Silver Wheaton acquires 25% of life of mine silver production from Barrick's Pascua-Lama project

VANCOUVER, Sept. 8 /CNW/ - Silver Wheaton Corp. ("Silver Wheaton" or the"Company") (TSX, NYSE:SLW) is pleased to announce that it has agreed toacquire from Barrick Gold Corporation ("Barrick") 25% of the life of minesilver production from its Pascua-Lama project, as well as 100% of the silverproduction from its Lagunas Norte, Pierina and Veladero mines until the end of2013. Silver Wheaton will pay Barrick total cash consideration of US$625million over three years, as well as ongoing payments of the lesser of US$3.90(subject to an annual inflation adjustment) and the prevailing market price,for each ounce of silver delivered under the agreement.

TRANSACTION HIGHLIGHTS

- Provides Immediate Cash Flow

- Silver Wheaton will receive 100% of the silver production from three of Barrick's currently producing mines, effective September 1, 2009, until the end of 2013;

- This immediately enhances Silver Wheaton's production and cash flow profile, by adding average annualized silver production of approximately 2.4 million ounces until Pascua-Lama commences production.

- Significantly Increases Long Term Growth Profile

- Silver Wheaton will receive 25% of the life of mine silver production from Barrick's Pascua-Lama project, expected to be one of the largest and lowest cost gold mines in the world;

- Pascua-Lama is a key Barrick growth asset and is the third largest silver deposit in the world, with an estimated mine life of over 25 years;

- Silver Wheaton's 25% share of the estimated average annual silver production for the first five years (2013 to 2017) is 9 million ounces, boosting overall silver sales by 30% to approximately 40 million ounces per annum;

- Barrick has provided a completion guarantee, requiring them to complete Pascua-Lama to at least 75% of design capacity by December 31, 2015. If Barrick does not meet completion by December 31, 2013, Silver Wheaton will continue to receive silver production in 2014 and 2015 from the currently producing mines, until Barrick satisfies the requirements of the completion guarantee.

"This is a transformational acquisition that propels Silver Wheaton tothe next level in terms of size and growth profile," said Peter Barnes,President and Chief Executive Officer of Silver Wheaton. "We are extremelyexcited to be partnering with Barrick, the world's largest gold miningcompany, on what is expected to be one of the biggest and lowest cost goldmines in the world. Coupled with our interest in Goldcorp's world-classPenasquito mine in Mexico, which is currently ramping up production onschedule, Silver Wheaton now has a significant stake in three of the top fivesilver deposits in the world, of which Penasquito and Pascua-Lama arecornerstone growth assets not just for Silver Wheaton, but also for ouroperating partners."

"This acquisition confirms Silver Wheaton as the largest of all royaltyand metals streaming companies in the world, with an unparalleled growthprofile. It is very accretive on all key metrics, increasing attributablesilver reserves by 43% and cash flow by 35%, once Pascua-Lama is inproduction. The acquisition is structured so that Silver Wheaton receivesimmediate cash flow, even prior to Pascua-Lama being in production,maintaining our strong balance sheet and preserving our ability to continuegrowing the Company in an accretive manner for shareholders." "We are very proud that, since we created this business model just fiveyears ago, we have demonstrated an unrivalled record of high qualityacquisitions, and now have a significant stake in nine of the top 35 silverdeposits in the world."

TRANSACTION TERMS

To acquire 25% of the life of mine silver production from Barrick'sPascua-Lama project, as well as 100% of the silver production from its LagunasNorte, Pierina and Veladero mines until the end of 2013, Silver Wheaton willmake total upfront cash payments of US$625 million over three years, of whichUS$212.5 million is payable on closing and three further payments of US$137.5million are due on the first, second and third anniversaries. Silver Wheatonwill also make ongoing payments of the lesser of US$3.90 (subject to a onepercent annual adjustment starting in the fourth year after the achievement ofspecific operating targets) and the prevailing market price, for each ounce ofsilver delivered under the agreement. Silver Wheaton will not share in anyongoing capital or exploration expenditures at the various mines. Barrick has provided Silver Wheaton with a completion guarantee,requiring them to complete Pascua-Lama to at least 75% of design capacity byDecember 31, 2015. During 2014 and 2015, Silver Wheaton will be entitled tothe silver production from the currently producing mines to the extent of anyproduction shortfall at Pascua-Lama, until Barrick satisfies the completionguarantee. If Barrick fails to satisfy the requirements of the completionguarantee, the agreement may be terminated by Silver Wheaton. In such anevent, Silver Wheaton would be entitled to the return of the upfront cashconsideration of US$625 million less a credit for silver delivered up to thedate of that event. Barrick has granted Silver Wheaton a five year right of first refusal onany further metal stream sales in connection with Pascua-Lama, where more than50% of the value is from silver. The transaction is expected to close September 22, 2009. Silver Wheaton'sfinancial advisor is Genuity Capital Markets and its legal counsel is CasselsBrock & Blackwell LLP.

