PRESIDENT BUSH ENCOURAGES ENERGY OPTIONS

SILVERADO POSITIONED TO TAKE THE LEAD IN THE USA'S SEARCH FOR FUEL ALTERNATIVES

FEBRUARY 13, 2006 - Fairbanks , Alaska – USA - Vancouver, BC – Canada
SILVERADO - OTCBB: SLGLF / Frankfurt : SLGL / Berlin : SLGL

On January 31, President George Bush delivered the State of the Union address before a joint session of Congress. As expected, the majority of his speech centered on foreign affairs and ongoing efforts in the Middle East - particularly Iraq; however, another topic to which he devoted considerable time was energy. The President cited a pressing need to develop reliable, clean, and domestically produced energy alternatives to foreign oil.

President Bush stated that the solution to America's 'addiction' to oil - often purchased from nations with unstable or anti-US regimes - is to tap in to technological breakthroughs that will provide cleaner, cheaper and more reliable energy sources. Further, he stated his administration's goal is to eliminate US dependence on Middle Eastern oil by 2025.

Garry L. Anselmo, CEO of Silverado Green Fuel Inc., welcomed President Bush's openness to fuel alternatives as a means to create US energy independence. Silverado Green Fuel Inc. is an American firm that is a leading developer of cutting-edge energy technology designed to harness the full potential of America's vast coal reserves. Commenting on the President's favorable remarks on alternative fuel sources, Anselmo stated, 'I was very pleased to hear the President discuss the energy issue with such intensity. President Bush's words exactly reflect the moving force behind our Green Fuel project. For some time now, we at Silverado Green Fuel Inc. have also publicly stated the need for alternative energy. We have been working extensively with the United States House and Senate, and are especially pleased that President Bush is also looking seriously at alternative domestic sources of fuel to meet America's energy needs.'

Anselmo expressed further pleasure with President Bush's Advanced Energy Initiative, which increases by 22% the 2006 federal budget on clean-energy research. Silverado has been working closely with Congress and the Departments of Defense and Energy on the 'Low-Rank Coal-Water Fuel' (LRCWF) project - a project that will provide a clean, inexpensive, plentiful, and domestic alternative to foreign oil. 'We are working with several Members of Congress who have a keen interest in having our commercial demonstration projects located in their states. We are continuing our discussions with these Congressmen and Congresswomen, state and local officials, and private entities regarding our LRCWF projects. We are looking forward to completing these negotiations and moving to the next level.

Anselmo also commented, 'the President applauded the talented (men and women) of America as being key to developing the needed technology to create alternative fuel sources. I was reminded of our own Dr. Warrack Willson, developer of the Hydrothermal Treatment process, and his contribution to the development of alternative energy sources using coal. We look forward to working with Congress, and the Departments of Energy and Defense in taking Dr. Willson's research and development of LRCWF to the next level by producing commercial quantities of our product for the United States.'

In a closely related matter, the Department of Defense (DoD) is advancing its high-priority 'Clean Fuel Initiative'. One of the goals of this expansive program is to obtain domestically produced fuel sources to meet the military's fuel requirements. According to the Office of the Secretary of Defense (OSD), 'the increasing reliance on foreign supplies of energy, in particular crude oil and finished transportation fuels (such as military jet fuel), imported from some of the most unstable regions of the world is a growing concern...'. Each and every day the US military consumes nearly 300,000 barrels of transportation fuel (mainly jet fuel) - over 100,000,000 barrels per year - in addition to millions of barrels of fuel oil used at military installations and bases. Because of the increasing use of a finite world-supply of crude oil by rapidly developing nations, such as China, India, and other Asian nations, the supply-demand balance is changing and has contributed to the rapidly increasing cost of fuels for the US military. The climb in petroleum prices has caused the Pentagon's annual fuel budget to be exceeded by billions of dollars, despite intense conservation efforts and policies.

The Pentagon is keenly interested in facilitating the development of domestic alternative energy sources to produce synthetic fuels as a replacement for current fuels being used. It has stated that 'regional instability and competition for energy by developing nations could significantly influence the ability of the military to respond to worldwide situations.' The Department of Defense, under the charter of its Total Energy Development Program, aims to catalyze industry development and investment in alternative energy resources to meet military fuel requirements. The Department of Defense is working jointly with the Department of Energy to develop a national initiative to develop, test, certify and use jet fuels produced from alternative energy resources. Silverado's Representatives have been meeting with DoD officials regarding the inclusion of LRCWF in their Clean Fuel Initiative. DoD Scientists working in the program have examined Silverado's Hydrothermal Treatment process used in creating LRCWF and commented that they are very impressed with both the technology and the possibility of using this alternative energy product as a raw feed-stock in the Fischer-Tropsch production of synthetic fuels for the military.

'We are continuing to move forward at a rapid pace on several fronts and look forward to a great deal of activity and success with our LRCWF projects in 2006,' concluded Anselmo.