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San Anton Resource Corp.

(TSX: SNN): FOLLOW-UP NO. 1 /
DECEMBER 10, 2008

Home page of SNN
Chart 2 years

SAN ANTON RESOURCE CORP.: RETURN ON CAD 20,000 INVESTMENT
Purchase Date No. of Shares Purchase Price Cost (CAD) Price Today Value Today
June 29, 2006 15'000 0.70 10'500.00    
December 4, 2008 250'000 0.04 10'000.00    
Total 265'000 0.08 20'500.00 0.07 18'550.00
Loss   -1'950.00
Loss (in %)   10%

SHARES OUTSTANDING / FULLY DILUTED MARKET CAP
105,195,691 / 132,005,362 CAD 4.7 Million
52 WEEK LOW / HIGH TSXV
CAD 0.03 to 0.95 76,800 (200-day) VERY LOW
RECOMMENDATION RISK RATING
BUY HIGHEST

CLOSE TO A 10 MILLION OUNCES GOLD EQUIVALENT RESOURCE IN GUANAJUATO STATE, MEXICO

Business Summary

San Anton Resource Corporation is an exploration and development company that is listed on the Toronto Stock Exchange and is totally focused on the mining friendly jurisdiction of Mexico.

The Company's principal asset is a 63% interest in the San Anton Property (Goldcorp 37%), which hosts the Cerro del Gallo gold-silver-copper deposit.

The Property is located in a historic gold-silver mining district and has only recently been subjected to modern exploration techniques. This work quickly identified several targets and has led to the delineation at Cerro del Gallo of a NI 43- 101 Mineral Resource of 4.5 million ounces of gold, 202 million ounces of silver and 1.4 billion pounds of copper.

The deposit remains open in several directions. Metallurgical test work and engineering studies are currently underway to complete a Pre-Feasibility Study and to advance the project towards a development stage.

Cerro del Gallo

Expansion Drilling and Regional Exploration

The Cerro del Gallo deposit remains open in several directions. Expansion drilling results continued to encounter wide intersections of mineralization which resulted in an expansion of the already significant mineral resource, primarily in the outer copper-silver domain.

The Company is also planning an extensive exploration program to determine if other deposits exist within the 10km² alteration halo that surrounds Cerro del Gallo. Three other large zones of clay alteration similar to Cerro del Gallo have yet to be tested.

Work has also commenced on some of the several other exploration targets elsewhere on the San Anton Property. The main target is the Carmen-Providencia vein system, a northnorthwest trending low sulphidation epithermal silver-gold system located approximately two kilometers west of Cerro del Gallo and traceable on surface for three kilometers.

First pass drilling designed to test the upper levels of the epithermal vein systems is now completed with encouraging results from the Dolores and Empalizada prospects including 4.6m grading 428g/t Ag and 3.52g/t Au, 1.5m grading 590g/t Ag and 3.40g/t Au, 7.6m grading 168g/t Ag and 1.51g/t Au, and 3.6m grading 359g/t Ag and 1.51g/t Au.

Ongoing regional reconnaissance exploration will continue with the assessment of the results from the soil, stream sediment and BLEG sampling programmes, combining this with the ongoing geological and structural mapping and the extensive remote sensing database already established for the project area.

Recent News: San Anton Announces Progress with Engineering Study at the Cerro del Gallo Project

John Cook, President & CEO, said that "We are very encouraged with the metallurgical results to date as the flotation test work indicates that copper can be recovered to a saleable grade concentrate from the Copper and Gold Zone material. At the same time, results from the leach test work indicate that gold is readily recoverable using a standard cyanide leach process, with good kinetics."

He added that "during the course of increasing the confidence in the resource estimate, to mainly measured and indicated categories, and with results from the preliminary metallurgical test work mentioned above, further opportunity has been identified to better understand and exploit this significant Copper-Gold-Silver resource of Cerro de Gallo."

John Cook, concluded "We believe that the company is well positioned to allow us to have a much better understanding of the deposit and the most profitable way to exploit it. We are confident that these additional months of work will result in defining a better approach to the successful development of the project and consequently its economic viability."

Fundamental Considerations

  • 9.6 Million Gold Equivalent Ounces correspond to a market capitalisation of less than $ 1 per ounce of gold. Recent takeover values have been in excess of $ 50 per ounce of gold.

  • Coeur d'Alene Mines (NYSE:CDE) has recently completed the purchase of Palmarejo for US$1.1 billion and paid more than $ 200 per Ounce of Gold (Au-Eq oz)

Technical Considerations

THE GOLD/SILVER RATIO HAS REACHED HISTROIC HIGH LEVELS. A DROP BACK TO MEDIUM LEVELS WOULD SUGGEST A SILVER PRICE OF $ 15.

THE TIMELESS PRECIOUS METAL FUND and THE SIERRA MADRE GOLD & SILVER VENTURE FUND are shareholders in the company and will benefit from any increase in the company's share price.

Universidad y Catedral de Guanajuato

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Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company's share price.

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.

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