Silvermet Reports 2012 Second Quarter Results and Announces Resumption of Operations

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES. 


Silvermet Inc. ("Silvermet" or the "Company") (TSX VENTURE:SYI) is pleased to
announce its Q2, 2012 results and the signing of a collective bargaining
agreement ending the strike by unionized employees. 


Highlights (in US$)

The highlights of the Company's Q2, 2012 results include the following
(operational figures expressed at 100%):




--  Silvermet is debt free. At June 30, 2012, it has cash and credit
    facility receivable of $4.3 million, or $0.027 per common share. 
--  EAFD throughput increased by 24% to approximately 16,000 Dry Metric
    Tonnes ("DMT") from approximately 13,000 DMT in Q2, 2011. 
--  Sales volume increased by 69% to 4,693 DMT compared to 2,784 DMT in Q2,
    2011, 27% higher than production increases, due to the timing of
    individual shipments in 2011. 
--  Revenues increased by 27% to $4.9 million (at 100%) compared to $3.8
    million in Q2, 2011, as higher sales volume offset lower zinc prices. 
--  Direct operating costs increased by 63% to $2.9 million (at 100%)
    compared to $1.8 million in Q2, 2011, while unit cost of sales decreased
    to $657/DMT from $689/DMT in Q2, 2011 as a result of stable operations
    and higher recovery rates, offset in part by cost increases for labour,
    maintenance, freight and waste disposal. 
--  EBITDA decreased by 37% to $0.6 million (at 100%) compared to
    approximately $0.9 million in Q2, 2011 due to lower zinc prices. 
--  Under the Company's normal course issuer bid, Silvermet purchased and
    cancelled 1,317,000 common shares at an average price of $0.09 per
    share. 
--  On July 17, 2012 operations at the Iskenderun plant were halted due to a
    strike by unionized personnel. Subsequently on August 3, 2012,
    negotiations with the union were positively concluded with the signing
    of a collective bargaining agreement, which will be in effect until
    December 31, 2013. Full operations have since resumed. 
--  As previously disclosed, the Company's joint venture had a fixed payment
    obligation of $448,000 and a contingent payment obligation of up to
    $2,348,372 related to the acquisition of the Iskenderun plant. On July
    24, 2012, the joint venture settled the liabilities with cash on hand,
    with the payment of a lump sum amount of $1,250,000 (Silvermet's share -
    $612,500). 



The following table summarizes comparative quarterly results and reconciles net
income, an IFRS measure, to EBITDA. Both 2012 and 2011 figures reflect
operational results at a proportionally consolidated level of 49%.




----------------------------------------------------------------------------
                                     Three months ended June 30,            
                                2012       2012             2011        2011
                                100%        49%             100%         49%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
REVENUE                  $ 4,877,898 $2,390,169  $     3,833,901 $ 1,878,611
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EBITDA(1)                $   586,660 $  197,014  $       935,114 $   508,788
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NET INCOME (LOSS)                    $ (187,496)                 $   369,695
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                                       Six months ended June 30,            
                                 2012         2012          2011        2011
                                 100%          49%          100%         49%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
REVENUE                  $ 10,103,925  $ 4,950,923 $   8,797,305 $ 4,310,679
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EBITDA(1)                $  1,696,221  $   681,059 $   2,082,622 $ 1,049,228
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NET INCOME (LOSS)                      $    98,220               $   613,396
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) EBITDA is a non-IFRS measure, does not have a standardized meaning      
    prescribed by IFRS and may not be comparable to similar terms and       
    measures presented by other issuers. EBITDA comprises net income (loss) 
    before income taxes, interest and financing expense (including accretion
    of liabilities), amortization expense and stock option expense. The     
    Company believes it is appropriate to exclude stock option expense from 
    EBITDA as a measure of operating performance that excludes non-recurring
    items.                                                                  



Outlook:

Silvermet continues to generate positive cash flows with strengthening working
capital balance, no debt, relatively stable zinc prices and lower smelter
treatment charges.


Silvermet's Turkish joint venture BST is progressing with the previously
announced expansion plans in the Adana and Izmir regions of Turkey. Subject to
permitting and financing, BST plans to invest approximately US$120 million
dollars to construct two plants, each with annual EAFD processing capacity of
110,000 DMT. When all three facilities are in production, the total EAFD
processing capacity will increase from the current 60,000 DMT to 280,000 DMT and
annual zinc concentrate production will increase to 90,000 DMT containing
134,000,000 pounds of zinc.


Discussions on financing are progressing with senior lenders. The environmental
permitting process is underway with a target of obtaining all necessary
environmental and construction permits by early 2013. Simultaneously, detailed
engineering and costing are being completed. Construction of the plants is
estimated to require 18 months with start-up scheduled for the end of 2014.


About Silvermet:

Silvermet's principal business activity is the recycling of electric arc furnace
dust ("EAFD") obtained from steel companies through a Waelz kiln to produce an
oxide zinc concentrate that is sold to zinc smelters throughout the world. The
Company owns 49% of BST, which operates a Waelz kiln facility located in
Iskenderun, Turkey.


Additional Information:

Additional information can be accessed at the Company's website www.silvermet.ca
or through the Company's public filings at www.sedar.com.


Caution concerning forward-looking statements: The information in this release
may contain forward-looking information under applicable securities laws. This
forward-looking information is subject to known and unknown risks, uncertainties
and other factors that may cause actual results to differ materially from those
implied by the forward-looking information. Factors that may cause actual
results to vary include, but are not limited to, inaccurate assumptions
concerning the exploration for and development of mineral deposits, political
instability, currency fluctuations, unanticipated operational or technical
difficulties, changes in laws or regulations, the risks of obtaining necessary
licenses and permits, changes in general economic conditions or conditions in
the financial markets and the inability to raised additional financing. Readers
are cautioned not to place undue reliance on this forward-looking information.
The Company does not assume the obligation to revise or update this
forward-looking information after the date of this release or to revise such
information to reflect the occurrence of future unanticipated events except as
may be required under applicable securities laws. The TSX Venture Exchange does
not accept responsibility for the adequacy or accuracy of this release.
Silvermet Inc. (TSXV:SYI)
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