PROJECT UPDATE

View the April 2010 project update report for Nolan Creek here. For a printer-friendly version, click here.

TECHNICAL REPORT

View the January 1, 2009 NI 43-101 Pre-Feasibility Study for Nolan Creek (Amended June 1, 2009) here.

MINERAL RESERVE ESTIMATE FOR WORKMAN’S BENCH GOLD (AU) AND ANTIMONY (SB) LODE DEPOSIT EFFECTIVE JANUARY 1, 2009:

Cautionary Note to U.S. Investors Concerning Estimates of Probable Reserves: Readers are cautioned that the above estimates are under the category of a probable reserve and they are not a proven reserve, which requires a higher degree of feasibility study. These values are based off of a preliminary feasibility study, which is not the same as a legal feasibility study.

Other Notes: Rounding may result in some discrepancies. The unit, “ton,” refers to short tons. Cut-off grade is 4.0 percent (%) Sb “equivalent”, which refers to the combined values of gold plus antimony expressed in terms of antimony alone.

MINERAL RESOURCE ESTIMATE FOR WORKMAN’S BENCH AND PRINGLE BENCH GOLD (AU) AND ANTIMONY (SB) LODE DEPOSIT EFFECTIVE JANUARY 1, 2009:

Cautionary Note to U.S. Investors Concerning Estimates of Inferred Resources: The following table uses the term “inferred” resources. Silverado advises U.S. investors that while this term is recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize this term. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

Other Notes:Rounding may result in some discrepancies. The unit, “ton,” refers to short tons. Cutoff grade is 4.0 percent (%) Sb “equivalent,” which refers to the combined values of gold plus antimony expressed in terms of antimony alone.

UPDATE: Drill results—when all received—are expected to significantly add to our resources both in tonnages and grades. Watch for continued news release updates.

ABOUT NOLAN CREEK

Silverado owns a 100 percent interest in numerous mining claims on the Nolan Creek property, consisting of 204 unpatented Federal placer mining claims and 407 unpatented Federal lode mining claims, which are located 280 miles north of Fairbanks, Alaska in the historic Koyukuk Mining District. Access is by the Dalton highway six hours from Fairbanks, Alaska to Wiseman and then by seven miles of well-maintained road to the 12 square mile property, or by air 1 hour and 15 minutes to Coldfoot and a 40 minute drive to the property. Since the discovery of placer deposits in the Nolan Creek/Hammond River area in 1897, recorded gold recovery totals almost 200,000 ounces of placer or nugget gold. The largest portion of this recovery stems from Nolan Creek and its tributaries and benches. The Company has also optioned property that covers the adjoining Hammond River placer deposits, and potential lode sources.

OPERATIONS

Under Silverado’s ownership since 1982, a total of 23,153 ounces of placer gold was recovered from channel and bench deposits in the Nolan Valley through 2006. The largest nugget recovered to date weighed 41.35 ounces and was valued at US$16,000 by weight. It sold for US$50,000. Most nuggets recovered at Nolan Valley are suitable for jewelry.

Placer deposits at Nolan Creek can be found in frozen gravel beds (ancient channel deposits) some of which can be mined year round. Test mining can be carried out by underground methods during the coldest winter months, and by surface methods most of the year. In the summer months when the gravel has thawed, snow melt water is available for gold recovery by hydraulic sluicing. The sluicing process uses only gravity and water within a closed circuit, ensuring that there is zero discharge to the environment. Lands disturbed by mining are fully reclaimed. The Company operates under 11 combined federal and state permits.

NOLAN CREEK LODE: SEEKING THE SOURCE

While developing and test mining the Nolan Creek Placer Gold deposits, Silverado collected information and conducted surveys directed to identifying the lode sources for the placer gold. These “lode” sources are the actual areas where gold forms within spaces in rocks and fissures, and forms zones of gold mineralization. Some of the gold recovered from placer test mining operations was attached to quartz and other lode deposit materials, some was crystalline in nature, and a considerable amount of the recovered gold was razor edged and showed little to no evidence of travel (rounding). Follow up work has disclosed gold and antimony mineralized rock exposures. The discovery of lode gold (now identified as the probable source of most if not all of the gold nuggets) is now a function of methodical work on the five mile long Solomon Shear Trend where mineralization occurs from place to place throughout the Trend. The Company is exploring for the lode source of the nugget gold and is locating and examining source material systems. The Workman’s Bench Zone has now been drill linked to the Pringle Bench and together, they are currently being developed as our prime target for gold and antimony resources.

The total zone has now been drilled along a strike length of over 2300 feet and is open to length and depth. The main ‘A’ vein is continuous and contains consistent high antimony grades with good to exceptional gold grades. Included in our work to pinpoint other similar bodies, is a project entailing compilation of airborne geophysical survey data published by the State of Alaska which is continually being interpreted in conjunction with on-going ground geological, geophysical, and geochemical surveys. The cumulative data indicates that a resistivity low trend (electromagnetically conductive zone) over five miles in total length is present uphill from the known placer deposits. This area has been called the “Solomon’s Shear Trend” and exists within our 12 square mile Nolan Creek Property. A second sub-parallel zone lies immediately to the east and a potential third similar zone lies about one mile further east where all drainages have been historically placer gold mined and where Silverado has found impressive gold, such as this true size troy ounce piece of gold/quartz/phyllite shown here.

Geophysical features like Solomon’s Shear Trend may be caused by faults, veins or shear zones, by conductive lithologies or by a combination of these features. Geochemical soil sampling has shown above average values of gold and its companion metals, arsenic and antimony, coincident with the “Solomon’s Shear Trend” resistivity low. Throughout the length of this trend there are a number of lode vein occurrences containing gold, arsenic and antimony. Other geologic models have also been indicated.

This trend is the target of current lode exploration for the source of the gold and antimony material found on the Nolan Creek Property. Economically viable concentrations of gold and antimony mineralization have been located within this trend wherever drilled, and the size and intensity of the anomaly, plus the existence of one or more similar deposits to the one currently being delineated lend the opportunity of disclosing a world class deposit of combined gold and antimony.

Additional and exceptional value may be duly placed on the fact that it may well be the only near term antimony producer in North America.