FINANCING THE ACQUISITION

To pay the initial upfront cash payment of US$212.5 million, SilverWheaton intends to use cash on hand (US$70 million) and for the balance mayuse amounts borrowed under its revolving credit facility or the proceeds ofofferings of securities issued in the public and/or private equity capitalmarkets. Remaining upfront cash payments of US$137.5 million per annum, forthe next three years, are expected to be financed by operating cash flows withno debt drawdown anticipated.

ABOUT PASCUA-LAMA

Pascua-Lama straddles the border of Chile and Argentina and is one of thelargest silver deposits in the world. It hosts 718 million ounces of silver inproven and probable reserves, with additional measured and indicated silverresources of 88 million ounces. As reported in a Barrick press release datedMay 7, 2009, expected average annual silver production in the first full fiveyears is approximately 35 million ounces. Anticipated total cash costs overthis period are US$20-$50 per ounce of gold which would make Pascua-Lama oneof the lowest cost gold mines in the world. Pascua-Lama is a long-life assetwith an expected mine life in excess of 25 years. Key construction permits andenvironmental approvals have been received and construction is underway.Commissioning of the mine is expected in late 2012 with production commencingin early 2013.

A TRANSFORMATIONAL YEAR - 2009 YEAR-TO-DATE HIGHLIGHTS

- Acquired Silverstone Resources Corp., solidifying our position as the largest silver streaming company in the world.

- Acquired 100% of the silver production from Barrick's currently producing Lagunas Norte, Pierina and Veladero mines until the end of 2013, providing immediate cash flow, and 25% of the life of mine silver production from Barrick's Pascua-Lama project, adding significant long term growth and another cornerstone asset to Silver Wheaton's silver stream portfolio.

- The Penasquito mine, soon to be one of the world's largest open pit mines and another one of Silver Wheaton's cornerstone assets, is currently ramping up production on schedule. Silver Wheaton receives 25% of the life of mine silver production from Penasquito, which is expected to be the Company's main driver of growth for the next several years.

- As a result of the Barrick and Silverstone acquisitions this year:

- 2010-2012 average annual silver equivalent sales are forecast to increase by 26%, from approximately 25 to 31 million ounces, while 2013-2017 average annual silver equivalent sales are forecast to increase by 50%, from approximately 26 to 40 million ounces;

- Attributable silver reserves have doubled while attributable measured and indicated silver resources have increased by greater than 50%.

- Silver Wheaton is the largest and fastest growing of all of the royalty and metals streaming companies in the world:

- Unparalleled growth profile versus its peers with greater than 250% five year sales growth forecast from 2008 levels;

- Significant stake in three of the top five silver deposits in the world and in nine of the top 35. - Significant debt reduction resulting in a very strong financial position:

- Long term debt has been reduced by approximately US$235 million and the Company continues to have access to a US$400 million undrawn revolving credit facility. - Well positioned to pursue additional accretive acquisitions.

CONFERENCE CALL

A conference call will be held on Tuesday, September 8, 2009, starting at 12:00 pm (Eastern Time) to discuss this transaction. To participate in the live call use one of the following methods:

Dial toll free from Canada or the US: 1-888-231-8191
Dial from outside Canada or the US: 1-(647) 427-7450
Pass code: 29363920

Live audio webcast: www.silverwheaton.com

Participants should dial in five to ten minutes before the call.

The conference call will be recorded and you can listen to an archive of the call by one of the following methods:

Dial toll free from Canada or the US: 1-800-642-1687
Dial from outside Canada or the US: 1-(706) 645-9291
Pass code: 29363920

Archived audio webcast: www.silverwheaton.com

ABOUT SILVER WHEATON

Silver Wheaton is the largest silver streaming company in the world. Including the Barrick transaction, forecast 2009 sales are 16 to 18 million ounces of silver and 17,000 ounces of gold, for total sales of 17 to 19 million silver equivalent ounces, growing to approximately 39 million ounces of silver and 20,000 ounces of gold, for total sales of approximately 40 million silver equivalent ounces, by 2013.
Silver Wheaton's updated attributable silver reserves and resources can be found at: http://files.newswire.ca/819/AttributabletoSLW.pdf

Mr. Randy V.J. Smallwood, P.Eng., Silver Wheaton's Executive Vice President of Corporate Development, who is a "qualified person" as such term is defined under National Instrument 43-101, has reviewed and approved the information on mineral reserves and mineral resources disclosed in this news release.