Company Information for Silverstone Resources Corp

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Company Statement

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

The company expects to have 2008 silver sales of approximately 2 million ounces increasing to 4.5 million ounces silver equivalent* in 2009.  

Silverstone’s sales are generated from its purchase of by-product streams from operating base metal mines. The company has an agreement with Capstone Mining Corp. to purchase silver from the Cozamin mine in Mexico (ten-year contract), a life-of-mine agreement to purchase 100% of payable gold and silver production from the Minto mine and the right of first refusal to purchase any gold and/or silver streams from the Kutcho project.

As well as a life-of-mine agreements with Lundin Mining to buy 100% of payable silver from the Neves-Corvo mine 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 and gold streams from base metal mines.

* Silver equivalent ounces are calculated by using a ratio of 1 ounce of gold is equivalent to 70 ounces of silver 

Current Operations

A number of base metals companies produce silver and gold as a by-product of their mining operations. The precious metals usually contribute less than 15% of the gross revenue. These companies strategically sell the by-product silver and gold to companies to monetize and use the proceeds to cover production costs, expand production, continuing exploration, etc.
Silverstone purchased the right to acquire the silver production from the mines of Capstone Mining Corp. and Lundin Mining by paying cash upfront and shares, and an average price of US$3.92/oz when silver is delivered and US$300/oz when gold is delivered.
The benefit for Capstone and Lundin is the cash flow from the sale and the growth multiple and for Capstone for owning the shares of Silverstone.
The benefit for Silverstone is the increment in their silver and gold production and the fixed costs.
Capstone Mining Corp owns 22% of the issued shares of Silverstone. 

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 1980-1055 West Hastings St Vancouver, British Columbia, Canada V6E 2E9 Telephone: +1 (604) 637-8151 Facsimile: +1 (604) 688-2180 Email: jdrossos[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 million

Annual General Meeting January - Vancouver BC Canada

Year End 31 December

Nominated Brokers John Kiernan, P. Eng., MBA PI Financial Vancouver, BC Canada Craig Stanley Blackmont Capital Toronto, ON Canada Nicholas Campbell Canaccord Adams Vancouver, BC Canada

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

18/11/08 - Silverstone Provides Q3 - 2008 Silver Sales
07/11/08 - Silverstone Purchases Life of Mine Gold and Silver from Sherwood Copper Corporation’s Minto Mine
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