SILVER STANDARD RESOURCES (TORONTO:SSO): FOLLOW-UP NO 2

Home page: www.silver-standard.com
Charts: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=CA%3ASSO&sid=0&o_symb=CA%3ASSO&freq=2&time=12

FOCUSED ON THE DEVELOPMENT OF INTERNATIONAL SILVER DEPOSITS

Business Summary

Silver Standard Resources Inc., is among the few publicly-traded companies in North America focused on the development of international silver deposits. Silver Standard's objective since 1994 has been to acquire significant in-ground silver resources and to develop these projects into silver-producing mines. All but one of the company's projects have been purchased or optioned at a fraction of silver's current price and at a significant discount to the investment by prior owners.

Silver Standard is distinct in several key ways:

• none of the company's projects is currently in production, pending higher silver prices;
• its projects are silver-dominant, i.e. the primary economic value in most projects is silver which increases shareholder leverage to higher silver prices; and
• the company's projects are geo-politically diversified.

In addition, the company has no long-term debt, significant environmental liabilities, hedging or derivatives in place. With large silver resources owned or under option, and with relatively little capitalization, Silver Standard offers investors high leverage to future silver price increases, similar to an unexpiring call option with exploration upside.

As of December 1, 2001, Silver Standard had interests in eight projects:

1. the wholly-owned Bowdens project in New South Wales, Australia;
2. a 10% direct interest and an option to earn a further 40% interest in the Manantial Espejo project in Santa Cruz province, Argentina;
3. the 92%-owned Shafter project in Texas;
4. an option to purchase a 100% interest in the Diablillos project located in Salta province, Argentina;
5. a 100% interest in the Candelaria mine in Nevada;
6. a 100% interest in the Sulphurets-Bruceside project in British Columbia, Canada;
7. an option to acquire a 100% interest in the Challacollo project in northern Chile;
8. an option to acquire a 100% interest in El Asiento in Bolivia.

All but the Sulphurets and El Asiento projects are considered core projects whose economics will improve with higher silver prices.

Silver Standard's core projects have measured and indicated resources totaling 163.9 million ounces of silver plus inferred resources totaling 249.6 million ounces of silver. The company currently has 30.0 million common shares outstanding, with 34.9 million shares fully diluted. This means that each share of the company is backed by approximately 11.8 ounces of silver in all categories on a fully diluted basis.

Silver Standard was incorporated in December 1946, and has been involved in the exploration for and production of precious and base metals for over half a century. Since its inception, the company has earned a reputation for integrity and professionalism in the resource business. Teck Cominco Limited, a multinational producer of gold, base metals and coal, has been a shareholder of Silver Standard since 1968. Other larger corporate shareholders include Barrick Gold Corporation and Kinross Gold Corporation.

Recent News: Silver Price Pushing Higher Again

Although the silver price has fallen back since it pushed through the $ 5 level last summer, we view this down-move as a correction in an up-trend, rather than a reversal of fortunes.

Fundamental Considerations

Silver fundamentals remain very strong. Even with potentially reduced fabrication demand, due to today's economic slow-down, in 2002 the silver market is expected to show a deficit of over 100 million ounces. Silver use in photography shows no sign of decreasing due to digital photography. In fact, the reverse may be true. Silver supply growth from mines and scrap sources will prove to have been very constrained, if not negative, in 2002 given the current prices. It is certain that silver inventories will be depleted further. The nature of this depletion is critical to the direction of near-term silver prices; over the long-term, it is absolutely inevitable that prices will rise to restore the market balance.

Technical Considerations

The share price of SSO has surged dramatically since the beginning of May this year, reflecting the higher price of silver. The over-done advance has however succumbed to a significant correction, which is only normal considering a price increase of 500% in only a few months.

We expect another strong-up-move once the silver price firms again.

Our recommendation: Buy!

Peter Zihlmann
www.pzim.com

or email to investment@pzim.com

November 13, 2002