ESTER DOME GOLD PROJECT

From 1978 to present, Silverado Gold Mines Ltd. acquired property, as well as explored and developed gold deposits on the Grant Mine Property and other areas of the Ester Dome Project, located 10 miles northwest of Fairbanks, Alaska.

From 1990 to 1993, a joint venture between Silverado and a major mining company on the Grant Mine Property completed 45,162 feet of drilling plus related surface surveys at a cost of $4,000,000.

With the cessation of the joint venture, Silverado continued alone. Surface surveying, trenching and drilling from 1994 to 1997 was conducted on the St. Paul Shear Zone, resulting in the disclosure of a potentially large gold ore body.

In 1999, Silverado decided to focus on the Nolan Gold Project and returned a portion of the Ester Dome Property to its original owners, keeping approximately 2.5 square miles containing the O’Dea, Ethyl, Elmes and St. Paul gold deposits and the Grant Mill 300 ton per day (TPD) gold processing facility.

The Grant Mill facility, constructed in 1984 as a joint venture between Silverado and a major company was in service from 1980 to 1989. During this time, the facility processed 133,852 tons of ore removed from underground and surface bodies yielding 15,305 ounces of gold and 8,231 ounces of silver. Surface shear zones when mined averaged 0.08 ounces gold per ton. Underground mined veins and breccia zones averaged 0.34 ounces gold per ton.

Silverado explored and test mined five potential ore bodies; four open cut and one underground. We successfully poured and sold $10 million in sweet gold bullion bars. This property has historically yielded more than 4,000,000 ounces of placer gold from around its base and is still producing placer gold today. After spending $US60,000,000 on drilling, exploration, development, construction and mining, Silverado has shown the property to be viable. A small but representable part of the property has been drilled to very limited depths on gold mineralized zones which are open to depth and length. We have only “scratched the surface” of this rich gold property. We fully expect that our holdings on Ester Dome will achieve a significant production status for the Company.