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Last updated on April 19, 2014 at 18:42 EDT

Silver Standard provides 2012 production results and issues 2013 production and cost guidance

January 8, 2013

VANCOUVER, Jan. 8, 2013 /PRNewswire/ – Silver Standard Resources Inc. (NASDAQ:
SSRI, TSX: SSO) (“Silver Standard” or the “Company”) announced 2012
production at the Pirquitas mine in Jujuy, Argentina and provided
production and cost guidance for 2013.

2012 Operating Highlights:

        --  Exceeded silver production guidance: Produced 8.6 million
            ounces of silver in 2012, exceeding the high-end of the
            guidance range.  Produced 11.2 million pounds of zinc, near the
            high-end of 2012 guidance.

        --  Delivered strong operating performance:  Milled 4,433 tonnes
            per day, on average, during 2012, 11% above nominal design.
            Silver recovery averaged 76% during 2012.

        --  Created value:  Drilled over 53,000 meters at Pirquitas during
            2012, aggressively exploring the Cortaderas Breccia and
            Cortaderas Valley targets. Executed the Company's sales
            strategy, signing sales agreements with smelters, improving
            margins and building a strong customer base for 2013.

“In 2012, our team delivered on its commitments,” said John Smith,
President and CEO.  “At Pirquitas, we exceeded the high-end of our
silver production guidance range, producing a record 8.6 million ounces
and delivered on our sales strategy.  Exploration remains key to our
business model, and we continue to focus on adding value through the
drill bit.  In the fourth quarter, we completed the Pitarrilla
Feasibility Study, defining a mine with approximately 480 million
ounces of reserves and producing 15 million ounces of silver per year
on average during the first 18 years of a 32-year project.”

Summary of Mine Operating Statistics

     ________________________________________________________
    |                      |        |Q4 2012|Q3 2012|% Change|
    |______________________|________|_______|_______|________|
    |Total material mined  |    Kt  |  4,415|  4,333|    1.9%|
    |______________________|________|_______|_______|________|
    |Ore processed         |    Kt  |    417|    404|    3.2%|
    |______________________|________|_______|_______|________|
    |Silver mill feed grade|   g/t  |    212|    214|  (0.9%)|
    |______________________|________|_______|_______|________|
    |Zinc mill feed grade  |     %  |   0.67|   0.65|    3.1%|
    |______________________|________|_______|_______|________|
    |Silver recovery       |     %  |   79.9|   77.7|    2.8%|
    |______________________|________|_______|_______|________|
    |Zinc recovery         |     %  |     42|     39|    7.7%|
    |______________________|________|_______|_______|________|
    |Silver produced       |'000 oz |  2,268|  2,163|    4.9%|
    |______________________|________|_______|_______|________|
    |Zinc produced         |'000 lbs|  3,176|  2,770|   14.7%|
    |______________________|________|_______|_______|________|
    |Silver ounces sold    |'000 oz |  3,218|  2,770|   16.2%|
    |______________________|________|_______|_______|________|
    |Zinc pounds sold      |'000 lbs|  2,731|  2,152|   26.9%|
    |______________________|________|_______|_______|________|

Note: Percent changes are calculated using rounded numbers presented in the
table.

Mine Operations

During 2012, the Pirquitas mine produced a record 8.6 million ounces of
silver.  The mine produced 2.3 million ounces of silver during the
fourth quarter, 4.9% quarter-on-quarter improvement reflecting higher
average silver recoveries in the plant and higher mill throughput.  The
mine also produced 3.2 million pounds of zinc in the fourth quarter,
bringing total zinc production to 11.2 million pounds for the year,
near the high-end of the 2012 zinc production guidance range.

Approximately 417,000 tonnes of ore were milled at an average rate of
4,531 tonnes per day during the quarter, 13% above the plant’s nominal
design.  On an annual basis, the mill processed 4,433 tonnes per day
during 2012.

Ore milled during the fourth quarter of 2012 contained an average silver
grade of 212 g/t, in line with the 214 g/t reported for the third
quarter. The average recovery rate for silver increased to 79.9% from
77.7% in the third quarter.

