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Full Service Mine Support Coeur d’Alene District Idaho

Crescent Mine_United Mine Services

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Page 1: Crescent Mine_United Mine Services

Full Service Mine Support

Coeur d’Alene DistrictIdaho

Page 2: Crescent Mine_United Mine Services

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Disclaimer

This presentation contains certain forward-looking statements that may involve a number of risks anduncertainties. Actual events or results could differ materially from current expectations and projections.Except for statements of historical fact relating to the project, certain information contained herein constitutes"forward-looking statements". Forward-looking statements are frequently characterized by words such as"plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certainevents or conditions "may" or "will" occur.

Forward-looking statements are based on the opinions and estimates of management at the date thestatements are made, and are subject to a variety of risks and uncertainties and other factors that could causeactual events or results to differ materially from those projected in the forward-looking statements. Thesefactors include the inherent risks involved in the exploration and development of mineral properties, theuncertainties involved in interpreting drilling results and other geological data, fluctuations in prices &marketplace, the possibility of project cost overruns or unanticipated costs and expenses, uncertaintiesrelating to the availability and costs of financing needed in the future and other factors. Circumstances ormanagement's estimates or opinions could change. The reader is cautioned not to place undue reliance onforward-looking statements.

Page 3: Crescent Mine_United Mine Services

Located in Pinehurst, Idaho, in the heart of the Silver Valley

mining industry & in the 2nd largest silver producing area in the world

Established in late 2006

Typical mine service providers offer one service, such as labor, consulting, or supplies

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United Mine Services (UMS) - Overview

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UMS – Business Components

Mine Services Division 3 years serving the mining industry

Mine Fabrication & Machine Services Division28 years serving the mining industry

Construction/Contracting Services Division17 years of environmental remediation work

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UMS is organized into 3 main divisions:

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UMS Contract Services

Contract Mining & Administration

• Experienced supervisors & miners

• Underground equipment inventory

• Large network of experienced narrow vein miners

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Mine Fabrication & Machine Services

• Full service fabrication and mine repair facility

• UMS receives priority service

• Provides consumables at less than retail cost

Construction/Contracting Services

• Contracting environmental remediation to state and federal agencies

• Developed excellent relationship with regulators

• Civil construction

Page 6: Crescent Mine_United Mine Services

UMS – Corporate Strategy and Goals

One-stop opportunity

UMS provides complete solution

For example, UMS owns a custom welding and fabrication shop, which provides services both internally and to outside customers, giving UMS the opportunity to service, repair, and rebuild its own equipment and provide parts on demand.

UMS has multiple highly trained crews

This “one-stop” opportunity for customers contrasts sharply with today’s mine services industry, which is serviced by relatively few companies offering only one or two services. UMS’s goal is to be a fully “vertically integrated” mine services company that can meet all of the customers needs.

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Page 7: Crescent Mine_United Mine Services

UMS – Financial Performance

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Healthy cash flow and excellent earnings

2007 Revenue: $5.04 Million

2008 Revenue: $7.24 Million

2009 Revenue: $15.75 Million with earnings of $3 Million

2010 Revenue: $14.50 Million (Projected) – heading towards production so revenue may be lower than 2009

2011 Revenue: $30 Million (Projected) – increased revenue as mine is brought into production

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Precious metals prices remain strong creating a strong demand for mining services

Silver inventory estimates at or near zero through 2009 creating a strong demand for mining services

UMS plans additional acquisitions:

- Drilling Companies (surface & underground)- Manufacturer of safety equipment- Other opportunities

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Strong growth and demand in mining

UMS – Growth & Demand

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United Mining Group & Public Company

Proposed Pre-Financing Share Structure ($CAD)

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# of Shares

% of Basic O/S

% of Fully Diluted

Public Company's basic outstanding shares 9,828,667 58.4% 23.2%

Shares issued to UMS Shareholders pursuant to Reverse Takeover 5,000,000 29.7% 11.8%

Transaction Finder's fee 2,000,000 11.9% 4.7%

Basic outstanding post Reverse Takeover 16,828,667 100.0% 39.8%

Exchangeable Securities** 25,000,000 59.1%

Stock options and warrants 466,667 1.1%

Fully Diluted 42,295,334 100.0%

* Each unit consist of one common share and one-half of one share purchase warrant.

