Company Information for Silverstone Resources Corp

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Company Statement

Silverstone Resources Corp. is a growth-oriented silver mining company with 100% of its revenue from silver production. Silverstone’s integrated growth model of pursuing silver by-product streams and exploration projects is unique in the industry providing the growth opportunity of a silver royalty and an exploration company.

The company expects to have 2008 silver sales of greater than 2 million ounces of silver, increasing to more than 3 million ounces in 2009.  

Silverstone’s sales are generated from its purchase of by-product streams from operating base metal mines. The company has a ten-year silver purchase contract with the Cozamin mine in Mexico, as well as life-of-mine agreements with Lundin Mining to buy 100% of payable silver from the Neves-Corvo and Aljustrel mines in Portugal.

The company has the right to purchase 12.5% of the life of mine of payable silver from Loma de la Plata zone from the Navidad project – Aquiline Resources Inc. with a minimum of one million ounces of silver per year and the right of first offer with respect to the sale of any additional future silver production streams by Aquiline.

In addition, Silverstone earned a 100% ownership in three properties as well as two joint ventures in Mexico (all past producing silver-gold mines).

Silverstone continues to seek additional silver streams from base metal mines.

Current Operations

Silver Stream Projects
Silverstone has long-term agreements in place at three well-established, producing mines in Portugal and Mexico. Together, these mines have 129 million ounces of proven and probable reserves, 213 million ounces of measured and indicated resources (including the proven and probable reserves), and an additional 69 million ounces of inferred resources.

In addition, Silverstone has the right to purchase 12.5% of the life of mine payable silver from the Loma de La Plata zone and the right of first offer with respect to the sale of any additional future silver production streams by Aquiline.

Neves-Corvo
The Neves-Corvo mine is 220 km southeast of Lisbon in the Alentejo district of Portugal. The mine produces more than 500,000 ounces per year of payable silver, contained in copper concentrate, and has the potential to produce additional silver from its zinc processing circuit scheduled to start at the beginning of 2009 at the rate of 200,000 oz/year.

Silverstone pays the lesser of US$3.90 per ounce and the spot price with an inflation adjustment in year four. Lundin announced an increase of zinc ore processing with an estimated increase in silver production from zinc ores to +1 million ounces commencing in late 2011 with no addition costs to Silverstone.

Lundin through agressive exploration in 2007 increased contained silver in proven and probable reserves to 91.6 million ounces from 39.3 million ounces.

Aljustrel
The Aljustrel mine is approximately 40 km northwest of Neves-Corvo. The mine is expected to produce 1.2 million ounces of silver in lead concentrate per year on an annualized basis.

The production of 2008 is forecast at 250,000 ounces as the mine switches to the main silver rich ore body. In 2009, production is forecast at greater than 1 million ounces and averaging 1.2 million ounces thereafter.

Production costs are fixed at the lesser of US$3.90 per ounce (an inflation adjustment commences in year four). Aljustrel’s estimated mine life exceeds ten years, and additional exploration of known orebodies is planned, with the goal of increasing mine life.

Cozamin
The Cozamin mine is located within 4 km of Zacatecas City in the mineral-rich state of the same name. The Cozamin mine will be producing 3,000 tpd or approximately 1 million tpy by September 2008. The mine’s 2008 production of silver is forecast at 1.3 to 1.5 million ounces. Production costs are fixed at the lesser of US$4.00 per ounce or the spot price with an inflation component after three years over the next ten years; the length of Silverstone’s purchase agreement. Excellent possibilities exist for finding additional mineralization at the site.

Loma de La Plata, Navidad Project
The initial Aquiline drill holes at Loma de La Plata were completed in May, 2007 and by the release of Aquiline’s resource update on November 15, 2007 the new high grade, near surface deposit had grown to contain 9.1 million tonnes at an average grade of 225 g/t silver and 0.09% lead or 66 million contained silver ounces in the Indicated category plus 17.3 million tonnes grading 159 g/t silver and 0.11% lead or 89 million contained silver ounces in Inferred resources (Snowden Mining Industry Consultants, 2007).  The Loma  resource is contained within the larger Navidad resource of 127.7 million Measured and Indicated tonnes grading 110 g/t silver and 1.06% lead  (453 million oz Ag M+I ) and 49.0 million Inferred tonnes grading 97 g/t silver and 0.5% lead (153 million oz Ag I).  Drilling is ongoing at Navidad with three rigs, two of which are focused on new discoveries and resource expansion.


