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 August 11, 2011
Commentary on recently released La Preciosa Preliminary Economic Assessment ("PEA")

 We are pleased to provide some additional commentary to the recent joint Pan American Silver Corp./ Orko Silver Corp. press release to aid and enhance the interpretation of the results with particular focus on the impact to Orko Silver Corp.

While the PEA results were very favourable for Orko, we believe that investors and analysts should also consider the following points:
  • Orko is fully-carried to commercial production.

  • During the construction and up to the point at which the project achieves "first pour" of Dore, Pan American is required per the terms of the joint venture agreement to cover all capital costs ( estimated to aggregate $270 million ) with no claw-back to Orko's interest.

  • The PEA provides a very conservative base case with additional substantial contingencies included in both capital and operating cost categories over this conservative approach.

  • The conservative estimates in the PEA relating to mining methods and resources provide upside potential as questions and answers to these are refined.

  • The PEA also includes approximately $64 million in management fees.

  • Per the terms of the joint venture agreement, no hostile bid is permitted.
The above factors enhance the performance of the economics for Orko and ensure a security of its investment in the property for investors.

For additional details on the PEA, please refer to the joint press release dated August 11, 2011.

Yours truly



Gary Cope, President

You can view the Next News Releases item: Thu Aug 11, 2011, Pan American Silver and Orko Silver Release Positive Preliminary Economic Assessment for La Preciosa Project

You can view the Previous News Releases item: Mon Jun 27, 2011, Orko Issues Update on Postal Strike and AGM

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