Mr. Scott Baxter reports

SNIPER UPDATE: PRIVATE PLACEMENT, CONSOLIDATION, DRILLING PLANNED

Sniper Resources Ltd. is proceeding with a non-brokered private placement of up to $600,000, comprising up to 12 million units at a price of five cents per unit. Each unit will consist of one common share and one share purchase warrant, with each share purchase warrant exercisable for a total term of five years at an exercise price of 10 cents per warrant share during the first two years and at an exercise price of 25 cents per warrant share for the subsequent three years.

The net proceeds from the private placement will be used for continued exploration on Sniper's Weepah gold project in Nevada. The placement is subject to regulatory approval. The directors of the company may participate in this placement. Commissions and/or finders' fees may be paid in connection with this placement.

Consolidation of issued capital

After seeking advice from the financial community and following consultations with Sniper's major shareholders, management has reached the conclusion and taken the decision that there will not be any consolidation of Sniper's issued capital in the foreseeable future.

Commentary

"In spite of the difficult financial markets faced by junior explorers, I have yet to hear any compelling case for consolidating our issued capital," said Sniper president and chief executive officer Scott Baxter. "Sniper's gold exploration properties in Nevada have the same exciting potential for future discovery and development that they have always had, and it is not acceptable to me, either as a shareholder or as part of Sniper's management team, to roll back shareholders just out of expediency. Therefore, there will be no consolidation of Sniper's issued capital in the foreseeable future. Like you, I have never experienced a time when exploration financing was so difficult to obtain, but, in my view, this confronts junior exploration companies with a stark but simple choice: they can hibernate and hope they survive to wake up after the fiscal winter or they can carry on in the face of financial adversity. I want Sniper to carry on, so we are proceeding with a private placement and are putting plans in place for a late-summer drill program on the Weepah gold property. Our senior shareholders have indicated a commitment to this plan, and I expect that management will subscribe for between 25 and 50 per cent of the total amount of the financing. I believe that the path forward for Sniper is to stick with what we do...we explore for gold. The company will not advance by sitting idly by hoping for better times. What will make tomorrow better for all of our shareholders is exploration and discovery, so that is what I propose to do!"

We seek Safe Harbor.