Outlook for 2013

Silver Standard’s estimated production and cost guidance for 2013 are as
follows:

        --  Produce and sell 8.2 to 8.5 million ounces of silver.
        --  Produce over 20 million pounds of zinc.
        --  Total cash cost of between $17.00 and $18.50 per silver ounce.
        --  Capital expenditures of $25 million at Pirquitas, including
            approximately $15 million for a tailings facility expansion but
            excluding capitalized stripping costs.
        --  Expenditures of $15 million for exploration across the
            Company's portfolio.
        --  Expenditures of $17 million for development.

Silver Standard plans to spend approximately $15 million on exploration
in 2013.  Of this, approximately $7 million is budgeted for exploration
at our Mexican projects, with the balance mainly budgeted for Argentina
and Peru.  The Company may increase its exploration budget or redirect
exploration spending in response to positive results.

The Company expects to spend a minimum of $17 million on development in
2013.  Of this, approximately $8 million and $7 million will be
incurred at the Pitarrilla and San Luis projects, respectively, in line
with our goal of advancing these projects to construction decisions. 
Should construction decisions be made, development expenditures would
increase significantly.  Planned investments in advance of construction
decisions include optimization, land acquisition, community agreements,
permitting and financing.        

John Smith, President and CEO of Silver Standard, commented on the
Company’s 2013 guidance, “Following a strong 2012, we continue to focus
on delivering strong and predictable results at Pirquitas.  In the
first half of the year we are moving from Phase 1 to Phase 2 of the San
Miguel open-pit.  Due to ore and stockpile sequencing, we plan to
produce approximately 2 million ounces of silver in the first quarter
of 2013 with production strengthening as we move through the year.  At
the same time, our team will continue with permitting, engineering and
partnering activities at Pitarrilla. We remain focused on progressing
towards a construction decision.”

Silver Standard is required to adopt the accounting standard IFRIC 20
“Stripping Costs in the Production Phase of a Surface Mine” effective
January 1, 2013.  The Company estimates that the adoption of IFRIC 20
will result in the capitalization of approximately $24 million of
mining costs in 2013 that will be amortized in subsequent periods.

Changes to the Presentation of Non-GAAP Financial Measures

Commencing with its 2012 annual filings, Silver Standard plans to revise
its non-GAAP “total cash cost” and “total production cost” disclosure
methodology. Under the revised methodology, the Company will report
total cash cost and total production cost on a “per payable ounce sold”
basis, rather than on a per ounce produced basis as reported
previously. Silver concentrate export duties that are being accrued but
not paid will be reallocated to total cost to reflect their non-cash
nature as the Company has an order in its favor against their payment.

Total cash cost will consist of the cost of inventory, third party
smelting, refining and transportation and royalties less by-product
credits.  Total production cost will consist of total cash cost plus
depreciation, depletion, amortization (including amortization of
deferred stripping costs) and silver concentrate export duties. The
divisor for both measures is payable silver ounces sold in the period.

The 2013 total cash cost guidance incorporates these changes.

Technical Disclosure

The scientific and technical data contained in this news release has
been reviewed and approved by Andrew W. Sharp, BEng, FAusIMM, a
Qualified Person under National Instrument 43-101 who has consented to
having his name included in this news release. Mr. Andrew W. Sharp has
been employed by the Company as Vice President, Technical Services,
since September, 2011.

On December 17, 2012, we filed a technical report entitled “NI 43-101
Technical Report on the Pitarrilla Project, Durango, State, Mexico” in
accordance with the requirements of NI 43-101 and in support of a
feasibility study for the Pitarrilla project.  A copy of the Technical
Report is available under our profile on SEDAR at www.sedar.com.

