December 2007
Cautionary Statements CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation: Except for the statements of historical fact contained herein, the information presented constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Such forward-looking statements, including but not limited to those with respect to the price of silver, 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 and reserve conversion rates involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Silver Wheaton to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the integration of acquisitions, the absence of control over mining operations from which Silver Wheaton purchases silver and risks related to these mining operations, including risks related to international operations, actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors discussed in the section entitled “Description of the Business-Risk Factors” in Silver Wheaton’s Annual Information Form for the year ended December 31, 2006 incorporated by reference into Silver Wheaton’s Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Although Silver Wheaton has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described 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 such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES This presentation uses the terms “Measured”, “Indicated” and “Inferred” Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. “Inferred 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 resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into reserves. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
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A Unique Mining Company 100% Pure Silver Simple investment model Strong upside potential • 95% organic sales growth by 2010 • Well positioned for further growth • No hedging
Best leverage to silver price • 10% increase in silver price results in a 15% increase in 2008 cash flow
Very low political risk profile Significant stake in 6 of the top 30 silver deposits in the world
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Key Advantages Costs are essentially fixed Structured to minimize income taxes No ongoing CAPEX requirements • For 4 of 5 contracts, SLW benefits from all production / exploration growth
No environmental/closure responsibilities Downside protection Very limited currency risk • All contracts in $US
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Mine Locations
Zinkgruvan
Peñasquito Luismin
Yauliyacu
5
Stratoni
Peñasquito Goldcorp’s world-class zinc-gold-
Continued excellent potential for exploration growth
silver-lead deposit in Mexico Largest silver deposit in the world
Positive deep drilling shows underground potential Construction on schedule; initial
P&P
June
June
2006
2007
575 M oz
864 M oz
Change
+50%
Reserves M&I Resources
7
production expected by Q4, 2008 30% boost in daily tonnage over 2006 feasibility
247 M oz
413 M oz
+67%
• Average payable silver of 31 M/oz per year
Peñasquito Transaction Terms 25% of silver production for the life of mine Upfront cash payment of US$ 485 million 100% debt financed; no shareholder dilution Purchase price is the lower of US$3.90/oz or spot silver Goldcorp completion guarantee
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No significant tax is to be paid by Silver Wheaton ROFR on future silver streams from the mine Goldcorp retains right to maintain its interest in SLW until 2009 25% interest in Peñasquito would rank as one of the top 10 silver deposits in the world
Peñasquito Production 45 40
Silver M oz
35 30 25 20 15 10 5 0 2008
2010
Total Production 9
2012
2014
25% of Production
2016
2018
2020
2006 Feasibility Production
2022
WHERE ARE WE NOW?
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Silver Sales Growth No Further CAPEX To Be Paid 30
112% 27
95%
Silver production (M oz)
24 21 18 15 12 9 6 3 0 2004 Source: Company Reports
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2005
2006
Luismin
2007E
2008E 2009E
Zinkgruvan
2010E
Yauliyacu
2011E
Stratoni
2012E
2013E
Penasquito
2014E
Attributable Reserves & Resources Pro-forma M&I Resources Contained Silver (M oz)
Contained Silver (M oz)
P&P Reserves 350 250
331%
150 50 -50
Dec. 31, 2005
200 150 100
168%
50 0 Dec. 31, 2005
Jun. 25, 2007
Jun. 25, 2007
Peñasquito Stratoni Zinkgruvan Yauliyacu Luismin
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Contained Silver (M oz)
Inferred Resources 500 400 300
50%
200 100 0 Dec. 31, 2005
Jun. 25, 2007
Attributable Reserves & Resources With Peñasquito Update
Contained Silver (M oz)
1600 1400 1200
122%
1000 P&P Reserves
800 600
M& I Resource
400
Inferred
200 0 Coeur Source: Company Reports * Including Attributable from Peñasquito
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Silver Wheaton 2005
Apex
Pan Silver Silver American Wheaton Standard 2007*
Cash Flow Per Share At $14/oz Silver $1.30
28m oz 25m oz
$1.10
$0.90
$0.70 Silver sales (w/ Peñasquito & Stratoni) Silver sales (w/o Peñasquito & Stratoni)
$0.50
Oper. CFPS (equity financed) Oper. CFPS (debt financed) Oper. CFPS (w/o Peñasquito & Stratoni)
$0.30 2008 14
2009
2010
2011
2012
2013
2014
Projected EBITDA Existing Contracts $380m $17/oz $320m $15/oz $260m $13/oz $200m $11/oz $140m
$80m 2008 15
2009
2010
2011
2012
2013
2014
Debt Sensitivity
Silver Price (US$)
Debt Repayment By $15/oz $13/oz $11/oz $9/oz Dec-08
Dec-10
Dec-11
Assuming in-the-money warrants are exercised in 2009 and proceeds are applied to debt
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Dec-09
Capital Structure As of Oct., 2007 Shares Outstanding
222.6 million 23.5 million(1)
exercise @ C$ 4.00
SLW.WT.A Warrants
8.1 million(1)
exercise @ C$ 5.50
SLW.WT.B Warrants
7.8 million
