Others may want to add to ths file since there has been a lot of BB discussion not updated here at this time.

Brief Review/Overview of Silver Falcon Mining Inc. to date end August, 2009.

Website: www.silverfalconmining.com.

Contact: Investor Relations at Yes International; Mr. Richard Kaiser @ 800 631-8127

(News Release summary below).

Disclosure: I am a long shareholder of SFMI.

Shares: 131,052,565 and 2,137,446 shares of Class A Common Stock and Class B Common Stock issued and outstanding, respectively.

(43,942,241 plus ? ….restricted shares)

Soon to be listed on OTCBB…imminent…registration filed August 17th, 09 and awaiting approval.

The filing can be viewed in its entirety on the United States Securities and Exchange Commission website and/or the Company website, www.silverfalconmining.com.

Property: War Eagle Mountain, Silver City Mining District, southern Idaho

- The War Eagle Mountain property of SFMI has an historic production of underground, high grade gold/silver…adjacent to Kinross open pit property which produced $1.8 billion gold/silver.

- War Eagle is the eastern most and highest ore grade of the three gold peaks in the Qwyhee Gold Trend. …includes the most prolific and famous silver producing mine in the western U.S.

Idaho Bureau of Mines Report (2 page synopsis) on War Eagle Mountain reports:

- 3 primary gold and silver veins; “Oro Fino”, “Central” and “Poorman”.

- Oro Fino: over 12,000 ft., .5 to 25 ft. thick, grading .5 to 1.25 oz/ton….with 6 known associated veins.

- 40 other offshoots/veins associated with Oro Fino and Poorman veins.

- Another vein, Cumberland, produced very rich ore.

- Ore produced has averaged 2.52 oz./ton. gold (gold/silver combined).

- War Eagle production ratio was 1:14: 1 oz. gold to 14 oz. silver.

- Several large pockets of very rich ore, “hot spots”, are scattered throughout the mountain with grades of 25 oz. gold equivalent /ton….to 90-300 oz/ton.

- Estimates of reserves range from 500,000 to 3 million oz gold… confirmed by recent surveys …

- and with silver values added these reserves could reach 5 to 8 million ounces of gold equivalent. (rare precious metals analysis to be completed on assay samples re June 17th NR, ie; Rhodium in mineable concentrations).

- High grade veins are open at length and to depth in some areas.

- Considerable promise for future activity.

Idaho Geological (library) Report: highlights (thanks to ed86…2/27/09 posting on Stockhouse):

- prospecting laterally and at depth is justified.

- Average ratio from production reveal a 1:30 ratio of gold/silver. (differs with Idaho bureau Report of 1:14 ratio).

- Richest ore concentrations found where such veins as Oro Fin, Golden Chariot, Poorman and others were cross fractures intersected them…which require careful observation.

- Ore shoots (profitably extractable areas of veins) of up to 500 ft. horizontally, extend to the greatest depths mined (1500 ft.).

- Ore shoots are irregular and vary from lean to rich. It is possible that previous workings at depth were done in the most unpromising areas of the veins, without sufficient knowledge of such geological features as pitch.

- Previous operators “took out such ore as could be obtained with a minimum of development work”. (remember that anything under 2 oz. gold was not considered economical at that time; up to 1933).

- “In fact, it is believed that never before or since has so little real exploratory work been done in so important a mining district”.

- Revised estimate of production commencing ???/09 with tailings processing; to reach 70 to 100 tons/day this year... Annual yield at full capacity estim. $330 million at $1000 gold…estim. mine life 15 to 20 years.

- Mill production (no longer in Melba): Idaho @ 70 ton/day with 100 ton/day anticipated to follow.

- No need for leaching/processing permit as a water gravity system has been approved…

- Over 36 tailings stockpiles include muck production ore left in the Illinois shaft from 1909. 16 tailings dumps are being targeted by SFMI.

- See metallurgical Summary done by Met-Solve Labs of Burnaby, B.C., of March 13th, 08. (website).

Unofficial notes

- almost two years of planning/negotiations to set up co. with Chinese Fund

which took property over circa 2000 by assuming defaulted Kinross loan on the

property.

- Public shell purchased and shares reverse split 200 to one…late 2007.

- Goldcorp Holdings Co. (not related to Goldcorp Mining) owns the property on War

Eagle Mountain, Silver City Mining District in southern Idaho. (see website).

