VANCOUVER, BC, Canada, January 15, 2009. Silverado Gold Mines Ltd. (the "Company" or the "Silverado") SLGLF OTCBB, SLGL Frankfurt, www.silverado.com, 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.


COMPLETION OF PRIVATE PLACEMENT

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.


AMENDMENT TO EXERCISE PRICE OF WARRANTS

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 www.silverado.com.


Contact Information - Silverado Gold Mines Ltd

Mailing Address:
Suite 1820 - 1111 West Georgia St.
Vancouver, BC V6E 4M3
Canada

Email:
Investor Relations: ir@silverado.com
Public Relations: pr@silverado.com

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
FRANKFURT - SLG



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.

You can also view this News Release on our website at:
http://www.silverado.com/s/NewsReleases.asp?ReportID=334519