** Shares of a separate class that can be converted into common share of Public Company at anytime at the discretion of the holders of such shares without any additionalconsideration.

Note: As of Dec. 31, 2009, UMS has long term debt of US$2.11M (net of current portion of US$0.69M), relating primarily to the acquisition of Mine Fabrication & Machine, plus a note payable to a related party of US$0.572M

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Coeur d’Alene DistrictIdaho

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Summary Highlights

Advanced-stage, silver exploration & mining project, located in 2nd largest silver producing district in world; area mined and explored for over 100 years & produced

more than 1 billion ounces

Project located between the world-famous Sunshine & Bunker Hill mines; together these three produced 489 million ounces of silver

25 million ounces produced at Crescent Mine between 1917-1981; avg. grade 27

opt Ag; 10.2 million ounces remains in additional defined resources

Primary development already in place

Excellent site and district infrastructure: mining friendly district with other operating mines in the area; little or no issue with permitting

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District Location

Located on the west end of the famous ‘Silver Belt’ of the Coeur d’Alene Mining District, northern Idaho

Located 4 miles SE of the town of Kellogg, Shoshone County, between Bunker Hill and Sunshine Mines; Bunker Hill Mine located approx 3 km to the west of the property area, and Sunshine Mine less than 1 km to the east

Bunker and Sunshine produced nearly half of entire district’s silver

• Sunshine: 328 million ounces• Bunker Hill: 161 million ounces (includes 25 million ounces from Crescent at

average 27 opt Ag)

Active mines in the district are the Lucky Friday and Galena Mines

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Page 14: Crescent Mine_United Mine Services

Silver Valley History

Coeur d’Alene Mining District: 1885 - 2009

Second largest silver producing district in world

Over 1 billion ounces produced

Production mainly from narrow, steeply-dipping, high grade veins

Average annual primary production grades range from 10 to 50 opt silver

Photo source U.S. EPA

Idaho’s Silver Valley, 1880’s

Historical Photo of the Sunshine Hoist

Photo source Idaho State University

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Page 15: Crescent Mine_United Mine Services

Silver Valley History (Cont’d)

Ore Veins Persist to Depth

Ore bodies in the district are unique in that they are persistent at great depths in excess of one mile

Star Mine – mined one vein over 7,800 vertical feet (2,377 m)

Sunshine – mined associated veins over 6,400 vertical feet (1,951 m)

Bunker Hill – mined over 5,000 vertical feet (1,524 m)

Galena Mine – mined veins over more than 5,000 vertical feet (>1,524 m)

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Page 16: Crescent Mine_United Mine Services

Bunker Hill Mine: produced 161 million oz Ag at average grade of 8 opt

Crescent Mine: produced 25 million oz Ag at average grade of 27.3 opt

Sunshine Mine: produced 328 million oz Ag at average grade of 23 opt

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Approximate limit of exploration

target

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Property consists of 25 patented claims totaling about 350 acres plus surface rights to an additional 40 acres

Located between the Sunshine and Bunker Hill Mines and covers more than 6,000 ft (1,829m) of strike between the two historical mines

Land & Claims

Claim Map, Crescent Property

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Page 18: Crescent Mine_United Mine Services

The Coeur d'Alene Mining District lies within a broad area of Middle Proterozoic, fine-grained & lightly metamorphosed sediments termed the Belt Super Group

Approximately 98% of the Silver Belt production has been from veins hosted within the St. Regis and Revett Formations

Geology

Geological Map, Crescent Property18

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Rocks were strongly deformed during the Cretaceous age Sevier Orogeny, resulting in large-scale folds cut by numerous west-northwest-striking faults and veins

The primary fault at the Crescent property is the Alhambra Reverse Fault, which displaces the stratigraphy in the mine area by approximately 3,000 feet (914 m)

The Crescent hosts five mineralized structures: most of the historic production has come from the Alhambra, East Footwall, Hook and BJ. Veins, while the South Vein hosts much of the recently discovered resource

Structure

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Page 20: Crescent Mine_United Mine Services

Stratigraphic Cross-Section

RevettFormation

St. Regis Formation

Wallace Formation

Prichard Formation

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Page 21: Crescent Mine_United Mine Services

Mineralization

Mining is characterized by steep, persistent 3 -10’ veins

These silver-bearing veins strike predominantly east-west and dip steeply to the south

