Dear Members, (and non-members alike)

The SGF Shareholders Association Executive Committee held a meeting on Sunday evening of May 26, 2012 to finalize our intentions for a plan of action at the upcoming AGM, and further into the future if necessary.

Our Mission Statement:

To take any and all steps required and or necessary to:

* Enhance communication
* Advance the project
* Protect shareholder value

Shortly, you will receive a form of proxy from Shore Gold. There are currently 2 items of business on the agenda that require your vote. Following is our recommendation on those 2 matters:

First, is the election of a Board of Directors. It is the Company’s intent to support the existing 5 member Board, 3 of which are independent, and 2 of which are Company Management.

We, (SGFSA) have written to the Company outlining our concerns in terms of what we see as unacceptable communication, along with several specific examples and other issues as well. We have held a formal meeting with Senior Management and restated those problems, requested correction, and made several suggestions in that regard. To date, we have seen no significant improvement. We therefore cannot continue to support those individuals who have not made an effort to support the shareholder base in these matters.

In keeping with good Corporate Governance, and to ensure that the Management is directed by, and accountable to a truly independent Board, and especially in light of the recent reduction in size of the Board, we recommend that the membership vote, at this time IN FAVOR OF:

Brian Menell

Neil McMillian

Arnie Hillier

We recommend you vote AGAINST:

Kenneth MacNeill

Harvey Bay

It is our fundamental belief that a board should be independent and needs to be seen as such. In general terms, we do not support Management persons holding positions on the Board.

The second order of business is to appoint the Corporate Auditor.

SGFSA has no issue with the proposed Auditor, and intend to support the nominee.

We also intend to add an item of business by way of a Motion from the Floor at the AGM as follows:

“That the 3 independent Board Members establish a clearly defined set of measurable goals for the current CEO within 30 days, and publish the same. Deadline to achieve said goals will be October 31, 2012. Neither further bonus, nor stock options shall be granted if these goals are not met.”

When you receive your Form of Proxy, it is very important that you vote on these matters. Since the motion from the floor is not listed, it cannot be voted on unless you attend the meeting OR you write in a name to proxy your votes to in the space provided.

Ken MacNeill or Harvey Bay’s names will appear on your form of proxy STROKE THEM OUT, and insert BOTH OF the following in their places, or in the space provided:

Gordon W. Crockford or

David E.Wright (ensure BOTH names appear)

If you choose to vote electronically you will receive a Control Number on your proxy form, we will send out instructions for you to vote at proxyvote.com. Instructions to follow at a later time.

Gord and Dave are members of the SGFSA executive, and will vote as recommended above, and IN FAVOR of the motion from the floor.

We realize the Company likely holds an advantage in terms of votes at this AGM. That is not a particularly worrisome problem, as we have sufficient power to compel a Special General Meeting at will. Notice of this meeting, along with any business to be conducted, would be sent to all shareholders. This exercise is about sending a strong message to the Board and Management. It was not possible for SGFSA to nominate other potential candidates for positions on the board, nor have any motions or resolutions submitted in time for inclusion in this AGM circular.

We will take further action, if necessary, after October 31, this year. We truly hope that the Board and Management heed this final “warning shot”, and that further action will be unnecessary. We need to ensure that the sound of that shot is well heard. Your votes have never been so important.

Sincerely,

SGFSA Executive.

Re: WITH FULL CONSENT OF THE SGFSA EXECUTIVE, I POST THE FOLLOWING:

We, the SGF Shareholders Association, (SGFSA) welcome any shareholder whom wishes to join to please do so, however at this time, and at this stage, YOUR VOTES are even more important than your membership.

Normally, SGFSA sends updates out to the membership via private e-mail, but under the circumstance, we have elected to release one of our member updates to the general public. Please feel free to share the previous post with anyone else you know is a shareholder, but not necessarily a member. Feel free to copy and paste to any forum you think may be helpful.

We strongly encourage all shareholders, to proxy their votes to the SGFSA. Do not throw your votes away. This time, every vote is important, and we will ASSURE they are counted.

If you wish to join, send an e-mail to our membership officer at brent.hab@sasktel.net. Kindly advise Brent how many shares you represent. This personal information is used for statistical purposes only, and is NOT shared, even with the others on the Executive Committee.

Brent will send new members a complete copy of all past communication.

Mail your membership ($25.00) to:

BOX 54

Prince Albert SK.

S6V 5R4

Join or not, but please VOTE.