Cautionary Note Regarding Forward-Looking Statements:

Statements in this news release are forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and forward-looking information within the meaning of Canadian
securities laws (collectively “forward-looking statements”). All
statements, other than statements of historical fact, are
forward-looking statements. Generally, forward-looking statements can
be identified by the use of words or phrases such as; “expects”,
“anticipates”, “plans”, projects”, “estimates”, “assumes”, “intends”,
“strategy”, “goals”, “objectives”, “potential” or variations thereof,
or stating that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved, or the
negative of any of these terms or similar expressions. The
forward-looking statements in this news release relate to, among other
things: future production of silver and other metals; future mining
costs and cash costs per ounce of silver; the price of silver and other
metals; the effects of laws, regulations and government policies
affecting the Company’s operations or potential future operations;
future successful development of the Company’s projects; the
sufficiency of the Company’s current working capital, anticipated
operating cash flow or the Company’s ability to raise necessary funds;
estimated production rates for silver and other payable metal produced
by the Company; timing of production and the cash and total costs of
production at the Pirquitas mine; the estimated cost of sustaining
capital; ongoing or future development plans and capital replacement,
improvement or remediation programs; the estimates of expected or
anticipated economic returns from the Company’s mining projects
including: future sales of the metals, concentrates or other products
produced by the Company; and the Company’s plans and expectations for
its properties and operations.

These forward-looking statements are subject to a variety of known and
unknown risks, uncertainties and other factors that could cause actual
events or results to differ from those expressed or implied, including,
without limitation, risks relating to:
uncertainty of production and cost estimates for the Pirquitas mine, the
Pitarrilla project and the San Luis project; future development risks,
including start-up delays and operational issues; uncertainty in the
Company’s ability to replace its mineral reserves; risks related to the
Company’s ability to obtain adequate financing for its planned
development activities and further exploration programs; fluctuations
in spot and forward prices for silver, gold and base metals and certain
other commodities; the Company’s history of losses and the potential
for future losses; risks related to general economic conditions,
including recent events in global financial markets; the future value
of Pretium’s shares and the Company’s ability to monetize the full
value of its interest in Pretium; counterparty and market risks related
to the sale of the Company’s concentrates; changes in national and
local legislation, taxation (including employee profit sharing
arrangements), exchange controls or regulations and political or
economic developments or changes in Argentina, Mexico, Peru, Canada,
the United States or other countries where the Company holds assets or
may carry on business; import and export regulations in Argentina,
including potential export tax on production from the Pirquitas mine,
that may impact cash flow, concentrate sales and importation of goods
and services required for the Pirquitas mine; differences in U.S. and
Canadian practices for reporting mineral resources and mineral
reserves; uncertainty in the accuracy of mineral reserves and mineral
resources estimates and in the Company’s ability to extract
mineralization profitably; the Company’s ability to successfully
acquire additional commercially mineable mineral rights; lack of
suitable infrastructure or damage to existing infrastructure; the
Company’s revenue being derived solely from the Pirquitas mine; risks
related to the delay in obtaining or failure to obtain required
permits, or non-compliance with permits the Company has obtained;
increased costs and restrictions on operations due to compliance with
environmental laws and regulations; risks related to reclamation
activities on the Company’s properties; risks and hazards associated
with the business of mineral exploration, development and mining
(including operating in foreign jurisdictions, environmental hazards,
industrial accidents, unusual or unexpected geological or structure
formations, pressures, cave-ins and flooding); risks related to
governmental regulations, including environmental regulations; risks
related to anti-corruption laws; regulations and pending legislation
governing issues involving climate change, as well as the physical
impacts of climate change; uncertainties related to title to the
Company’s mineral properties and the surface rights thereon, including
the Company’s ability to economically acquire the surface rights to
certain of the Company’s exploration and development projects, and
uncertainties due to past or present indigenous inhabitation of the
Company’s properties; inadequate insurance or the Company’s inability
to obtain insurance; civil disobedience in the countries where the
Company’s properties are located; safety and security risks; actions
required of the Company under human rights law; exchange rate
fluctuations among the U.S. dollar and the currencies of the countries
in which the Company operates (such as the Canadian dollar, Argentine
peso, Peruvian sol and Mexican peso); increased competition in the
mining industry for mining services, properties, equipment, qualified
personnel and management; shortage of equipment or supplies, including
as a result of local sourcing requirements; the Company’s ability to
attract and retain qualified personnel and management to grow the
Company’s business; the Company’s ability to maintain adequate internal
control over financial reporting;  risks related to the Company’s
adoption of IFRIC 20; tightened controls over the VAT collection
process in Argentina; increased regulatory compliance costs related to
the Dodd-Frank Wall Street Reform and Consumer Protection Act; risks
related to some of the Company’s directors’ and officers’ involvement
with other natural resource companies; risks related to claims and
legal proceedings; potential difficulty in bringing or enforcing
actions against the Company or its directors or officers outside the
United States; risks related to the terms of the Company’s outstanding
convertible notes, as well as other factors described in the Company’s
most recent Form 20-F filed with the U.S. Securities and Exchange
Commission and Canadian regulatory authorities.