The “Silver Belt” veins are composed of siderite, quartz, and various sulfides including pyrite, tetrahedrite, chalcopyrite, and galena

Most of the silver is found within the tetrahedrite, which generally contains between 2% and 6% silver by weight

Substantial amounts of silver are also recovered from galena

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Page 22: Crescent Mine_United Mine Services

Mine History

Sunshine Mine and mill as seen from the Crescent Mine portal

1800’s - Exploration/ development/mining began

1926 - Bunker Hill Company began acquiring claims

1917-1981 - Bunker Hill reports production: 978,750 tons Grade of 27 oz Ag / tonTOTAL: 25,139,655 ounces Ag

Mined with overhand stopingmethods (tailings for backfill)

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Mine Operations (Cont’d)

1930’s - Mill built on site(burned sometime after 1942)

1942 - Mine closed

1953 - Mine reopened as small part of Bunker Hill operations

• Mined @ 150 t/d• Sank Ellis Shaft to 3100 level• Trucked ore to Bunker Hill mill

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Mine Operations (Cont’d)

1963 - Completed +15,000 foot Yreka cross-cut

All subsequent ore hauled underground to Bunker Hill mine

Ore mined from 12 different veins Most productive veins:

• Alhambra Fault• East Footwall Vein• Hook Vein• BJ Vein

Production averaged +50 opt some years

1983 - Mine closed24

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Historical Reserve Calculation

At closure in 1983 mining reserves (resources) were calculated and classified Assured & Probable Possible Projected

Calculation completed by Don Springer Independent consulting geologist QP as defined in NI 43-101 regulations

This equates to a 10 year mine life @ 150 t/d

Combined reserves (1983)

396,500 tons

23.7 oz Ag / ton

TOTAL: 9,395,380 ounces Ag

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Page 26: Crescent Mine_United Mine Services

Subsequent Exploration

Exploration between Bunker & Crescent discouraged in 60’s & 70’s by lack of mineralization in Yreka crosscut

Late 70’s - White, Juras & Radford developed new stratigraphic model

Proposed new exploration targets, which were followed up by SNS Silver in 2007

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Page 27: Crescent Mine_United Mine Services

SNS Acquisition of Property - 2007

SNS Silver Corp

Exploration company listed on the TSX

Purchased the property from Shoshone County Idaho and the EPA in 2007 for $650K and now owns the mine 100%

Syringa Exploration Inc, along with United Mine Services Inc (UMS) signed a Letter of Intent with SNS on December 1, 2009 to earn up to an 80% interestin the property by spending $9 million over the next 3 years

UMS will also issue 500,000 shares of its stock and along with Syringa, will pay SNS $220,000 in staged payments to be completed upon signing a definitive joint venture agreement and completing a reverse takeover of a public company

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Page 28: Crescent Mine_United Mine Services

SNS Exploration Summary

Surface & underground exploration program undertaken based on White, Juras & Radford recommendations of mid 70’s

Drill-tested and confirmed stratigraphic model in near surface holes

Diamond drilling completed over 2 years (2007 and 2008), targeting Alhambra Fault and South Vein

• 70 surface holes• 30 underground holes• Total of 103,215 feet (31,460 m)

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SNS Exploration Summary (Con’t)

Completed rehabilitation on 2 levels, excavated UG drill platforms and extended Hooper Tunnel 1000 ft west

Encountered favorable stratigraphy (St. Regis) on hanging wall of Alhambra Fault in upper country

Alhambra Fault mineralization has been identified from surface to 2,000 ft

South Vein identified as extending up to 1,500 feet above the Hooper Level and 3,000 feet west of the Crescent Shaft

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SNS Exploration Summary (Con’t)

St. Regis formation strata found to extend upward to the surface

Encouraging alteration and veins extend throughout nearly the entire length and width of the property above the Hooper Tunnel

Intermediate veins are tentatively interpreted as possessing greater strike and dip dimensions than formerly known

Recent drilling has yet to significantly explore this structure further to the west of the property or to depth

