Mr. William Jorgenson reports

HI HO SILVER - ITOCO MAJOR VENTURE AGREEMENT SIGNED

Hi Ho Silver Resources Inc. has signed an agreement with Itoco Mining Corp. of Toronto, Canada, whereby Itoco will acquire the Norbeau earn-in agreement from Hi Ho. Itoco will assume all obligations under the earn-in agreement, and finance exploration and development of the property. Hi Ho will retain a 5-per-cent net profits interest in the historical gold-producing Norbeau mine property, located in Chibougamau, northwestern Quebec, Canada.

Itoco will arrange a private placement of one million units consisting of one share at 10 cents and one purchase warrant exercisable at 30 cents for a period of two years. Itoco will arrange a second placement on the same terms on a best-efforts basis following closing of this initial transaction.

Concurrent with this transaction, Itoco will issue four million shares of its common stock to Hi Ho, and Hi Ho will issue four million shares of its common stock to Itoco.

Itoco will have the right to appoint one board member to the Hi Ho board of directors. The agreement and board representation will be ratified at the upcoming annual meeting of Hi Ho.

William Jorgenson has been appointed chief executive officer and chairman of the board of Hi Ho Silver Resources. Gary Jorgenson has been appointed vice-president of Hi Ho Silver Resources.