Silver Predator Revises Springer Mining Lease

RENO, NV - Silver Predator Corp. executed a renegotiated Mining Lease and Option to Purchase Agreement (the Agreement) with Geological Services Inc. and Robert W. Schafer (the Vendors) on nine unpatented lode claims at its Springer Tungsten Mine and Mill property located in Pershing County, Nevada. This renegotiated agreement provides for a reduced royalty rate which will help the economics of the project.

The Mining Lease Agreement, which is subject to TSXV approval, requires advance royalty payments to the Vendors totaling US $500,000 over seven years, with annual payments of US $100,000 commencing on the eighth anniversary as well as share payments totaling 300,000 shares over the first four years. All payments are to be credited against future royalty obligations. Springer may purchase the Leased property for US $2,750,000, subject to a 1.5% NSR payable on all minerals, if paid prior to the 3rd anniversary. If paid after the 3rd anniversary but on or before the 5th anniversary, the payment will escalate to US $4,000,000. If the purchase Option is not exercised, the vendors will retain a sliding-scale net smelter royalty (NSR) of 2.0% to 4.0% on tungsten and a 2% NSR on all other minerals. The previous agreement provided for a sliding scale 3.0% - 5.0% retained NSR.

Silver Predator’s corporate mandate is to advance its Springer Tungsten Mine and Mill Complex in Nevada to production through a joint venture arrangement. A PEA completed on current resources of 355,000 Indicated tons at an average grade of 0.537% containing 190,635 STU's of WO3 and 1,933,600 Inferred tons at an average grade of 0.493% containing 952,326 STU's of WO3 indicates an IRR of 47% after tax with an estimated capex of 29.8 million dollars (1). The Springer facility was originally constructed and operated by General Electric Corp. in the late 1970╒s and early 1980╒s when the project was put on care and maintenance due to low tungsten prices. The mill was modernized by Golden Predator Corp. in 2007-2008. The facility could be production capable within 12 months of a capital commitment. Approximately $100 million dollars has cumulatively been invested by all companies in the construction and modernization of the mine and mill.

The Company also holds the Taylor silver-gold project in Nevada.