STOCK - SILVERSTONE RESOURCES CORPORATION SYMBOL - SST.TSX.V TICKER - SST.V 52 WEEK RANGE - HIGH $CDN LOW - $CDN.65

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1 STOCK - SILVERSTONE RESOURCES CORPORATION SYMBOL - SST.TSX.V TICKER - SST.V 52 WEEK RANGE - HIGH $CDN LOW - $CDN.65 SHARES OUTSTANDING - BASIC MILLION - DILUTED MILLION MARKET CAPITALIZATION - N/A BUSINESS PLAN Silverstone is a growth-oriented silver mining company with 100% of its revenue from silver production. Silverstone s sales are generated from its purchase of by-product streams from operating base metal mines. The company has a 10 year silver purchase contract with Capstone for the Cozamin mine in Mexico, as well as life-of-mine agreements with Lundin Mining to buy 100% of payable silver from Neves-Corvo and Aljustrel Mines in Portugal and a 12.5% life of mine of payable silver from Loma de La Plata zone from the Navidad project-aquiline Resources Inc. In addition, the company has a 100% interest in four silver-gold exploration properties in Mexico all were former producing mines. PROJECT STRATEGY Silverstone has an option to earn a 90% interest in four silver-gold projects by completing a minimum of US$ 5 million in exploration expenditures by January/2009. As at Feb. /07, they had spent $1.5 million. Their web site gives a current status update of the 4 producing projects and exploration projects which are summarized below. PRODUCING PROJECTS GENERAL Silverstone has long term agreements in place at three producing mines in Portugal and Mexico. These three mines have 77 million ounces of proven and probable reserves, 154 million ounces of measured and indicated resources (including proven and probable resources) and an additional 81 million ounces of inferred resources. On May 22/08, the company announced that proven and probable reserves at the Neves-Corvo mine had increased by 130% to 91.6 million ounces from 2006 levels of 39.3 million ounces and that measured and indicated resource categories had increased by 67% to million ounces from 2006 totals of 89.3 million ounces. In addition, Silverstone has the right to purchase 12.5% of the life of mine payable silver from the Loma de La Plata zone of right of first offer sale of any additional future silver production by Aquiline. 1. COZAMIN MINE, MEXICO On Feb.21/07, Capstone agreed with Silverstone Resources whereby Capstone will sell over the next ten years all of its silver production form the Cozening Mine in Mexico to Silverstone. In addition, Silverstone will pay an upfront payment of US$44 million comprised of US$20 million cash and issuing million Silverstone special warrants plus a deferred