- apparently, the new owners of the property were not then aware of the potential

value of the property. Several NRs reveal positive surprises. Shareholder meeting and mine site tour held on Sept. 27th. 08.

- Insiders/investors of SFMI paid $16.8 million to Goldcorp Holdings for mining

rights (see NRs below). Goldcorp Holdings receives 15% of net resources: SFMI receives 85% of net resources.

- Insiders received 32 million shares @approx. 60 cents/share (restricted for two

years) of the then 48 million outstanding shares of SFMI…see shares above.

- Insiders include Chinese Fund, Pierre Quilliam (Pres.)

- cash on hand June, 08 over $1 million….to be updated Jun/Jul/09.

- Mill components paid for and Deep Rock Engineering paid in cash.

- First Dore bar poured gold/silver, April 4/08 was 25 Kg.

- NR of June 17/08: pending assays include presence of rare metals “possibly present in

Quantities. (as of June 09 this has been downplayed and probably not of significance).

- average grades from tailings hint that they will be higher than expected…still awaiting confirmation as of Jun/09.

- New surface mineral zone discovered June/08.

- Visible mineralization noted in Poorman mine Sept/08.

- New geologist Paul Dockweiler impressed with potential.

- Stock buy back program mentioned in Jn5/08 NR…this may have change. Needs confirmation.

- Acquisition of Sinker Tunnel mine completed NR Jan.15/08…not qualified until 7/05/09 NR: “Quitclaim” Deed for Sinker Tunnel”.

- Mill engineer and production manager hired Jan.27, 08 NR.

- New mill output expectations quadrupled as per NR Feb. 6/09…needs updating re new mill and tailings grades.

- Listing criteria upgraded Feb. 26/09 NR….still awaiting new listing as of June 29th/09.

- Total tailings tonnage increased to 303,000 tons of 5.1 gm gold and 72 gm. Silver from tailings at mill site.

- Note: use of the word “tailings” is inappropriate. Tailings are waste materials left after milling and ore recovery and may or may not be feasibly reprocessed for further metal recovery. This depends upon such things as the efficiency of newer technologies and the price of precious metals.

The 16 SFMI “tailings” piles are actually mine working muck from the various shafts, raises, adits and tunnels…discarded material that was never processed. In the case of SFMI all indications are that some of this muck may contain up to 2 ozs/Ton of gold equivalent ore.

Scuttlebutt/informal discussions

- Assay grades, gold/silver in (tailings) muck will surprise to the upside…but when?

- Sept. 27/08 tour of mill, tailings and Belle Peck adit and mine entrance, visible precious

metals seen in exposed veins… well received by 25 to 30 shareholders.

- much large equipment observed.

- Mine is about 1 hour from Boise/ Nampa…30 minutes off paved road.

- Impressions via Pierre (Pres.) by those in his company during tour positive; “appears” bright with strong business mind and cordial...vaults set aside for production storage if needed.

- 300,000 tons tailings at 5 gms (.16oz) gold plus 72 gm (2.3 oz) silver at $1000 and $12 = $48 million plus $8 million = $56 million. With increased grades what do you get? Then increase the tonnage with additional tailings muck.

- New funding was raised to buy mill components; finish mill; acquire Sinker Tunnel; new engineers; infrastructure; hauling tailings; 2 hired geologists. There was some confusion over this financing as it was never properly news released and reported…a red flag? Long term investors seemed satisfied.

- Idaho Bureau of mines contacted; former Kinross geo. hinted at massive potential.

- Only about 23 million shares trade freely….this is now outdated and must be revised upwards of 35 million…and waiting further dilution for more financing as of June end/09.

- New shares were issued under 144 restricted rule.

- New War Eagle discoveries to be discovered in 2009...expectations of undiscovered veins.

- Former Sinker Tunnel owner received shares for sale.

- Original shareholders did in depth due diligence.

- Onsite visit by shareholder reveals the massive Belle Peck tailings pile by Mill; the Belle Peck tailings muck is rumored to be the lowest grade content of all 16 piles. We are waiting for further assay reports on the other muck piles to confirm much higher grades. Mill start-ups are complex, incorporating a state-of-the-art, non-chemical leaching process; crusher; hopper; conveyor belts; ore feeder; ball mill; more conveyer belts; holding tanks; separators; shaker tables that process yields very high in gold and silver; into drums; shipped to Canadian mills; final product gold and silver bars.

- Estimated mineral value in first tailings pile at $1.5 million.

