Silverstone Resources Corp.
TSX VENTURE : SST

Silverstone Resources Corp.

November 21, 2008 14:22 ET

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

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 21, 2008) - Silverstone Resources Corp. ("Silverstone") (TSX VENTURE:SST) is pleased to announce that it has closed its previously announced transaction (November 7, 2008) with Sherwood Copper Corporation to purchase all of the payable gold and silver from the Minto Mine in the Yukon, Canada, over the life of the mine starting December 1, 2008.

Silverstone will purchase all of the payable gold and silver from the Minto Mine and, in exchange, Sherwood received 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 three years and each year thereafter) and (b) the prevailing market price of gold and silver quoted on the London Bullion Market Association, for each ounce delivered. If production from the Minto Mine exceeds 50,000 oz of payable gold in the first two years of the agreement or 30,000 oz of payable gold per year thereafter, Silverstone will be entitled to purchase only 50% of the amount in excess of those thresholds. Kutcho Copper Corp., 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. Sherwood and Silverstone have now signed definitive purchase agreements with respect to the above described transaction.

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

"Silverstone is very pleased to add the Minto Mine gold and silver production which more than doubles silver equivalent production in 2009 to 4.5 million ounces of silver(1). This transaction provides leverage to both gold and silver," said Darren Pylot, President and CEO of Silverstone Resources Corp.

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 1.9 million ounces and increasing to 4.5 million silver equivalent(1) ounces in 2009. More information is available online at: www.silverstonecorp.com.

(1) Silver equivalent ounces are calculated by using a ratio of 1 ounce of gold is equivalent to 70 ounces of silver.

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.

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