        Peñasquito               2.66          33,834           37,709            483,397
        Barrick [5]              2.54          18,776           24,592            596,621
        Other [6]                4.07          37,738           45,692            447,675
                              $  2.56      $  138,396       $  158,406        $ 1,903,559
    Gold
        Minto                 $   171      $    7,979       $    8,734        $    29,443
        777                       802           4,060            7,634            325,191
        Sudbury                   823              44              134          1,330,022
        Salobo                    463             531              865            623,776
                              $   538      $   12,614       $   17,367        $ 2,308,432
    Silver equivalent [7]     $  3.52      $  151,010       $  175,773        $ 4,211,991
    Corporate
        General and
        administrative                     $  (9,893)
        Other                                 (7,696)
    Total corporate                        $ (17,589)       $ (10,161)        $   188,262
                              $  3.52      $  133,421       $  165,612        $ 4,400,253




        All figures in thousands except gold ounces produced and sold and per
    1)                             ounce amounts.
       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
    2)             periods as additional information is received.
          Refer to discussion on non-IFRS measure (ii) on page 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
    3)                          http://www.sedar.com.
       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
    4)                      sale of San Dimas to Primero.
        Comprised of the operating Lagunas Norte, Pierina and Veladero silver
    5) interests in addition to the non-operating Pascua-Lama silver interest.
        Comprised of the operating Los Filos, Zinkgruvan, Keno Hill, Mineral
         Park, Cozamin, 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
    6)                               interests.
         Gold ounces produced and sold are converted to a silver equivalent
           basis based on either (i) 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; or (ii) the ratio of the
         price of silver to the price of gold on the date of sale as per the
        London Bullion Metal Exchange for the assets which produce only gold.
    7)


                                  Three Months Ended March 31, 2012
                                                            Average       Average
                                                            Realized       Cash
                                                            Price         Cost
                       Ounces        Ounces                ($'s Per     ($'s Per
                 Producedsquared    Sold       Sales        Ounce)      Ounce)[3]
    Silver
        San Dimas [4]     1,692    1,701     $  55,566      $ 32.66       $  4.09
        Yauliyacu           550      497        15,586        31.36          4.02
        Peñasquito        1,365    1,189        38,760        32.61          3.99
        Barrick [5]         667      656        21,503        32.80          3.90
        Other [6]         2,335    1,885        61,747        32.75          4.03
                          6,609    5,928     $ 193,162      $ 32.58       $  4.02
    Gold
        Minto             2,088    3,860         6,476        1,678           303
    Silver equivalent [7] 6,716    6,126     $ 199,638      $ 32.59       $  4.08
    Corporate
        General and administrative
        Other
    Total corporate
                          6,716    6,126     $ 199,638      $ 32.59       $  4.08 




                               Average
                              Depletion                      Cash Flow
                             ($'s Per          Net            From
                               Ounce)        Earnings       Operations       Total Assets
    Silver
        San Dimas [4]          $  0.79      $   47,267       $  48,606        $   166,188
        Yauliyacu                 5.02          11,094          13,588            227,518
        Peñasquito                2.96          30,500          34,018            501,455
        Barrick [5]               4.34          16,100          18,946            600,651
        Other [6]                 3.37          47,804          50,685            328,299
                               $  2.79      $  152,765       $ 165,843        $ 1,824,111
    Gold
        Minto                      171           4,648           5,149             33,001
    Silver equivalent [7]      $  2.81      $  157,413       $ 170,992        $ 1,857,112
    Corporate
        General and administrative          $  (7,564)
        Other                                  (2,668)
    Total corporate                         $ (10,232)       $ (7,181)        $ 1,148,727
                               $  2.81      $  147,181       $ 163,811        $ 3,005,839



        All figures in thousands except gold ounces produced and sold and per
    1)                              ounce amounts.
        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
    2)              periods as additional information is received.
          Refer to discussion on non-IFRS measure (ii) on page 20 of Silver
            Wheaton's Management Discussion and Analysis available on the
        Company's website at http://www.silverwheaton.com and posted on SEDAR
    3)                         at http://www.sedar.com.
        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
    4)                      sale of San Dimas to Primero.
        Comprised of the operating Lagunas Norte, Pierina and Veladero silver
            interests in addition to the non-operating Pascua-Lama silver
    5)                                interest.
         Comprised of the operating Los Filos, Zinkgruvan, Keno Hill, Mineral
            Park, Cozamin, Neves-Corvo, Stratoni, Campo Morado, Minto and
         Aljustrel silver interests in addition to the non-operating Rosemont
    6)      silver and gold interest and Loma de La Plata silver interest.
          Gold ounces produced and sold are converted to a silver equivalent
           basis based on either (i) 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; or (ii) the ratio of the
         price of silver to the price of gold on the date of sale as per the
    7)  London Bullion Metal Exchange for the assets which produce only gold.



Non-IFRS Measures

Silver Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) operating cash flow per share (basic and diluted); (ii) average cash costs of silver and gold on a per ounce basis; and (iii) cash operating margin.

      i.    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.
     ii.        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.
    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 19 to 21 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

SOURCE: Silver Wheaton Corp.

For further information:
Patrick Drouin
Vice President, Investor Relations
Silver Wheaton Corp.
Tel: +1-800-380-8687
Email: info@silverwheaton.com
Website: http://www.silverwheaton.com


SOURCE Silver Wheaton Corp.



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