- Draining up to 1000 ft. of water from shafts above Sinker Tunnel is now technologically achievable and will allow access to suspected high grade ore via Sinker Tunnel for processing. It is thought that this high grade ore could very easily be added to/mixed with the muck pile material for processing to greatly increase PM output.

- New geologists impressed with tailings and underground findings to date. They have been and are presently doing an extensive laser survey of the mine in order to produce a 3 dimensional model graphic for publication o the web site.

- Apparently, new assay results should open some eyes….but these have been long delayed for whatever reason.

- Much concern expressed over stock manipulation from shorts/naked shorts…similar to many JPM stocks.

- New OTCBB listing to create a publicly reporting company will improve situation and visibility….legitimate share sales going into strong hands.

- Circa Feb/March: additional improvements to mill via additional ball mill/wet-line circuit to refine and increase output.

- Estimates of 4 million equivalent gold ounces on SFMI War Eagle property (with exploration upside)…at $925/oz. = $3.7 Billion.

- Snow level is around 3000 ft. this year so access to mine via Sinker Tunnel will be early. *New mill site is 15 minutes from Sinker and much closer to mine. This will reduce trucking costs considerably and stockpiles will allow year round milling.

- Bill Earll, onsite foreman, is native to area and as of June/09 contracted with (along with Kim Moon?) to proceed with the new mill site and mill warehouse construction. New financing must be in place before commencing this new project and news sold be forthcoming immediately with respect to the progress of same and the dilution of the stock capitalization.

- Tailings on south side of old Melba mill may contain much higher grades than expected…as per recent observation...visible metal. This material will now be trucked up the mountain to the new mill site.

- Mill to ramp up to 25 tons/day yielding approx. $6 million in one year…summer/fall ramp up to 100 tons/day with another ball mill =$24 million/year ($1000/oz).* This is now outdated information as mill completion and start up as been delayed for new site completion. Many view this as a positive development even though there will be a delay.

- Fresh ore may be accessed this summer and mixed with tailings to further improve revenue to plus $30 million or more…delayed.

- Has SFMI/War Eagle been “noticed” by any mining companies hungry for resources? Probably too early and will only be a consideration with production smoothly underway, drill results proximal to the mine workings and some needed validation of management’s capabilities, veracity and solid results.

- Share buyback with dividend “talk” suggests that Pierre Quilliam is confident SFMI has the goods…*this now needs updated confirmation along with financing plans and public listing on OTCBB.

- Auditors are impressed with Pierre and the information provided…this can now only be confirmed with new listing, reporting and results.

- Auditors have supposedly completed audit with only ongoing legal approval needed for filing with regulators. The turnaround time may be anywhere from two weeks to a few months depending on the integrity and clarity of the filing. The listing process has taken far too long and created hesitancy among shareholders.

- When the listing is out what will it disclose? How has management handled our money? How much have they been compensated for their endeavours? What will the balance sheet disclose? Are the timelines and objectives reasonable?

- What will the new permitting require and how long will it take?

- How competent are Bill Earll and others?

- What plans, if any, are there for new, experienced management personnel? When?

- How will any new financing be disclosed and what will be its terms?

- What delays can be expected and what are the various project timelines?

- When is it reasonable to expect more assay results from the muck piles or from mine workings?

- When will drilling begin on the mountain?

- How quickly can the website be expected to be improved?

- What are the possibilities of a listing on the TSX or other exchange?

My Random Thoughts as of June 27, 2009

- My own convictions at this time based on the historical data, having been a shareholder for 1 ½ years, is that there is a great resource accessible on the SFMI property on war Eagle Mountain with maybe as much as 5 million or more high-grade, highly profitable ounces of gold equivalent. This junior explorer is staged to become a cash flow producer, now “optimistically” estimated to commence by Sept/09. Being an environmentally friendly, explorer/producer/developer, in a geopolitically safe country, with such a high grade resource potential is rare indeed, given the short time it has taken since inception. Most discoveries then take 5 to 7 years to become a working mine. Having a complete infrastructure in place with the luxury of completed mine workings (shafts, adits, tunnels, raises etc.) and readily accessible, proximal veins that extend to length and depth, some visible to the eye at surface exposure (as reported during last year’s tour)…eliminates the formidable need for multiple staging, unattainable, often prohibitively stock-diluting financing and years of blasting, tunneling, surveying, assaying, labor requirements, capital costs, equipment costs…and much more. In essence the procurers of the SFMI claims and properties have been extremely lucky since it is believed even they have been most pleasantly surprised at the findings to date.