South Vein InterceptsSNS - 403 10 ft at 56 opt

SNS - 305a 6.8 ft at 42.1 opt

SNS - 310 5.6 ft at 25.3 opt

SNS - 1006 6.3 ft at 21.1 opt

SNS - 307 5.1 ft at 21.6 opt

SNS - 1002 7 ft at 17.6 opt

H - 304 7.8 ft at 11 opt

Alhambra Vein InterceptsSNS - 502 6.2 ft at 41.2 opt

SNS - 604 6.2 ft at 16.4 opt

SNS - 1107 4.9 ft at 20.6 opt

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SNS Drill Hole Locations

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SNS – New Resource Calculation 2009

SRK calculated Indicated and Inferred resources, based on the recent SNS drilling:

Resources identified on Alhambra Fault & South Vein:

Resources open down-dip on both veins; potential to add to resource with continued exploration

Stratigraphic model indicates potential along strike

Crescent Mine Resource Estimate

Silver Tons Avg. Grade (opt) Ounces

Measured and Indicated 324,000 18.7 6,100,000

Inferred 211,100 19.5 4,100,000

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Alhambra Resource Grades

Viewing North (drill hole trace in black) 33

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Viewing South (red is indicated, green is inferred, drill hole trace in black)

Alhambra- Indicated and Inferred

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South Vein Resource Grades

Viewing North (drill hole trace in black)35

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South Vein – Indicated and Inferred

Viewing South (red is indicated, green is inferred, drill hole trace in black)36

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New Crescent Mine Plan

Fully permitted

Work in progress to resolve water discharge issues left from Sterling Silver; long term water discharge agreement in place

Re-establish secondary exit

Re-hab Big Creek #4 level to daylight

Install new ore passes and service hoists for men and material handling

Install backfill system

Drive access to South Vein

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New Crescent Mine Plan (Cont’d)

Install raise preps on both veins (Alhambra and South Veins)

Raise-up along down dip projection of resources; start mining when ore is encountered

Project cutoff grade = 8.75 opt Ag

Near term production• 3rd quarter @ 225 t/d• 6th quarter @ 400 t/d• 8th quarter @ 500 t/d

Silver Production• Year 1 = 635,000 oz @ $18.67 /oz• Year 2 = 2,500,000 oz @ $8.07 /oz• Year 3 = 3,000,000 oz @ $7.46 /oz

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Page 39: Crescent Mine_United Mine Services

Processing Crescent Ore

Custom mill ore

Two facilities available in Silver Valley

1. Coeur Mill at Coeur Mine (US Silver)• Probably lease and self operate

2. New Jersey Mining Company Mill• Purchase mill capacity

Both within easy hauling distance

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2010 Exploration & Work Plan

Complete resource development costs and schedule

Continue metallurgical research

Review custom milling opportunities for the Crescent ore with several local mining companies

Additional drilling below targets to further extend resource

Develop and expand the resource by means of new raises, drifts, ramps and boreholes

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Page 41: Crescent Mine_United Mine Services

Crescent Mine – Summary Points

• Advanced stage silver exploration and mining project, located in 2nd largest silver producing district in world; area mined and explored for over 100 years & produced more than a billion ounces silver

• Project located between Sunshine & Bunker Hill mines; together these two produced more than 460 million ounces of silver

• 25 million ounces produced at Crescent Mine between 1917-1981; average grade at 27 opt Ag; 10.2 million oz in additional defined resources

• SNS work confirmed exploration model and identified new targets for continuing exploration; 12 veins known on property; potential for Sunshine type veins between structures

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Page 42: Crescent Mine_United Mine Services

Crescent Mine – Advantages

Primary development in place

Discoveries are above the existing haulage level and well above water level

Significant exploration potential exists in the lower levels of the mine; less than 5% of the known mineralized structures have been significantly explored or mined

Excellent site and district infrastructure: mining friendly district with other operating mines in the area; little or no issue with permitting

The property is underlain by the most favorable geological conditions in the Coeur d' Alene district to yield ore discoveries

Experienced, dedicated management team

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Page 43: Crescent Mine_United Mine Services

United Mine Services (UMS) - Advantages

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UMS will be one of the few publicly traded companies offering a complete range of “one-stop” mining services

Healthy cash flow and excellent earnings

Demand for mining services continues to be strong-based on present day precious metals prices and low inventories

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United Mine ServicesP.O. Box 828

202 South DivisionPinehurst, Idaho 83850

Offices:Mine Services: 208-682-9018

Fabrication & Machine Services: 208-784-0381Contracting Services: 208-682-9018

Fax: 208-682-9472

Please visit our website @ www.unitedmineservices.com