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Silver Wheaton Acquires Gold Streams from Vale's Salobo and Sudbury Mines

  Silver Wheaton Acquires Gold Streams from Vale's Salobo and Sudbury Mines

  PR Newswire

  VANCOUVER, Canada, February 5, 2013

VANCOUVER, Canada, February 5, 2013 /PRNewswire/ --

Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX, NYSE:SLW) is
pleased to announce that it has entered into a binding term sheet to acquire
from a subsidiary of Vale S.A. ("Vale") (NYSE:VALE) an amount of gold equal to
25% of the life of mine gold production from its Salobo Mine, located in
Brazil, as well as 70% of the gold production, for a 20-year term, from
certain of its Sudbury Mines located in Canada.

The Company will pay Vale total cash consideration of US$1.90 billion, plus 10
million Silver Wheaton warrants with a strike price of US$65 and a term of 10
years ^[ ^1] . US$1.33 billion will be paid for 25% of the gold production
from Salobo, while US$570 million will be paid for 70% of the Sudbury gold
production. In addition, Silver Wheaton will make ongoing payments of the
lesser of US$400 (subject to a 1% annual inflation adjustment from 2016 for
Salobo) and the prevailing market price, for each ounce of gold delivered
under the agreement.

TRANSACTION HIGHLIGHTS

  *Provides immediate cash flow and enhances Silver Wheaton's growth profile

       *Silver Wheaton will receive 25% of the gold production from Vale's
         newly constructed and currently expanding Salobo mine, and 70% of the
         gold production from certain of its Sudbury mines;
       *This immediately increases Silver Wheaton's production and cash flow
         profile by adding expected average gold production of 110 thousand
         ounces per year over the next 20 years (5.9 million silver equivalent
         ounces ^[ ^2] ), which includes approximately 60 thousand ounces per
         year from Salobo and approximately 50 thousand ounces per year from
         Sudbury.
       *Excellent expansion and exploration potential exist for both Salobo,
         which currently has an extensive reserve base and good depth and
         strike potential, and Sudbury, which currently has the Totten mine in
         start-up and the Victor development project.

  *Significantly increases Silver Wheaton's exposure to gold

       *The addition of the Vale streams will increase Silver Wheaton's
         percentage of revenue generated from gold production over the next
         five years from an average of 12% to a peak of around 25%.

  *Adds another world-class partner and further endorses the competitiveness
    of Silver Wheaton's streaming model

       *Vale is the world's largest producer of iron ore and one of the
         largest mining companies in the world, having a market capitalization
         of over $100 billion.
       *The use of precious metal streaming by Vale further validates the
         benefits of streaming in unlocking the value of by-product precious
         metals production.

  *Increases Silver Wheaton's organic growth profile

       *With the addition of these streams, Silver Wheaton is also pleased to
         announce its updated production guidance. In 2013, Silver Wheaton
         forecasts 33.5 million ounces of silver equivalent production ^[ ^2]
         (including 145 thousand ounces of gold). In 2017, the Company
         forecasts 53 million ounces of silver equivalent production ^[ ^2]
         (including 180 thousand ounces of gold), which represents an increase
         of over 80% from 2012.

________________________________________ ^[ ^1] The issue of the warrants is
subject to receipt of all requisite regulatory approvals including the Toronto
Stock Exchange and the New York Stock Exchange. ^[ ^2] Silver equivalent
production forecast assumes a gold/silver ratio of 53.3:1

"Partnering with Vale on two new gold streams represents a significant step
forward for Silver Wheaton and for the streaming model as a whole. Not only
does Silver Wheaton gain accretive gold ounces to further grow and diversify
our company, but the precious metals streaming model has now been further
endorsed by another one of the world's preeminent mining companies," said
Randy Smallwood, Silver Wheaton's President and Chief Executive Officer.
"Silver Wheaton is a proud Canadian company, and we are also excited to be
adding another asset based here in Canada, our second one in less than a
year."

"While we have traditionally focused on silver, we have never been averse to
strategically adding 'the right' gold streams to our portfolio. The
world-class nature of the Sudbury operations and the Salobo mine, with its
exciting expansion and exploration potential, along with the quality of Vale
as an operating partner, convinced us that these assets would be ideal
additions to Silver Wheaton's portfolio. Consistent with the mines underlying
our existing streaming portfolio, the precious metal coming from both of these
assets is produced as a byproduct and represents only a small fraction of the
overall economics of the mining operations. While we will continue to believe
there are a significant number of streaming opportunities in the silver space,
we are also open to layering more high-quality gold streams into our
portfolio."