2 payment of the lesser of US$4 per ounce of silver (subject to an inflation adjustment after 3 years) or the prevailing market price per ounce of silver. The agreement was subject to Silverstone obtaining the requisite financings and approvals on or before March 28/07. On April 4/07, the agreement was formally signed giving Silverstone to the right to basically buy future silver production at $4.00 per ounce subject to an inflation adjustment in 3 years. At the time of the signed agreement above, the mine was expected to produce 1.2 million ounces of silver annually for 10 years. In 2007, Silverstone s sales from this mine were 591,000 ounces. The mine s expected production for 2008 and going forward is forecast to be million ounces of silver. 2. NEVES-CORVO, PORTUGAL This mine is located 220 km. south east of Lisbon in Portugal. This mine, operated by Lundin mining, produces more than 500,000 ounces per year of payable silver contained in copper concentrate and has the potential to produce additional silver from its zinc processing circuit schedule scheduled to start at the beginning of 2009 at a rate of 200,000 ounces per year. The mine life is estimated to be 15 years. On May 22/08, the company announced that proven and probable reserves at this mine had been increased by 130% to 91.6 million ounces which far exceeds the estimate in 2006 of 39.3 million ounces. Silver contained in measured and indicated resource categories increased by 67% to million ounces from 89.3 million in production of silver was 146,000 ounces of silver production is estimated to be 540,000 ounces of silver with an additional potential of 90,000 ounces coming from the starting of the zinc process. For 2009, the estimate is that the copper and zinc processes will produce approximately 800,000 ounces of silver. 3. ALJUSTREL, PORTUGAL The Aljustrel mine is approximately 40 km. North West of Neves-Corvo. The mine is expected to produce 1.2 million ounces of silver in lead concentrate per year on an annualized basis. Production costs are fixed at the lesser of 3.90 per ounce (with an inflation adjustment in year 4). The mine life is expected to be 10 years and Silverstone has contracted to buy 100% of the silver produced by this mine. The company had no sales from this mine in Production in 2008 is forecast to be 225, ,000 ounces as the mine switched to its main silver rich ore body production is forecast at 875,000 - greater than 1 million ounces and averaging 1.2 million ounces thereafter. 4. LOMA DE LA PLATA, NAVIDAD PROJECT, ARGENTINA On Nov. 15/07, drill holes established that the new high grade near surface deposit had grown to contain 9.1 million tones at an average grade of 225 g/t silver and.09% lead or 66 million contained silver ounces in the indicated category plus 17.3 million tones grading 159 g/t silver and.11% lead or 89 million contained silver ounces in inferred resources. The Loma resource is contained within the larger Navidad resource which is estimated at million Measured and Indicated tones grading110 g/t silver and 1.06% lead (453 million ounces AG M+I) and 49 million inferred ounces grading 97 g/t and 0.5% lead ( 153 million ounces AG I ). Drilling is ongoing at Navidad. Silverstone has the right to purchase 12.5 % of the life of the mine payable silver from the Loma de La Plata zone and the right of first offer with respect to the sale of any additional future silver production stream from Aquiline. The above right to purchase translates into the right to purchase 12.5% of the life of mine payable silver with a minimum of 1 million ounces of silver per year for a minimum 12.5 year period. The cost to Silverstone would be the lesser of $4.00 or the price of silver listed on the London Mercantile Exchange. The company also has the right of first offer with respect to the sale of additional silver production streams by Aquiline.

3 For the above rights Silverstone agreed to pay US$50 million for the contract. Payment is payable in 3 stages: 1. purchase by Silverstone of a $17.5 million debenture which Silverstone may convert into common shares within a 2 year period or earlier if Aquiline proceeds with mining production, 2. payment of US$15 million when Aquiline decides to proceed with the mine and 3. payment of US$17.5 million in 4 equal quarterly installments starting after construction starts on the mine. EXLORATION PROJECTS 1. COPALA PROJECT, MEXICO This is a silver-gold deposit located 60 km. SSE of Mazaltan, Mexico. On Oct. 11/06, the company announced results from 7 drill intercepts in the El Muerto section with a high result of 5.4 g/t gold and 1,458 g/t silver. These results combined with prior drill findings indicate that the strike extent of mineralization is now greater than 150 m and the dip extent is more than 100 m below surface. On March 6/07, further drill results in the Clemens zone showed significant gold and silver mineralization (as high as 2.8g/t Au and 370 g/t Ag) and the company indicated that these drill results contain the widest, most consistent and highest grade gold-silver mineralization to date at Copala. On Jan. 23/08, the company announced further 2007 drilling results which ranged from a high of 107 g/t gold and 1,654 g/t silver. A detailed resource estimate is expected to be released in the 2Q of On July 22, 2008, the company released the initial independent resource estimate for the Copala Silver project find. The underground Animas Refugio Vein at a 90 g/t silver cut-off grade has an estimate, in the indicated category, at 656,000 tonnes at a grade of 204 gpt silver and1.1 gpt gold or 5.5 million silver equivalent ounces. The inferred category was calculated at 345,000 tonnes at a grade of 145 gpt silver and.8 gpt gold containing 1.6 million ounces of silver and 9 thousand ounces of gold or 2.1 million ounces of silver equivalent ounces. The Copala surface estimate at the La Colorada Vein-Mantos at 20 g/t silver cut off grade totaled an inferred resource of 2.5 million tones at a grade of 80 gpt silver and.4 g/t gold containing 6.5 million ounces of silver and 30,700 ounces of gold or 8.1 million silver equivalent ounces. A detailed NI compliant report is expected to be made available by mid September, In total the Copala silver project has a resource estimated at 15.6 million equivalent ounces. 2. CLAUDIA PROJECT, MEXICO This property lies 135 km NNW of the city of Durango with good access to a paved highway. A limited tonnage grading 200 g/t silver and 3.8 g/t gold has been outlined over a shallow and restricted part of one of the five major veins on the project. 3. PROMONTORIO PROJECT, MEXICO This property is located north of Durango. The company claims that prior mining in the area has produced, from two major veins, 250,000 tonnes of 3,500 g/t silver and 20 g/t gold. The narrow but high grade epithermal veins are traceable for more than 2 km. 4. MONJOROS, MEXICO This property of 2,147 hectares is located 190 km. NW of Durango. The company indicates that partial exploration and sampling in trenches, old mine workings and outcropping veins have returned unspecified but positive exploration results. PEOPLE

