Mr. Michael Turko reports

GULF SHORES RESOURCES LTD.: LETTER OF INTENT AND PRIVATE PLACEMENT

Gulf Shores Resources Ltd. has entered into a non-binding letter of intent with a private arm's-length U.S. company to enter into a farm-out agreement to participate in the exploration and development of a certain 300,000-acre concession in northeast Slovakia.

The company is arranging a non-brokered private placement of $700,000 to be raised through the issuance of 14 million units at a price of five cents per unit. Each unit will comprise one common share and one-half of one common share purchase warrant. One whole warrant will entitle the holder to purchase one common share for a period of two years at a price of 6.5 cents per share. The warrants will be subject to an acceleration clause, such that in the event the closing price of the company's common shares on the exchange is equal to, or greater than, 15 cents per share for 20 consecutive trading days at any time following four months after the date of closing, the company may, by notice to the warrantholders, reduce the remaining exercise period of the warrants to not less than 30 days following the date of such notice.

The proceeds of the financing will be used for costs related to due diligence of the Slovakian concession and for general working capital purposes.

The private placement is subject to TSX Venture Exchange approval.

We seek Safe Harbor.