"Vale has a history of mining success spanning decades, and we are confident
that Salobo and Sudbury will deliver substantial long-term value to both
companies' shareholders. These gold streams will significantly increase Silver
Wheaton's overall growth profile, which, given our unique dividend policy,
should also translate directly into dividend growth."

TRANSACTION TERMS

Silver Wheaton has agreed to acquire from a subsidiary of Vale 70% of the gold
production from certain of Vale's Sudbury mines for a term of 20 years, and,
through Silver Wheaton's wholly owned subsidiary Silver Wheaton (Caymans)
Ltd., 25% of the life of mine gold production from Vale's Salobo mine.
Production will accrue retroactively to Silver Wheaton as of January 1, 2013.

The term sheet remains subject to negotiation and execution of definitive
agreements consistent with the terms of the term sheet, and to approval by the
Vale S.A. board of directors. Vale S.A. has obtained approval of its Executive
Committee of the Board and all other necessary internal committee approvals.

Upon closing, Silver Wheaton will pay Vale total cash consideration of US$1.90
billion, plus warrants to purchase 10 million shares of Silver Wheaton common
stock at a strike price of US$65, and a 10 year term. In addition, the Company
will make ongoing payments of the lesser of US$400 (plus an annual inflation
adjustment starting in 2016 for the Salobo stream) and the prevailing market
price, for each ounce of gold delivered under the agreement.

Vale is in the process of expanding the mill throughput at the Salobo mine to
24 million tonnes per annum (Mtpa) from its current 12 Mtpa.If the expansion
to 24Mtpa is not completed by the end 2016, Silver Wheaton would be entitled
to a gross up (a temporary increased percentage of gold production) based on
the pro-rata achievement of the target production. If throughput capacity is
expanded above 28Mtpa within a predetermined period, Silver Wheaton will be
required to make an additional payment to Vale based on a set fee schedule
ranging from US$67 million up to US$400 million, dependent on timing and
scale.

FINANCING THE ACQUISITION

Silver Wheaton has entered into an agreement with Scotiabank and BMO Capital
Markets as Joint Lead Arrangers and Co-Bookrunners securing a commitment to
underwrite two new credit facilities: (1) a US$1 billion revolving credit
facility having a 5 year term; and (2) a US$1.5 billion bridge financing
facility having a 1 year term. These facilities will replace the existing
US$400 million revolving credit facility. Combined with cash on hand, the
additional credit capacity offered by these new credit facilities provides
Silver Wheaton with sufficient access to capital to fund the upfront payment
while continuing its pursuit of additional accretive growth opportunities.

ABOUT THE SALOBO MINE

Vale's Salobo mine, located in the Pará state of Brazil, is the largest copper
deposit ever found in Brazil. This newly constructed, low-cost copper-gold
mine began operating in May 2012 with a design throughput capacity of 12Mtpa.
Vale has subsequently begun a second phase of construction to expand the mine
to 24Mtpa of mill capacity by the end of 2015. During the ramp up to 24Mtpa,
the mine is expected to average 45 thousand ounces attributable gold
production. Salobo has reserves of over one billion tonnes with gold and
copper grades of 0.43 g/t ^[ ^1] and 0.69 ^[ ^2] percent respectively, and,
along with additional resources also has substantial exploration and expansion
potential. The mine is well positioned relative to infrastructure and is
connected to the national power grid with ample capacity for current
production and future expansion.

________________________________________ ^[ ^1] Silver Wheaton will file a
technical report for the Salobo mine within 45 days of this press release. For
further details of the Salobo mineral reserves, see the tables appended to
this news release. ^[ ^2] Source is Vale's 2011 20-F filing with the SEC
available on EDGAR ( http://www.edgarfiling.sec.gov ).