- In short, SFMI capital expenditure requirements to date have been miniscule compared to what other explorers have faced and are now challenged with…with the result that many have succumbed to default or have been easy prey for opportunistic producers or developers. This, of course has been the plan of the powerful in conjunction with the illegal manipulation and suppression of the JPM valuations for several years. The plan is to purchase desperately needed, in-ground PM resources at cruel costs and massive losses to the owners/investors of those enterprises, many that have taken years of effort ad investment. SFMI is in the most enviable position to be invulnerable to such misfortune given her proximity to cash flow and production that should allow arrangement of near term financing based on that production, profitable growth, and huge discovery potential…although I am concerned about the need for immediate financing/capital to see the project through to production.

- Pierre Quilliam, the CEO of SFMI, is most fortunate that he has a core of long term investors who have invested heavily in SFMI and believe that he can do the job. Those that I have met or communicated with appear to be quality people who believe in this investment and its promise. I and they have given him the benefit of the doubt with respect to his spotty background, but at this time for me, school is out on his managerial capabilities and integrity. This is nothing personal, simply an objective business perspective. This has made him and does make him extremely vulnerable to several nasty detractors who have been most vocal on several bulletin boards. I hesitate to say this but I do have concerns about several red flags on Mr.Quilliams that have been accumulating but that I have chosen ignore. The very most salient factor that one should attend to when making an investment in a junior exploration stock is quality of management. They absolutely must prove that they can be trusted with your money. Poor decision making can be devastating to start-up ventures whether it is with respect to assessing the character and capabilities of those hired or contracted out to, fiscal management, technical knowledge and experience, education, honesty/integrity, people skills, leadership qualities, track record or a host of other criteria. Let’s face it, no one has all such attributes and we are all imperfect so to be fair one has to allow for normal human frailties and some indiscretion. However, poor planning, unexpected delays, missed deadlines, mistakes and other problems add up to wasted time and starkly increased costs. Lack of disclosure can be deadly when it comes to investor confidence. “Doing deals” and crises management are death knells for young companies. These are all major warning signs not to be ignored. I am not suggesting that SFMI management is guilty of such behavior but the time for close scrutiny has now arrived.

- On the other hand the principles behind SFMI did not invest what amounted to 60 cents/share to see the price of SFMI stock languish at 3 cents. No one can possibly plan to make profit at three cents a share (even if it was the biggest scam earth) when the value of the property and capital input (mill and equipment) has to be at least worth 20 cents a share book value. Actually the property value alone with all the material and resource data must be worth at least 50 cents to $1. Just look at the potential, leverage to upward gold/silver prices and fractional value with respect to speculation momentum. How about price per ounce in ground? No matter how you cut it…3 cents is insane and no matter how you cut it this stock will go much higher than 3 cents….competent management or not. Is there room for paranoia here? Is there something we are missing?

- So, there are several perspectives that could apply here. Buy the stock for 3 or 4 cents and sell half at a double and getting your investment back with a free ride thrown in. Trade the stock long or short and play for the short term. Wait until the listing and buy. Wait until production and cash flow and buy. Assess coming investment financing and/or further stock dilution and decide. (it is not uncommon for many JPMs with promise and exploration hopes only to be at or over 100 million outstanding shares…many trading between 10 and 40 cents). Buy and hold, stay positioned knowing that one day (between tomorrow and November) gold could unexpectedly move up $100 overnight or silver could blast through $25 to $40 and you could miss the ride of a lifetime…that when the rush into JPMs starts and trading volume goes nuts, that there will be 10 to 100 baggers in weeks…as has happened before. Then there’s always the possibility that Pierre pulls it off and there really is a huge resource plus growing cash flow and profit and then a producer makes an offer SFMI can’t refuse. You can love or hate Pierre. You can even think SFMI is just moose pasture…but no matter what all the possible scenarios out of dozens are, I contend that anyone who buys this stock at 3 cents has virtually no loss because it should always trade at least in that range... plus or minus ½ cent unless in a worst case scenario you think there could be a default for some reason.

It takes a lot of DD to invest in the JPMs…any of them. High risk/high reward…and of course there are thousands to choose from. Some investors will make absolute fortunes with them during the upcoming bull that is about to take off. Once it begins in earnest (it as already started with a few JPMs recently taking giant runs up on recent drill results); once you see them in the headlines, even so called moose pasture will be insanely valued to the extreme upside way down the road.. That will e the time to get out of course and we have a long way to go. Should you sell/buy SFMI? That’s up to you.

