Message from the CEO - J Paul Stevenson

I am pleased to report that Sego Resources continues to make excellent progress in the effort to define what is shaping up to be a large alkalic porphyry copper-gold system in the Afton-Copper Mountain trend at Miner Mountain. The project continues to yield excellent copper-gold intercepts from both drilling and trenching.

The high grade Regal slide has been the focus for exploration since the 1920s. Recent work for Sego, by Dr. Selina Tribe, an expert in quaternary geomorphology, has located the likely source of the slide. Trenching by Sego at the predicted source area has confirmed the presence of significant in situ copper-gold mineralization.

In the North and Miner zones, detailed geologic mapping along with Titan 24 Deep Penetrating IP have defined zones of alteration, mineralization with strong coincident copper-gold soil anomalies. These zones remain untested by trenching and drilling. Alkalic copper-gold porphyries traditionally occur in clusters (Mt. Polley, Galore Creek, Afton, Copper Mountain) and these unexplored zones could represent further deposits.

It is worth noting that Copper remains at historic highs and Gold continues to have record breaking highs, despite the trying economic times. The industrialization of the emerging world has been and will remain the dominant driver of the growth of the base metal resource sector, while the economic uncertainty in the developed world provides an incentive for investors to diversify into gold.

SEGO! Resources Overview

CEO J. Paul Stevenson has many years of experience in the mining industry and is a leader in aboriginal engagement in the resources sector. President Chris Sampson, P.Eng., has extensive experience in porphyry copper exploration and J. Allan Hilton is a well known mine finder and prospector. Shelley Hallock has extensive experience in corporate governance and a background in media. This team has worked together for 20 years. Previously, this team had operated Booker Gold Exploration (Currently Pacific Booker Minerals Inc.), and developed the Morrison – Hearne Hill Property copper gold porphyry from grassroots to Economic Assessment stage, resulting in a significant share price appreciation. Qualified Person Vic Preto, Ph.D. , P.Eng., is a recognized authority on the geology of the Nicola Belt and associated mineral deposits.

Sego is dedicated to involving all stakeholders in all phases of property development and to this end, it has fostered an excellent relationship with the local community and the Upper Similkameen Indian Band. To strengthen and develop this relationship, Sego has signed an Memorandum of Understanding with the Upper Similkameen Indian Band. Sego and the USIB also have a strong working relationship with USIB contractors and Sego jointly winning an award for their trenching and reclamation.

For the future Sego has planned a $2.5 million exploration budget of aggressive exploration designed to further expand and define the areas of known mineralization while discovering and expanding new zones. We are in the process of achieving financial resources and plan to begin exploration shortly.

Exploration by Sego on this property began just a few years ago and it has consistently produced encouraging results. We invite you to join us for the rest of the journey.

Alkalic Copper-Gold Porphyries

Alkalic copper-gold porphyries are commonly enriched in gold, silver and PGMs, but reduced in molybdenum. In contrast, calc-alkalic porphyries are commonly enriched in molybdenum, but not necessarily enriched in gold and silver, and not in PGMs. The common precious metal enrichment makes alkalic porphyries an attractive target for major mining companies. In British Columbia these include, Mitsubishi Materials Corporation, KGHM Polska Miedz, Imperial Metals, Goldfields and Teck Resources, all of whom are involved in exploration or developing alkalic porphyries in British Columbia.

British Columbia is uniquely enriched in alkalic porphyries, having over 1000 kilometres of prospective ground which hosts world class deposits and several operating mines. A short list of alkalic porphyries in BC includes Galore Creek, Red Chris, Afton, Mount Polley and Copper Mountain.

The region between Kamloops and Princeton, referred to as the Nicola Belt, is well known for its extensive copper-gold deposits and exploration is still ongoing. Notable deposits include New Afton (66 MT 1.01% Cu 0.77 G/T Au 2.59 G/T Ag), Ajax ( 449 MT 0.30% Cu 0.18 G/T Au), Copper Mountain (359.5 MT 0.37% Cu) Axe ( 37 MT 0.38% Cu), the Man-Prime ( 20 MT 0.5% Cu) and the Big Kidd breccia pipe (9 MT 0.15% Cu 0.33 G/T Au). Studies of the geology of the area have indicated that it is highly prospective for alkalic copper-gold porphyries.

The Miner Mountain Alkalic Porphyry Project is located at the southern end of the Nicola Belt, just 15 kilometres north of Copper Mountain. The town of Princeton is 10 minutes away on excellent roads and work can continue on the property year round. Sego’s exploration on the property thus far has defined 2 major zones of copper-gold mineralization, (the Granby and South zones) and a newly discovered zone between South and Granby which may prove to be the source area for the high grade slide material known as the Regal Zone. Studies done by Sego’s consultants indicate that the patterns of alteration and mineralization are of classic alkalic copper-gold porphyry type, similar to Afton and Copper Mountain.