Hi Jim,

Contrary to many perceptions, Ashborne was not the financing deal Silverado was after to fund the near term Nolan production and further exploration in 2010/11 and perhaps to 2011/12. Never was intended to be, nor was it advertised to be.

Silverado opened up an equity line of credit with Ashborne who traded Silverado some cash for some stock (100MM shares, I believe). Silverado needed the cash to continue operations as they researched a better source of financing (again, IMO), so IMO, a good move at that time.

Silverado has now ended that agreement (will issue them no more shares for money). Ashborne appears to have sold all of their original deal holdings at a nice profit (that is their objective, of course.)

What is next should be the landing of a good financing agreement which we all hope and expect to be mainly debt financing as opposed to equity financing. The company has been working on this for many many months.

We do not want Silverado to further dilute the company stock thru excessive equity financing.

I am expecting the next financing to be mainly debt financing secured by the proven and indicated resources at Nolan and perhaps even Eagle Creek and Ester Dome. The financing might have an equity component, since if I were financing the company even secured by assets, I'd want some shares as well.

The question is, how much of the financing will be equity? My hope is no more than 10%.

And as Fastfoot and Grim indicate so often and correctly, we are only speculating on the what and when, and only Silverado management can say what is going to happen and that will happen when the proper deal is secured and not before.

Patience is important.