Silverado Gold Mines Ltd. (OTCBB: SLGLF)(FRANKFURT: SLGL) (www.silverado.com) (the "Company" or "Silverado") through its wholly owned subsidiary, Silverado Green Fuel Inc announced today that it received its second positive progress report from current research work. The report states:

"Since May 2008, the Mineral Industry Research Laboratory (MIRL), University of Alaska Fairbanks, has been conducting research for Silverado Green Fuel Inc., on the hydrothermal upgrading of Mississippi lignite coal from the Red Hills Mine. This lignite was the targeted feedstock for a Low Rank Coal Water Fuel (LRCWF) Demonstration Project proposed for the Red Hills Ecoplex, Ackerman, MS.

To date, research findings show that the lignite responds well to hydrothermal treatment (HT). HT at 290 degrees C, for a residence time of 20 minutes, produces an upgraded lignite product suitable for LRCWF production, provided acceptable ash levels can be achieved. These HT conditions are essentially the same as those previously used by Silverado during its preliminary design of the demonstration project facilities. MIRL research has also produced valuable grinding circuit design parameters. Overall, MIRL research concludes that the MS lignite's response to hydrothermal treatment follows a common pattern exhibited by low rank coals previously studied at MIRL since 1989.

Future research at MIRL will address lignite ash reduction and ash chemistry, HT modeling, and HT process water and gas composition.

This report has been prepared by; and the work conducted by Daniel E. Walsh, P.E. and Hsing K. Lin, Ph.D. Mineral Industry Research Laboratory, Institute of Northern Engineering, College of Engineering and Mines, University of Alaska Fairbanks. We look forward to upcoming reports from MIRL."

Silverado Green Fuel Inc, in the early 2000's, attempted to raise funding for a demonstration facility through U.S. government grants, but no funding was forthcoming. The facility had been designed to substantiate the viability of LRCWF as an environmentally friendly way of producing electricity and hydrogen with virtually no CO2 release to, or other negative effects on, the environment.

The current study is designed to derive the same objective of proving the viability of the fuel without building a demonstration facility, and to date, the work has proven beneficial. The Company believes the final results will prove Silverado's Green Fuel to be an effective and low cost product that will in time provide the world with an inexpensive source of energy in an environmentally safe manner from a resource (low-rank coal) which is abundant throughout the world. This fuel could supply all U.S. energy needs from domestic supply for well over 300 years.

We believe our work from here on will draw considerable interest from industry.

On Behalf of the Board

Silverado Gold Mines Ltd.,

G. L. Anselmo, President, CEO & COO

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