Soho Resources Corp

SOHO RESOURCES CORP. (TSXV:SOH): NEW RECOMMENDATION / DECEMBER 22, 2010

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EXPLORATION IN THE STATE OF DURANGO, MEXICO

Business Summary

Soho Resources Corp. is a junior exploration and development company strategically focused on gold, silver and base metals in the prolific Sierra Madre Belt of Mexico.

The Company has been conducting an exploration and drilling program to expand and upgrade its resources at its flagship Tahuehueto Project in Durango State.

Projects

On October 4, 2010 Soho announced the results of a Preliminary Economic Assessment ("PEA") completed by Snowden Mining Industry Consultants Inc. Key findings from the report included:

• Potential mine life of greater than 10 years, with mill operating at full capacity from Year 2 to 8
• Potential mill feed over Life of Mine of 9.0 million tonnes with average grades of 1.64 g/t Au, 28 g/t Ag, 0.18% Cu, 0.87% Pb and 1.64% Zn.
• Cinco de Mayo underground operates over the whole mine life with a steady production rate at or near 300,000 tonnes per annum
• Creston open pit is mined from Years 1 to 8
• El Rey and Creston underground operations commence in Year 6
• A substantial spike in the gold grade during Year 2 of 3.5 g/t

NI 43-101 ROSOURCE HIGHLIGHTS

Jocuixtita

The Jocuixtita Silver Project is located approximately 120 kilometres northeast of Mazatlan, in the State of Sinaloa. Access to the property is via highway between Mazatlan and Culiacan except for the last 67 kilometres which is over gravel road.

Soho's 100% owned subsidiary, Samarkand de Mexico, S.A. de C.V. has entered into two option agreements to explore and acquire 100% of five mining concessions occupying 1,668 hectares. In addition, Samarkand has staked additional concessions covering 2,664 hectares which surround the optioned concessions. All of the concessions cover a cumulative area of 4,332 hectares.

In order to maintain the right to explore and exercise the above options, Samarkand must make cumulative payments totalling US$1,000,000 over six years. Up to a maximum of US$372,666 of the option payments may be made by payment of Soho shares.

The Jocuixtita property hosts a number of northwest and cross cutting northeast trending epithermal vein structures mineralized with silver, gold, lead, copper and zinc.

The Jocuixtita property has not been explored using modern exploration methods.

The main mines within the project have been historically mined on a very small scale by previous owners. The principle structure hosting the El Carmen - La Salvadora - El Eden historic mine workings has been traced over a minimum of 3 kilometres of strike length. During a due diligence site visit, the Company observed exposed mineralised zones within this principle structure ranging from four to ten metres in width.

Recent News: SOHO RESOURCES CORP. ANNOUNCES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR CURRENT RESOURCE IDENTIFIED ON ITS TAHUEHUETO PROJECT

Mr. Ralph Shearing, President and CEO of the Company states "The delivery of these robust Preliminary Economic Assessment numbers is one of the most significant milestones in the history of the Company and clearly demonstrates the potential economic viability of the Tahuehueto Project. It is important to note that this economic assessment was calculated from the resource as outlined in the most recent 2009, NI 43-101 compliant mineral resource.

Very significant upside exploration potential exists within the unexplored portions of the current resource structures, both along strike and down dip, as well as in the many other separate mineralized structures known to occur, but yet unexplored, within the project concessions.

Additional upside potential is also contained within the difference between the three-year rolling average metal prices used in the PEA and the current strong precious metal prices for gold and silver.

There is very little doubt in my mind that with additional exploration and development the projected 11 year mine life outlined in the PEA could be dramatically extended.

Fundamental Considerations

BASED ON THE NI 43 101 AND THE PRELIMINARY ECONOMIC ASSESSMENT NUMBERS, SOHO IS IN POSESSION OF A SIGNIFICANT RESOURCE AS FOLLOWS:

• GOLD: 664,919 oz 1.69 g/t MARKET VALUE: USD 917 MILLION
• SILVER: 13,266,873 oz 33.7 g/t MARKET VALUE: USD 384 MILLION
• COPPER: 70,022,583 lbs 0.26% MARKET VALUE: USD 290 MILLION
• LEAD: 304,742,511 lbs 1.13% MARKET VALUE: USD 332 MILLION
• ZINC: 569,196,037 lbs 2.11% MARKET VALUE: USD 591 MILLION

THE TOTAL MARKET VALUE OF ALL METALS, OF WHICH 36% IS GOLD, 15% SILVER, 12% COPPER, 13% LEAD AND 24% ZINC, AMOUNTS TO USD 2.5 BILLION.

USD 2.5 BILLION IS THE EQUIVALENT OF 1.8 MILLION OUNCES OF GOLD.

SOHO RESOURCES, HOWEVER, HAS A MARKET CAP EQUALLING LESS THAN USD 10 / OUNCE OF AUEQ WHICH PUTS THE VALUATION OF THE COMPANY WELL BELOW COMPARABLE COMPANIES ESPECIALLY TAKING THE FINDINGS OF THE PEA REPORT INTO CONSIDERATION.

AS THE COMPANY PROGRESSES TOWARDS FINANCING THE PROJECT, THE TRUE VALUE OF THE COMPANY WILL BE REFLECTED IN THE SHARE PRICE.

Technical Considerations

Gold shares in times of economic turn-down or depression have proven to be an excellent way of preserving your savings, contrary to the S&P 100.

OVER THE LONG-TERM GOLD-SHARES TEND TO OUTPERFORM GOLD BY A FACTOR BETWEEN TWO AND THREE. THIS HAS NOT BEEN THE CASE SINCE 2007 BECAUSE OF THE FINANCIAL CRISIS.

GOLD-SHARES HAVE STARTED TO CORRECT THIS ANOMALY AND WE EXPECT THAT THE HUI-INDEX WILL REACH A LEVEL OF 700 POINTS IN THE COMING MONTHS.

THE HUI GOLD BUGS INDEX INCREASED 30% IN 2010 WHILE THE NAV OF THE SIERRA MADRE GOLD & SILVER VENTURE CAPITAL FUND JUMPED 80%.

Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so.

Disclaimer: The author's objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information nor the opinions expressed should be construed as a solicitation to buy or sell this stock.

Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock - or to use their own brains.

In our opinion, the best approach is to buy a diversified portfolio of stocks as represented in THE TIMELESS PRECIOUS METAL FUND or THE SIERRA MADRE GOLD & SILVER VENTURE CAPITAL FUND instead of shares of only a small number of companies.