Exploration Projects
Silverstone earned a 100% interest in three advanced silver-gold projects as well as two joint ventures in west-central Mexico, which together have historic resources of more than 75 million ounces of silver. These properties are located in Durango and Sinaola States, near the Pacific coast. 

Copala
The Copala deposit covers 5,710 hectares and lies in an historic and well-mineralized mining camp, directly astride the main highway to the city of Durango. There are several veins in the area, the main two being Animas-Refugio and Cordon del Oro, outcropping for 6 kilometers and reaching widths up to 40 meters.

Claudia
The Claudia deposit covers approximately 6,390 hectares and lies 135 kilometers from Durango City, with good access via a paved highway. The Aguilarena vein, one of five major veins on the project, has been extensively explored with 2,000 meters of drilling, 3,400 meters of drifting and a 90-meter shaft.  A limited tonnage grading 200 g/t silver and 3.8 g/t gold has been outlined over a shallow and restricted part of the vein.

Promontorio (JV with Mega Silver)
The Promontorio property covers 2,188 hectares and is located 140 kilometers north of the city of Durango.  Its extensive vein system includes two main veins, Promontorio and Periclos, with an estimated historic production of 250,000 tonnes of 3,500 g/t silver and 20 g/t gold. Promontorio’s high-grade epithermal veins are traceable for more than 2 kilometers.

Montoros (JV with Mega Silver)
The 2,147-hectare Montoros deposit is 190 kilometers northwest of Durango City.  To date, it has seen only partial exploration of four main epithermal vein systems, with vein widths locally up to 25 meters. Sampling in trenches, old mine workings and outcropping veins has returned positive exploration results.

Geographical Spread

Mexico, Portugal, Canada

Board of Directors and Key Management

Darren Pylot	President & CEO, Director
Hugh Willson	VP of Exploration, Director
Jason Howe	CFO
John Wright	Business Development
Jack Marr	Independent Director
Tony Chan	Independent Director
Ken R. Thorsen	Independent Director
Munir Ali	Independent Director
Sarah Kennedy	Corporate Secretary

Company Address Suite 1980-1055West Hastings St Vancouver, British Columbia, Canada V6E 2E9 Telephone: +1 (604) 637-8151 Facsimile: +1 (604) 688-2180 Email: info[at]silverstonecorp.com Website: http://www.silverstonecorp.com

Additional Address/Key Contact Chris Tomanik or Mark Patchett (604) 637.8151 (866) 684.8894 Toll free from Canada & US

Capital Issued and Outstanding Share Capital - 122.4 milion Fully Diluted Share Capital- 142.0 million

Annual General Meeting January - Vancouver

Year End 31 December

Nominated Brokers John Kiernan, P. Eng., MBA PI Financial Vancouver, BC

Broker/Analyst Reports

28/02/08 - PI Financial Report

Major Shareholders

As at May, 2008
CDS & CO	40%
Capstone Mining Corp	22%

Related News

27/08/08 - Buy Low And Sell High: Silverstone Resources Builds On A Winning Strategy, Although Its Shares Are In Need Of Some Support
28/02/08 - Silverstone’s Plan To Buy Up Silver By-Product Streams Is Paying Off
20/09/07 - Silverstone Resources Accelerates Silver Production Over Next Couple of Years

Most Recent Statement

19/08/08 - Silverstone Reports Earnings Of Us$3.7 Million And Record Operating Cash Flows Of Us$3.8 Million For The Second Quarter
19/08/08 - Silverstone Announces Normal Course Issuer Bid
13/08/08 - Silverstone To Release Second Quarter Results On Tuesday August 19, 2008
22/07/08 - Silverstone Releases Initial Mineral Resource Estimate for its Copala Silver Project, Sinaloa State, Mexico
21/07/08 - Silverstone Provides Q2 - 2008 Silver Sales
21/05/08 - SILVERSTONE REPORTS RECORD EARNINGS OF $4.5 MILLION