(April 16, 2008) Silverado is a particularly intriguing company in the North American junior mining industry. What makes it unusual is that it has managed to endure throughout the past several decades despite the prolonged downturn in metals prices which lasted from late 1980 through 2002 - a period of more than twenty years.

Throughout that period, Silverado's mainstay has been their gold mining projects in history-rich Alaska, namely Nolan, Ester Dome and Eagle Creek. Nolan remains the most important property in Silverado's mining inventory with a history of placer production going back more than two decades.

Silverado (www.silverado.com) recently completed an NI 43-101 compliant Technical Report produced by Thomas K. Bundtzen, President, Pacific Rim Geological Consulting, Inc. of Fairbanks, Alaska. The report reviewed Silverado's exploration and gold production activities for 2007 and also noted that from 1981-2003 Silverado produced a total of 18,491 ounces of placer gold and, after resuming operations in 2005, an additional 4,000 plus ounces have been recovered since. Of particular interest are the exploration efforts by Silverado to identify both additional placer mining resources as well as the source of the placer gold at the Nolan property. During 2007, the company conducted extensive core drilling for both purposes.

In addition, Silverado also plans to enter the $200 million per year antimony market by developing antimony resources at their Eagle Creek property and, as conditions permit, resume exploration and development at their 100% owned Ester Dome Gold Project. (All prices quoted in US$ unless otherwise noted.)

In addition to its mining activities, Silverado is also involved in developing its subsidiary company, Silverado Green Fuel Inc. www.silveradogreenfuel.com As noted in company literature, Silverado, "…is working on the development of an environmentally friendly substitute produced from low-grade coal." The fuel is referred to as "Low-Rank Coal-Water Fuel" (or "Green Fuel") and is designed to be used in oil-designated boilers and advanced combustion and gasification systems.

The benefits to society could be considerable as successful production of Green Fuel from abundant low-grade coal reserves would reduce the requirement for imported conventional petroleum fuels. In addition, Green Fuel is designed to be low in pollutants.

At the end of March, 2008, Silverado issued a press release noting, "... Silverado Green Fuel is very much a Silverado - Mississippi team effort" and plans are being developed to go forward with placing a large scale commercial plant into operation. Since there are a significant number of low-rank coal deposits in America and Canada, the potential exists for several plants to be developed near these various sites.

The economics of Green Fuel are intriguing because engineers estimate that it can be produced for a total cost of about US$20.00 per barrel, compared to the world market price for Crude Oil which is quoted at just above US$110 per barrel as of early April, 2008. Feasibility studies have now been contracted out at the University of Alaska and the company will report additional developments as they occur.

Silverado is an interesting investment play for risk-tolerant investors on a risk-reward basis. With the company shares presently trading near $0.05, that is the entire identifiable risk for new positions. On the reward side, should Silverado succeed in producing gold at a rate of approximately 100,000 ounces per year within the next few years, which appears to be possible given their current placer operations, exploration work and reserves indicated in the Bundtzen Report, and if costs can be held to the area of $500 per ounce, this would mean development of approximately $40,000,000 earnings per year (based on gold holding near or above its current price of $900+ per ounce) - or about four to five cents per share, considering the present outstanding share number of approximately 900,000,000.

Granted, several projections would have to fall into place in order for Silverado to accomplish those goals. However, given typical market valuation of 10 to 20 times earnings for mining shares, should Silverado 'pull it off', then the shares would have the potential to move to the region of 40 cents to 80 cents ($0.40 - $0.80) - or a multiple of eight to sixteen times the current price.

Also, although it is difficult to place a valuation on the Green Fuel portion of Silverado's future, the economics of that venture could add substantially to their potential valuation, again acknowledging that several factors such as technical studies, financing and cooperation from Mississippi State authorities must likewise fall into place before genuine economic returns can be accomplished.

One last note: Silverado has initiated a program to introduce the company's shares to the vast Chinese investment community in order to attract significant numbers of new investors. We believe that could also turn out to be an important plus for the shares.

Leonard Melman, and 'The Melman Report'

Leonard Melman is a leading metal exploration, mining and investment authority, and has been writing regarding precious and base metals for more than two decades as monthly columnist for California-based "ICMJ's Prospecting and Mining Journal" and Vancouver's "Resource World Magazine". Mr. Melman is a speaker at the prestigious Cambridge House Conferences, and has also contributed commentary and corporate studies to other publications including "Resource Stock Investor" and "World Mining Stocks" of London, England. He has visited and reported on mining operations on four continents and his articles appear on numerous mining websites. He is presently working on his first book "The Eight Pillars of Gold". Mr. Melman has gained valuable knowledge and experience in previous careers as manager of multi-million dollar consumer lending operations and as a securities and commodity broker.

This material is taken from sources believed to be reliable and is provided for information purposes only. Any investment decision should be made only after prior consultation with investment professionals. Mr. Melman is a financial and political writer who focuses on issues relating to the resource sector.

 THE GRIM REAPER