ABOUT THE SUDBURY MINES

Vale's Sudbury mines, located in Ontario, Canada, have an operating history
going back to 1885. Sudbury is one of the largest nickel producing areas
globally, and Vale's operations in Sudbury are among the largest in the world.
The Sudbury gold stream covers six producing mines (the Coleman, Copper Cliff,
Creighton, Garson, Stobie, and Totten mines) and one development stage project
(the Victor project). From 2013 to 2015, the Sudbury mines are expected to
average attributable production of approximately 30 thousand ounces as the
Totten mine gradually reaches full production. Gold production is expected to
peak once the high grade Victor deposit begins production. All ore bodies
contain a mix of nickel, copper, platinum group metals, cobalt, gold and
silver. In Sudbury, Vale also has a central concentrator, smelter and
refinery, making this one of the largest integrated mining operations in the
world. The combined mine life is estimated to well beyond the end of the 20
year term, based on current mineral reserves and mineral resources.

SILVER WHEATON ANNOUNCES NEW PRODUCTION GUIDANCE

With the addition of two new gold metal streams, Silver Wheaton is also
pleased to present its updated one and five-year production guidance. In 2013
attributable silver equivalent production is forecast to be 33.5 million
silver equivalent ounces, including 145 thousand ounces of gold ^[ ^1] . In
2017, annual attributable production is anticipated to increase over 80%
compared to 2012 levels, growing to approximately 53 million silver equivalent
ounces, including 180 thousand ounces of gold ^[ ^1] .

The addition of Sudbury and Salobo to our portfolio more than offsets the
anticipated reduction in attributable production from some of the other assets
in Silver Wheaton's current streaming portfolio in 2017. Hudbay Minerals'
Constancia mine is expected to meet the completion test well before 2016,
resulting in gold production from the 777 mine attributable to Silver Wheaton
dropping from 100% to 50%. In addition, the 10-year term contract on Capstone
Mining's Cozamin mine, acquired with Silver Wheaton's 2009 acquisition of
Silverstone, expires in April 2017.

Mr. Neil Burns, Silver Wheaton's Vice President, Technical Services, is a
"qualified person" as such term is defined under National Instrument 43-101,
and has reviewed and approved the technical disclosure in this news release.

____________________________ ^[ ^1] Silver equivalent production forecast
assumes a gold/silver ratio of 53.3:1

CONFERENCE CALL

A conference call, along with an interactive presentation, will be held on
Wednesday February 6, starting at 11:00am (Eastern Time) to discuss this
transaction.

To participate in the live call please use one of the following methods:

    Dial toll free from Canada or the US:          1-888-390-0546
     Dial from outside Canada or the US:           1-416-764-8688
                 Pass code:                           60136108
             Live audio webcast:            http://www.silverwheaton.com

Participants should dial in five to ten minutes before the call.

A copy of the presentation can be accessed via the live webcast or can be
found approximately one hour before the call on http://www.silverwheaton.com .

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:          1-888-390-0541
     Dial from outside Canada or the US:           1-416-764-8677
                 Pass code:                            136108
           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, including 145 thousand
ounces of gold ^[ ^1] . By 2017, annual attributable production is anticipated
to increase significantly to approximately 53 million silver equivalent
ounces, including 180 thousand ounces of gold ^[ ^1] . 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 Sudbury and Salobo mines.

____________________________ ^[ ^1] Silver equivalent production forecast
assumes a gold/silver ratio of 53.3:1

Silver Wheaton's Reserves and Resources for Sudbury and Salobo Mines are as
follows:

ATTRIBUTABLE RESERVES & RESOURCES ATTRIBUTAL TO SILVER WHEATON ^[ ^(1] ^, ^[
^2] ^, ^[ ^3] ^, ^[ ^4] ^, ^[ ^5] ^, ^[ ^6] ^, ^[ ^8] ^, ^[ ^11][)]

                                                                            Process
                                              Tonnage   Grade   Contained   Recovery[(7)]
                                                         Au
          Mine               Category           Mt       g/t     Au Moz              %
     Salobo (25%)(9)          Proven           142.1    0.45      2.06
    Sudbury (70%)(10)        Reserves          34.8     0.29      0.33
     Salobo (25%)(9)         Probable          135.9    0.40      1.75
    Sudbury (70%)(10)        Reserves          26.5     0.49      0.42
     Salobo (25%)(9)         Proven &          278.0    0.43      3.80              66%
    Sudbury (70%)(10)        Probable          61.3     0.38      0.75              81%
          Total              Reserves                             4.55
    Sudbury (70%)(10)   Indicated Resources    23.3     0.33      0.25
     Salobo (25%)(9)                           13.7     0.29      0.13
    Sudbury (70%)(10)   Inferred Resources     18.9     0.67      0.40
          Total                                                   0.53


Notes:

1. All Mineral Reserves and Mineral Resources have been calculated in
accordance with the CIM Standards and NI 43-101, or the AusIMM JORC
equivalent.