The future success or failure of SFMI rests in the hands of one Mr. Pierre Quilliam. Can he be trusted? That is you call to make or his to prove.

SFMI News Releases

11/0107: Production sharing agreement between Gold Corp Holdings and SFMI. 15%

royalty to Goldcorp Holdings.

11/02/07: SFMI releases an independent analysis conducted on War Eagle Mountain by

geologist, Barret Coop…highest value/ton than any other mining operation in

the famous Silver City Mining District. Veins have not been fully exploited to either

length or depth. SFMI expects to develop a full scale mining operation at War Eagle.

11/08/07: completion and successful operation of mini-mill for crushing/extracting gold/silver from

ore, and metallurgical processing lab for War Eagle Mountain.

11/13/07: major capital project completed as roads to top of War Eagle have been upgraded for

traffic of heavy ore trucks.

11/16/07: active search for new management team comprised of experienced mining production

expertise.

11/20/07: SFMI hires Deep Rock Engineering Inc. to provide preliminary data for structural and

Processing design, equipment requirements, and resource development strategies for

War Eagle Mountain.

11/20/07: SFMI indicates gold reserves remain at its Illinois Central mine shaft via independent

analysis from Pamicon Developments…at least one year’s reserves are in place with

ore indications of 11,205 tons @ 103 gm. Gold (3.6 oz.).

11/30/07: portion of residual tailings known as “The Poorman Tailings” shows significant

recoverable values as per Pamicon Developments. Ore from the 1880s that did

not meet requirements of 2 oz/ton was stockpiled. Probable recoverable gold and

silver could exceed 19,200 oz. gold and 221,440 oz. silver (over $18 million at $850

gold). These tailings represent a minor portion of overall picture but also a short term

cash flow source.

12/4/07: SFMI sampling on unmapped underground workings or adits (tunnels that access

mineral deposits) by Pamicon Dev. reveals surprising results. Keystone adit: 63 gm

or 2.2 oz gold/ton and 39 oz. silver/ton. Illinois Central adit: 16.9 0z/ton gold

and 112 oz. silver/ton….indicates War Eagle Mountain’s mineralization is

pervasive.

12/06/07: 49 hole, near-surface, independent drilling results by NERCO Inc. show vast

Zone of mineralization….70 ft. to 700 ft. in depth. Hole W14: 445 vertical ft. @ .18

oz to .85 oz /ton. (5.5 gm to 26.3 gm).

1/07/08: Deep Rock Inc. starts construction of equipment facilities and offices for the War Eagle

project in Boise, Idaho; begins initial test runs on site production equip., and produces

first batch of crushed material for lab analysis.

01/16/08: Illinois Central and Great western # 1 mines reviewed in preparation for 2008

mining decision and potential production…just two of several shafts and adits being

considered.

1/07/08: Deep Rock Inc. starts construction of equipment facilities and offices for the War Eagle

project in Boise, Idaho; begins initial test runs on site production equip., and produces

first batch of crushed material for lab analysis.

02/11/08: SFMI reports millable grades from assays of the least valuable of all the tailing

stocks, the Poorman Tailings @ 3.3 gm/ton gold and 94.5 gm/ton silver…. By

Met-Solve Labs of Vancouver.

02/14/08: SFMI moves forward for registration on to the OTCBB as data for is prepared for filing

and subsequent approval of the United States Security and Exchange Commission. The

full registration statement will give all investors and those interested a fully transparent

view of company operations. (note: this process becomes much more complex and

time consuming than anticipated as it is worked out).

02/20/08: Deep Rock Engineering begins receiving major equipment items and ore processing

facility is under construction in Melba, Idaho.

03/20/08: SFMI engages Ross Corp. for Mill Site construction.

04/02/08: SFMI produces first Dore-Bar (final saleable product of silver/gold) from ore in test

of constructed smelting lab facility in Melba, Idaho. Receives operating license from

Idaho Mine Safety and Health Administration.

04/21/08: SFMI receives additional 7 claims for War Eagle Mountain mining rights following

a detailed exploration report of this new, unexplored area revealing exposed rock

structures similar to the early “bonanza-type” discoveries throughout the

mountain. This now makes a total of 15 lease claims and 14 mine shafts for 15 years.

