ENVIRONMENTAL POLICY STATEMENT

Silverado is committed to contributing to a prosperous economy through the sustainable development of natural resources while remaining protective of the health of its workers and the public, and the state of the natural environment, through wise stewardship of our land, air and water. We recognize that fundamental to this commitment are the following principles:

Maintaining environmental, health and safety standards that minimize risks at levels as low as reasonably achievable;

Preventing pollution through the application of economically feasible, proven technologies, procedures and processes;

Meeting and exceeding legal and regulatory compliance requirements; and

Committing to an environmental program of continual review and improvement.

In furtherance of these principles we will maintain this environmental policy as a top-priority management theme, and apply environmental management systems (EMS) that conform with the International Organization for Standardization's (ISO) 14001 guidelines, including the structure, planning, practices, procedures and processes necessary for developing, implementing, achieving, reviewing and maintaining our environmental policy.

To that end we will:

Conduct careful and continuous monitoring of all our operations and their impacts on the environment, human health and safety;

Identify and document those aspects of our activities which have, or could reasonably be expected to have, environmental impacts;

Systematically identify all relevant legal and regulatory requirements and industry standards of practice, and honor an ongoing commitment of compliance;

Set environmental objectives and targets that address our overall environmental policy, minimize or eliminate environmental impacts, and meet or exceed legal and regulatory requirements;

Monitor and measure performance against our environmental objectives and targets, and routinely channel this information back into our EMS;

Develop and apply technically proven and economically feasible measures through workplans which document our environmental, legal and regulatory targets and how they are to be achieved, and communicate these workplans with our employees;

Apply environmental management practices which are flexible and adaptive to changes in production processes, regulatory requirements, and other factors which may affect our operations; and

Continually improve our environmental programs through regular management reviews which address the possible need to change policies, objectives, targets and other elements of our EMS.