Silverado Gold Mines Ltd.
OTC Bulletin Board : SLGLF
FRANKFURT : SLGL

Silverado Gold Mines Ltd.

September 09, 2010 19:45 ET

Silverado Green Fuel Receives Progress Report From Mineral Industry Research Laboratory

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 9, 2010) - Silverado Gold Mines Ltd. (OTCBB:SLGLF)(FRANKFURT:SLGL) (www.silverado.com) (the "Company" or "Silverado") through its wholly owned subsidiary, Silverado Green Fuel Inc announced today that it received its second positive progress report from current research work. The report states:

"Since May 2008, the Mineral Industry Research Laboratory (MIRL), University of Alaska Fairbanks, has been conducting research for Silverado Green Fuel Inc., on the hydrothermal upgrading of Mississippi lignite coal from the Red Hills Mine. This lignite was the targeted feedstock for a Low Rank Coal Water Fuel (LRCWF) Demonstration Project proposed for the Red Hills Ecoplex, Ackerman, MS.

To date, research findings show that the lignite responds well to hydrothermal treatment (HT). HT at 290° C, for a residence time of 20 minutes, produces an upgraded lignite product suitable for LRCWF production, provided acceptable ash levels can be achieved. These HT conditions are essentially the same as those previously used by Silverado during its preliminary design of the demonstration project facilities. MIRL research has also produced valuable grinding circuit design parameters. Overall, MIRL research concludes that the MS lignite's response to hydrothermal treatment follows a common pattern exhibited by low rank coals previously studied at MIRL since 1989.

Future research at MIRL will address lignite ash reduction and ash chemistry, HT modeling, and HT process water and gas composition.

This report has been prepared by; and the work conducted by Daniel E. Walsh, P.E. and Hsing K. Lin, Ph.D. Mineral Industry Research Laboratory, Institute of Northern Engineering, College of Engineering and Mines, University of Alaska Fairbanks. We look forward to upcoming reports from MIRL."

Silverado Green Fuel Inc, in the early 2000's, attempted to raise funding for a demonstration facility through U.S. government grants, but no funding was forthcoming. The facility had been designed to substantiate the viability of LRCWF as an environmentally friendly way of producing electricity and hydrogen with virtually no CO2 release to, or other negative effects on, the environment.

The current study is designed to derive the same objective of proving the viability of the fuel without building a demonstration facility, and to date, the work has proven beneficial. The Company believes the final results will prove Silverado's Green Fuel to be an effective and low cost product that will in time provide the world with an inexpensive source of energy in an environmentally safe manner from a resource (low-rank coal) which is abundant throughout the world. This fuel could supply all U.S. energy needs from domestic supply for well over 300 years.

We believe our work from here on will draw considerable interest from industry.

On Behalf of the Board

Silverado Gold Mines Ltd.,

G. L. Anselmo, President, CEO & COO

About the Company

Silverado Gold Mines Ltd., a publicly traded company, is an exploration-stage enterprise focused on the exploration of gold properties with some past production. The Company has gold properties located throughout Alaska, which include a 100 percent (100%) interest in numerous mining claims located on the Nolan Creek property.

Forward Looking Statements

This news release may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are forward-looking statements are based on the current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates.

Such forward-looking statements involve risks and uncertainties regarding the market price of gold, availability of funds, government regulations, common share prices, operating costs, capital costs, outcomes of test mining activities and other factors. Forward-looking statement are made, without limitation, in relation to operating plans, property exploration activities, including test mining activities, availability of funds, environmental reclamation, operating costs and permit acquisition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", or "continue", and the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks detailed in the Company's filings with the Canadian Securities Authorities and the US SEC. These factors may cause the Company's actual results to differ materially from any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

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