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, Feb. 5, 2013

TSX: SLW
NYSE: SLW

VANCOUVER, Feb. 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 
(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:                     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 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:                 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)
    Mine                               Au               
                  Category        Mt         g/t       Au Moz          %
Salobo                                                  
(25%)^(9)          Proven        142.1      0.45        2.06           
Sudbury         Reserves                                
(70%)^(10)                      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         Probable                                
(70%)^(10)                       61.3       0.38        0.75          81%
Total          Reserves                      4.55          
Sudbury        Indicated                                
(70%)^(10)       Resources       23.3       0.33        0.25           
Salobo                                                  
(25%)^(9)                       13.7       0.29        0.13           
Sudbury         Inferred                                
(70%)^(10)       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 (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, 
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 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  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.



SOURCE Silver Wheaton Corp.

Contact:

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