4 The management consists of geologists and finance experts who have had years experience. FINANCIALS On March 31/08, the company announced earnings for a 4 month period ending Dec. 31/07 with highlights as follows; 1. Net earnings of $U.S. 1.2 million or.01 per share from the sale of 524,000 ounces of silver. 2. Cash at Dec. 31/07 was US$ 34.4 million with no bank debt. 3. On Nov. 27/07, Silverstone completed a US$ 50 million financing and used the proceeds to repay debt of US$ 25 million. 4. The CDN$ 17.5 million convertible debenture purchased from Aquiline must be converted at the company s option to either shares of Aquiline of $12.00 per share or a contract granting Silverstone the right to purchase of 12.5% of the life of mine payable silver from the Loma de La Plata zone. On April 30/08, the company announced silver sales of 403,000 ounces of silver which was slightly below forecasts. On May 22/08, the company announced earnings for the 1 st Q of 2008 as follows: 1. Net earnings of $4.5 million or.04 per share from the sale of 403,000 ounces of silver 2. Cash at March 31/08 was 21.3 million which is a reduction from the Dec. 31/07 total due to the $17.5 million convertible debenture from Aquiline Resources on the Loma De La Plata Zone venture. 3. Silver sales were $7.5 million. Operating cash flows were $3.7 million. 4. Total cash costs were $3.76 per ounce of silver. On July 21/08, Silverstone reported sales of 462,000 ounces of silver sold in the second Q with average cash costs $3.97 per ounce. The total sold over the Q represented an increase of 59,000 ounces over the 1 st Q sales of silver. The bulk of the silver came from the Cozamin mine 343,000 ounces with the remaining 119,000 ounces coming from Neves-Coro Copper. On Aug. 19/08, Silverstone announced that for the 3 months ending June 30/08, Silverstone earned US$3.7 million and had cash flows of $3.8 million or US$.03 per share. Silver sales were 459,000 ounces for sales of US$8.3 million. Cash costs were US$3.97 per ounce of silver. Cash at June 30/08 was US$24.2 million (almost.20 per share) with working capital of US$31.5 million. On Aug , the company further announced that the company was buying back up to million shares or 10% of its share float of million shares. As at Aug. 7/08, there were 122,402,010 common shares issued and outstanding. OVERVIEW In Feb.07, we wrote the following: This is a relatively new gold-silver play. The company has four Mexican projects with all having existing tonnage and grading of gold/silver. Further drilling and testing needs to be done and appears scheduled to take place over the next two years. This is a speculative play with a bit better chance than the average junior due to some favorable drill results to date. This opinion has been proved prescient. Silverstone s revenues are expected to explode over the next 3 years as their purchases and sales of silver production are expected to triple and more in the next 3 years as follows:

5 ,155,000 ounces of silver ,175,000 ounces of silver ,500,000 ounces of silver Silverstone has contracted to buy this production at US$4 per ounce. With silver currently ranging from US$15-21 per ounce this means gross profits on approximately 10 million ounces of silver would range from US$110 million to $US170 million. This would total approximately US$1.00 per share over the next 3 years. This estimate would be exclusive of any potential revenues from the Loma de La Plata deal or the Copala Project. At current levels of $CDN 2.00 this stock appears to be extremely undervalued. Update July 22, 2008