Silverstone Resources Corp. is a growth-oriented silver mining company with 100% of its revenue from silver production. Silverstone’s integrated growth model of pursuing silver by-product streams and exploration projects is unique in the industry providing the growth opportunity of a silver royalty and an exploration company.

The company expects to have 2008 silver sales of greater than 2 million ounces of silver, increasing to more than 3 million ounces in 2009.

Silverstone’s sales are generated from its purchase of by-product streams from operating base metal mines. The company has a ten-year silver purchase contract with the Cozamin mine in Mexico, as well as life-of-mine agreements with Lundin Mining to buy 100% of payable silver from the Neves-Corvo and Aljustrel mines in Portugal.

The company has the right to purchase 12.5% of the life of mine of payable silver from Loma de la Plata zone from the Navidad project – Aquiline Resources Inc. with a minimum of one million ounces of silver per year and the right of first offer with respect to the sale of any additional future silver production streams by Aquiline.

The company earned a 100% interest in five silver-gold properties in Mexico, all past producing mines. It is aggressively exploring one of those projects, Copala, and plans to release a resource estimate by the end of Q2 2008.

Silverstone continues to seek additional silver streams from base metal mines.

HOW IT WORKS

A number of base metals companies produce silver as a by-product of their mining operations. The silver usually contributes less than 15% of the gross revenue. These companies strategically sell the by-product silver to companies to monetize and use the proceeds to cover production costs, expand production, continuing exploration, etc.

Silverstone purchased the right to acquire the silver production from the mines of Lundin Mining and Capstone Mining Corp by paying cash upfront and shares, and an average price of $3.92/oz when silver is delivered. Capstone Mining Corp owns 22% and Lundin Mining owns 16% of the issued shares of Silverstone.

The benefit for Capstone and Lundin is the cash flow from the sale and the growth multiple by owning the shares of Silverstone.

The benefit for Silverstone is the increment in their silver production and the fixed costs.

GOALS

• Delivering value through growth.
• Aggressively seeking silver by-product streams.
• Leveraged exposure to pure silver revenue.
• Growing free cash flow and earnings.