The Silver Recycling Company Enters Into Letter of Intent With Acquisition Target

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 25, 2008) - The Silver Recycling Company Inc. (TSX VENTURE: TSR.V) ("Silver Recycling") is pleased to announce that it has entered into a non-binding letter of intent ("LOI") to acquire a silver scrap refining company. The target has been in business in the United States for over 22 years and is the second target that Silver Recycling has taken to the letter of intent stage (the first transaction was closed on May 22, 2008).

Under the terms of the LOI:

- The purchase price will be determined based on a multiple of average earnings of the target for the fiscal years 2006 and 2007, subject to a minimum purchase price of US$9 million and working capital and other price adjustments.

- The acquisition will be effected through a merger of the target with a wholly-owned acquisition subsidiary of Silver Recycling.

- One-half of the purchase price will be paid in cash and the balance in shares of the merged company ("Acquisition Shares"), which shares will be exchangeable into common shares of Silver Recycling.

- The number of Acquisition Shares issuable will be determined using the volume weighted twenty trading days average share price of Silver Recycling, all of which shall be issuable at closing.

- The Acquisition Shares will be subject to an escrow agreement, pursuant to which 20% of the Acquisition Shares will be released from escrow commencing one year following closing and the balance over the two years thereafter.

Silver Recycling previously announced that it was undertaking preliminary due diligence of this target pursuant to a standstill agreement executed on May 30, 2008. The LOI has extended the standstill period until October 31, 2008, with the option of Silver Recycling to extend further to December 31, 2008.

The parties will endeavour to negotiate a binding definitive agreement while Silver Recycling completes its due diligence investigation and financial audit. Concurrent with the execution of the LOI, Silver Recycling advanced a non-refundable deposit in the amount of US$100,000, which shall be credited to the purchase price.

Completion of the transaction contemplated in the letter of intent is subject to customary conditions for this type of transaction, including satisfactory due diligence investigation, successful completion of an audit on the financial statements of the target, satisfactory results of a Phase 1 Environmental audit, completion of necessary financing to fund the cash portion of the purchase price, settlement of employment agreements with key employees of the target, receipt of all necessary corporate approvals of Silver Recycling, and all requisite regulatory and any other required approvals. There is no guarantee that all of these conditions will be satisfied.

Don Holmstrom, President and CEO stated, "Entering into this LOI is another exciting step in executing our strategy for consolidating key silver recycling companies throughout North America. We look forward to completing our due diligence and moving this transaction forward."

About 'The Silver Recycling Company Inc.'

Silver Recycling is a consolidator of privately-owned silver and other precious metals recycling companies and recently closed the acquisition of two companies in Pennsylvania as announced in the news release of May 28, 2008. Silver Recycling is continuing to review other candidate companies within the precious metals recycling industry for acquisition and integration in alignment with the Company's business strategy. Information about Silver Recycling is available on their website www.silver-recycling.com.

Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it as well as other factors, including the availability of funds, the results of the evaluation of business operations, outcome or failure of negotiations with third parties, precious metal prices, and general market and industry conditions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contacts

Mr. Don Holmstrom CA
The Silver Recycling Company Inc.
President & CEO
(604) 688-3011 x222
Email: dholmstrom@silver-recycling.com

Mr. Sidney R. Stern
The Silver Recycling Company Inc.
Executive Director
(604) 688-3011 x224
Email: sstern@silver-recycling.com
Website: www.silver-recycling.com