Silverstone Purchases Life of Mine Gold and Silver From Sherwood Copper Corporation's Minto Mine

Nov 07, 2008 (Hugin via COMTEX) ----VANCOUVER, BRITISH COLUMBIA--(Marketwire - November 07, 2008) - Silverstone Resources Corp. ("Silverstone") (TSX VENTURE: SST) is pleased to announce that it has agreed to acquire 100% of the life-of-mine payable gold and silver production from Sherwood Copper Corporation's ("Sherwood") Minto mine located in the Yukon, Canada effective December 1, 2008. With this acquisition, together with Silverstone's existing contributing silver contracts, Silverstone is expected to sell in excess of 4.5 million silver equivalent ounces(1) in 2009.

Sherwood's Minto mine is a base metal mine (copper-gold-silver) located in the Yukon, Canada. The Minto mine reached commercial production in October 2007, increased mill throughput 50% by mid-April, 2008 and plans to process higher grades and to further increase mill throughput by early 2009. The mill at Minto is forecast to produce more than 30,000 ounces of payable gold and more than 300,000 ounces of payable silver in 2009, or approximately 2.4 million silver equivalent ounces(1).

Silverstone will purchase all of the gold and silver production from the Minto mine and, in exchange, Sherwood will receive an up-front payment from Silverstone of US$37.5 million, plus a further payment of the lesser of (a) US$300 per ounce of gold and US$3.90 per ounce of silver (subject to a 1% inflationary adjustment after 3 years and each year thereafter) and (b) the prevailing market price on the London Metal Exchange for each ounce delivered. US$12.5 million of the up-front payment will be advanced immediately and the balance within 14 days of the date of the letter of intent, subject to certain conditions. If production from the Minto mine exceeds 50,000 ounces of gold per year in the first two years of the agreement, or 30,000 ounces of gold per year thereafter, Silverstone will be entitled to purchase only 50% of the amount in excess of those thresholds. Kutcho Copper, Sherwood's wholly owned subsidiary that owns the Kutcho copper-zinc-silver-gold project in British Columbia, has also granted Silverstone a right of first refusal to purchase any gold and/or silver streams from the Kutcho project, should Kutcho Copper elect to sell such, on terms and conditions to be agreed by mutual consent.

In order to fund the US$37.5 million cash payment, in addition to US$28 million in cash on hand, Silverstone will draw on its US$15 million revolving line of credit through Scotia Capital.

"This transaction with Sherwood will more than double Silverstone's silver equivalent ounces in 2009. We are very pleased to have acquired this gold and silver production from the high grade Minto copper mine, which has the ability to add additional gold and silver ounces through its significant exploration potential. With this acquisition, Silverstone is able to continue to increase its growth profile at terms consistent with its previous acquisitions. We are fortunate to be able to utilize our existing cash, minimal leverage and no dilution to our shareholders," said Darren Pylot Silverstone's President and Chief Executive Officer.

Closing of the transaction is subject to certain conditions to be met by both companies and receipt of all regulatory approvals including acceptance by the TSX Venture exchange.

An advisory fee of US$375,000 is payable upon completion of the transaction. This fee can be paid in cash or common shares or any portion thereof at Silverstone's election.

The following tables set forth the estimated Proven and Probable Mineral Reserves and the Mineral Resources for the Minto mine as of June 17, 2008 based on drilling to the end of 2007. All reports referenced are available on www.sedar.com.

Current Proven and Probable Mineral Reserves for the Minto mine are tabulated below:

Minto Mine Proven and Probable Mineral Reserves (see notes 1,2)

-------------------------------------------------------------------------- Contained Contained Silver Ounces Ounces Equivalent Reserves Tonnes Copper Gold Silver Gold Silver Ounces(1) Category (M: 10.80, +0.36, +3.44%) % g/t g/t (000's) (000's) (000's) -------------------------------------------------------------------------- Proven(2) 8.22 2.01 0.77 7.98 203.6 2,110 16,362 -------------------------------------------------------------------------- Probable(2) 0.91 1.24 0.46 5.40 13.3 159 1,090 -------------------------------------------------------------------------- Proven + Probable(2) 9.13 1.93 0.74 7.73 216.9 2,267 17,452 -------------------------------------------------------------------------- (1) Silver equivalent ounces are calculated by using a ratio of 1 ounce of gold is equivalent to 70 ounces of silver. (2) Reserves are calculated using a 0.62% Cu cutoff.

