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Dear fellow shareholders:
I am writing this letter to report on our progress in creating shareholder value through exploration and discovery. Serengeti Resources is well advanced in its efforts to significantly expand the resources at our 100%-owned Kwanika project and to prove our theory that the property hosts one of the largest undeveloped copper-gold assets in North America. We have done this while conserving our working capital and protecting the Company's capital structure during trying times in global markets. In the midst of a period when many companies had to raise additional capital by selling equity at historically low levels, we maintained an excellent share structure with 46.0 million shares issued and outstanding or 51.6 million shares on a fully diluted basis.
Now that a recovery appears to be under way and investors are beginning to return, Serengeti has instituted a strategic plan to showcase the company and to demonstrate that there is significant unrecognized value in our property portfolio. A key element of the plan is to strengthen our investor relations efforts.
We have exhibited at a number of key trade shows, including Vancouver's Cambridge Resource Investment Show, AME BC's Cordilleran Roundup and, in March, at the Prospectors and Developers Association Convention in Toronto. Technical presentations were made by our geological team at the KEG Conference in Kamloop, the GAC Cordilleran Section in Vancouver, and Rock Talk in Smithers. We are scheduled to exhibit at Vancouver's World Resource Investment Conference in early June and welcome your visit to booth 414.
To complement attendance at these events we have engaged well-respected investor relations consultants in Toronto and in Germany, where we are listed for trading on the Frankfurt Exchange, in addition to our Venture listing in Canada. Our Canadian program is national in scope but has thus far focused on key investor communities in eastern Canada. This year to date we have presented to approximately 100 individual brokers, analysts and investors, many of whom were at two well attended luncheons in Montreal and Toronto. It is our intent to present in major financial centers to gain additional broker support and to enhance the liquidity of the Company's shares.
Another element of our marketing initiatives is to update our printed and on-line collateral materials. Please continue to visit our website as we will soon be releasing an updated version including a German micro-site to support growing Western European interest in Serengeti.
Our efforts to reach out to the investment community have produced some early results, including coverage from media and analysts. Please use this link https://www.serengetiresources.com/s/AnalystCoverage.asp to see the most recent additions including the quarterly Haywood Junior Exploration Report and Canaccord's Junior Mining Weekly.
The other important topic that I wanted to talk about in this letter is our exploration accomplishments and further plans for 2010. Serengeti started the year with an update of the resource estimate at our 100% owned Kwanika project. The resource estimate was incorporated into an NI 43-101 compliant independent technical report which was completed in March 2010 and filed on SEDAR, where it can be accessed at www.sedar.com or via our website at https://www.serengetiresources.com/i/pdf/Serengeti-Resources-NI-43-101.pdf
As you may know, aggregate mineral resources at Kwanika now total 1.1 billion pounds of copper and 1.6 million ounces of gold in the Indicated category plus 1.0 billion pounds of copper and 0.5 million ounces of gold in the Inferred category estimated at a 0.25% copper equivalent cut-off grade. The objective of the upcoming 10,000-meter drill program is to test for extensions of the copper-molybdenum-gold South Zone, and to add materially to the tonnes and grade of the existing resource. The two-drill program is scheduled to start in early June, with results to be released as they become available throughout the remainder of the year.
We are in the fortunate situation of having a strong working capital position of approximately $8.0 million that enables us to pursue these opportunities within our existing property portfolio or, potentially, to pursue new situations. Serengeti continues to review opportunities both in British Columbia and elsewhere in the Americas with a view to finding new projects or opportunities to increase shareholder value and to maintain the growth profile of the company.
Thank you for your support during the past year. I intend this to be the first of this year's ongoing series of communications aimed at keeping you informed about your Company. Please visit our website at www.serengetiresources.com, and we always welcome your calls and emails.
Yours truly,
/s/ David W. Moore
David W. Moore
President & CEO
SERENGETI RESOURCES INC.
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