exercise @ C$10.00
Options
3.2 million
avg.exercise @ C$6.15
SLW.WT Warrants
Shares Fully Diluted 3 Month Avg. Daily Volume TSX: NYSE:
265.2 million
1,200,000 shares 2,600,000 shares
1 Consolidated based on 0.2 SLW.wt and SLW.WT.A for every common share of SLW
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0
18 Rock Creek
Montanore
San Dimas
Xiacun
Cananea
MacArthur River
Hackett River
Rochester
Metates
Cerro Colorado
Olympic Dam
Kholodninskoe
25% of Peñasquito
Cannington
Corani
Que River
Toquepala
Pittarilla
Ocampo
Dukat
25% of Penasquito
Las Minitas
1,200
San Cristobal
Toromocho
1,600
East Region Operations
Source: Metals Economics Group Grasberg
Navidad
Mt Isa
Pascua Lama
KGHM Polska Miedz
Bolshoi Kalimansur
Penasquito
Reserves & Resources (Moz)
Top 30 Silver Deposits in the World
Producing Mines and Development Projects 2,000
Silver Wheaton Relationship (6) Apex Silver
Silver Standard Coeur d’Alene
800
400
Leverage to Silver Price Performance Since Inception (Oct. ’04) SLW
300%
200%
Silver SSRI HL PAAS
100%
0%
CDE
19
Source: Bloomberg
Oct-07
Jun-07
Feb-07
Oct-06
Jun-06
Feb-06
Oct-05
Jun-05
Feb-05
Oct-04
-100%
Financial Performance $0.60
CFPS/EPS (USD)
$0.50 $0.40 $0.30 $0.20 $0.10 $0.00 2004
2005
EPS 20
2006
CFPS
First 9 Months/2007
21 Source: Michael Jalonen, Merrill Lynch Research
Silver Wheaton
Yamana
Agnico
Eldorado
Barrick
Meridian
Pan American
Hecla
Average
Kinross
Goldcorp
Norhtgate
Centerra
Newmont
IAMGOLD
Teck Gold
Golden Star
Net Profit Margin – 9 months/2007 Precious Metal Companies
Change in Total Cash Costs – Precious Metals Companies
Source: Michael Jalonen, Merrill Lynch Research
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Hecla
IAMGOLD
Golden Star
Newmont
Northgate
Meridian
Teck Gold
Average
Barrick
Kinross
Centerra
Eldorado
Agnico
9 Months ’07 vs. 9 Months ‘06
Silver Wheaton – Pure Silver 2006 Revenue 100% 80% 60% 40% 20% 0% Silver Wheaton Source: Cormark Securities
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Coeur Silver
Pan American Other Metals
Hecla
2006E Co-product Cash Cost
Silver Wheaton – A Low Cost Producer
$6.00
$5.96
$5.60 $5.00 $3.90
$4.00
$2.00
$0.00 Hecla Source: Cormark Securities
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Pan American
Coeur
Silver Wheaton
Silver Production Contracts Luismin
Zinkgruvan
Yauliyacu
Stratoni
Peñasquito 25%
25 yrs
LOM
20 yrs
LOM
LOM
Ag Prod.
100%
100%
4.75 M oz/yr 100%
25%
Mine Life
25+ yrs
25+ yrs
25+ yrs
7+ yrs
17+ yrs
Cash Costs
$3.90/oz1
$3.90/oz1
$3.90/oz
$3.90/oz1
$3.90/oz1
Annual Ag
7-12 M oz
2 M oz
4.75 M oz
1-2 M oz
.5-10 M oz
Company Contract Length
Production 1 SLW pays the lesser of $3.90 and spot price on these contracts
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SLW Equity Investments
Property of Interest Ownership Stage Resource (Ag M oz) Est. Annual Ag Production Source: Company Reports
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Corani
Rock Creek
Hackett River
Montanore
18%
17%
12%
11%
Pre-Feasibility
Pre-Feasibility
Advanced Exploration M&I 278 Inf. N/A
40
Inf.
229
6 M oz/yr
Advanced Exploration
Ind.
205
M&I
164
Inf.
52
Inf.
65
12 M oz/yr
N/A
WHY SILVER?
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Silver Supply & Demand
Moz
1000
700
Demand Source: GFMS & RBC Capital Markets
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Supply (mining & scrap)
2009E
2008E
2007E
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
400
Silver Inventories Are At A Historical Low 2500
Inventory (Moz)
2000 1500 1000 500
Source: CPM Group, 2006
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2000
1990
1980
1970
1960
1950
0
Demand For Industrial Applications Roughly 4% in average annual growth (11% in 2005) Demand is relatively inelastic to the price of silver (low proportion of cost) Primary Uses • Electrical & Electronics • Chemicals • Brazing Alloys
New Areas of Growth • • • •
Solar LCD/Plasma Screens Medical Instruments Biocides Source: CPM Group, RBC Capital Markets
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Positive Trends • Growth in Middle Class in China & India • Growing use of Mobile Phones • Computerization in Third World • More Stringent Environmental Laws
Investment - A Major Catalyst of Silver Price • Demand for silver ETF’s expected to increase • iShares growing applied for +360 M oz • New ETF’s emerging
• Increased mine production expected to be offset by increased industrial demand • Silver demand for ETF’s expected to result in a tightening of the silver market Source: GFMS & RBC Capital Markets
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Silver Wheaton vs Silver ETF SILVER WHEATON
Pure Silver Best Leverage to Silver Price Organic Growth Further Growth Potential
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Silver ETF
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Goldcorp
Coeur
Rio Tinto
Grupo Mexico
Polymetal
Kazakhyms
Buenaventura
Source: The 2007 World Silver Survey
BHP
KGHM
50 45 40 35 30 25 20 15 10 5 0 Penoles
M oz
Top Ten Silver Producing Companies
Silver Wheaton – Going Forward Take advantage of huge growth opportunities • Valuation arbitrage • Financing tool • Hedging tool
How will we do this? • Leverage existing partnerships • New partnerships • Strategic investments
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Near-term Catalysts
Strengthening silver prices H2/2008: Peñasquito heap leach operation commences Take advantage of growth opportunities
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Summary 100% Pure Silver Established, long life, low cost mines Strong cash flow & earnings Strongly leveraged to increases in silver price Downside protection Very low political risk profile Well positioned for further growth 36