Mr. Ronald Coombes reports

PROVIDENCE GOLD MINES INC. LA DAMA DE ORO GOLD UPDATE

Providence Gold Mines Inc. has completed the first stage of its comprehensive stockpile and underground sampling of La Dama de Oro gold and silver property, located southeast of Ontario, Calif. The sampling was overseen and delivered to the lab by Providence's California-registered geologist, Mark Payne, PGeo No. 7067, under the guidance of the company's qualified person under National Instrument 43-101, Dr. Lee Groat.

This first phase of sampling was designed to evaluate the best potential for the company's planned 1,000-ton (909-tonne) permitted bulk sample. This initial phase of sampling included the following:

• 121 feet (37 metres) of continuous trench sampling across three unprocessed rock piles at the 4,300-foot level (1,310-metre level) of the Mojave Girl vein workings;
• Channel samples were collected at intervals across the full 180-foot (55-metre) width of the Mojave Girl vein at the 4,180-foot level (1,275-metre level), the lowest level of mining, to test the downdip extension of the historic high-grade ore chute.

The company is excited and very optimistic about the potential of the visible lode zones of the accessible underground stopes at La Dama de Oro. The accessed underground lode zones appear to have similar characteristics to other known orogenic-type gold-quartz vein systems such as those of the Mother Lode gold belt mines of northern California.

An underexplored system of both east-west- and north-south-trending gold-quartz lodes is evident at La Dama De Oro property. Historic high-grade gold production was derived from three separate east-west-striking lodes, the Mojave Girl, Tarantula and Mojave Boy veins. The Tarantula, Mojave Boy and strike extensions of the Mojave Girl lode have not yet been evaluated by the Providence team. The north-south-trending lodes were not systematically prospected or developed in the past. They are strongly mineralized and remain excellent exploration targets, particularly at locations where they project to intersect or join the productive east-west-striking lodes. In addition to the above, a zone of sheeted vein stockworks with visible mineralization was discovered on the adjoining mountainside. Further work is being planned to determine the significance of the new discovery.

The samples have been delivered to American Assay Labs of Sparks, Nev., for either 1,000-gram screened metallic fire assay and/or 30-gram conventional fire assay analyses. The expected turnaround time for analytical results is fewer than three weeks.

The property

La Dama de Oro gold property is a historic high-grade gold producer. Permits are in hand for water, roads, environment, mill site, operations plan and a 1,000-ton bulk sample. Currently, the property has had no drilling and is currently undergoing modern-day scientific exploration, which provides an excellent untapped opportunity to identify National Instrument 43-101-compliant resources.

The largest mined vein (Mojave Girl) is five ft at its widest point, and remains open both downdip and for over 6,000 ft along strike. The gold system has potential not only within La Dama de Oro, Tarantula and other known veins but also within additional discoveries.

We seek Safe Harbor.