Mineral reserves were calculated by MintoEx geology and engineering staff under the supervision of Dan Russell, P. Eng., Manager of Mining at the Minto Mine, who is the Qualified Person under National Instrument 43-101 responsible for the mineral reserve estimate, as detailed in Sherwood Copper's June 17, 2008 news release.

The measured, indicated and inferred mineral resources are tabulated below, and are inclusive of the proven and probable reserves:

Minto Mine Mineral Resources (see notes 1,2)

-------------------------------------------------------------------------- Contained Contained Silver Ounces Ounces Equivalent Resource Tonnes Copper Gold Silver Gold Silver Ounces(1) Category (M: 10.80, +0.36, +3.44%) % g/t g/t (000's)(3) (000's)(3) (000's)(3) -------------------------------------------------------------------------- Measured(2) 11.46 1.78 0.66 6.85 240 2,520 19,320 -------------------------------------------------------------------------- Indicated(2) 7.83 0.91 0.29 3.24 70 820 5,720 -------------------------------------------------------------------------- Measured + Indicated(2) 19.28 1.42 0.51 5.38 320 3,340 25,740 -------------------------------------------------------------------------- Inferred(2) 15.07 0.89 0.25 2.61 120 1,260 9,660 -------------------------------------------------------------------------- (1) Silver equivalent ounces are calculated by using a ratio of 1 ounce of gold is equivalent to 70 ounces of silver. (2) Resources are reported using a 0.5% Cu cutoff. (3) Rounded to nearest ten thousand

The mineral resources discussed in this new release were estimated by Lions Gate Geological Consulting Inc. (LGGC). Ali Shahkar P.Eng. and Susan Lomas, P. Geol. of LGGC are the Qualified Persons under National Instrument 43-101 responsible for the estimates and has reviewed the information in this release in respect of mineral resource estimates. See Sherwood Copper's news release dated June 17, 2008 for additional information in respect of the resource estimates.

CONFERENCE CALL Silverstone will host a conference call today - Friday, November 7, 2008 - at 9:30am Pacific Time (12:30pm Eastern Time) to discuss this acquisition. The conference call may be accessed by dialing 1.866.497.3339 in North America or 1.416.849.7332 Internationally. Please ask for the Silverstone conference call. The conference call will be archived for later playback until November 14, 2008 and can be accessed by dialing 1.866.501.5559 and the pass code is 21288862#.

Mr. Hugh Willson, P.Geo., Vice-President, Exploration of Silverstone, who is a "qualified person" under National Instrument 43-101, has reviewed and approved the technical aspects of this news release. Silverstone will have an independent National Instrument 43-101 technical report prepared on the Minto mine within 45 days.

ABOUT SILVERSTONE

Silverstone is a silver and gold mining company with 100% of its revenue from precious metal production. Silverstone expects to have 2008 silver sales of approximately 2.0 million ounces and increasing to 4.5 million ounces silver equivalent(1) in 2009. More information is available online at: www.silverstonecorp.com.

This press release contains "forward-looking information" that is based on Silverstone's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Silverstone's mineral discoveries, plans, outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect," "anticipate," "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Silverstone's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: projected sales or production rates; uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters.

This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Silverstone disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has neither approved or disapproved of the contents herein.

Contacts: Silverstone Resources Corp. Chris Tomanik (604) 637-8151 Email: ctomanik@silverstonecorp.com

Silverstone Resources Corp. Mark Patchett (604) 637-8151 (604) 688-2180 (FAX: 4.27, -0.08, -1.83%) Email: mpatchett@silverstonecorp.com Website: www.silverstonecorp.com

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

SOURCE: Silverstone Resources Corp

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