05/05/08: SFMI granted additional 1700 acres mining rights for report - indicated “hot

zones” in addition to April 21st claims.

05/21/08: Idaho historical geology report on SFMI’s War Eagle claims; road permits

granted.

05/28/08: SFMI tailings samples and upward revaluation of quantity of ore present.

06/17/08: Roads being repaired; additional permits being granted for Fed. Roads; open all the

way; fresh quantity of tailings being assayed in Canada …”TO INCLUDE RARE

METALS POSSIBLY PRESENT IN QUANTITIES”.

06/25/08: SFMI discovers the “Belle Peck” adit (a horizontal tunnel driven in the side of the

mountain to allow access to the mineral deposit) lost over 100 years. This leads to the

“Poorman” mine on the 800 ft. level. Overburden will be cleared for access to the

adit opening. The Poorman mine known as the richest gold and silver mine in the

U.S.

7/7/08: Results of second assays on tailings confirms previous analysis results….from

Random surface samples (average values in depth could be higher): 6.9 g/ton

gold and 50.9 g/ton silver. More ore samples at lab awaiting assays.

9/7/08: SFMI enters consulting agreement with Macro Trend Consulting, LLC. …to assist

SFMI in the international investment community with respect to greater awareness and

shareholder value.

14/7/08: Loading and transport agreement for the transport of “Belle Peck” tailings to

Melba for stockpiling and processing. Will insure 24 months of continuous production

for the Melba Mill.

16/7/08: SFMI reports on tailing calculations tonnage to be moved from 13 tailing

piles….totaling 220,000 tons. Belle Peck and Belle Peck Landing alone total 70,000

tons.

23/7/08: New mineral zone discovered in and along a 30 ft. deep fissure on War Eagle

property….protruding from the ground, thought to be an offshoot of the Poorman

vein….or an independent branch of another main vein on the property. (War Eagle

Mountain is crossed with many fractures and zones of mineralization with many veins

and offshoots). Assay results to be released.

13/8/08: Information meeting on Sept. 27th, Nampa Idaho. Complete update with mill and

tailings tour.

22/8/08: SFMI earnings estimates on 3 of 14 tailings dumps on War Eagle Mountain. (this

NR gives an erroneously high cost of $340/oz.) See below release.

28/8/08: New office headquarters in New York City to establish presence within financial center;

develop business strategy and relate it to interested investors and financiers.

11/9/08: Earnings estimate correction. At a cost of $150/oz. (@ $880 gold and $12 silver)

… (there are no mining costs) SFMI has $49 million of proven reserves based on

average assays from 4 out of 16 tailings dumps now accessible on War Eagle

Mountain. An even larger amount is expected with the reprocessing of a recyclable

30% of the waste product.

16/9/08: “Belle Peck” rock face at the 800 ft. level of the Poorman mine reached via the

adit. An 8 to 10 ft. wide vein structure with multiple mineralized stringers (of the

Poorman main vein) with visible disseminated mineralization was observed. These

rediscovered veins were last seen and worked in the late 1880’s. Deeper exploration

into the adit will continue with progressive sampling of the vein structures until the main

Poorman vein is reached. NOTE: the Poorman mine produced over 21,000 tons of

Ore at 1.97 oz/ton (61 gm/ton) or $1600/ton gold equivalent (at $850 gold).

03/10/08: MOA to purchase assets of Minex;

10/10/08: necessary County and Federal permits to move ore finalized.

Preliminary acquisition of MINEX acquired including the 2 mile deep Sinker Tunnel mine complex and easily accessible shafts drilled above it. This will allow year-round access to the workings of all tunnels and shafts, plus the ability to mine BOTH the ORO FINO and the POORMAN veins from the rock faces. The opportunity exists to construct a substantial sized mill (hundreds of tons/hour) inside the mountain for year round internal ore feed. The snow situation at this lower altitude is manageable. Geologist, Paul Dockweiler is now under contract.

10/17/08: Entrance to Belle Peck adit/tunnel sheathed for protected access to veins for

future assays and reserve assessment. Belle Peck Tailings transport ongoing.

Melba mill being completed with adequate financial reserves for completion. 30/10/08:

First ore tonnage arrives at mill in Melba with truck fleet in place;

Stockpile will allow uninterrupted mill-feed throughout Winter.

Complete cost of ore processing estimated at $30 to $40/ton (see website).

