Silverado Announces Results of SEC Review

    VANCOUVER, Jan. 15 /CNW/ - Silverado Gold Mines Ltd. (the "Company" or
the "Silverado") SLGLF OTCBB, SLGL Frankfurt,, announces
that on January 8, 2009, the Company concluded that certain of its previously
issued financial statements should no longer be relied upon following the
Company's completion of an evaluation of select comments made by the
Securities and Exchange Commission ("SEC") during the course of the SEC's
review of the Company's Annual Report on Form 10-KSB for the year ended
November 30, 2007, which was filed with the SEC on February 28, 2008 (the
"Form 10-KSB") and with applicable Canadian securities regulators on February
29, 2008 as amended and refilled on August 1, 2008, and the Company's
Quarterly Report on Form 10-QSB for the quarterly period ended May 31, 2008,
which was filed with the SEC and applicable Canadian securities regulators on
July 15, 2008 (the "Q2 Form 10-QSB").
    Following correspondence and discussions with the SEC, the Company has
determined that the financial statements contained in the Form 10-KSB and the
Q2 Form 10-QSB should no longer be relied upon, and that by extension, the
financial statements contained in the Company's Quarterly Report on Form
10-QSB for the quarterly period ended February 29, 2008, filed with the SEC
and with applicable Canadian securities regulators on April 14, 2008 (the "Q1
Form 10-QSB"), and the Company's Quarterly Report on Form 10-QSB for the
quarterly period ended August 31, 2008, filed with the SEC on October 20, 2008
(the "Q3 Form 10-QSB") and with applicable Canadian securities regulators on
October 21, 2008, also should no longer be relied upon. The Form 10-KSB, the
Q1 Form 10-QSB, the Q2 Form 10-QSB, and the Q3 Form 10-QSB shall henceforth
collectively be referred to as the "Filings."
    The SEC's review resulted in the Company's adoption and implementation of
two changes to its accounting policies and procedures, which will be reflected
in restated financial statements contained in amendments to the Filings that
the Company will file with the SEC, and in future reports filed by the Company
with the SEC.
    First, the Company has adopted EITF 04-02, which will result in the
recognition of previously expensed mineral rights as an asset of the Company,
reflected in the Company's restated financial statements as a cumulative
diminution of loss of approximately $1,100,000 and the creation of a
$1,100,000 asset. Second, the Company will no longer value its gold inventory
in accordance with the fair value method outlined in ARB 43, Chapter 4,
Statement 9, but rather will value its gold inventory at a lower of cost or
market, with such gold inventory being relieved on a FIFO (first-in,
first-out) basis.
    An authorized officer of the Company has discussed the matters disclosed
herein with the Company's independent accounting firm. In addition, the
Company has prepared restated financial statements for each period covered by
the Filings, and has submitted such restated financial statements to the
Company's independent accountants for their review. Upon receiving
notification from the SEC that it has concluded its review of the Form 10-KSB
and the Q2 Form 10-QSB, and following completion of such restated financial
statements, the Company will promptly prepare and file amendments to each of
the Filings to include the corresponding restated financial statements and to
address the SEC's comments arising out of its review.


    The Company further announces that, on December 31, 2008, it completed a
private placement in the amount of US$70,000 by issuing an aggregate of
18,260,869 shares of the Company's restricted common stock at a price of
$0.00383 per share to two accredited investors. The distribution was effected
in accordance with Rule 506 of Regulation D of the United States Securities
Act of 1933.


    The Company further announces that in September 2008, the Company reduced
the exercise price of an aggregate of 21,166,671 of its common share purchase
warrants from US$0.07 to US$0.0125 per common share. All such warrants have
been exercised. The exercise price of such warrants was reduced for the
purpose of raising working capital and for general corporate purposes. When
available, this manner is used as opposed to a new financing in order to
minimize transaction costs.

    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, and the development of new environmentally friendly
low-rank coal water fuel technology. 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. The Company's wholly owned
subsidiary, Silverado Green Fuel Inc., is developing low-rank coal water fuel.
The fuel is designed to be produced from low-rank coal and processed into an
environmentally friendly oil substitute. For more information about Silverado
Gold Mines Ltd or Silverado Green Fuel Inc., please visit

    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
statements 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.

For further information:

For further information: Silverado Gold Mines Ltd, Mailing Address:
Suite 1820 - 1111 West Georgia St., Vancouver, BC, V6E 4M3, Canada, Email:
Investor Relations:, Public Relations:;
Telephone Numbers: Corporate: (604) 689-1535, Facsimile: (604) 682-3519, Toll
Free: 1-800-665-4646 (Canada and USA only); Trading Symbols: OTC BB - SLGLF

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890