This list is not exhaustive of the factors that may affect any of the
Company’s forward-looking statements. The Company’s forward-looking
statements are based on what the Company’s management considers to be
reasonable assumptions, beliefs, expectations and opinions based on the
information currently available to it. We cannot assure you that actual
events, performance or results will be consistent with these forward
looking statements, and management’s assumptions may prove to be
incorrect. Assumptions have been made regarding, among other things,
the Company’s ability to carry on its exploration and development
activities, the Company’s ability to meet its obligations under its
property agreements, the timing and results of drilling programs, the
discovery of mineral resources and mineral reserves on the Company’s
mineral properties, the timely receipt of required approvals including
obtaining the necessary surface rights for the lands required for
successful project permitting, construction and operation of the
Pitarrilla project, the price of the minerals the Company produces, the
costs of operating and exploration expenditures, the Company’s ability
to operate in a safe, efficient and effective manner and the Company’s
ability to obtain financing as and when required and on reasonable
terms and its ability to continue operating the Pirquitas mine. You are
cautioned that the foregoing list is not exhaustive of all factors and
assumptions which may have been used. The Company’s forward-looking
statements reflect current expectations regarding future events and
operating performance and speak only as of the date hereof and the
Company does not assume any obligation to update forward-looking
statements if circumstances or management’s beliefs, expectations or
opinions should change other than as required by applicable law. For
the reasons set forth above, you should not place undue reliance on
forward-looking statements.

Cautionary Note to U.S. Investors.

The disclosure included in this news release uses Mineral Reserves and
Mineral Resources classification terms that comply with reporting
standards in Canada and the Mineral Reserves and Mineral Resources
estimates are made in accordance with Canadian National Instrument
43-101–Standards of Disclosure for Mineral Projects (“NI 43-101″).  NI
43-101 is a rule developed by the Canadian Securities Administrators
that establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects. 
These standards differ significantly from the requirements of the SEC
set out in Industry Guide 7.  Consequently, Mineral Reserves and
Mineral Resources information included in this news release is not
comparable to similar information that would generally be disclosed by
domestic U.S. reporting companies subject to the reporting and
disclosure requirements of the SEC.  Under SEC standards,
mineralization may not be classified as a “reserve” unless the
determination has been made that the mineralization could be
economically produced or extracted at the time the reserve
determination is made.

Cautionary Note Regarding Non-GAAP Measures:

The Company has included the non-GAAP financial measure, “total cash
cost.” This measure has been revised from the Company’s previous
presentation as described in this news release under the heading
“Changes to the Presentation of Non-GAAP Financial Measures.” Although
“total cash cost” is a common financial measure in the mining industry,
it is a non-GAAP measure and it does not have a standardized meaning.
The Company believes that, in addition to conventional measures
prepared in accordance with GAAP, certain investors use this
information to evaluate the Company’s performance and ability to
generate cash flow. Accordingly, it 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
GAAP. 

All amounts reported in U.S. dollars.

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using the Silver Standard website at www.silverstandard.com.

SOURCE Silver Standard Resources Inc.


Source: PR Newswire