Just out this morning- Q10

Plan of Operations:

The plan of operations for the Nolan Gold Project for the remainder of the 2010 fiscal year is the advancement toward the development and mining stage of our Nolan Gold and Antimony Project, especially along the southwestern end of the Solomon Shear Zone in the Workman’s Bench, Pringle and Hillside Areas. The Company is in a transitional phase between exploration and development. The recent preliminary feasibility study effective January 1, 2009, supported a mineral reserve of antimony and gold underlying the southwestern portion of the Solomon Shear Zone, an area referred to by the Company as Workman’s Bench. The 2008 feasibility study by Bundtzen (QP) concluded that the Nolan Gold and Antimony Project in the Workman’s Bench area is economically viable.

Our plan of operations involves collecting a 1,000 cu yd bulk sample of the stibnite-gold vein material from the mineralized zones referred to as the ‘A’ Zone and possibly ‘B’ and West Zones. The bulk sample will be for larger scale milling and processing tests, and a more accurate mineralogical determination of the gold, especially what the Company has termed ‘nugget effect’ of the gold found in the massive stibnite veins. The Company believes that the grade of gold will increase upon the extraction of the larger scale bulk sample due to the ‘nugget effect’ which is not represented during the drilling effort. The successful extraction of a 1,000 cu yd sample will give a better indication of the special and physical relationships between the gold and the antimony. The bulk sample is also necessary for additional verification of the purity of the antimony content in the stibnite and whether or not at depth the current exceptional purity is sustainable.

Also, the plan of operations for 2010 involves performing a variety of characterization studies in preparation for the development stage and for permitting requirements necessary for the future production of the antimony-gold deposit underlying the Workman’s Bench. These studies include but are not limited to additional hydrologic studies proximal to our planned underground workings, environmental baseline studies of the flora and fauna and the baseline chemical and physical parameters of the creek water, and acid-base accounting (ABA) studies of the ore-hosting rock determining an appropriate, effective and safe disposal of acid mine waste rock.

Much of the work planned for 2010 is season-dependent. During the next 3 months we plan to perform maintenance and upgrades to our diamond core drill rig as well as other mechanized equipment which is kept on site at Nolan Creek. Also, additional drill core samples from previous drilling campaigns will be selected for geochemical analyses for in-fill purposes. The samples will be collected from the areas between the previously determined A and B and West zones. The Company does not plan to sample between the B and C zones. Sampling the intermediate areas is in response to the increase in gold prices and the Company wants to make a determination of a possible bulk minable resource which would require geochemical assays across broader zones

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Depending on available capital, we plan the procurement of necessary facility and system upgrades, as well as the acquisition of necessary equipment and the construction of a 500 ton per day mill facility. Currently we have a fully functioning all-season enclosed 26 man camp with three functioning offices with computers and internet access. The camp has a STW treatment plant for sewage and graywater treatment. The camp site also has a large mechanics shop for working on heavy equipment such as backhoes and bulldozers. The camp also has multiple ADEC approved containments with tanks capable of storing 30,000 gallons of diesel fuel, and a peripheral explosives storage area.

In response to the studies last fall and this spring of core drilled in 2009 on Pringle Bench disclosing continual antimony and more significantly the discovery in drill core of high grade drill core assays (+1 to +6 oz gold/ton) along with the continued encountering of wide sections of quartz carbonate stock work veins surrounding the main vein with widths of up to 60 feet showing native gold and stibnite (antimony sulfide); the Company has determined it could accomplish its metallurgical work on both the Pringle and SW Workman’s Bench areas by taking a split of the large HQ2 diamond drill core and creating bulk samples from select zones as identified by geologic core logging and the work performed on these bulk samples would suffice for metallurgical information rather than samples taken directly from underground. This is possible due largely to the continuity of the mineralized vein from one hole to another and to the competency of the country rock around the main vein and between veins in the area of the mineralized quartz carbonate stockwork. 71 of 71 drill holes encountered the ore vein over a continuous strike length of 3,500 feet by a depth of 500 feet.

Since the Project is advancing into the development stage, exploration drilling will not be conducted in the Fortress area which is part of a gold bearing east-west trending deformation zone.

Company and contract geologists along with the Company QP have confirmed that the gold and antimony mineralized zones correlate with the surface geochemistry and geophysical data that extends northeast past Pringle Bench along the strike through an area referred to as the Hillside Lode Prospect. The Company has stated previously that the Hillside Area was thought to be the source of the placer gold mined from the gravel benches located along the left limit of Nolan Creek between Smith and Archibald Creeks. The Hillside Lode Prospect is located uphill of the gold-rich gravel benches mined by Silverado as recent as 2006.

The Company has been and will continue aggressively seeking permits and also compiling various studies by numerous contractors to meet application requirements for ongoing permits. In order for the project to advance to the development stage at Nolan, the permitting process involves various characterization studies. Some of these studies are seasonally dependent and some require time periods that can delay the permitting process. The baseline water quality sampling which began in June of 2008, was halted due to freezing temperatures during October of 2008, and was continued in early June of 2009. The last baseline water sample for 2009 was collected in late September, and the sampling was continued in 2010 and will again cease in October of 2010.

On May 14, 2010 the United States Army Corps of Engineers issued a five year permit from that date. The permit allows the Company to conduct Hard Rock Exploration to include diamond core drilling at the Nolan Creek Mine.

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The access road into the Nolan Creek camp as well as the 26 man camp facility received construction upgrades in 2009 in preparation for the 1,000 cubic yard bulk ore sample that the Company has been permitted to sample. Essential to the bulk sample program and future development is the environmental baseline and characterization studies that include Acid Rock Drainage studies also known as acid-base accounting, as well as the water quality baseline sampling. Samples of the ore and wall rock gangue from various core intercepts and also wall rock from the ‘A’ zone were submitted by the QP to analytical labs for determination of acid generating potential. The Company’s QP has directed a third party engineering firm to conduct various geotechnical studies of the wall rock and ore rock.

The Company, as per the QP, is still seeking a calcareous rock unit that is accessible for extraction on the Nolan property. Permits for the extraction of the calcareous rock will not be applied for until the Company has verified that such a rock unit is accessible. The extraction of a calcareous rock could be used as a buffering liner for temporary storage of waste rock that may have acid generating potential.

During the next three months, Silverado will continue to implement the recommendations of the preliminary feasibility study that was completed by the Company QP, Thomas K. Bundtzen. The QP will determine additional resource estimates and these estimates will be disclosed to the public as soon as they are completed by the QP. The QP will also oversee geotechnical studies as well as the acid rock characterization study. The Company will continue upgrades to the infrastructure at Nolan. The company plans to construct additional access trails for drilling into the Hillside Zone and will perform additional surveying for planning and design purposes. The Company will continue with aggressive permitting and will seek additional capital needed for the procurement of a 500 ton per day mill and equipment that will be used during the extraction and processing of the permitted 1,000 cubic yard bulk sample of gold and antimony ore, as well as on-going ore processing.

During the next three months, Silverado plans to initiate lode development in the Workman’s Bench area as follows:

We will be seeking to raise up to approximately $50,000,000 to continue our exploration and permitting, while continuing and beginning mining development activities on the Nolan Gold Project. The actual amount that we spend on these projects will depend on the actual amount of funds that we are able to raise. We are presently seeking to obtain sufficient financing to enable us to proceed with these plans. The full expenditure of $50,000,000 is expected to place the operation in profitable continuous production with a 500 ton per day mill and a 200 ton per day mine advancing to 500 ton per day by year three.