2. Mineral Reserves and Mineral Resources are reported above in millions of
metric tonnes ("Mt"), grams per metric tonne ("g/t") and millions of ounces
("Moz").

3. Individual qualified persons ("QPs"), as defined by the NI 43-101, for the
technical information contained in this document (including the Mineral
Reserve and Mineral Resource estimates) for the following operations are as
follows:

a. Salobo - A technical report is being prepared, and will be filed by the
Company on Sedar ( http://www.Sedar.com ) within 45 days of this news release

b. Sudbury - Neil Burns, M.Sc., P.Geo. (Vice President, Technical Services);
Samuel Mah, M.A.Sc., P.Eng. (Senior Director, Project Evaluations), both
employees of the Company (the "Company's QPs").

4. The Mineral Resources reported in the above tables are exclusive of Mineral
Reserves.

5. Mineral Resources which are not Mineral Reserves do not have demonstrated
economic viability.

6. Mineral Reserves and Mineral Resources are reported as of December 31, 2011
based on information available to the Company as of the date of this document,
and therefore will not reflect updates, if any, after such date.

7. Process recoveries are the average percentage of gold in a saleable product
(doré or concentrate) recovered from mined ore at the applicable site process
plants as reported by the operators.

8. Mineral Reserves and Resources are estimated using appropriate process
recovery rates and commodity prices including $975 per ounce gold.

9. A technical report for Salobo will be filed within 45 days of this news
release. Inferred resources have been estimated by the Company and are
contained within the current Reserve pit shell.

10. The Company's attributable Resources and Reserves for Sudbury have been
constrained to the production expected for the 20 year term.

11. Gold is produced as a by-product metal; therefore, the economic cut-off
applied to the reporting of gold Resources and Reserves will be influenced by
changes in the commodity prices of other metals at the time.

Full Reserve and Resource tables are available on the Company's website,
http://www.silverwheaton.com . Updates Reserves and Resources incorporating
year-end 2012 estimates will be included in the Company's 2012 AIF.

Mr. Neil Burns, Vice President of Technical Services, is a "qualified person"
as such term is defined under National Instrument 43-101, and has reviewed and
approved the information on mineral reserves and mineral resources disclosed
in this news release.

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.

CAUTIONARY LANGUAGE REGARDING RESERVES AND RESOURCES

For further information on Mineral Reserves and Mineral Resources and on
Silver Wheaton more generally, readers should refer to Silver Wheaton's Annual
Information Form for the year ended December 31, 2011, and other continuous
disclosure documents filed by Silver Wheaton since January 1, 2012, available
on SEDAR at http://www.sedar.com . Silver Wheaton's Mineral Reserves and
Mineral Resources are subject to the qualifications and notes set forth
therein. Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.

Cautionary Note to  United States  Investors Concerning Estimates of
Measured ,  Indicated and Inferred Mineral Resources: The information
contained herein uses the terms "Measured", "Indicated" and "Inferred" Mineral
Resources. United States investors are advised that while such terms are
recognized and required by Canadian regulations, the United States Securities
and Exchange Commission does not recognize them and expressly prohibits U.S.
registered companies from including such terms in their filings with the SEC.
"Inferred Mineral Resources" have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It cannot be
assumed that all or any part of an Inferred Mineral Resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or other economic
studies. United States investors are cautioned not to assume that all or any
part of Measured or Indicated Mineral Resources will ever be converted into
Mineral Reserves or that any exploration potential will ever be converted to
any category of Mineral Reserves or Mineral Resources. United States investors
are also cautioned not to assume that all or any part of an Inferred Mineral
Resource exists, or is economically or legally mineable. United States
investors are urged to consider closely the disclosure in Silver Wheaton's
Form 40-F, a copy of which may be obtained from Silver Wheaton or from
http://www.sec.gov/edgar.shtml .

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