Mr. John Carter reports

SILVER BULLET MINES ANNOUNCES SECOND SHIPMENT OF COMMERCIAL GOLD/SILVER CONCENTRATE

The first batch of what Silver Bullet Mines Corp. believes to be high-grade gold/silver concentrates, processed from surface material taken from the KT gold mine in Arizona, was received by the buyer on Oct. 29. This shipment comprised roughly 4,000 pounds of concentrate from the KT gold mine.

This first shipment also included 2,000 pounds of concentrate processed from material taken from the SC mine in Arizona.

Silver Bullet announces a second shipment of gold/silver concentrates processed from surface material taken from the KT gold mine in Arizona is scheduled to be picked up this week at the company's mill site in Globe, Ariz. This second shipment consists of roughly 2,500 pounds of concentrate.

The company has begun processing further surface material from the KT gold mine to support a third shipment of concentrate. The company intends to continue processing material from the KT gold mine in amounts sufficient to make additional shipments on as close to a biweekly schedule as possible, with each shipment intended to range from roughly 2,500 pounds to roughly 4,000 pounds of concentrate.

As to the grade of such concentrates, the company is awaiting the buyer's comparative assay results so the company and the buyer can agree upon the precise value of such shipments.

Pursuant to the terms of agreement with the buyer, on initial shipments, payment to Silver Bullet will be made 60 days from date of receipt at the refinery. The company is negotiating payment terms for subsequent shipments.

With respect to the concentrate produced from the SC mine, Silver Bullet announces it has finally received the initial assay results from the independent lab. Extremely positive for the company is that all of the concentrate samples tested returned values over the detection limits, which means the results were higher than the highest numbers in the lab's testing standards. Additional samples need be provided to the lab so that different tests can be run to determine with greater precision the contents of the concentrate. At this time, the company sees greater value in concentrate produced from material taken from the KT mine, and will not be directing significant resources to produce additional concentrate from SC mine material. The SC mine is being maintained in good standing and will be revisited at an appropriate time.

As a result of queries from a number of investors, Silver Bullet would like to provide clarification of its processes and determination of the amount of concentrates it produces for shipment.

The company strives to produce the highest grades possible for each ton of concentrate shipped. By doing so, it avoids additional extra refining and smelting fees along with additional transportation and handling costs. The concentration ratio of the input (initial host rock) to the output (concentrate) is different for each mine. The company does not yet have enough data to advise what it believes the concentration ratio could be for the KT mine.

Mineralized material from the mines is processed through the company's mill using gravitational processes which cause metal with a higher specific gravity (like gold and silver) to separate from the host material within which it is contained. The output from that process is mineral concentrate (gold or silver in Silver Bullet's case). The important factor is not the number of tons of concentrates but the grade of the material in the original host material.

Using an example set, it may make this easier to understand. Any of the numbers in this analysis is not to be considered in any way to be representative of actual tonnage or grade. They are for illustrative purposes only.

Assume 100 tons of original mineralized material from the KT mine contained a head grade of 0.3 ounce of gold per ton. This would mean there are 30 ounces of gold in the 100 tons of original mineralized material. Also assume a 90-per-cent recovery rate. Using these assumptions and processing that material at the company's mill, the milling process would result in the concentrate containing 90 per cent of the 30 ounces in the original mineralized material, or 27 ounces residing in approximately 500 pounds of concentrate. Extrapolating this hypothetical example would result in 108 ounces of gold in one ton of concentrate.

Silver Bullet reiterates that it is important to keep in mind the key factor is not the number of tons of concentrate produced. Rather, the key factor is the gold grade in the original host material and thus the gold grade in the concentrate.

The company reiterates that the figures are for demonstration purposes only, should not be used as an indication of head grade or potential cash receivable, and are extremely simplistic for the complex field of metallurgy.

Silver Bullet trusts this helps explain the mill process in Arizona and provides clarity to that process.

Silver Bullet also announces John MacKenzie has rejoined the board of directors. Mr. MacKenzie is an experienced chief executive officer, chief financial officer and director with a demonstrated history of working in the mining and metal industry. He is skilled in operations management and governance and, as a chartered accountant, is financially literate. He is a life member of CPA Ontario. He will join the company's audit committee.

The company also announces it has issued 258,675 shares as payment of interest pursuant to the previously announced terms of outstanding debentures.

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