The Belle Peck adit will allow for equipment to enter and for drainage from Poorman shaft and associated mine tunnels.

26/11/08: “Deister Table” and crushing equipment arrives at mill in Melba. Stockpile

sufficient for operation through winter. Underground exploration program

commenced by geologist and mining engineers for geological and engineering reports to determine Spring mining operations.

04/12/08: 2008 Bus. Plan objectives met.

11/12/08: Belle Peck entrance completed and secured. Evaluation of properties and

assays of War Eagle Mountain’s major and subsidiary veins and shafts begun by both of SFMI’s geologists. Ore bodies appear to be rich in mineralization.

Update stream forthcoming.

05/01/09: 2009 Bus. Plan: Mill on double shifts; increase output with additional larger

ball mill and concentrator; increase tailings pile for 24 month production;

open additional shaft; construct another mill at Sinker Tunnel Entrance;

obtain permitting for underground mining in Sinker; 15% of net smelter returns

to buyback stock; core drilling program to evaluate reserves on mountain.

15/01/09: Mill start-up within a few weeks with 24 hour precious metal output;

2 former Kinross Gold employees being hired; SFMI’s acquisition of the

Sinker Tunnel has, at long last, been completed and recorded with the

Registrar of Owyhee County.

Exhaustive audit to be completed in two weeks with legal processing of document registration filing with SEC.

27/01/09: Deep rock Engineering obligations completed. Experienced mill engineer hired to

calibrate and ramp up mill production to run 20 hrs/day. General manager of operations hired to supervise mill and mine production. Expect exciting announcements to come.

06/02/09: Reconfiguration of mill with addition of new equipment for maximum mill output,

Plus installation of a parallel wet-line circuit will quadruple planned silver and gold production from Melba mill. Underground mining developments advanced by at least two years.

26/02/09: SFMI announces near term “Form10” registration filing with USSEC for listing

On OTCBB. The listing has been upgraded for greater transparency and fuller

disclosure to shareholders…. by filing under the requirements of the “1934 Act” as

opposed to the less demanding requirements of the “1933 Act”. Audited financials will

be forwarded to SFMI’s law firm in early March for completion of the filing with the

SEC to become a fully reporting company with imminent mill output production.

25/03/09: Total Tonnage increased by 50%; Mill construction updated.

Tailings tonnage increased to 303,000 tons, av. 5.1 gm/ton gold and 72 gm/ton silver. Construction of the mill has been delayed, estimating late April in order to meet building code and permitting changes. Revenue now projected in June with stock buy-back program.

21/04/09: 1991 Historical Drilling Program Report on holes drilled between 1987-89: “Hot

Zone” discovery between Poorman and Afterthought vein systems; 43 holes drilled by NERCO. Excellent grades over mineable widths encountered in 3 holes. Demonstrated potential for high grade, underground deposits excellent in outlying areas where no mineralization had been previously recorded. Potential for further

significant finds is excellent.

28/04/09: Additional historical drilling results from 1998 report: extremely high grade

gold intercepts of 23.8 oz/ton in strong vein systems between Poorman Mines

north and south shafts.

30/04/09: Mill construction completed and awaiting operational status upon city of Melba

inspector’s approvals. Auditor’s on site audit complete with financial statements to

Dec.end and March end due shortly. Mill and registration issues are near

completion. Cash generation from the sale of gold/silver concentrates is

imminent. Geological, drilling and mining plans are ongoing for 2009.

7/05/09: “Quitclaim” Deed for Sinker Tunnel officially registered. Mill upgrades continuing

re fireproofing and employees areas; modular office purchased; mill circuit equipment

being moved temporarily to accommodate changes.

23/06/09: Land purchased for new, 100% owned, 20 acre mill site at base of War Eagle

Mountain on Ridge Road. (see photos and maps at website: silverfalconmining.com)

New, much improved, 2,400 sq. ft. building for mill to be constructed; contractors

hired; permits to be arranged; on site web camera will allow ongoing update of

construction; optimistic completion date of Mill warehouse and installation on or

before Sept. 1st. (estimated ).

17/08/09: SFMI files Form 10 Registration with USSEC to become a full reporting Co.

Shares will trade on the OTCBB once effective and FINRA (Financial

Industry Regulation Authority) grants clearance (estim. 4 to 6 weeks).

The filing can be viewed in its entirety on the United States Securities and Exchange

Commission website and/or the Company website, www.silverfalconmining.com.